0001317945 2026-01-01 2026-06-30 0001317945 2026-07-31 0001317945 2026-06-30 0001317945 2025-12-31 0001317945 2026-04-01 2026-06-30 0001317945 2025-04-01 2025-06-30 0001317945 2025-01-01 2025-06-30 0001317945 us-gaap:CommonStockMember 2026-03-31 0001317945 us-gaap:TreasuryStockCommonMember 2026-03-31 0001317945 us-gaap:AdditionalPaidInCapitalMember 2026-03-31 0001317945 us-gaap:RetainedEarningsMember 2026-03-31 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2026-03-31 0001317945 us-gaap:NoncontrollingInterestMember 2026-03-31 0001317945 2026-03-31 0001317945 us-gaap:CommonStockMember 2025-03-31 0001317945 us-gaap:TreasuryStockCommonMember 2025-03-31 0001317945 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001317945 us-gaap:RetainedEarningsMember 2025-03-31 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2025-03-31 0001317945 us-gaap:NoncontrollingInterestMember 2025-03-31 0001317945 2025-03-31 0001317945 us-gaap:CommonStockMember 2025-12-31 0001317945 us-gaap:TreasuryStockCommonMember 2025-12-31 0001317945 us-gaap:AdditionalPaidInCapitalMember 2025-12-31 0001317945 us-gaap:RetainedEarningsMember 2025-12-31 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2025-12-31 0001317945 us-gaap:NoncontrollingInterestMember 2025-12-31 0001317945 us-gaap:CommonStockMember 2024-12-31 0001317945 us-gaap:TreasuryStockCommonMember 2024-12-31 0001317945 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001317945 us-gaap:RetainedEarningsMember 2024-12-31 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2024-12-31 0001317945 us-gaap:NoncontrollingInterestMember 2024-12-31 0001317945 2024-12-31 0001317945 us-gaap:CommonStockMember 2026-04-01 2026-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2026-04-01 2026-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2026-04-01 2026-06-30 0001317945 us-gaap:RetainedEarningsMember 2026-04-01 2026-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2026-04-01 2026-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2026-04-01 2026-06-30 0001317945 us-gaap:CommonStockMember 2025-04-01 2025-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2025-04-01 2025-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2025-04-01 2025-06-30 0001317945 us-gaap:RetainedEarningsMember 2025-04-01 2025-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2025-04-01 2025-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2025-04-01 2025-06-30 0001317945 us-gaap:CommonStockMember 2026-01-01 2026-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2026-01-01 2026-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2026-01-01 2026-06-30 0001317945 us-gaap:RetainedEarningsMember 2026-01-01 2026-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2026-01-01 2026-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2026-01-01 2026-06-30 0001317945 us-gaap:CommonStockMember 2025-01-01 2025-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2025-01-01 2025-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-06-30 0001317945 us-gaap:RetainedEarningsMember 2025-01-01 2025-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2025-01-01 2025-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2025-01-01 2025-06-30 0001317945 us-gaap:CommonStockMember 2026-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2026-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2026-06-30 0001317945 us-gaap:RetainedEarningsMember 2026-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2026-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2026-06-30 0001317945 us-gaap:CommonStockMember 2025-06-30 0001317945 us-gaap:TreasuryStockCommonMember 2025-06-30 0001317945 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0001317945 us-gaap:RetainedEarningsMember 2025-06-30 0001317945 OFLX:AccumulatedOtherComprehensiveIncomeLossMember 2025-06-30 0001317945 us-gaap:NoncontrollingInterestMember 2025-06-30 0001317945 2025-06-30 0001317945 2025-01-01 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember us-gaap:CommonStockMember OFLX:FlexTracIncMember 2024-01-01 2024-12-31 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember us-gaap:CommonStockMember OFLX:FlexTracIncMember 2024-12-31 0001317945 us-gaap:RestrictedStockMember OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2025-01-02 2025-01-02 0001317945 us-gaap:RestrictedStockMember OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2025-01-02 0001317945 srt:MinimumMember 2026-01-01 2026-06-30 0001317945 srt:MaximumMember 2026-01-01 2026-06-30 0001317945 OFLX:LoanAgreementMember 2023-07-03 0001317945 OFLX:LoanAgreementMember 2023-07-02 2023-07-03 0001317945 srt:MaximumMember us-gaap:InsuranceClaimsMember 2026-06-30 0001317945 OFLX:PhantomStockPlanMember 2026-01-01 2026-06-30 0001317945 2026-02-01 2026-02-28 0001317945 OFLX:FullValueUnitsMember 2026-02-01 2026-02-28 0001317945 OFLX:PhantomStockPlanMember 2025-01-01 2025-06-30 0001317945 OFLX:PhantomStockPlanMember 2026-04-01 2026-06-30 0001317945 OFLX:PhantomStockPlanMember 2025-04-01 2025-06-30 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2025-01-02 2025-01-02 0001317945 us-gaap:PhantomShareUnitsPSUsMember 2026-01-01 2026-06-30 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2026-01-01 2026-06-30 0001317945 us-gaap:PhantomShareUnitsPSUsMember 2025-12-31 0001317945 us-gaap:PhantomShareUnitsPSUsMember 2026-06-30 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2025-12-31 0001317945 OFLX:TwoThousandTwentyFiveEquityIncentivePlanMember 2026-06-30 0001317945 OFLX:BanburyMember 2026-01-01 2026-06-30 0001317945 OFLX:O2026Q2DividendsMember 2026-06-09 2026-06-09 0001317945 OFLX:O2026Q2DividendsMember 2026-06-09 0001317945 OFLX:O2026Q2DividendsMember 2026-07-07 2026-07-07 0001317945 OFLX:O2026Q2DividendsMember 2026-07-07 0001317945 OFLX:O2026Q1DividendsMember 2026-03-24 2026-03-24 0001317945 OFLX:O2026Q1DividendsMember 2026-03-24 0001317945 OFLX:O2026Q1DividendsMember 2026-04-21 2026-04-21 0001317945 OFLX:O2026Q1DividendsMember 2026-04-21 0001317945 OFLX:O2025Q4DividendsMember 2025-12-05 2025-12-05 0001317945 OFLX:O2025Q4DividendsMember 2025-12-05 0001317945 OFLX:O2025Q4DividendsMember 2026-01-07 2026-01-07 0001317945 OFLX:O2025Q4DividendsMember 2026-01-07 0001317945 OFLX:O2025Q3DividendsMember 2025-09-12 2025-09-12 0001317945 OFLX:O2025Q3DividendsMember 2025-09-12 0001317945 OFLX:O2025Q3DividendsMember 2025-10-08 2025-10-08 0001317945 OFLX:O2025Q3DividendsMember 2025-10-08 0001317945 OFLX:O2025Q2DividendsMember 2025-06-17 2025-06-17 0001317945 OFLX:O2025Q2DividendsMember 2025-06-17 0001317945 OFLX:O2025Q2DividendsMember 2025-07-10 2025-07-10 0001317945 OFLX:O2025Q2DividendsMember 2025-07-10 0001317945 OFLX:O2025Q1DividendsMember 2025-03-25 2025-03-25 0001317945 OFLX:O2025Q1DividendsMember 2025-03-25 0001317945 OFLX:O2025Q1DividendsMember 2025-04-22 2025-04-22 0001317945 OFLX:O2025Q1DividendsMember 2025-04-22 0001317945 OFLX:O2024Q4DividendsMember 2024-12-05 2024-12-05 0001317945 OFLX:O2024Q4DividendsMember 2024-12-05 0001317945 OFLX:O2024Q4DividendsMember 2025-01-07 2025-01-07 0001317945 OFLX:O2024Q4DividendsMember 2025-01-07 iso4217:USD shares iso4217:USD shares pure false --12-31 Q2 0001317945

10-Q true 2026-06-30 2026 false 000-51372 Omega Flex, Inc. PA 23-1948942 451 Creamery Way Exton PA 19341 (610) 524-7272 Not Applicable Common stock, par value $0.01 per share OFLX NASDAQ Yes Yes Non-accelerated Filer true false false 10094322

