UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
☒	Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended August 31, ~~2024~~2025
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-14311

EACO CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Florida	59-2597349
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5065 East Hunter Avenue, Anaheim, California 92807 (Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (714) 876-2490

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 Par Value (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ☐

Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐

Non accelerated filer ☒

Accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2). Yes ☐ No ☒

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant as of the last business day of the registrant’s most recently completed second fiscal quarter (based upon the closing sale price of the common stock on that date) was approximately $57,~~309~~605,~~166~~000. For the purposes of this calculation, shares owned by officers, directors and 10% stockholders known to the registrant have been deemed to be owned by affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

As of November 2620, ~~2024~~2025, 4,861,590 shares of the registrant’s common stock were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

No documents required to be listed hereunder are incorporated by reference in this Report on Form 10-K.

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Forward-Looking Information

This report may contain forward-looking statements. Such statements can be identified by the use of terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “possible,” “project,” “should,” and similar words or expressions. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profits and capital needs, and our planned initiatives. Forward-looking statements are based on our current expectations, estimates and forecasts of future events and results and involve a number of risks and uncertainties that could cause actual results to differ materially including, among other things, the following: failure of facts to conform to management estimates and assumptions; economic conditions and uncertainties; the impact of tariffs, trade sanctions and other government actions; competitive pressures; our ability to maintain an effective system of internal controls over financial reporting; potential losses from trading in securities; our ability to retain key personnel and relationships with suppliers; the willingness of Citizen’s Business Bank (the “Bank”) or other lenders to extend financing commitments and the availability of capital resources; and other risks identified from time to time in our reports and other documents filed with the Securities and Exchange Commission (the “SEC”), and in public announcements. It is not possible to foresee or identify all factors that could cause actual results to differ materially from those anticipated. As such, investors should not consider any of such factors to be an exhaustive statement of all risks or uncertainties.

No forward-looking statements can be guaranteed and actual results may vary materially. We undertake no obligation to update any forward-looking statement except as required by law, but investors are advised to consult any further disclosures by us in our filings with the SEC, especially on Forms 10-K, 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historical results.

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PART I
		Page No.
Item 1	Business	2
Item 1A	Risk Factors	4
Item 1B	Unresolved Staff Comments	9
Item 1C	Cybersecurity	9
Item 2	Properties	1011
Item 3	Legal Proceedings	1011
Item 4	Mine Safety Disclosures	1112

PART II
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchasers of Equity Securities	11
Item 6	~~Selected Financial Data~~Reserved	1112
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1112
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	1516
Item 8	Financial Statements and Supplementary Data	1517
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	3235
Item 9A	Controls and Procedures	3235
Item 9B	Other Information	3235
Item 9C	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	3236

PART III
Item 10	Directors, Executive Officers and Corporate Governance	3336
Item 11	Executive Compensation	3740
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	3841
Item 13	Certain Relationships and Related Transactions, and Director Independence	3942
Item 14	Principal Accounting Fees and Services	4043
PART IV
Item 15	Exhibits, Financial Statement Schedules	4144

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PART I

Item 1. Business

EACO Corporation (“EACO”), incorporated in Florida in September 1985, is a holding company, primarily comprised of its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”) and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Substantially all of EACO’s operations are conducted through Bisco and Bisco Industries Limited. Bisco is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout the United States and Canada and one additional sales office located in the Philippines. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.

Bisco commenced operations in Illinois in 1973 and was incorporated in 1974. Bisco’s principal executive offices are located at 5065 East Hunter Avenue, Anaheim, California 92807, which also serves as the principal executive offices of EACO. EACO’s website address is www.eacocorp.com and Bisco’s website address is www.biscoind.com. The inclusion of these website addresses in this annual report does not include, or incorporate by reference into this annual report, any information on or accessible through the websites.

EACO, Bisco and Bisco Industries Limited are collectively referred to herein as the “Company,” “we,” “us” and “our.”

Operations

Products and Services

Bisco stocks thousands of items from more than ~~260~~325 manufacturers. Bisco’s products include electronic components such as spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as a large variety of fasteners and hardware. The breadth of Bisco’s products and extensive inventory provide a one-stop shopping experience for many customers.

Bisco also provides customized services and solutions for a wide range of production needs, including special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, and integrated supply programs, among others.

Divisions

Bisco Industries

Bisco sells a broad spectrum of products that it offers to many markets, but primarily sells to original equipment manufacturers (“OEMs”). While historically, the substantial majority of Bisco’s revenues have been derived from the Bisco Industries division, Bisco has also established additional divisions that specialize in specific industries and products. Bisco believes that the focus by industry and/or product enhances Bisco’s ability to provide superior service and devise tailored solutions for its customers.

National-Precision

The National-Precision division primarily sells electronic hardware and commercial fasteners to OEMs in the aerospace, fabrication and industrial equipment industries. National-Precision seeks to be the leading global distributor of mil-spec and commercial fasteners, hardware and distribution services used in production.

Fast-Cor

The Fast-Cor division was established to be a distributor’s source for a broad range of components and fasteners. Fast-Cor has access to the entire inventory of products that Bisco offers but primarily focuses on selling to other distributors, not manufacturers.

Customers and Sales

Bisco’s customers operate in a wide variety of industries and range from large global companies to small local businesses. Bisco strives to provide exceptional service to all customers, including smaller businesses, and continues to focus on growing its share of that market.

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As of August 31, ~~2024~~2025, Bisco had more than 10,000 customers;. ~~however~~Bisco has a diverse customer base, and no single customer accounted for more than 10% of Bisco’s revenues for ~~either~~each of the fiscal years ended August 31, ~~2024~~2025 or ~~2023~~2024. For each of the fiscal years ended August 31, ~~2024~~2025 and ~~2023~~2024 (“fiscal ~~2024~~2025” and “fiscal ~~2023~~2024,” respectively), Bisco’s top 20 customers represented in the aggregate approximately 1617.5% of Bisco’s revenues.

Bisco generally sells its products through its sales representatives in its 51 sales offices located in the United States and Canada and 1one additional sales office in the Philippines. Bisco also intends to open an additional sales office in Chihuahua, Mexico in December 2025. Customers can also purchase products through Bisco’s website. Bisco currently maintains seven distribution centers located in Anaheim and San Jose, California; Dallas, Texas; Chicago, Illinois; Boston, Massachusetts; Atlanta, Georgia; and Toronto, Canada. Each of Bisco’s selling facilities and distribution centers are linked to Bisco’s central computer system, which provides Bisco’s management and salespersons with online, real-time data regarding inventory levels throughout Bisco and facilitates control of purchasing, shipping and billing. Bisco generally ships products to customers from one of its seven distribution centers, based on the geographic proximity to the customer and the location of the available ordered products.

