Note 1. Nature of Business

The Company was incorporated and began operations in 1987. The Company is engaged in the consumer finance business, offering large loans, small loans, and related payment and collateral protection insurance products. As of September 30, 2026, the Company operated under the name “Regional Finance” online and in branch locations in 20 states across the United States.

The Company’s large and small loan portfolio is comprised of branch loan receivables and convenience check receivables. Branch large and small loan receivables are loans to customers, the majority of which are secured by non-essential household goods and, in some instances, an automobile. Convenience check receivables are unsecured loans originated by mailing checks to customers based on a pre-screening process that includes a review of the prospective customer’s credit profile provided by national credit reporting bureaus or data aggregators. A recipient of a convenience check is able to enter into a loan by endorsing and depositing or cashing the check.

The Company has entered into a bank partnership program with Column, under which the Company acts as Column’s service provider and program manager in connection with Column's consumer installment lending program. Under this arrangement, Column is the lender on each loan, each loan application is approved or denied based on a credit policy that Column approves and controls, and Column funds each loan. The Company performs marketing and application processing activities on Column’s behalf and subject to Column’s oversight and receives marketing and processing fee income. The Company also services the loans on Column's behalf and receives servicing fee income. Following origination, Column may, in its discretion, continue to retain loans or offer them for sale to the Company. The Company purchases loans that Column offers for sale pursuant to a purchase agreement with Column, except in limited circumstances.

Loans are either originated directly through the Company’s state-licensed operations or purchased via the Company’s bank partnership.

The Company’s loan volume and contractual delinquency follow seasonal trends. Demand for the Company’s loans is typically highest during the second, third, and fourth quarters, which the Company believes is largely due to customers borrowing money for vacation, back-to-school, and holiday spending. Loan demand has generally been the lowest during the first quarter, which the Company believes is largely due to the timing of income tax refunds. Delinquencies generally reach their lowest point in the first half of the year and rise in the second half of the year. Changes in the portfolio could result in releases of the allowance for credit losses in periods of portfolio liquidation and increases to the allowance for credit losses in periods of portfolio growth. Consequently, the Company experiences seasonal fluctuations in its operating results. However, changes in macroeconomic factors, including inflation, higher interest rates, and geopolitical conflict, have impacted the Company’s typical seasonal trends for loan volume and delinquency.