47905000

53226000

646000

857000

14441000

13665000

14728000

13397000

1671000

2727000

78745000

83015000

4222000

4437000

10361000

10163000

3526000

872000

595000

2946000

3218000

100672000

104954000

2988000

2528000

808000

1566000

2969000

3520000

3431000

748000

771000

3045000

4142000

13989000

15958000

3790000

3986000

426000

422000

682000

580000

18887000

20946000

0.01

20000000

10153633

10094322

102000

1000

11046000

11039000

71867000

73979000

-915000

-933000

82099000

84186000

-314000

-178000

81785000

84008000

100672000

104954000

24057000

25525000

47150000

48855000

10836000

10103000

20844000

19361000

13221000

15422000

26306000

29494000

5411000

5217000

10905000

10218000

3464000

4133000

7232000

8024000

1293000 1350000 2805000 2480000

3053000

4722000

5364000

8772000

428000

493000

884000

1004000

7000

229000

-86000

312000

3488000

5444000

6162000

10088000

876000

1341000

1546000

2465000

2612000

4103000

4616000

7623000

-63000

-53000

-136000

-101000

2675000

4156000

4752000

7724000

0.27

0.41

0.47

0.77

0.34

0.68

10094

2612000

4103000

4616000

7623000

-11000

11000

18000

17000

-11000

11000

18000

17000

2601000

4114000

4634000

7640000

-64000

-53000

-136000

-101000

2665000

4167000

4770000

7741000

10094322

102000

-1000

11043000

72623000

-905000

-250000

82612000

2675000

-63000

2612000

-10000

-1000

-11000

3000

3431000

10094322

102000

-1000

11046000

71867000

-915000

-314000

81785000

10094322

102000

-1000

11025000

73016000

-886000

19000

83275000

4156000

-53000

4103000

11000

7000

3432000

10094322

102000

-1000

11032000

73740000

-875000

-34000

83964000

10094322

102000

-1000

11039000

73979000

-933000

-178000

84008000

4752000

-136000

4616000

18000

7000

6864000

10094322

102000

-1000

11046000

71867000

-915000

-314000

81785000

10094322

102000

-1000

11025000

72880000

-892000

67000

83181000

7724000

-101000

7623000

17000

7000

6864000

10094322

102000

-1000

11032000

73740000

-875000

-34000

83964000

4616000

7623000

218000

60000

-383000

-351000

683000

682000

-210000

-57000

-273000

-68000

-42000

-233000

575000

-1234000

1310000

-449000

-1325000

-1168000

465000

-619000

-758000

-1057000

-552000

-873000

-388000

-354000

-1205000

-1293000

2377000

7013000

885000

996000

-885000

-996000

6864000

-6864000

-5372000

-847000

51000

-118000

53226000

51699000

47905000

50734000

1403000

3800000

6864000 6864000 46000

1. BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Omega Flex, Inc., and its subsidiaries (collectively the “Company”). The Company’s Condensed Consolidated Financial Statements for the quarter ended June 30, 2026 have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), and with the instructions of Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”). All material intercompany accounts and transactions have been eliminated in consolidation. It is management’s opinion that all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments are of a normal recurring nature, or a description is provided for any adjustments that are not of a normal recurring nature. Description of Business The Company is a leading manufacturer of flexible metal hose, which is used in a variety of applications to carry gases and liquids within their particular applications. The Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose and accessories. These applications include carrying fuel gases within residential and commercial buildings; gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks, which is used in automotive and marina refueling, and fueling for back-up generation; and medical gases in health care facilities. The Company’s flexible metal piping is also used to carry other types of gases and fluids in a number of industrial applications where the customer requires the piping to have both a degree of flexibility and/or an ability to carry corrosive compounds or mixtures, or to carry at both very high and very low (cryogenic) temperatures. The Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania and Houston, Texas, in the United States (U.S.), and in Banbury, Oxfordshire in the United Kingdom (U.K.), and sells its products through distributors, wholesalers and to original equipment manufacturers (OEMs) throughout North America, and in certain European markets.

2. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management develops, and changes periodically, these estimates and assumptions based on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates. Revenue Recognition The Company applies the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The principle of Topic 606 is achieved through applying the following five-step approach: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identification of the contract, or contracts, with a customer — a contract with a customer exists when the Company enters into an enforceable contract with a customer, typically a purchase order initiated by the customer, that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identification of the performance obligations in the contract — performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are distinct, whereby the customer can benefit from the goods on their own or together with other resources that are readily available from third parties or from us. Persuasive evidence of an arrangement for the sale of product must exist. The Company ships products in accordance with the purchase order and standard terms as reflected within the Company’s order acknowledgments and sales invoices.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Determination of the transaction price —the transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods to the customer. This would be the agreed upon quantity and price per product type in accordance with the customer purchase order, which is aligned with the Company’s internally approved pricing guidelines.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Allocation of the transaction price to the performance obligations in the contract — if the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. This applies to the Company as there is only one performance obligation to ship the goods.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Recognition of revenue when, or as, the Company satisfies a performance obligation — the Company satisfies performance obligations at a point in time when control of the goods transfers to the customer. Determining the point in time when control transfers requires judgment. Indicators considered in determining whether the customer has obtained control of a good include:</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company has a present right to payment</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has legal title to the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company has transferred physical possession of the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has the significant risks and rewards of ownership of the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has accepted the goods</td></tr></table> It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g., items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Contract Costs - costs to obtain a contract (e.g. customer purchase order) include sales commissions. Under Topic 606, these costs may be expensed as incurred for contracts with a duration of one year or less. The majority of the Company’s customer purchase orders are fulfilled (e.g. goods are shipped) within two days of receipt.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Warranties - the Company does not offer a warranty as a separate component for customers to purchase. A warranty is generally included with each purchase, providing assurance that the goods comply with agreed-upon specifications, and the cost is therefore accrued accordingly, but contracts do not include any requirement for additional distinct services. Therefore, there is not a separate performance obligation, and there is no impact of warranties under Topic 606 upon the financial reporting of the Company.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Returned Goods - from time to time, the Company provides authorization to customers to return goods. If deemed to be material, the Company would record a “right of return” asset for the cost of the returned goods which would reduce cost of sales.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Volume Rebates (Promotional Incentives) - volume rebates are variable (dependent upon the volume of goods purchased by our eligible customers) and, under Topic 606, must be estimated and recognized as a reduction of revenue as performance obligations are satisfied (e.g. upon shipment of goods). Also under Topic 606, to ensure that the related revenue recognized would not be probable of a significant reversal, the four following factors are considered:</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The amount of consideration is highly susceptible to factors outside the Company’s influence.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The uncertainty about the amount of consideration is not expected to be resolved for a long period of time.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company’s experience with similar types of contracts is limited.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The contract has a large number and broad range of possible consideration amounts.</td></tr></table> If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Accounts receivable, net of allowances, was $14,381,000 as of January 1, 2025. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated in this Note 2, Significant Accounting Policies, under the caption “Significant Concentrations”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole. Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes, and bonds, and/or repurchase agreements, backed by such obligations, and in U.S. Treasury bills and certificates of deposit. Carrying value approximates fair value except for U.S. Treasury bills and certificates of deposit where amortized cost approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying their assets on a regular basis and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances and believes its credit risk to be minimal. Accounts Receivable and Provision for Credit Losses All accounts receivable is stated at amortized cost, net of allowances for credit losses, and adjusted for any write-offs. The Company maintains allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in its receivable portfolio. For accounts receivable, the Company uses historical loss experience rates and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, operating profit. The allowances consider numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. The reserve for credit losses, which include future credits, discounts, and doubtful accounts, was $646,000 and $857,000 as of June 30, 2026 and December 31, 2025, respectively. Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly. Property and Equipment Property and equipment are initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized. Goodwill In accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, using the simplified method as adopted, the Company performed an annual impairment test as of December 31, 2025. This analysis did not indicate any impairment of goodwill. Stock Based Compensation Plans Phantom Stock Plan In 2006, the Company adopted a Phantom Stock Plan (the “Phantom Plan”), which allows the Company to grant phantom stock units (“Units”) to certain key employees, officers, or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock and are accordingly recorded as liabilities. The Units follow a vesting schedule over three years from the grant date and are then paid upon maturity. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. The liabilities for the Units are adjusted to market value over time from the grant dates to the related maturity dates. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Units in the period the Units are forfeited. The Phantom Plan has been amended and restated, for all grants made starting January 1, 2023, to set the vesting method to three-year cliff vesting following the grant date, with payment upon maturity. Additionally, for grants made starting January 1, 2023, upon retirement at age 67 or greater, and with one year of continuous service prior to retirement, vesting of the issued grant(s) would accelerate on a pro-rata basis, 1/3 per year from the grant date. Equity Incentive Plan In 2024, the Flex-Trac, Inc. 2025 Equity Incentive Plan (the “Equity Incentive Plan”) was adopted to provide directors, officers, employees, contractors and consultants of Flex-Trac, Inc. or its affiliates an equity-based incentive to maintain and enhance the performance and profitability of Flex-Trac, Inc. Subject to adjustment as provided in the Equity Incentive Plan, up to <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240101__20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zkChVJX087Ag" title="Number of shares of common stock">818,458 shares of the common stock, par value $<span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_ziawOCSfI7eg" title="Common stock, par value per share">0.01 per share, of Flex-Trac, Inc. (“FTI Common Stock”), or <span id="xdx_902_ecustom--FullyDilutedCommonStockPercentage_iI_pid_dp_uPure_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zGs8M1MFyEQi" title="Fully diluted common stock percentage">7.5% of the fully-diluted shares of FTI Common Stock, may be issued pursuant to the Equity Incentive Plan with respect to awards. On January 2, 2025, <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20250102__20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zWnVnBd7p3z4" title="Number of shares of restricted stock">420,000 shares of restricted stock in the aggregate, or <span id="xdx_90E_ecustom--CommonStockSharesGrantedPercentage_iI_pid_dp_uPure_c20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zDG9sG3lOLuj" title="Common stock, shares granted percentage">4% of the shares of FTI Common Stock, were granted and issued to certain eligible participants under the Equity Incentive Plan (the “Awards”). The Awards cliff vest after eight years of continuous service or earlier upon the grantee’s death, disability or retirement, or a change of control, as defined and further described in the Equity Incentive Plan. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company values the Awards at fair value at grant date and recognizes compensation expense over the vesting period. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Awards in the period the Awards are forfeited. Further details of the Phantom Plan and Equity Incentive Plan are provided in Note 7, Stock Based Compensation Plans, to the Condensed Consolidated Financial Statements included in this report. Product Liability Reserves Except for most product liability claims made for its yellow-jacketed TracPipe® CSST on or after September 1, 2025, for which the Company decided to self-insure (the “Self-Insured Claims”), product liability reserves represent the estimated unpaid amounts under the Company’s insurance policy deductibles or self-insured retention limits (or “retentions”), with respect to existing claims. The Company uses the most current available data to estimate claims. As explained more fully under Note 6, Commitments and Contingencies, to the Condensed Consolidated Financial Statements included in this report, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its insurance policy retentions, ranging primarily from $250,000 to $3,000,000 per claim, depending on the terms of the policy and the applicable policy year, up to an aggregate amount. The Company is vigorously defending against all known claims. There are no open Self-Insured Claims as of June 30, 2026 and December 31, 2025. Leases The Company applies the requirements of FASB ASC Topic 842, Leases which defines a lease as any contract that conveys the right to use a specific asset for a period of time in exchange for consideration. Leases are classified as a finance lease, formerly called a capital lease, if any of the following criteria are met: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">1.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">2.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">3.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease term is for the major part of the remaining economic life of the underlying asset.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">4.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The present value of the sum of lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">5.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.</td></tr></table> For any leases that do not meet the criteria identified above for finance leases, the Company treats such leases as operating leases. As of June 30, 2026 and December 31, 2025, each of the Company’s leases is classified as an operating lease. Both finance and operating leases are reflected on the balance sheet as lease or “right-of-use” assets and lease liabilities. There are some exceptions which the Company has elected in its accounting policies. For leases with terms of twelve months or less, or below the Company’s general capitalization policy threshold, the Company has elected an accounting policy to not recognize lease assets and lease liabilities for all asset classes. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain to be exercised. Certain leases contain non-lease components, such as common area maintenance, which are generally accounted for separately. In general, the Company will assess if non-lease components are fixed and determinable, or variable, when determining if the component should be included in the lease liability. For purposes of calculating the present value of the lease obligations, the Company utilizes the implicit interest rate within the lease agreement when known and/or determinable, and otherwise utilizes its incremental borrowing rate at the time of the lease agreement. Fair Value of Financial and Nonfinancial Instruments The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies upon Level 1 inputs in determining the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other and Level 3 inputs to value the Awards under the Equity Incentive Plan. Refer to Note 7, Stock Based Compensation Plans, of the Condensed Consolidated Financial Statements for additional details. Earnings per Common Share Basic earnings per share have been computed using the weighted-average number of common shares outstanding. For the periods presented, there are no dilutive securities. Consequently, basic and diluted earnings per share are the same. Currency Translation Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates. The assets and liabilities denominated in foreign currencies relate to the Company’s U.K. subsidiary whose functional currency is the British Pound and the U.K. subsidiary’s France subsidiary whose functional currency is the Euro. The Condensed Consolidated Statements of Income are translated into U.S. dollars at average exchange rates for the period. Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity. Exchange gains and losses resulting from foreign currency transactions are included in the Condensed Consolidated Statements of Income in the period in which they occur. Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company records tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of FASB ASC Subtopic 740-10 relative to accounting for uncertain tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2026 and December 31, 2025, the Company had no unrecognized tax benefits related to various federal and state income tax matters nor any accrued interest or penalties. Effective January 1, 2022, as a result of changes made by the Tax Cuts and Jobs Act of 2017, the Company was required to capitalize certain research and development expenses for tax purposes, and amortize those expenses over a five year period, resulting in a deferred tax asset for the capitalized amounts. Effective January 1, 2025, as a result of the changes made by the One Big Beautiful Bill Act, the previously capitalized research and development expenses became deductible. Other Comprehensive Income For the three and six months ended June 30, 2026 and 2025, the components of other comprehensive income consisted solely of foreign currency translation adjustments. Significant Concentrations The Company has one significant customer which represented more than 10% of the Company’s Accounts Receivable as of June 30, 2026 and as of December 31, 2025. That same customer represented more than 10% of the Company’s Net Sales for the three and six months ended June 30, 2026 and 2025. Geographically, the Company has a significant amount of sales in the United States versus internationally. These concentrations are consistent with those discussed in detail in the Company’s Form 10-K. Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its Condensed Consolidated Financial Statements. Refer to Note 12 of the Condensed Consolidated Financial Statements. Recent Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU expands public entities tax disclosures including improving disclosures surrounding the company’s rate reconciliation, cash taxes paid, and disaggregation of income tax expense (or benefit) from continuing operations. The amendment is effective for annual periods beginning after December 15, 2024. In 2025, the Company adopted ASU No. 2023-09 retrospectively and reflected these improvements in Note 9. Income Taxes of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires new tabular disclosures disaggregating prescribed expense categories within relevant income statement captions. The amendment is effective for annual periods beginning after December 15, 2026 and interim periods in fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the impact of ASU No. 2024-03 on its Condensed Consolidated Financial Statements.

Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Management develops, and changes periodically, these estimates and assumptions based on historical experience and on various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates.

Revenue Recognition The Company applies the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”). The standard requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. The principle of Topic 606 is achieved through applying the following five-step approach: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identification of the contract, or contracts, with a customer — a contract with a customer exists when the Company enters into an enforceable contract with a customer, typically a purchase order initiated by the customer, that defines each party’s rights regarding the goods to be transferred and identifies the payment terms related to these goods.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Identification of the performance obligations in the contract — performance obligations promised in a contract are identified based on the goods that will be transferred to the customer that are distinct, whereby the customer can benefit from the goods on their own or together with other resources that are readily available from third parties or from us. Persuasive evidence of an arrangement for the sale of product must exist. The Company ships products in accordance with the purchase order and standard terms as reflected within the Company’s order acknowledgments and sales invoices.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Determination of the transaction price —the transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods to the customer. This would be the agreed upon quantity and price per product type in accordance with the customer purchase order, which is aligned with the Company’s internally approved pricing guidelines.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Allocation of the transaction price to the performance obligations in the contract — if the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. This applies to the Company as there is only one performance obligation to ship the goods.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Recognition of revenue when, or as, the Company satisfies a performance obligation — the Company satisfies performance obligations at a point in time when control of the goods transfers to the customer. Determining the point in time when control transfers requires judgment. Indicators considered in determining whether the customer has obtained control of a good include:</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company has a present right to payment</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has legal title to the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company has transferred physical possession of the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has the significant risks and rewards of ownership of the goods</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The customer has accepted the goods</td></tr></table> It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g., items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Contract Costs - costs to obtain a contract (e.g. customer purchase order) include sales commissions. Under Topic 606, these costs may be expensed as incurred for contracts with a duration of one year or less. The majority of the Company’s customer purchase orders are fulfilled (e.g. goods are shipped) within two days of receipt.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Warranties - the Company does not offer a warranty as a separate component for customers to purchase. A warranty is generally included with each purchase, providing assurance that the goods comply with agreed-upon specifications, and the cost is therefore accrued accordingly, but contracts do not include any requirement for additional distinct services. Therefore, there is not a separate performance obligation, and there is no impact of warranties under Topic 606 upon the financial reporting of the Company.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Returned Goods - from time to time, the Company provides authorization to customers to return goods. If deemed to be material, the Company would record a “right of return” asset for the cost of the returned goods which would reduce cost of sales.</td></tr><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Volume Rebates (Promotional Incentives) - volume rebates are variable (dependent upon the volume of goods purchased by our eligible customers) and, under Topic 606, must be estimated and recognized as a reduction of revenue as performance obligations are satisfied (e.g. upon shipment of goods). Also under Topic 606, to ensure that the related revenue recognized would not be probable of a significant reversal, the four following factors are considered:</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The amount of consideration is highly susceptible to factors outside the Company’s influence.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 1.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The uncertainty about the amount of consideration is not expected to be resolved for a long period of time.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company’s experience with similar types of contracts is limited.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">■</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The contract has a large number and broad range of possible consideration amounts.</td></tr></table> If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Accounts receivable, net of allowances, was $14,381,000 as of January 1, 2025. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated in this Note 2, Significant Accounting Policies, under the caption “Significant Concentrations”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole.

14381000

Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes, and bonds, and/or repurchase agreements, backed by such obligations, and in U.S. Treasury bills and certificates of deposit. Carrying value approximates fair value except for U.S. Treasury bills and certificates of deposit where amortized cost approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying their assets on a regular basis and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances and believes its credit risk to be minimal.

Accounts Receivable and Provision for Credit Losses All accounts receivable is stated at amortized cost, net of allowances for credit losses, and adjusted for any write-offs. The Company maintains allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables considering current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in its receivable portfolio. For accounts receivable, the Company uses historical loss experience rates and applies them to a related aging analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision for credit losses and, as a result, operating profit. The allowances consider numerous quantitative and qualitative factors that include receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, estimates for supportable forecasts, when appropriate, and credit risk characteristics. The reserve for credit losses, which include future credits, discounts, and doubtful accounts, was $646,000 and $857,000 as of June 30, 2026 and December 31, 2025, respectively.

646000

857000

Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly.

Property and Equipment Property and equipment are initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized.

Goodwill In accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, using the simplified method as adopted, the Company performed an annual impairment test as of December 31, 2025. This analysis did not indicate any impairment of goodwill.