Bisco sells its products primarily in the United States, Canada, and countries within Asia and Europe. Bisco’s international sales represented 1011.71% and 1110.37% of its total sales in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. Sales to customers in Canada accounted for approximately 26.1% and 3626.5% of such international sales in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. Sales to customers located within Asia accounted for approximately 4041.9% and 39.9% of such international sales in both fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively. Sales to customers in other countries ~~make~~accounted upfor 34approximately 32.0% and 2433.6% of such international sales in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively.

Suppliers

As of August 31, ~~2024~~2025, Bisco offered products from over ~~260~~325 manufacturers. The Company’s authorized distributor agreements with most of its manufacturers are typically cancelable by either party at any time or on short notice. While Bisco ~~doesn’t~~does not manufacture its products, it does perform kitting and packaging of existing products for certain of its customers. Bisco believes that most of the products it sells are available from other sources at competitive prices. No single supplier accounted for more than 10% of Bisco’s purchases in fiscal ~~2024~~2025 or fiscal ~~2023~~2024.

Human Capital Resources

As of August 31, ~~2024~~2025, the Company had ~~604~~644 full-time employees, which ~~include~~included ~~401~~429 sales and marketing employees, 8997 management, administrative and finance employees, 6166 warehouse and fulfillment personnel and 5352 supply chain management employees. None of our employees are subject to a collective bargaining agreement.

A key element of our business strategy is to expand our operations and revenues by opening additional sales offices in new geographic locations, and we plan to ~~add~~hire additional sales personnel to support such new offices. ~~Management~~We ~~believes~~believe ~~the~~we ~~Company~~have ~~has~~ been successful in attracting and retaining qualified sales personnel for these new positions. The Company ishas been able to attract and retain employees by offering competitive compensation package, including health care benefit and wellness programs for employees, and providing diversity and team building activities. We believe an innovative workforce needs to be diverse and leverage the skills and perspectives of a wealth of backgrounds and experiences.

Compliance with Government Regulations

We are not aware of the need for any government approvals for our products. Because we use contract manufacturers, any laws regarding the manufacturing of the products we distribute will typically be the responsibility of our contract manufacturers. Prior to entering into any contracts with new manufacturers, we typically conduct due diligence to determine that the manufacturer has satisfied all such requirements. We do not believe that we are subject to any state or federal environmental laws.

Available Information

Currently our common stock is quoted on OTCID marketplace. We file annual reports, quarterly reports, and other information with the SEC under the Securities Exchange Act of 1934, as amended.

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You can inspect and obtain a copy of our reports, proxy statements and other information filed with the SEC at the offices of the SEC’s Public Reference Room at 100 F Street N.E., Washington, D.C. 20549, or call the SEC at 1-800-732-0330 for further information. The SEC maintains an internet website at http://www.sec.gov where you can access copies of most of our SEC filings.

Item 1A. Risk Factors

Our business is subject to a number of risks, some of which are discussed below. The risk factors discussed in this section should be considered together with information included elsewhere in this Annual Report on Form 10-K (the “Annual Report”) and should not be considered the only risks to which the Company is exposed. If any of the risks actually occur, our business, financial condition, or results of operations could be seriously harmed. In that event, the market price for shares of our common stock may decline, and you could lose all or part of your investment.

Company and Operational Risks

We generally do not have long-term supply agreements or guaranteed price or delivery arrangements with the majority of our suppliers.

In most cases, we have no guaranteed price or delivery arrangements with our suppliers. Consequently, we may experience inventory shortages on certain products from time to time. Furthermore, our industry occasionally experiences significant product supply shortages and customer order backlogs due to the inability of certain manufacturers to supply products as needed. We cannot assure you that our suppliers will maintain an adequate supply of products to fulfill our orders on a timely basis, at a recoverable cost, or at all, or that we will be able to obtain particular products on favorable terms, on a timely basis, or at all. Additionally, we cannot assure you that product lines currently offered by suppliers will continue to be available to us. A decline in the supply or continued availability of the products of our suppliers, or a significant increase in the price of those products, could reduce our sales, harm our reputation and negatively affect our operating results.

Our supply agreements are generally terminable at the suppliers’ discretion.

Substantially all of the agreements we have with our suppliers, including our authorized distributor agreements, may be terminated by either party with little or no notice or penalty. Suppliers that currently sell their products through us could decide to sell, or increase their sales of, their products directly or through other distributors or channels. If a supplier terminates our agreement, we may not be able to identify or secure another supplier for the same products on a timely basis, at competitive pricing, or at all. Any termination, interruption or adverse modification of our relationship with a key supplier or a significant number of other suppliers would likely adversely affect our operating income, cash flow and future prospects.

We are subject to a variety of claims, investigations and litigation that could adversely affect our results of operations and harm our reputation.

In the normal course of business, we are subject to claims and lawsuits, including from time to time class actions involving consumers, stockholders or employees, and claims relating to commercial, labor, or employment matters,. We have in the past and may in the future be subject to investigations, claims, litigation and other proceedings outside the ordinary course of business. Defending these lawsuits and becoming involved in these investigations may divert management’s attention, and may cause us to incur significant expenses, even if there is no evidence that our systems or practices were the cause of the claim. In addition, we may be required to pay damage awards, penalties or settlements, or become subject to injunctions or other equitable remedies, which could have a materially adverse effect on our business, financial condition, results of operations and cash flows. Moreover, any insurance or indemnification rights that we have may be insufficient or unavailable to protect us against potential loss exposures.

We generally do not have long-term sales contracts with our customers.

Most of our sales are made on a purchase order basis, rather than through long-term sales contracts. As such, our customers typically do not have any obligation to purchase any products from us. A variety of conditions, both specific to each customer and generally affecting each customer’s industry, may cause customers to reduce, cancel or delay orders that were either previously made or anticipated. In addition, customers may go bankrupt or fail, or default on their payments. Significant or numerous cancellations, reductions, delays in orders by customers, losses of customers, and/or customer defaults on payment could materially adversely affect our business and revenues.

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We rely on third-party suppliers for most of our products, and may not be able to identify and procure relevant new products and products lines that satisfy our customers’ needs on favorable terms and prices, or at all.

We currently rely on a large number of third-party suppliers for most of our products. Since we do not manufacture our products, we rely on these suppliers to provide quality products that are in demand by our customers. Our success depends in part on our ability to develop product expertise and continue to identify and provide future high-quality products and product lines that complement our existing products and product lines and that respond to our customers’ needs. We may not be able to compete effectively unless we can continue to offer a broad range of high quality, reliable products that address the trends and demand in the markets in which we compete.

Our business may be adversely affected by tariffs, trade sanctions or similar government actions.

The recent imposition by the United States of tariffs, sanctions or other restrictions on goods exported from the United States or imported into the United States, or countermeasures imposed in response to such government actions, could increase the cost of goods for our products or reduce our ability to sell products globally, which may adversely affect our operating results and financial condition. In fiscal 2025, the U.S. government imposed additional tariffs on a significant number of countries and threatened to further increase in the scope and amount of tariffs in the event of retaliatory countermeasures, and the future of existing tariffs, and the possibility for new tariffs, remains uncertain. So far, these new tariffs and trade policies have not had a significant impact on our business operations and financial results. However, there is no guarantee that we can avoid the impact of tariff and related economic effects in the future, and these trade measures and retaliations may directly impair our business by increasing trade-related costs or disrupting established supply chains.

