Note 12. Fraud Loss (Recovery), Net

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On February 10, 2026, the Company reported it was subjected to an imposter scam of $898,325 executed in conjunction with bank fraud. As of September 30, 2026, the Company recovered $599,044 including $262,745 of funds related to a claim pursuant to its Smart Cyber insurance policy and reimbursement of related expenses received in the third quarter of 2026.  Fraud expense, net of recoveries, was $299,281 for the nine months ended September 30, 2026.