Stock Based Compensation Plans Phantom Stock Plan In 2006, the Company adopted a Phantom Stock Plan (the “Phantom Plan”), which allows the Company to grant phantom stock units (“Units”) to certain key employees, officers, or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock and are accordingly recorded as liabilities. The Units follow a vesting schedule over three years from the grant date and are then paid upon maturity. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. The liabilities for the Units are adjusted to market value over time from the grant dates to the related maturity dates. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Units in the period the Units are forfeited. The Phantom Plan has been amended and restated, for all grants made starting January 1, 2023, to set the vesting method to three-year cliff vesting following the grant date, with payment upon maturity. Additionally, for grants made starting January 1, 2023, upon retirement at age 67 or greater, and with one year of continuous service prior to retirement, vesting of the issued grant(s) would accelerate on a pro-rata basis, 1/3 per year from the grant date. Equity Incentive Plan In 2024, the Flex-Trac, Inc. 2025 Equity Incentive Plan (the “Equity Incentive Plan”) was adopted to provide directors, officers, employees, contractors and consultants of Flex-Trac, Inc. or its affiliates an equity-based incentive to maintain and enhance the performance and profitability of Flex-Trac, Inc. Subject to adjustment as provided in the Equity Incentive Plan, up to <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240101__20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zkChVJX087Ag" title="Number of shares of common stock">818,458 shares of the common stock, par value $<span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_ziawOCSfI7eg" title="Common stock, par value per share">0.01 per share, of Flex-Trac, Inc. (“FTI Common Stock”), or <span id="xdx_902_ecustom--FullyDilutedCommonStockPercentage_iI_pid_dp_uPure_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zGs8M1MFyEQi" title="Fully diluted common stock percentage">7.5% of the fully-diluted shares of FTI Common Stock, may be issued pursuant to the Equity Incentive Plan with respect to awards. On January 2, 2025, <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20250102__20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zWnVnBd7p3z4" title="Number of shares of restricted stock">420,000 shares of restricted stock in the aggregate, or <span id="xdx_90E_ecustom--CommonStockSharesGrantedPercentage_iI_pid_dp_uPure_c20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zDG9sG3lOLuj" title="Common stock, shares granted percentage">4% of the shares of FTI Common Stock, were granted and issued to certain eligible participants under the Equity Incentive Plan (the “Awards”). The Awards cliff vest after eight years of continuous service or earlier upon the grantee’s death, disability or retirement, or a change of control, as defined and further described in the Equity Incentive Plan. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company values the Awards at fair value at grant date and recognizes compensation expense over the vesting period. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Awards in the period the Awards are forfeited. Further details of the Phantom Plan and Equity Incentive Plan are provided in Note 7, Stock Based Compensation Plans, to the Condensed Consolidated Financial Statements included in this report.

818458

0.01

0.075

420000

0.04

Product Liability Reserves Except for most product liability claims made for its yellow-jacketed TracPipe® CSST on or after September 1, 2025, for which the Company decided to self-insure (the “Self-Insured Claims”), product liability reserves represent the estimated unpaid amounts under the Company’s insurance policy deductibles or self-insured retention limits (or “retentions”), with respect to existing claims. The Company uses the most current available data to estimate claims. As explained more fully under Note 6, Commitments and Contingencies, to the Condensed Consolidated Financial Statements included in this report, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its insurance policy retentions, ranging primarily from $250,000 to $3,000,000 per claim, depending on the terms of the policy and the applicable policy year, up to an aggregate amount. The Company is vigorously defending against all known claims. There are no open Self-Insured Claims as of June 30, 2026 and December 31, 2025.

250000 3000000

Leases The Company applies the requirements of FASB ASC Topic 842, Leases which defines a lease as any contract that conveys the right to use a specific asset for a period of time in exchange for consideration. Leases are classified as a finance lease, formerly called a capital lease, if any of the following criteria are met: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">1.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">2.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">3.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The lease term is for the major part of the remaining economic life of the underlying asset.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">4.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The present value of the sum of lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">5.</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.</td></tr></table> For any leases that do not meet the criteria identified above for finance leases, the Company treats such leases as operating leases. As of June 30, 2026 and December 31, 2025, each of the Company’s leases is classified as an operating lease. Both finance and operating leases are reflected on the balance sheet as lease or “right-of-use” assets and lease liabilities. There are some exceptions which the Company has elected in its accounting policies. For leases with terms of twelve months or less, or below the Company’s general capitalization policy threshold, the Company has elected an accounting policy to not recognize lease assets and lease liabilities for all asset classes. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. The Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain to be exercised. Certain leases contain non-lease components, such as common area maintenance, which are generally accounted for separately. In general, the Company will assess if non-lease components are fixed and determinable, or variable, when determining if the component should be included in the lease liability. For purposes of calculating the present value of the lease obligations, the Company utilizes the implicit interest rate within the lease agreement when known and/or determinable, and otherwise utilizes its incremental borrowing rate at the time of the lease agreement.

Fair Value of Financial and Nonfinancial Instruments The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies upon Level 1 inputs in determining the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other and Level 3 inputs to value the Awards under the Equity Incentive Plan. Refer to Note 7, Stock Based Compensation Plans, of the Condensed Consolidated Financial Statements for additional details.

Earnings per Common Share Basic earnings per share have been computed using the weighted-average number of common shares outstanding. For the periods presented, there are no dilutive securities. Consequently, basic and diluted earnings per share are the same.

Currency Translation Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates. The assets and liabilities denominated in foreign currencies relate to the Company’s U.K. subsidiary whose functional currency is the British Pound and the U.K. subsidiary’s France subsidiary whose functional currency is the Euro. The Condensed Consolidated Statements of Income are translated into U.S. dollars at average exchange rates for the period. Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity. Exchange gains and losses resulting from foreign currency transactions are included in the Condensed Consolidated Statements of Income in the period in which they occur.

Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company records tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of FASB ASC Subtopic 740-10 relative to accounting for uncertain tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2026 and December 31, 2025, the Company had no unrecognized tax benefits related to various federal and state income tax matters nor any accrued interest or penalties. Effective January 1, 2022, as a result of changes made by the Tax Cuts and Jobs Act of 2017, the Company was required to capitalize certain research and development expenses for tax purposes, and amortize those expenses over a five year period, resulting in a deferred tax asset for the capitalized amounts. Effective January 1, 2025, as a result of the changes made by the One Big Beautiful Bill Act, the previously capitalized research and development expenses became deductible.

Other Comprehensive Income For the three and six months ended June 30, 2026 and 2025, the components of other comprehensive income consisted solely of foreign currency translation adjustments.

Significant Concentrations The Company has one significant customer which represented more than 10% of the Company’s Accounts Receivable as of June 30, 2026 and as of December 31, 2025. That same customer represented more than 10% of the Company’s Net Sales for the three and six months ended June 30, 2026 and 2025. Geographically, the Company has a significant amount of sales in the United States versus internationally. These concentrations are consistent with those discussed in detail in the Company’s Form 10-K.

The Company has one significant customer which represented more than 10% of the Company’s Accounts Receivable as of June 30, 2026 and as of December 31, 2025. That same customer represented more than 10% of the Company’s Net Sales for the three and six months ended June 30, 2026 and 2025. Geographically, the Company has a significant amount of sales in the United States versus internationally. These concentrations are consistent with those discussed in detail in the Company’s Form 10-K.

Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its Condensed Consolidated Financial Statements. Refer to Note 12 of the Condensed Consolidated Financial Statements.

Recent Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU expands public entities tax disclosures including improving disclosures surrounding the company’s rate reconciliation, cash taxes paid, and disaggregation of income tax expense (or benefit) from continuing operations. The amendment is effective for annual periods beginning after December 15, 2024. In 2025, the Company adopted ASU No. 2023-09 retrospectively and reflected these improvements in Note 9. Income Taxes of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires new tabular disclosures disaggregating prescribed expense categories within relevant income statement captions. The amendment is effective for annual periods beginning after December 15, 2026 and interim periods in fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the impact of ASU No. 2024-03 on its Condensed Consolidated Financial Statements.

3. INVENTORIES Inventories, net of reserves of $778,000 and $822,000 as of June 30, 2026 and December 31, 2025, respectively, consisted of the following: SCHEDULE OF INVENTORIES, NET OF RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20260630_za9r10xoLMrj" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49F_20251231_zzcXbyGgeXrk" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzOIT_zu573PMetMSi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished Goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,838</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzOIT_zoMNS76EGOR9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Raw Materials</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,559</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryNet_iTI_pn3n3_mtINzOIT_zeXbYVb1hWG5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Inventories - Net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">14,728</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,397</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> See Note 4, Other Long Term Assets, for details on inventories which are estimated to be used beyond the next twelve months.