The materials subject to these tariffs may impact the cost or availability of raw materials used by our suppliers or in our customers’ products. The imposition of further tariffs by the United States on a broader range of imports, or further retaliatory trade measures taken in response to additional tariffs, could increase costs in our supply chain or reduce demand of our customers’ products, either of which could adversely affect our results of operations. Any increase in trade-related costs associated with such measures may impair the profitability of such international production, may strain our suppliers’ ability to reliably provide inputs necessary to produce these items, and may otherwise affect our partners’ abilities to provide our products at previously contracted prices. Tariffs may also indirectly impair our business by causing a negative effect on global economic conditions and financial markets. The ultimate impact of these trade measures on our business operations and financial results is uncertain and may be affected by various factors, including whether and when such trade measures are implemented, the timing when such measures may become effective, and the amount, scope, or nature of such trade measures, and our ability to execute strategies to mitigate the negative impacts.

Increases in the costs of energy, shipping and raw materials used in our products could impact our cost of goods and distribution and occupancy expenses, which would result in lower operating margins.

Costs of raw materials used in our vendors’ products and energy costs have been rising during the last several years, which has resulted in increased production costs for our suppliers. These suppliers typically look to pass their increased costs along to us through price increases. The shipping costs for our products have risen as well and may continue to rise. While we typically try to pass increased supplier prices and shipping costs through to our customers or to modify our activities to mitigate the impact, we may not be successful. Failure to fully pass these increased prices and costs through to our customers or to modify our activities to mitigate the impact would have an adverse effect on our operating margins and could make our products less competitive, either of which could adversely impact our margins and results of operations.

The unauthorized access to, or theft or destruction of, customer or employee personal, financial or other data or of our proprietary or confidential information that is stored in our information systems or by third parties on our behalf could impact our reputation and brand and expose us to potential liability and loss of revenues.

The protection of customer, employee and Company data is critical to us. We are subject to laws relating to information security, privacy, cashless payments, consumer credit and fraud. Additionally, an increasing number of government and industry groups have established laws and standards for the protection of personal information. The regulatory environment surrounding information security and privacy is increasingly demanding, with the frequent imposition of new and constantly changing requirements. Compliance with these requirements may result in cost increases due to necessary system changes and the development of new administrative processes. If we fail to comply with laws and regulations regarding privacy and security, we could be subject to significant fines, and become subject to investigations, litigation and the disruption of our operations.

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In the ordinary course of business, we receive and maintain credit card and other personal information from our customers, employees and vendors. Customers and employees have a high expectation that we will adequately protect their personal information. Third parties may have the technology or know-how to breach the security of this customer information, and our security measures and those of our technology vendors may not effectively prohibit others from obtaining improper access to this information. A number of retailers have experienced security breaches in which credit and debit card information may have been stolen. While we have not experienced a material cyber-attack, we are working with a third-party vendor to assist us in safeguarding our systems and protecting the material personal information of our customers, employees and vendors. Our analysis may not be able to adequately address or remedy the potential harm, which could result in the assessment against us for large remedial costs and other penalties, and could damage our reputation and adversely impact our customers.

We rely heavily on our internal information systems, which, if not properly functioning, could materially and adversely affect our business.

Our information systems have been in place for many years and are subject to system failures as well as problems caused by human error, which could have a material adverse effect on our business. Many of our systems consist of a number of legacy or internally developed applications, which can be more difficult to upgrade to commercially available software. It may be time consuming and costly for us to retrieve data that is necessary for management to evaluate our systems of control and information flow. The Company is currently updating parts of the information systems within the accounting departments to enhance its reporting capabilities and to create more efficient and accurate accounting processes. In the future, management may decide to convert our information systems to a single enterprise solution. Such a conversion, while it would enhance the accessibility and reliability of our data, could be expensive and would not be without risk of data loss, delay or business interruption. Maintaining and operating these systems requires continuous investments. Failure of any of these internal information systems or material difficulties in upgrading these information systems could have material adverse effects on our business and our timely compliance with our reporting obligations.

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We may not be able to attract and retain key personnel.

Our future performance will depend to a significant extent upon the efforts and abilities of certain key management and other personnel, including Glen Ceiley, our Chairman and CEO, and Don Wagner, Bisco’s President and Chief Operating Officer, as well as other executive officers and senior management. The loss of service of one or more of our key management members could have a material adverse effect on our business.

The competitive pressures we face could have a material adverse effect on our business.

The market for our products and services is very competitive. We compete for customers with other distributors, who sell similar or sometimes identical products, as well as with many of our suppliers. A failure to maintain and enhance our competitive position could adversely affect our business and prospects. Furthermore, our efforts to compete in the marketplace could cause deterioration of gross ~~profit~~ margins and, thus, overall profitability. Some of our competitors may have greater financial, personnel, capacity and other resources or a more extensive customer base than we do. Our failure to compete in the marketplace can adversely affect our business operations and financial performance.

Expansion Risks

Our strategy of expanding into new geographic areas, including international markets, could be costly, subject us to additional risks and may not expand our revenues.

One of our primary growth strategies is to grow our business through the opening of sales offices in new geographic markets. This strategy requires continued investment, both financially, as well as management’s efforts to get the new offices operational. Based on our analysis of demographics in the United States, Canada, Mexico and countries within Asia, we currently estimate there is potential market opportunity to support additional sales offices in ~~North~~these ~~America~~regions and ~~Asia~~plans to ~~support~~open ~~additional~~a sales ~~offices.~~office in Mexico in December 2025.

In addition, our expansion into international markets such as Asia may encounter additional risks, challenges and difficulties that ~~are~~may not be present for our U.S. operations, including the following:

● lack of experience and expertise in foreign markets, especially in Mexico, where we haven’t historically had a presence;

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the impact of tariffs, trade sanctions and other government restrictions;

●

compliance with additional rules and regulations in non-U.S. jurisdictions, including export control and trade restrictions;

●

economic and political instability, including trade tensions and wars;

●

costs and delays associated with transportations and communications;

●

coordination of operations through multiple jurisdictions and time zones; and fluctuations in foreign currency exchange rates

We cannot guarantee that our estimates are accurate or that we will open enough offices to capitalize on the full market opportunity or that any new offices will be successful or profitable in the near future, or at all. In addition, a particular local market’s ability to support a sales office may change due to competition or local economic conditions.

We may be unable to meet our goals regarding new office openings.

Our growth, in part, is primarily dependent on our ability to attract new customers. Historically, our most effective way to attract new customers has been opening new sales offices in additional geographic regions or new markets. During fiscal ~~2024~~2025, the Company relocated some existing sales offices to larger office locations within its original region. Given the recent economic uncertainty, we may not be able to open or grow new offices at our projected or desired rates or hire qualified sales personnel necessary to make such new offices successful. Failure to do so could negatively impact our long-term growth and market share.

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Opening sales offices in new markets presents increased risks that may prevent us from being profitable in these new locations, and/or may adversely affect our operating results.

Our new sales offices do not typically achieve operating results comparable to our existing offices until after several years of operation. The added expenses relating to payroll, occupancy, and transportation costs can impact our ability to generate earnings. Offices in new geographic areas face additional challenges to achieving profitability, and we cannot guarantee how long it will take new offices to become profitable, or that such offices will ever become profitable. In new markets, we have less familiarity with local customer preferences and customers in these markets are less familiar with our name and capabilities. Entry into new markets may also bring us into competition with new, unfamiliar competitors. These challenges associated with opening new offices in new markets may have an adverse effect on our business and operating results.

Our ability to successfully attract and retain qualified sales personnel is uncertain.

Our success depends in large part on our ability to attract, motivate, and retain a sufficient number of qualified sales employees, who understand and appreciate our strategy and culture and are able to adequately represent us to our customers. During fiscal ~~2024~~2025, the Company added 4228 sales employees and plan to continue to expand our sales team in the future. Qualified individuals of the requisite caliber and number needed to fill these positions may be in short supply in some areas, and the turnover rate in the industry is high. If we are unable to hire and retain personnel capable of consistently providing a high level of customer service, as demonstrated by their enthusiasm for our culture and product knowledge, our sales could be materially adversely affected. Additionally, competition for qualified employees could require us to pay higher wages to attract a sufficient number of employees. An inability to recruit and retain a sufficient number of qualified individuals in the future may also delay the planned openings of new offices. Any such delays, material increases in existing employee turnover rates, or increases in labor costs, could have a material adverse effect on our business, financial condition or operating results.

Financial Risks

We may not have adequate or cost-effective liquidity or capital resources.

Our ability to satisfy our cash needs depends on our ability to generate cash from operations and to access our line of credit and the capital markets, which are subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. In October 2023, the Company used $31.0,000,000 ~~million~~ of cash to purchase our Anaheim corporate headquarters and distribution center. As of August 31, ~~2024~~2025, there was no outstanding balance on our line of credit, which line of credit is secured by substantially all of Bisco’s assets. Further, the Company has a loan agreement with the Bank that financed the tenant improvements on the corporate headquarters, of which approximately $4.3 million was outstanding as of August 31, 2024. See Notes 4 and 9 of the Notes to Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report for further explanation. Our ability to continue to secure financing is subject to our satisfaction of certain covenants contained in such agreements. As a result of the recent economic uncertainty primarily caused by inflation and high borrowing interest rates, we may need to pursue additional debt or equity financing or to refinance our existing loans, which funding may not be available on acceptable or favorable terms, on a timely basis or at all. The securities that might be issued in any future equity financing may have rights, preferences, and privileges that are senior to our common stock. Our failure to obtain such funding could adversely impact our ability to execute our business plan and our financial condition and results of operations.

We have incurred significant losses in the past from trading in securities, and we may incur such losses in the future, which may also cause us to be in violation of covenants under our loan agreement.

Bisco has historically supplemented its capital resources in part from cash generated by trading in marketable domestic equity securities. Bisco’s investment strategy includes taking both long and short positions, as well as utilizing options to maximize return. This strategy can lead, and has led, to significant losses from time to time based on market conditions and trends, as well as the performance of the specific companies in which we invest. We may incur losses in future periods from such trading activities, which could materially and adversely affect our liquidity and financial condition.

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~~covenants~~of inBisco’s assets. Further, the ~~future~~Company orhas ~~that~~a loan agreement with the ~~bank~~Bank ~~will~~that ~~grant~~financed athe ~~waiver~~tenant ~~for~~improvements ~~any~~on ~~such~~the ~~default~~corporate orheadquarters, ~~that~~of itwhich ~~will~~approximately ~~not~~$4,214,000 ~~exercise~~was ~~its~~outstanding ~~remedies~~as of August 31, ~~which~~2025. ~~could~~See ~~include~~Notes 4 and 10 of the ~~refusal~~Notes to ~~allow~~Consolidated ~~additional~~Financial ~~borrowings~~Statements, onincluded ~~the~~in ~~line~~Part II, Item 8 of ~~credit~~this orAnnual ~~the~~Report ~~acceleration~~for further explanation. Our ability to continue to secure financing is subject to our satisfaction of certain covenants contained in such agreements. Our ability to secure favorable financing is affected by various factors, including the ~~obligation’s~~macroeconomic ~~maturity~~environment, ~~date~~inflation and ~~foreclosure~~borrowing oninterest ~~Bisco’s~~rates. ~~assets~~In addition, ~~with~~we ~~respect~~may need to ~~any~~pursue ~~such~~additional ~~noncompliance~~debt or equity financing or to refinance our existing loans, which ~~could~~funding ~~have~~may anot ~~material~~be ~~adverse~~available ~~effect~~on acceptable or favorable terms, on a timely basis or at all. The securities that might be issued in any future equity financing may have rights, preferences, and privileges that are senior to our common stock. Our failure to obtain such funding could adversely impact our ability to execute our business plan and our financial condition and results of operations.

In addition, unanticipated losses from our trading activities may cause Bisco to be in violation of certain covenants under its line of credit agreement with Citizen’s Business Bank, located in Anaheim, CA. The agreement is secured by substantially all of Bisco’s assets. The loan agreement contains covenants which require that, on a quarterly basis, Bisco’s losses from trading in securities not exceed its pre-tax operating income. We cannot assure you that unanticipated losses from our trading activities will not cause us to violate our covenants in the future or that the bank will grant a waiver for any such default or that it will not exercise its remedies, which could include the refusal to allow additional borrowings on the line of credit or the acceleration of the obligation’s maturity date and foreclosure on Bisco’s assets, with respect to any such noncompliance, which could have a material adverse effect on our business and operations.

We are exposed to foreign currency exchange rate risk, and changes in foreign exchange rates could increase our costs to procure products and impact our foreign sales.

Because the functional currency related to our Canadian operations and certain of our foreign vendor purchases is the applicable local currency, we are exposed to foreign currency exchange rate risk arising from transactions in the normal course of business. Fluctuations in the relative strength of foreign economies and their related currencies could adversely impact our ability to procure products overseas at competitive prices and our foreign sales. Historically, our primary exchange rate exposure has been with the Canadian dollar.

Concentration of Ownership Risks

The Company’s Chairman and CEO holds almost all of our voting stock and can control the election of directors and significant corporate actions.