778000

822000

SCHEDULE OF INVENTORIES, NET OF RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_498_20260630_za9r10xoLMrj" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49F_20251231_zzcXbyGgeXrk" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzOIT_zu573PMetMSi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished Goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,838</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzOIT_zoMNS76EGOR9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Raw Materials</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7,192</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6,559</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryNet_iTI_pn3n3_mtINzOIT_zeXbYVb1hWG5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Inventories - Net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">14,728</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,397</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

7536000

6838000

7192000

6559000

14728000

13397000

4. OTHER LONG TERM ASSETS Other long term assets were as follows: SCHEDULE OF OTHER LONG TERM ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260630_zMda8N4PW6Rd" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20251231_zReDEdUyyte" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--OtherInventory_iI_pn3n3_maOANzztI_zPiqePkOjkug" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Inventories - net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,631</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CashSurrenderValueOfLifeInsurance_iI_pn3n3_maOANzztI_zyyyVuGA91Kf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash surrender value of life insurance policies</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,150</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--OtherLongTermAssets_iI_pn3n3_maOANzztI_zJLUWoUsDpK" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">135</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAssetsNoncurrent_iTI_pn3n3_mtOANzztI_zT43Flt072X6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Other Long Term Assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,946</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,218</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company maintains inventories, net of reserves of $1,000,000 as of June 30, 2026 and December 31, 2025, which is estimated to be used beyond the next twelve months, mainly for the corrugated medical tubing (“CMT”) products. Higher amounts of materials for the CMT products were initially purchased for cost considerations and because of longer required lead times. The Company has obtained and is the beneficiary of life insurance policies with respect to past employees.

Other long term assets were as follows: SCHEDULE OF OTHER LONG TERM ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49C_20260630_zMda8N4PW6Rd" style="font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_494_20251231_zReDEdUyyte" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--OtherInventory_iI_pn3n3_maOANzztI_zPiqePkOjkug" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Inventories - net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,631</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,926</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--CashSurrenderValueOfLifeInsurance_iI_pn3n3_maOANzztI_zyyyVuGA91Kf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Cash surrender value of life insurance policies</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,180</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,150</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--OtherLongTermAssets_iI_pn3n3_maOANzztI_zJLUWoUsDpK" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">135</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">142</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--OtherAssetsNoncurrent_iTI_pn3n3_mtOANzztI_zT43Flt072X6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Other Long Term Assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,946</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,218</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1631000

1926000

1180000

1150000

135000 142000

2946000

3218000

1000000

5. LINE OF CREDIT AND OTHER BORROWINGS On July 3, 2023, the Company agreed to an Amended and Restated Loan Agreement with Santander Bank, N.A. (the “Bank”), and a Second Amended and Restated Committed Revolving Line of Credit Note to the Bank (both documents together, the “Facility”). The Facility is an unsecured revolving credit facility in the maximum amount of $<span id="xdx_90C_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn3d_c20230703__us-gaap--TypeOfArrangementAxis__custom--LoanAgreementMember_zIQ9ArrAI8Ag" title="Line of credit facility, maximum borrowing capacity">15,000,000, with a $<span id="xdx_902_ecustom--LineOfCreditFacilityAdditionalBorrowingCapacity_iI_pn3d_c20230703__us-gaap--TypeOfArrangementAxis__custom--LoanAgreementMember_zQeEtK3hH03g" title="Line of credit facility, additional borrowing capacity">1,000,000 letter of credit sublimit, expiring <span id="xdx_90A_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230702__20230703__us-gaap--TypeOfArrangementAxis__custom--LoanAgreementMember_zuUxofxGudS5" title="Line of credit facility, expiration date">June 1, 2028, with funds available for working capital and other corporate purposes. The interest rate payable on any borrowings is either the Term SOFR Reference Rate or the Bank’s Prime Rate, as specified by the Company, plus the Applicable Margin. <span id="xdx_903_eus-gaap--LineOfCreditFacilityInterestRateDescription_c20230702__20230703__us-gaap--TypeOfArrangementAxis__custom--LoanAgreementMember_zEfex7HRXf7d" title="Line of credit facility, interest rate description">The Applicable Margin for the Term SOFR Reference Rate is plus 0.75% to plus 1.75%, and for Prime Rate, up to plus 0.50%, depending upon the Company’s then existing specified financial ratios. As of June 30, 2026, the Company’s ratio would allow for the most favorable rate under the Facility’s ranges or 4.38%. The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note and an annual commitment fee of $5,000 due and payable on each anniversary date of the Facility. The Company may terminate the Facility at any time as long as there are no amounts outstanding and may prepay any borrowings. As of June 30, 2026 and December 31, 2025, the Company had no outstanding borrowings on the Facility and was in compliance with all debt covenants.

15000000

1000000

2028-06-01

The Applicable Margin for the Term SOFR Reference Rate is plus 0.75% to plus 1.75%, and for Prime Rate, up to plus 0.50%, depending upon the Company’s then existing specified financial ratios. As of June 30, 2026, the Company’s ratio would allow for the most favorable rate under the Facility’s ranges or 4.38%. The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note and an annual commitment fee of $5,000 due and payable on each anniversary date of the Facility.

5000

6. COMMITMENTS AND CONTINGENCIES Commitments Under a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both. The Company’s indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements. Under the terms of the agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in connection with claims arising by reason of these individuals’ roles as officers and directors. The Company has obtained directors’ and officers’ insurance policies to fund certain obligations under the indemnity agreements. The Company has a salary continuation agreement with a past employee. The agreement provides for monthly payments to the employee or their designated beneficiary upon the employee’s retirement or death. The payment benefits are $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement. The net present value of the retirement payments associated with this agreement is $261,000 as of June 30, 2026, of which $225,000 is included in Other Long Term Liabilities, and the remaining current portion of $36,000 is included in Other Liabilities, associated with the applicable retirement benefit payments over the next twelve months. The December 31, 2025 liability of $276,000 had $240,000 reported in Other Long Term Liabilities, and a current portion of $36,000 in Other Liabilities. In addition to the above, the Company has other contractual employment and or change of control agreements in place with key employees, as previously disclosed and noted in the Exhibit Index to the Company’s Form 10-K. Obligations related to these arrangements are currently indeterminable due to the variable nature and timing of possible events required to incur such obligations. As disclosed in detail in Note 8, Leases, to the Condensed Consolidated Financial Statements included in this report, the Company has several lease obligations in place that will be paid over time. Most notably, the Company leases a facility in Banbury, England that serves the manufacturing, warehousing, and distribution functions. Lastly, the Company has contractual obligations in place for the current year, mainly related to purchase obligations for the Company’s raw material inventories. Contingencies In the ordinary and normal conduct of the Company’s business, it is subject to lawsuits, investigations, and claims (collectively, the “Claims”). The Claims generally relate to alleged lightning or other electrical damage to our flexible gas piping products and may result in legal and product liability related expenses. The Company does not believe the Claims have legal merit and vigorously defends them. It is possible that the Company may incur increased litigation costs in the future due to a variety of factors, including a higher number of Claims, higher legal and expert costs, higher retentions, and/or the Company’s decision to self-insure most product liability Claims made for its yellow-jacketed TracPipe® CSST on or after September 1, 2025 (the “Self-Insured Claims”). Except for the Self-Insured Claims, the Company has in place commercial general liability insurance policies that cover most Claims, which are subject to retentions, ranging primarily from $250,000 to $3,000,000 per claim (depending on the terms of the policy and the applicable policy year), up to an aggregate amount. Litigation is subject to many uncertainties and management is unable to predict the outcome of the pending suits and claims. Except for Self-Insured Claims, the potential liability for a given claim could range from zero to a maximum of $<span id="xdx_909_ecustom--PotentialLiabilityPerClaim_iI_pn3d_c20260630__srt--RangeAxis__srt--MaximumMember__us-gaap--LossContingenciesByNatureOfContingencyAxis__us-gaap--InsuranceClaimsMember_zT0lDPUq2oF8" title="Potential liability per claim maximum range, value">3,000,000, depending upon the circumstances, and retentions in place for the respective claim year. The aggregate maximum exposure for all open Claims as of June 30, 2026, is estimated to not exceed approximately $1,168,000, which represents the potential costs that may be incurred over time for the Claims within the applicable retentions. As of June 30, 2026, there are no open Self-Insured Claims. From time to time, depending upon the nature of a particular case, the Company may decide to spend in excess of retentions to enable more discretion regarding the defense, although this is not common. It is possible that the results of operations or liquidity of the Company, as well as the Company’s ability to procure reasonably priced insurance, could be adversely affected by the pending litigation, potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending litigation, or potential litigation from future claims or claims that have not yet come to our attention, and accordingly, the liability in the Condensed Consolidated Financial Statements primarily represents an accrual for legal costs for services previously rendered, outstanding settlements for Claims not yet paid, and anticipated, probable, settlements for Claims within the Company’s remaining retentions under its insurance policies. The liabilities recorded in the Company’s books as of June 30, 2026 and December 31, 2025 were $250,000 and $703,000, respectively, and are included in Other Liabilities.

The payment benefits are $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement.