Glen Ceiley, our Chairman and CEO, beneficially owns or controls approximately 96% of our outstanding voting stock. As such, Mr. Ceiley is able to exert significant influence over the outcome of almost all corporate matters, including the election of the Board of Directors and significant corporate transactions requiring a stockholder vote, such as a merger or a sale of the Company or our assets. This concentration of ownership and influence in management and board decision-making could also harm the price of our common stock by, among other things, discouraging a potential acquirer from seeking to acquire shares of our common stock (whether by making a tender offer or otherwise) or otherwise attempting to obtain control of the Company. Given the significant influence of our Chairman and CEO, the Company may take actions to which minority stockholders may disagree or oppose.

Sales of our common stock by Glen Ceiley could cause the price of our common stock to decline.

There is currently no established trading market for our common stock, and the trading volume of ~~any~~our common stock ~~sales~~on ~~has~~the ~~generally~~OTC market has been generally low. As of August 31, ~~2024~~2025, the number of shares held by non-affiliates of Mr. Ceiley was less than 200,000 shares. If Mr. Ceiley sells or seeks to sell a substantial number of his shares of our common stock in the future, the market price of our common stock could decline. The perception among investors that these sales may occur could produce the same effect. Due to the limited ~~available public float, certain investors may not be able or willing to invest in the Company’s securities, which could also impact the market price of our common stock.~~

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available public float, certain investors may not be able or willing to invest in the Company’s securities, which could also impact the market price of our common stock.

General Risk Factors

Changes and uncertainties in the macroeconomic conditions have harmed and could continue to harm our operating results.

As a result of economic uncertainties primarily caused by inflation and high borrowing interest rates, our operating results, and the economic strength of our customers and suppliers, are increasingly difficult to predict. Sales of our products are affected by many factors, including, among others, general economic conditions, interest rates, inflation, liquidity in the credit markets, unemployment trends, shipping costs, geopolitical events, and other factors. Although we sell our products to customers in a broad range of industries, if economic conditions significantly weaken on a global scale it may cause some of our customers to experience a slowdown, from time to time, which may in turn have an adverse effect on our sales and operating results. Changes and uncertainties in the economy also increase the risk of uncollectible accounts receivable. The pricing we receive from suppliers may also be impacted by general economic conditions. Continued and future changes and uncertainties in the economic climate in the United States and elsewhere could have a similar negative impact on the rate and amounts of purchases by our current and potential customers, create price inflation for our products, or otherwise have a negative impact on our expenses, gross margins and revenues, and could hinder our growth.

If we fail to maintain an effective system of internal controls over financial reporting or experience material weaknesses in our system of internal controls, we may not be able to report our financial results accurately or timely or detect fraud, which could have a material adverse effect on the market price of our common stock and our business.

We currently have, and from time to time have had, material weaknesses in our internal controls over financial reporting due to a variety of issues, including, without limitation, significant deficiencies in the process related to the preparation of our consolidated financial statements, segregation of duties, sufficient control in the area of financial reporting oversight and review, and appropriate personnel to ensure the complete and proper application of GAAP as it relates to certain routine accounting transactions. As previously disclosed, a material weakness existed as of August 31, 2024, related to the Company’s internal controls over the financial reporting related to our financial closing process, including manual journal entries recorded in the preparation of the consolidated financial statements related to the Company’s lease accounts, and certain inventory and accrued liability accounts. Although we believe we are making progress in mitigating these material weaknesses, we may experience material weaknesses or significant deficiencies in the future and may fail to maintain a system of internal control over financial reporting that complies with the applicable reporting. Our failure to address any deficiencies or weaknesses in our internal control over financial reporting or to properly maintain an effective system of internal control over financial reporting could impact our ability to prevent fraud or to issue our consolidated financial statements in a timely manner that presents fairly, in accordance with GAAP, our financial condition and results of operations. The existence of any such deficiencies and/or weaknesses, even if cured, may also lead to the loss of investor confidence in the reliability of our consolidated financial statements, could harm our business and negatively impact the trading price of our common stock. Such deficiencies or material weaknesses may also subject us to lawsuits, investigations and other penalties.

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segregation of duties, sufficient control in the area of financial reporting oversight and review, and appropriate personnel to ensure the complete and proper application of GAAP as it relates to certain routine accounting transactions. Although we believe we are making progress in mitigating these material weaknesses, we may experience material weaknesses or significant deficiencies in the future and may fail to maintain a system of internal control over financial reporting that complies with the applicable reporting. Our failure to address any deficiencies or weaknesses in our internal control over financial reporting or to properly maintain an effective system of internal control over financial reporting could impact our ability to prevent fraud or to issue our financial statements in a timely manner that presents fairly, in accordance with GAAP, our financial condition and results of operations. The existence of any such deficiencies and/or weaknesses, even if cured, may also lead to the loss of investor confidence in the reliability of our financial statements, could harm our business and negatively impact the trading price of our common stock. Such deficiencies or material weaknesses may also subject us to lawsuits, investigations and other penalties.

Item 1B. Unresolved Staff Comments

None.

Item 1C. Cybersecurity

Cybersecurity Risk Management and Strategy

Our cybersecurity policies and processes are fully integrated into our Risk Management procedures and are based on the National Institute of Standards and Technology Framework for Improving Critical Infrastructure Cybersecurity (NIST Cybersecurity Framework), a toolkit for organizations to manage cybersecurity risk in its assessment of cybersecurity capabilities and in developing cybersecurity priorities. In addition to internal assessments, our cybersecurity strategy and capabilities are evaluated and audited against the NIST Framework and industry best practices by independent, third-party, leading specialists in cybersecurity. We strive to create a culture of cybersecurity resilience and awareness. This tone is ~~continuously~~ reinforced with our employees through education and ~~regular~~periodic testing. We continue to improve our programs and invest in the security of our systems, operations, people, infrastructure, and cloud environments. Our cybersecurity strategy seeks to follow industry best practices designed to ensure compliance with applicable global privacy and regulatory requirements. To protect our customers, we administer physical, technological and administrative controls on data privacy and security. We regularly validate our security controls by performing penetration testing, compliance audits, as well as proactive security testing to ensure our systems and controls are secure. We plan to brief the Board of Directors on our strategy and roadmap in alignment with the NIST Cybersecurity Framework and we plan to provide our Board with regular updates regarding cybersecurity risks, threat landscape and overall program progress.

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data privacy and security. We regularly validate our security controls by performing penetration testing, compliance audits, as well as proactive security testing to ensure our systems and controls are secure. Management also periodically briefs the Board of Directors on our strategy and roadmap in alignment with the NIST Cybersecurity Framework and we plan to continue providing the Board with regular updates regarding cybersecurity risks, threat landscape and overall program progress.

We believe that the risks from cybersecurity threats thus far, including any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect our business, including our business strategy, financial condition or results of operations. For additional information about the cybersecurity risks, see Part I, Item 1A. “Risk Factors,” of this Annual Report.

Our cybersecurity risk management procedures are focused on the following key areas:

Education and Awareness

We provide required security awareness education and training to our employees and contractors with system access that focuses on various aspects of the cybersecurity world. Users of our internal systems are required to complete an annual cybersecurity awareness training and are tested for awareness on a regular basis. We also provide tailored training courses to functional technology employees and employees who process personal or sensitive information.

Threat Management, Incident Response, and Recovery Planning

We have established and maintain a comprehensive incident response and recovery plan designed to identify, contain and eradicate cybersecurity threats, with recovery from an incident as rapidly as possible. Our information security team utilizes threat technologies and vendors 24/7 to monitor and respond to security threats. In the event of a security incident, a defined procedure outlines containment, response and immediate recovery actions. The incident response plan is tested, evaluated and updated no less than on an annual basis.

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Data and Consumer Privacy

Our data and consumer privacy program monitors, adapts to and works diligently to comply with changes in global privacy legislation. We have implemented technical, procedural and organizational measures designed to comply with applicable data protection and consumer privacy laws. We conduct external benchmarking, as well as privacy compliance audits, to stay abreast of developing privacy laws and understand developing risks, best practices and industry trends.

Third-Party Risk Management

We recognize the risks associated with the use of vendors, service providers, and other third parties that provide information system services to us, process information on our behalf, or have access to our information systems. The Company has processes in place to oversee and manage these risks. We have an information risk management program that includes a vendor risk assessment process, whereby we systematically oversee and identify risks from cybersecurity threats related to our use of key third-party service providers.

Cybersecurity Governance

Our executive management team and Board of Directors oversee our policies with respect to risk assessment and the management of those risks that may be material to us, including cybersecurity risks. While cybersecurity resilience is the responsibility of every employee and contractor, our cybersecurity program is led by the Director of Information Technology (“Director of IT”), who reports to the President and COO. Our Director of IT has extensive experience in network engineering and cybersecurity operations from both a practical and management standpoint and attends training in cybersecurity and risk mitigation.

We ~~plan to~~ provide our Board of Directors with a comprehensive annual report of cybersecurity risks, threat landscape, and overall program status. On an annual basis, the President also will report to the Board of Directors on various metrics on threat management, incident response and recovery planning, along with industry benchmarks.

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Item 2. Properties

We have 51 sales offices and seven distribution centers located throughout the United States and in Canada and have one additional sales office in Asia located in the Philippines. InWe ~~September~~plan 2019, Bisco entered into Commercial Lease Agreement (the “Hunter Lease”) with the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, our Chief Executive Officer, Chairman of the Board and majority shareholder (the “Trust”), and had a lease term that expires on August 31, 2029. Pursuant to ~~the~~open ~~Hunter~~an ~~Lease,~~additional ~~Bisco~~international ~~has~~sales ~~leased from the Trust approximately 80,000 square feet of~~ office ~~and warehouse space located at 5065 East Hunter Avenue, Anaheim, California (the “Hunter Property”). The Company moved its corporate headquarters to the Hunter Property~~ in ~~March 2020. The initial base rent for the Hunter Lease is $66~~Chihuahua,~~300~~ ~~per~~Mexico month, which increased by 2.5% annually over the term of the lease. On October 20, 2023, the Company purchased the Hunter Property from the Trust for a purchase price of $31,000,000 and terminated the Hunter Lease. The Hunter Property was purchased with cash, funded by the Company’s available cash accounts and liquidated securities. See Note 11 of the Notes to Consolidated Financial Statements, included in ~~Part~~December ~~II, Item 8 of this Annual Report for further explanation~~2025.

In September 2019, Bisco entered into a Commercial Lease Agreement (the “Hunter Lease”) with the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”), which is the grantor trust of Glen Ceiley, our Chief Executive Officer, Chairman of the Board and majority shareholder. The Hunter Lease had a lease term that expired on August 31, 2029. Pursuant to the Hunter Lease, Bisco has leased from the Trust approximately 80,000 square feet of office and warehouse space located at 5065 East Hunter Avenue, Anaheim, California (the “Hunter Property”). The Company moved its corporate headquarters to the Hunter Property in March 2020. The initial base rent for the Hunter Lease was $66,300 per month, which increased by 2.5% annually over the term of the lease. On October 20, 2023, the Company purchased the Hunter Property from the Trust for a purchase price of $31,000,000 and terminated the Hunter Lease. The Hunter Property was purchased with cash, funded by the Company’s available cash accounts and liquidated securities. See Notes 2 and 10 of the Notes to Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report for further explanation. The Company recently leased an additional 25,000 square feet of additional office and warehouse space in a building adjacent to the Company’s corporate headquarters from an independent third party.

Bisco also leases its Chicago area sales office and distribution center located in Glendale Heights, Illinois under an operating lease agreement (the “Chicago Lease”) from the Trust, which has a term that expires in May 2029. The initial base rent for this lease is $22,600 per month, which increases by 2.5% annually over the term of the lease.

All of our other properties are leased, consisting of sales offices and warehouse space. Leases of sales offices generally have a lease term of three years and leases of warehouse locations usually have a lease term of five to ten years. For additional information regarding our obligations under property leases, see Note 8 of the Notes to Consolidated Financial Statements, included in Part II, Item 8 of this Annual Report.

Item 3. Legal Proceedings

From time to time, the Company may be named in claims arising in the ordinary course of business. Currently, we are not a party to any legal proceedings that, in the opinion of our management, would reasonably be expected to have a material adverse effect on our business or financial condition. See Note 8 of the Notes to Consolidated Financial Statements in this Annual Report for disclosure regarding a ~~pending~~ class action lawsuit tothat ~~which~~was werecently ~~have reached an agreement in principle to settle, which is subject to court approval~~settled.

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Item 4. Mine Safety Disclosures

Not applicable.

PART II

Market Information and Holders

The Company’s common stock is quoted on ~~OTC~~OTCID ~~Pink~~ operated by the OTC Markets Group Inc., and was previously quoted on the OTC ~~Bulletin Board~~Pink, under the trading symbol “EACO”; however, the Company’s common stock typically has low trading volumes.

As of November 2620, ~~2024~~2025, the Company had approximately ~~220~~290 shareholders of record.

Dividend Policy

The Company has never paid cash dividends on its common stock and does not expect to pay any cash dividends on its common stock in the foreseeable future.

~~Item 6.~~11

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Item 76. ~~Management’s Discussion and Analysis of Financial Condition and Results Of Operations~~[Reserved]

You should read the following discussion of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included in Part II, Item 8, “Financial Statements and Supplementary Data” of this Annual Report. In addition to our historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report, particularly in Part I, Item 1A, “Risk Factors.”