3000

261000

225000

36000

276000

240000

36000

250000 3000000 3000000

1168000

250000

703000

7. STOCK BASED COMPENSATION PLANS Phantom Stock Plan Plan Description. <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription_c20260101__20260630__us-gaap--AwardTypeAxis__custom--PhantomStockPlanMember_zGDGbEZQTEjg" title="Share based compensation, description">On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Phantom Plan”). The Phantom Plan authorizes the grant of up to one million units of phantom stock to employees, officers, or directors of the Company. The phantom stock units (“Units”) each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock. The Units are not shares of the Company’s common stock, and a recipient of the Units does not receive any of the following: ■ ownership interest in the Company; ■ shareholder voting rights; and ■ other incidents of ownership to the Company’s common stock The Units are granted to participants upon the recommendation of the Company’s Chief Executive Officer and President, and the approval of the Compensation Committee. Each of the Units that are granted to a participant will be initially valued by the Compensation Committee at an amount equal to the closing price of the Company’s common stock on the grant date but are recorded at fair value using the Black-Sholes method as described below. The Units follow a vesting schedule, with a maximum vesting of three years after the grant date. Grants made on or after January 1, 2023, will cliff vest three years from the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit and therefore are stated as liabilities in accordance with FASB ASC Topic 718, Compensation - Stock Compensation. The Units will be paid on their maturity date, one year after all the Units granted in a particular award have fully vested, unless a specified event occurs under the terms of the Phantom Plan, which would allow for earlier payment. Units granted with value at the maturity date equal to the closing price of the Company’s common stock as of the maturity date are defined as Full Value Units. Unless stated otherwise, all Units described herein are Full Value Units. In 2009, the Board of Directors authorized an amendment to the Phantom Plan to pay an amount equal to the value of any cash or stock dividend declared by the Company on its common stock to be accrued to the Units outstanding as of the record date of the common stock dividend. The dividend equivalent will be paid at the same time the underlying Units are paid to the participant. In addition, the Phantom Plan has been amended and restated, for all grants made starting January 1, 2023, to set the vesting method to three-year cliff vesting following the grant date, with payment upon maturity. Additionally, for grants made starting January 1, 2023, upon retirement at age 67 or greater, and with one year of continuous service prior to retirement, vesting of the issued grant(s) would accelerate on a pro-rata basis, 1/3 per year from the grant date. In certain circumstances, the Units may be immediately vested upon the participant’s death or disability. All Units granted to a participant are forfeited if the participant is terminated from their relationship with the Company or its subsidiary for “cause,” which is defined under the Phantom Plan. If a participant’s employment or relationship with the Company is terminated for reasons other than for “cause,” then any vested Units will be paid to the participant upon termination. However, Units granted to certain “specified employees” as defined in Section 409A of the Internal Revenue Code will be paid approximately 181 days after termination. Grants of Units. As of December 31, 2025, the Company had 23,057 nonvested and unmatured Units outstanding. In February 2026, the Company paid $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsShareBasedLiabilitiesPaid_pn3d_c20260201__20260228_z7Y3TpijiQze" title="Share based compensation paid in period">72,000 for 1,680 fully vested and matured Units that were granted during 2022, including their respective earned dividend values. In addition, the Company granted <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pid_c20260201__20260228__us-gaap--AwardTypeAxis__custom--FullValueUnitsMember_ztzGGcCeym7i" title="Share based compensation grants in period">11,895 Units with a fair value of $<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260201__20260228__us-gaap--AwardTypeAxis__custom--FullValueUnitsMember_zkeaiqwm5eqg" title="Share based compensation weighted average grant date fair value">32.66 per Unit on grant date, using historical volatility in February 2026. As of June 30, 2026, the Company had 32,683 nonvested and unmatured Units outstanding. The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units. The Company uses the straight-line method of attributing the value of the stock based compensation expense relating to the Units. The compensation expense (including adjustment of the liability to its fair value) from the Units is recognized over the vesting and maturity periods of each grant. The FASB ASC Topic 718, Compensation - Stock Compensation, requires forfeitures either to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates to derive an estimate of awards ultimately to vest or to recognize the effect of any forfeited awards for which the requisite vesting period is not completed in the period that the award is forfeited. The Company recognizes the reversal of any previously recognized compensation expense on forfeited awards in the period that the award is forfeited. During the three and six months ended June 30, 2026 and 2025, no awards were forfeited. The total liability related to the Units as of June 30, 2026 was $573,000 of which $118,000 is included in Other Liabilities, as it is expected to be paid within the next twelve months, and the balance of $455,000 is included in Other Long Term Liabilities. The total liability related to the Units as of December 31, 2025 was $434,000 of which $92,000 was included in Other Liabilities, and the balance of $342,000 was included in Other Long Term Liabilities. Related to the Phantom Plan, in accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company recorded compensation expense of $211,000 and $53,000 for the six months ended June 30, 2026 and 2025, respectively. The Company recorded compensation expense of $98,000 and $50,000 for the three months ended June 30, 2026 and 2025, respectively. Compensation expense or income for a given period largely depends upon fluctuations in the Company’s stock price. <p id="xdx_89C_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_hus-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zSXt3TTz4Mph" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes information about the Company’s nonvested and unmatured Units as of and for the six months ended June 30, 2026: SCHEDULE OF NONVESTED AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Units</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Number of Units:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; padding-left: 10pt">Nonvested and Unmatured as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zAQsdWSdJRI4" style="width: 18%; text-align: right" title="Nonvested units, beginning balance">23,057</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zvOp4lEZPG9" style="width: 18%; text-align: right" title="Nonvested weighted average grant date fair value, beginning balance">52.68</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zxmEL2fzjvYk" style="text-align: right" title="Nonvested units, granted">11,895</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zdo6Ex0nD6p8" style="text-align: right" title="Nonvested weighted average grant date fair value, granted">32.66</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zXwKZoZgPz76" style="text-align: right" title="Nonvested units, vested">(2,269</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zRIZk470kbp3" style="text-align: right" title="Nonvested weighted average grant date fair value, vested">108.47</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zAjtLshLqmml" style="text-align: right" title="Nonvested units, forfeited">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zYiD1uksJHo6" style="text-align: right" title="Nonvested weighted average grant date fair value, forfeited">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 20pt">Canceled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledInPeriod_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zf2lxOMpPfll" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested units, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zsjOhenWpDjg" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested weighted average grant date fair value, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Nonvested and Unmatured as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zLQBpzvK11Lc" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested units, ending balance">32,683</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zrZziogqAOe8" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested weighted average grant date fair value, ending balance">41.52</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Units Expected to Vest and Mature</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumberExpectedToVest_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zHbkXd7C7VEc" style="border-bottom: Black 1pt solid; text-align: right" title="Phantom stock unit awards expected to vest, units">32,683</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateExpectedToVest_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zMKaCJINarfj" style="border-bottom: Black 1pt solid; text-align: right" title="Phantom stock unit awards expected to vest, weighted average grant date fair value">41.52</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> Total unrecognized compensation costs as of June 30, 2026 were $541,000 which will be recognized through February 2029. The Company will recognize the related expense for the Units over the weighted average period of <span id="xdx_902_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20260101__20260630_zgK6J7LruL1d" title="Compensation expense, weighted average recognize period">1.8 years. Equity Incentive Plan In 2024, the Flex-Trac, Inc. 2025 Equity Incentive Plan (the “Equity Incentive Plan”) was adopted to provide directors, officers, employees, contractors and consultants of Flex-Trac, Inc. or its affiliates an equity-based incentive to maintain and enhance the performance and profitability of Flex-Trac, Inc. Subject to adjustment as provided in the Equity Incentive Plan, up to <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20240101__20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zU8LZRjXIHW2" title="Number of shares of common stock">818,458 shares of the common stock, par value $<span id="xdx_902_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z7tItei1PBW7" title="Common stock, par value per share">0.01 per share, of Flex-Trac, Inc. (“FTI Common Stock”), or <span id="xdx_901_ecustom--FullyDilutedCommonStockPercentage_iI_pid_dp_uPure_c20241231__dei--LegalEntityAxis__custom--FlexTracIncMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zmjdETr8SfW6" title="Fully diluted common stock percentage">7.5% of the fully-diluted shares of FTI Common Stock, may be issued pursuant to the Equity Incentive Plan with respect to awards. On January 2, 2025, <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_pid_c20250102__20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zpoFmwjfxd54" title="Number of shares of restricted stock">420,000 shares of restricted stock in the aggregate, or <span id="xdx_905_ecustom--CommonStockSharesGrantedPercentage_iI_pid_dp_uPure_c20250102__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z3rrX7czCbOb" title="Common stock, shares granted percentage">4% of the shares of FTI Common Stock, were granted and issued to certain eligible participants under the Equity Incentive Plan (the “Awards”). The Awards cliff vest after eight years of continuous service or earlier upon the grantee’s death, disability or retirement, or a change of control, as defined and further described in the Equity Incentive Plan. In accordance with FASB ASC Topic 718, Compensation - Stock Compensation, the Company values the Awards at fair value at grant date and recognizes compensation expense, on a straight-line basis, over the vesting period. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Awards in the period the Awards are forfeited. The fair value of the Awards at the grant date of January 2, 2025 was $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20250102__20250102__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z7hpAZgmBpia" title="Grant date">0.27 per share or $<span id="xdx_907_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensation_c20250102__20250102__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zI2kBH7Znjji" title="Fair value of awards grant">113,400. The fair value of the Awards was determined through the income valuation approach using real option analysis which utilized the Black-Scholes option pricing model. <p id="xdx_89B_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_hus-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zpelGfWzY0vc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes information about the nonvested Awards as of and for the six months ended June 30, 2026: SCHEDULE OF NONVESTED AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Awards</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Number of Awards:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 56%">Nonvested as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zZ4ji174ueZd" style="width: 18%; text-align: right" title="Nonvested units, beginning balance">420,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zacbSoKZOuGa" style="width: 18%; text-align: right" title="Nonvested weighted average grant date fair value, beginning balance">0.27</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z8XUgoobdCQ6" style="text-align: right" title="Nonvested units, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zcuIJ8rebTcf" style="text-align: right" title="Nonvested weighted average grant date fair value, granted">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zravHGVoAosc" style="text-align: right" title="Nonvested units, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zc9W3q6VETVj" style="text-align: right" title="Nonvested weighted average grant date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z6aSHP2WwLD" style="text-align: right" title="Nonvested units, forfeited">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zzn1CDs9HYx4" style="text-align: right" title="Nonvested weighted average grant date fair value, forfeited">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; padding-bottom: 1pt">Canceled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledInPeriod_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zBdv8DVvP1N4" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested units, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zJFPG9kWA6id" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested weighted average grant date fair value, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 2.5pt">Nonvested as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zYcuyOg8ucll" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested units, ending balance">420,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zNmnpqYdrVxg" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested weighted average grant date fair value, ending balance">0.27</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Awards Expected to Vest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumberExpectedToVest_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zrsew0l9UyN2" style="border-bottom: Black 1pt solid; text-align: right" title="Awards expected to vest, units">420,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateExpectedToVest_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zF5iodzf24Xf" style="border-bottom: Black 1pt solid; text-align: right" title="Awards expected to vest, weighted average grant date fair value">0.27</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> For the three months ended June 30, 2026 and 2025, compensation expense was $3,000 and $7,000, respectively. For the six months ended June 30, 2026 and 2025, compensation expense was $7,000 and $7,000, respectively. There were no forfeitures.