~~Overview~~Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

~~EACO~~You isshould aread ~~holding~~the ~~company~~following ~~primarily~~discussion ~~comprised~~of our financial condition and results of ~~its~~operations ~~wholly-owned~~in ~~subsidiary,~~conjunction ~~Bisco,~~with our consolidated financial statements and ~~includes~~the ~~Bisco’s~~related ~~wholly-owned~~notes ~~Canadian~~included ~~subsidiary~~in Part II, ~~Bisco~~Item ~~Industries~~8, ~~Limited.~~“Financial ~~Bisco~~Statements isand aSupplementary ~~distributor~~Data” of ~~electronic~~this ~~components~~Annual ~~and~~Report. ~~fasteners~~In ~~with~~addition 51to ~~sales~~our ~~offices~~historical ~~and~~consolidated ~~seven~~financial ~~distribution~~information, ~~centers~~the ~~located~~following ~~throughout~~discussion ~~North~~contains ~~America~~forward-looking statements that reflect our plans, estimates, and ~~one~~beliefs. ~~sales~~Our ~~office~~actual inresults ~~Asia~~could ~~located~~differ materially from those discussed in the ~~Philippines~~forward-looking statements. ~~Bisco~~Factors ~~supplies~~that ~~parts~~could ~~used~~cause inor ~~the~~contribute ~~manufacture~~to ofthese ~~products~~differences ininclude athose ~~broad~~discussed ~~range~~below ofand ~~industries,~~elsewhere ~~including~~in ~~the~~this ~~aerospace~~Annual Report, ~~circuit~~particularly ~~board,~~in ~~communication,~~Part ~~computer~~I, ~~fabrication,~~Item ~~instrumentation~~1A, ~~industrial~~“Risk ~~equipment and marine industries~~Factors.”

~~Critical Accounting Policies and Estimates~~Overview

~~Revenue~~EACO ~~Recognition~~is a holding company primarily comprised of its wholly-owned subsidiary, Bisco, and includes Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Bisco is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout North America and one sales office in Asia located in the Philippines. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries.

WeCritical ~~derive~~Accounting ~~our~~Policies revenue primarily from product sales. We determine revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and ~~(5) recognition of revenue when, or as, we satisfy a performance obligation.~~Estimates

~~The Company’s performance obligations consist solely of product shipped to customers.~~ Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products. Revenue is recognized net of returns and any taxes collected from customers. We offer industry standard contractual terms in our purchase orders.Recognition

11The Company derives its revenue primarily from product sales. Revenue recognition is determined through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, performance obligations are satisfied.

~~Table~~The Company’s contract with the customer is executed with a customer purchase order and performance obligations consist solely of ~~Contents~~products shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products as stated on the Company’s invoice to the customer. Revenue is recognized net of returns and any taxes collected from customers. The Company generally offers industry standard contractual terms in its terms and conditions stated on its invoices and Company website.

Deferred Tax Assets

Our income tax expense, deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) reflect management’s best estimate of current and future taxes to be paid. We are subject to income taxes in the United States. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. In evaluating our ability to recover our DTAs in the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of DTLs, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, we begin with historical results adjusted for the results of discontinued operations and incorporate assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, we consider three years of cumulative operating income.

Inventory

The Company’s inventory provisions for obsolescence are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company. The Company’s methodology for estimating these adjustments to the cost basis is evaluated for factors that could require changes to the cost basis including significant changes in product demand, market conditions, condition of the inventory or net realizable value. If business or economic conditions change, the Company’s estimates and assumptions may be adjusted as deemed appropriate.

~~Results of Operations~~12

~~Comparison~~Table of ~~the Fiscal Years Ended August 31, 2024 and 2023~~Contents

~~Revenues~~basis ~~and~~is ~~Gross~~evaluated ~~Margin~~for ~~(dollars~~factors that could require changes to the cost basis including significant changes in ~~thousands)~~product demand, market conditions, condition of the inventory or net realizable value. If business or economic conditions change, the Company’s estimates and assumptions may be adjusted as deemed appropriate.


	Fiscal Years Ended August 31,						$		%
	2024			2023			Change		Change
Revenues	$	356,231		$	319,397		$	36,834	11.5	%
Cost of revenues		250,019			226,981			23,038	10.1	%
Gross margin	$	106,212			92,416		$	13,796	14.9	%
Percent of revenues		29.8	%		28.9	%

Results of Operations

Comparison of the Fiscal Years Ended August 31, 2025 and 2024

Revenues ~~consist primarily of sales of component parts~~ and ~~fasteners~~Gross ~~and~~Margin ~~also~~(dollars ~~include, to a lesser extent, kitting charges and order fees, as well as freight charged to customers. The increase~~ in revenues in fiscal 2024 compared to fiscal 2023 was largely due to added sales employees during fiscal 2024, increasing by 33 sales employees when comparing to fiscal 2023. We believe that increasing sales headcount leads to the addition of new customers and the ability to sell more products to existing customers and creating better customer relationships. Additionally, revenues for fiscal 2024 have increased when compared to fiscal 2023 primarily due to higher inventory stock available and an increased demand for those products. Gross margin for fiscal 2024 have increased when compared to fiscal 2023 primarily due to developing better relationships with vendors and customers.thousands)

Selling, General and Administrative Expense (dollars in thousands)


	Fiscal Years Ended August 31,						$		%
	2025			2024			Change		Change
Revenues	$	427,931		$	356,231		$	71,700	20.1	%
Cost of revenues		299,225			250,019			49,206	19.7	%
Gross margin	$	128,706			106,212		$	22,494	21.2	%
Percent of revenues		30.1	%		29.8	%


	Fiscal Years Ended
	August 31,						$		%
	2024			2023			Change		Change
Operating expense:
Selling, general and administrative expenses	$	80,971		$	64,936		$	16,035	24.7	%
Impairment on termination of lease		3,906			—			3,906	100.0	%
Operating expenses	$	84,877		$	64,936			19,941	30.7	%
Percent of revenues		23.8	%		20.3	%			3.5	%

Revenues consist primarily of sales of component parts and fasteners and also include, to a lesser extent, kitting charges and order fees, as well as freight charged to customers. The increase in revenues in fiscal 2025 compared to fiscal 2024 was largely due to an expanding sales force during fiscal 2025, which increased by 28 sales employees when comparing to fiscal 2024. We believe that increasing sales headcount led to the acquisition of new customers and the ability to sell more products to existing customers and creating better customer relationships. Additionally, revenues for fiscal 2025 have increased when compared to fiscal 2024 primarily due to higher inventory stock available and an increased demand for those products. Gross margin for fiscal 2025 has increased when compared to fiscal 2024 primarily due to developing better relationships with vendors and customers, which allowed us to negotiate better pricing from our vendors and quote more products to customers with higher margins.