On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Phantom Plan”). The Phantom Plan authorizes the grant of up to one million units of phantom stock to employees, officers, or directors of the Company. The phantom stock units (“Units”) each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock.

23057

72000

1680

11895

32.66

32683

573000

118000

455000

434000

92000

342000

211000

53000

98000

50000

<p id="xdx_89C_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_hus-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zSXt3TTz4Mph" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes information about the Company’s nonvested and unmatured Units as of and for the six months ended June 30, 2026: SCHEDULE OF NONVESTED AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Units</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Number of Units:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 56%; padding-left: 10pt">Nonvested and Unmatured as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zAQsdWSdJRI4" style="width: 18%; text-align: right" title="Nonvested units, beginning balance">23,057</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zvOp4lEZPG9" style="width: 18%; text-align: right" title="Nonvested weighted average grant date fair value, beginning balance">52.68</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zxmEL2fzjvYk" style="text-align: right" title="Nonvested units, granted">11,895</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zdo6Ex0nD6p8" style="text-align: right" title="Nonvested weighted average grant date fair value, granted">32.66</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zXwKZoZgPz76" style="text-align: right" title="Nonvested units, vested">(2,269</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zRIZk470kbp3" style="text-align: right" title="Nonvested weighted average grant date fair value, vested">108.47</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zAjtLshLqmml" style="text-align: right" title="Nonvested units, forfeited">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zYiD1uksJHo6" style="text-align: right" title="Nonvested weighted average grant date fair value, forfeited">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 20pt">Canceled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledInPeriod_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zf2lxOMpPfll" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested units, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zsjOhenWpDjg" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested weighted average grant date fair value, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Nonvested and Unmatured as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zLQBpzvK11Lc" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested units, ending balance">32,683</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zrZziogqAOe8" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested weighted average grant date fair value, ending balance">41.52</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Units Expected to Vest and Mature</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumberExpectedToVest_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zHbkXd7C7VEc" style="border-bottom: Black 1pt solid; text-align: right" title="Phantom stock unit awards expected to vest, units">32,683</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateExpectedToVest_pid_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--PhantomShareUnitsPSUsMember_zMKaCJINarfj" style="border-bottom: Black 1pt solid; text-align: right" title="Phantom stock unit awards expected to vest, weighted average grant date fair value">41.52</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

23057

52.68

11895

32.66

2269

108.47

32683

41.52

32683 41.52

541000

P1Y9M18D

818458

0.01

0.075

420000

0.04

0.27

113400

<p id="xdx_89B_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_hus-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zpelGfWzY0vc" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in">The following table summarizes information about the nonvested Awards as of and for the six months ended June 30, 2026: SCHEDULE OF NONVESTED AWARDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Awards</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Grant Date Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Number of Awards:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 56%">Nonvested as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iS_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zZ4ji174ueZd" style="width: 18%; text-align: right" title="Nonvested units, beginning balance">420,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zacbSoKZOuGa" style="width: 18%; text-align: right" title="Nonvested weighted average grant date fair value, beginning balance">0.27</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z8XUgoobdCQ6" style="text-align: right" title="Nonvested units, granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zcuIJ8rebTcf" style="text-align: right" title="Nonvested weighted average grant date fair value, granted">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zravHGVoAosc" style="text-align: right" title="Nonvested units, vested">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zc9W3q6VETVj" style="text-align: right" title="Nonvested weighted average grant date fair value, vested">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_z6aSHP2WwLD" style="text-align: right" title="Nonvested units, forfeited">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zzn1CDs9HYx4" style="text-align: right" title="Nonvested weighted average grant date fair value, forfeited">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; padding-bottom: 1pt">Canceled</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledInPeriod_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zBdv8DVvP1N4" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested units, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCanceledWeightedAverageGrantDateFairValue_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zJFPG9kWA6id" style="border-bottom: Black 1pt solid; text-align: right" title="Nonvested weighted average grant date fair value, canceled">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 2.5pt">Nonvested as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iE_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zYcuyOg8ucll" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested units, ending balance">420,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zNmnpqYdrVxg" style="border-bottom: Black 2.5pt double; text-align: right" title="Nonvested weighted average grant date fair value, ending balance">0.27</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Awards Expected to Vest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumberExpectedToVest_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zrsew0l9UyN2" style="border-bottom: Black 1pt solid; text-align: right" title="Awards expected to vest, units">420,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateExpectedToVest_pid_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFiveEquityIncentivePlanMember_zF5iodzf24Xf" style="border-bottom: Black 1pt solid; text-align: right" title="Awards expected to vest, weighted average grant date fair value">0.27</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

420000

0.27

420000

0.27

420000 0.27

3000

7000

8. LEASES In the U.S., the Company owns its two main operating facilities located in Exton, Pennsylvania. In addition to the owned facilities, the Company also has operations in other locations that are leased, as well as other leased assets. In conjunction with the guidance for leases, as defined by FASB ASC Topic 842, Leases, the Company has described the existing leases, which are all classified as operating leases, pursuant to the below. In the U.S., the Company leases a facility in West Chester, Pennsylvania, which was consummated effective January 2024, with its lease terminating in February 2031, which provides warehousing and storage, quality control, distribution, and office space. The Company also leases a facility in Houston, Texas, which was consummated effective June 2024, with its lease terminating in July 2029, which provides manufacturing, stocking, and sales operations. Additionally, the Company leases office space in Middletown, Connecticut, with its lease terminating in June 2027. In the U.K., the Company leases a facility in Banbury, England, which serves manufacturing, warehousing, and other operational functions. The lease in Banbury has a 15-year term ending in March 2036. In addition to property rentals, the Company also has lease agreements in place for various fleet vehicles and equipment with various lease terms. As of June 30, 2026, the Company recorded right-of-use assets of $4,222,000, and a lease liability of $4,538,000, of which $748,000 is reported as a current liability. On December 31, 2025, the Company recorded right-of-use assets of $4,437,000, and a lease liability of $4,757,000, of which $771,000 was reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 6.8 years and 5.14% as of June 30, 2026 and 7.5 years and 3.60% as of June 30, 2025. Rent expense for operating leases was $256,000 and $495,000 for the three and six months ended June 30, 2026 and $234,000 and $468,000 for the three and six months ended June 30, 2025. Future minimum lease payments under non-cancelable leases as of June 30, 2026 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Twelve Months Ending June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20260630_z2IhRC8DEOwf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzZYL_zbYRqDkHAy77" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">965</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzZYL_zHUXsFgfRbBi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">870</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzZYL_zEpEm2UJGg5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">884</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPzZYL_zAWm79rXcHph" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">706</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_maLOLLPzZYL_zBhQTrfRAG2a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2031</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">576</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_maLOLLPzZYL_z9Ijhf6iuGjd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,371</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzZYL_zpoCWAaix4Z3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total Future Minimum Lease Payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,372</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_zeQQKyjhstqe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">834</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_pn3n3_z1jm34uJ9S4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,538</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_zMHo4i8mdGtl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: Current Portion of Lease Liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">748</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_zNgIxF4hiRsd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Lease Liability – Net of Current Portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The lease in Banbury has a 15-year term ending in March 2036.

4222000

4538000

748000

4437000

4757000

771000

P6Y9M18D

0.0514

P7Y6M

0.0360

256000

495000

234000

468000

Future minimum lease payments under non-cancelable leases as of June 30, 2026 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%; margin-left: 0.75in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Twelve Months Ending June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20260630_z2IhRC8DEOwf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Leases</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(in thousands)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_pn3n3_maLOLLPzZYL_zbYRqDkHAy77" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">965</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_pn3n3_maLOLLPzZYL_zHUXsFgfRbBi" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">870</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_pn3n3_maLOLLPzZYL_zEpEm2UJGg5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">884</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_pn3n3_maLOLLPzZYL_zAWm79rXcHph" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">706</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFive_iI_pn3n3_maLOLLPzZYL_zBhQTrfRAG2a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2031</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">576</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive_iI_pn3n3_maLOLLPzZYL_z9Ijhf6iuGjd" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,371</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_pn3n3_mtLOLLPzZYL_zpoCWAaix4Z3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Total Future Minimum Lease Payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,372</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_pn3n3_zeQQKyjhstqe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: Interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">834</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_pn3n3_z1jm34uJ9S4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Lease Liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4,538</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_pn3n3_zMHo4i8mdGtl" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt">Less: Current Portion of Lease Liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">748</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_pn3n3_zNgIxF4hiRsd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Lease Liability – Net of Current Portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

965000

870000

884000

706000

576000

1371000

5372000

834000

4538000

748000

3790000

9. SHAREHOLDERS’ EQUITY As of June 30, 2026 and December 31, 2025, the Company had 20,000,000 shares of common stock, with par value of $0.01 per share, authorized. For both periods, the total number of outstanding shares was 10,094,322, shares held in Treasury was 59,311, and total shares issued was 10,153,633. During 2026 and 2025, upon approval of the Board of Directors (the “Board”) the Company has declared and paid regular quarterly dividends, as set forth in the following table: SCHEDULE OF REGULAR QUARTER DIVIDEND PAYMENTS<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="4" style="border-bottom: Black 1pt solid; text-align: center">Dividend Declared </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Dividend Paid</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: center">Date</td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Price Per Share</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Date</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: justify">June 9, 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20260609__us-gaap--DividendsAxis__custom--O2026Q2DividendsMember_zB5AlvuC5bnh" style="width: 22%; text-align: right" title="Dividends payable, amount per share">0.34</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right">July 7, 2026 </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260707__us-gaap--DividendsAxis__custom--O2026Q2DividendsMember_zyjS6XF5YR08" style="width: 22%; text-align: right" title="Dividend paid on or before date, amount">3,431,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">March 24, 2026</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20260324__us-gaap--DividendsAxis__custom--O2026Q1DividendsMember_ztxLXLmFH4wb" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">April 21, 2026 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260421__us-gaap--DividendsAxis__custom--O2026Q1DividendsMember_zqfXtzYfWpQc" style="text-align: right" title="Dividend paid on or before date, amount">3,433,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">December 5, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20251205__us-gaap--DividendsAxis__custom--O2025Q4DividendsMember_zyGpMKCqDGI7" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">January 7, 2026 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260107__us-gaap--DividendsAxis__custom--O2025Q4DividendsMember_z3RoPfmxqqpl" style="text-align: right" title="Dividend paid on or before date, amount">3,431,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">September 12, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250912__us-gaap--DividendsAxis__custom--O2025Q3DividendsMember_z78tAQNfgzc" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">October 8, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20251008__us-gaap--DividendsAxis__custom--O2025Q3DividendsMember_zX8uLFN6X7F6" style="text-align: right" title="Dividend paid on or before date, amount">3,433,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">June 17, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250617__us-gaap--DividendsAxis__custom--O2025Q2DividendsMember_zhEaF1oSdYD1" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">July 10, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250710__us-gaap--DividendsAxis__custom--O2025Q2DividendsMember_zT748kXNnTB4" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">March 25, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250325__us-gaap--DividendsAxis__custom--O2025Q1DividendsMember_zIWc8yY0Ty99" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">April 22, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250422__us-gaap--DividendsAxis__custom--O2025Q1DividendsMember_znbSjYa3iJSi" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">December 5, 2024</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20241205__us-gaap--DividendsAxis__custom--O2024Q4DividendsMember_z0V8GjstcR5c" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">January 7, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250107__us-gaap--DividendsAxis__custom--O2024Q4DividendsMember_znk4VA3ayX84" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> </table> It should be noted that from time to time, the Board may elect to pay special dividends, in addition to or in lieu of the regular quarterly dividends, depending upon the financial condition of the Company. The most recent special dividend was declared and paid in December 2019.

20000000

0.01

10094322

59311

10153633

During 2026 and 2025, upon approval of the Board of Directors (the “Board”) the Company has declared and paid regular quarterly dividends, as set forth in the following table: SCHEDULE OF REGULAR QUARTER DIVIDEND PAYMENTS<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td colspan="4" style="border-bottom: Black 1pt solid; text-align: center">Dividend Declared </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">Dividend Paid</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: center">Date</td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Price Per Share</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Date</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Amount</td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 22%; text-align: justify">June 9, 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20260609__us-gaap--DividendsAxis__custom--O2026Q2DividendsMember_zB5AlvuC5bnh" style="width: 22%; text-align: right" title="Dividends payable, amount per share">0.34</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 22%; text-align: right">July 7, 2026 </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260707__us-gaap--DividendsAxis__custom--O2026Q2DividendsMember_zyjS6XF5YR08" style="width: 22%; text-align: right" title="Dividend paid on or before date, amount">3,431,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">March 24, 2026</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20260324__us-gaap--DividendsAxis__custom--O2026Q1DividendsMember_ztxLXLmFH4wb" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">April 21, 2026 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260421__us-gaap--DividendsAxis__custom--O2026Q1DividendsMember_zqfXtzYfWpQc" style="text-align: right" title="Dividend paid on or before date, amount">3,433,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">December 5, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20251205__us-gaap--DividendsAxis__custom--O2025Q4DividendsMember_zyGpMKCqDGI7" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">January 7, 2026 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20260107__us-gaap--DividendsAxis__custom--O2025Q4DividendsMember_z3RoPfmxqqpl" style="text-align: right" title="Dividend paid on or before date, amount">3,431,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">September 12, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250912__us-gaap--DividendsAxis__custom--O2025Q3DividendsMember_z78tAQNfgzc" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">October 8, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20251008__us-gaap--DividendsAxis__custom--O2025Q3DividendsMember_zX8uLFN6X7F6" style="text-align: right" title="Dividend paid on or before date, amount">3,433,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">June 17, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250617__us-gaap--DividendsAxis__custom--O2025Q2DividendsMember_zhEaF1oSdYD1" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">July 10, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250710__us-gaap--DividendsAxis__custom--O2025Q2DividendsMember_zT748kXNnTB4" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">March 25, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20250325__us-gaap--DividendsAxis__custom--O2025Q1DividendsMember_zIWc8yY0Ty99" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">April 22, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250422__us-gaap--DividendsAxis__custom--O2025Q1DividendsMember_znbSjYa3iJSi" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">December 5, 2024</td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_eus-gaap--DividendsPayableAmountPerShare_iI_pid_c20241205__us-gaap--DividendsAxis__custom--O2024Q4DividendsMember_z0V8GjstcR5c" style="text-align: right" title="Dividends payable, amount per share">0.34</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">January 7, 2025 </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--DividendsPayableCurrentAndNoncurrent_iI_pn3d_c20250107__us-gaap--DividendsAxis__custom--O2024Q4DividendsMember_znk4VA3ayX84" style="text-align: right" title="Dividend paid on or before date, amount">3,432,000</td><td style="text-align: left"> </td></tr> </table>

2026-06-09

0.34

2026-07-07

3431000

2026-03-24

0.34

2026-04-21

3433000

2025-12-05

0.34

2026-01-07

3431000

2025-09-12

0.34

2025-10-08

3433000

2025-06-17

0.34

2025-07-10

3432000

2025-03-25

0.34

2025-04-22

3432000

2024-12-05

0.34

2025-01-07

3432000

10. SEGMENT REPORTING The Company derives revenues from the manufacture and sale of flexible metal hose and accessories (the “flexible metal hose” segment). These applications include carrying fuel gases within residential and commercial buildings; gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks, which is used in automotive and marina refueling, and fueling for back-up generation; and medical gases in health care facilities. The accounting policies of the flexible metal hose segment are the same as described in Note 2. Significant Accounting Policies. The Chief Operating Decision Maker (“CODM”), which includes the Chief Executive Officer, Executive Chairman, and President, assesses performance for the flexible metal hose segment and decides how to allocate resources based on the measures which are also reported in the Condensed Consolidated Statements of Income as Operating Profit and Net Income. Segment assets are reported in the Consolidated Balance Sheets as Total Assets. The CODM uses Operating Profit and Net Income to evaluate performance and income generated from segment assets (return on assets) in deciding whether to reinvest profits into the flexible metal hose segment or into other areas, such as for acquisitions or to pay dividends. Significant segment expense categories reviewed by the CODM are consistent with the categories reflected in the Consolidated Statements of Income.

11. RELATED PARTY TRANSACTIONS From time to time the Company may have related party transactions (“RPTs”). RPTs represent any transaction between the Company and any Company employee, director or officer, or any related entity, or relative, etc. The Company performs a review of transactions each year to determine if any RPTs exist, and if so, determines if the related parties act independently of each other in a fair transaction. Through this investigation the Company noted a limited number of RPTs. In all cases, these RPTs have been determined to be arms length transactions with no indication that they are influenced by the related relationships.

12. SUBSEQUENT EVENTS The Company evaluated all events or transactions that occurred through the date of this filing. During this period, no events came to the Company’s attention that would impact the Condensed Consolidated Financial Statements for the period ended June 30, 2026.