12Selling, General and Administrative Expense (dollars in thousands)

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	Fiscal Years Ended
	August 31,						$		%
	2025			2024			Change		Change
Operating expense:
Selling, general and administrative expenses	$	86,863		$	80,971		$	5,892	7.3	%
Impairment on termination of lease		—			3,906			(3,906)	(100.0)	%
Operating expenses	$	86,863		$	84,877			1,986	2.3	%
Percent of revenues		20.3	%		23.8	%			(3.5)	%

Selling, general and administrative (“SG&A”) expense consists primarily of payroll and related expenses for the sales and administrative staff, professional fees (including accounting, legal and technology costs and expenses), and advertising costs. SG&A in fiscal 2024 increased from fiscal 2023 largely due to higher personnel costs related to an increase in the number of sales and administrative employees, from 561 employees in fiscal 2023 to 604 employees in fiscal 2024. Furthermore, the increase in SG&A expense in fiscal 2024 also included a legal expense accrual in the amount of approximately $7.6 million related to a pending class action lawsuit to which we have reached an agreement in principle to settle, but is subject to court approval. We expect the settlement to be paid in the fiscal year ended August 31, 2025. See Note 8 of the Notes to Consolidated Financial Statements of this Annual Report for further explanation.

~~During~~Selling, ~~the~~general ~~first~~and ~~quarter~~administrative (“SG&A”) expense consists primarily of ~~fiscal~~payroll ~~2024,~~and ~~the~~related ~~Company~~expenses ~~also~~for ~~recognized~~the ansales ~~impairment~~and ~~loss~~administrative ofstaff, ~~$3.9~~professional ~~million~~fees ~~due~~(including toaccounting, ~~the~~legal ~~purchase~~and oftechnology ~~the~~costs ~~Hunter~~and ~~Property~~expenses), and ~~the~~advertising ~~corresponding~~costs. ~~termination~~SG&A ofin ~~the~~fiscal ~~Hunter~~2025 ~~Lease.~~increased ~~Operating~~from ~~expenses~~fiscal as2024 alargely ~~percent~~due to higher year end bonuses of ~~revenue~~$7,634,000 inrelated ~~the~~to ~~current~~record ~~period~~sales ~~increased~~in ~~from~~fiscal ~~the~~2025 ~~prior~~and ~~year~~to ~~period~~a ~~primarily~~lesser extent, due to higher personnel costs related to an increase in the ~~impairment~~number ~~loss,~~of ~~legal~~sales ~~settlement~~and ~~accrual~~administrative employees, ~~and~~from ~~higher~~604 ~~payroll~~employees ~~expenses~~in fiscal 2024 to 644 employees in fiscal 2025.

~~Other~~Fiscal ~~Income~~2024 ~~(Expense),~~included ~~Net~~legal ~~(dollars~~expense accrual in ~~thousands)~~the amount of approximately $7,795,000 related to a class action lawsuit to which a settlement agreement was made. See Note 8 of the Notes to Consolidated Financial Statements of this Annual Report for further explanation. During the first quarter of fiscal 2024, the Company also recognized an impairment loss of $3,906,000 due to the purchase of the Hunter Property and the corresponding termination of the Hunter Lease.


	Fiscal Years Ended
	August 31,						$		%
Other (expense) income:	2024			2023			Change		Change
Realized gain on sales of marketable trading securities	$	452		$	836		$	(384)	(45.9)	%
Unrealized (loss) gain on marketable trading securities		(324)			448			(772)	(172.3)	%
Interest and other (expense)		(177)			(59)			(118)	(200.0)	%
Other (expense) income, net	$	(49)		$	1,225		$	(1,274)	(104.0)	%
Other (expense) income, net as a percent of revenues		(0.0)	%		0.4	%

Operating expenses as a percent of revenue in the current period decreased from the prior year period primarily due to the impairment loss and legal settlement accrual that was recorded in fiscal 2024.

~~Other~~Table ~~income (expense), net includes income or losses on investments in marketable equity securities~~ of other publicly-held domestic corporations, interest income (expense), and other nonoperating activities. The Company’s investment strategy consists of both long and short positions. The Company experienced net realized and unrealized gains from trading securities of approximately $128,000 and net realized and unrealized gains of approximately $1,284,000 in fiscal 2024 and fiscal 2023, respectively. The trading securities gains in fiscal 2024 and fiscal 2023 were primarily due to timing of sale of investments and general market climate of investment positions at year-end.Contents

~~Interest~~Other ~~and~~Income ~~other expense increased by $118~~(Expense),~~000~~ ~~primarily~~Net ~~due~~(dollars toin ~~interest expense, which is related to carrying a larger balance on the Company’s line of credit during fiscal 2024 year when compared to fiscal 2023.~~thousands)

Income Tax Provision (dollars in thousands)


	Fiscal Years Ended
	August 31,						$		%
Other (expense) income:	2025			2024			Change		Change
Realized gain on sales of marketable trading securities	$	804		$	452		$	352	77.9	%
Unrealized gain (loss) on marketable trading securities		469			(324)			793	244.8	%
Interest and other (expense)		(204)			(177)			(27)	15.3	%
Other (expense) income, net	$	1,069		$	(49)		$	1,118	2,281.6	%
Other (expense) income, net as a percent of revenues		0.2	%		—	%


	Fiscal Years Ended
	August 31,						$		%
	2024			2023			Change		Change
Provision for income taxes	$	6,335		$	7,520		$	(1,185)	(15.8)	%
Percent of pre-tax income		29.8	%		26.2	%			3.6	%

Other income (expense), net includes income or losses on investments in marketable equity securities of other publicly-held domestic corporations, interest income (expense), and other nonoperating activities. The Company’s investment strategy consists of both long and short positions. The Company experienced net realized and unrealized gains from trading securities of approximately $1,273,000 and net realized and unrealized gains of approximately $128,000 in fiscal 2025 and fiscal 2024, respectively. The trading securities gains in fiscal 2025 and fiscal 2024 were primarily due to timing of sale of investments and general market climate of investment positions at year-end.

~~The~~Interest ~~provision~~and ~~for~~other ~~income~~expense ~~taxes~~increased ~~decreased~~ by $130,~~185,~~000 inprimarily ~~fiscal~~due ~~2024 compared~~ to ~~fiscal 2023, which was primarily~~ a ~~result~~reduction ofin ~~lower~~interest ~~book~~ income inearned, ~~fiscal~~which ~~2024~~was asdue ~~compared~~ to ~~fiscal~~excess ~~2023.~~cash ~~The~~being ~~income~~used ~~tax~~to ~~provision~~purchase asinvestments ainstead ~~percentage~~ of ~~pre-tax~~interest ~~income~~bearing ~~increased~~treasury ~~by 3~~accounts.~~6% in fiscal 2024 compared to fiscal 2023, which was primarily due to our prior year tax payable reconciliations.~~

~~Liquidity~~Income ~~and~~Tax ~~Capital~~Provision ~~Resources~~(dollars in thousands)

As of August 31, 2024 and 2023, the Company held approximately $843,000 and $8,558,000 of unrestricted cash and cash equivalents, respectively. The Company also held $14,748,000 and $27,228,000 of marketable securities at August 31, 2024 and August 31, 2023, respectively, which could be liquidated, if necessary.


	Fiscal Years Ended
	August 31,						$		%
	2025			2024			Change		Change
Provision for income taxes	$	10,618		$	6,335		$	4,283	67.6	%
Percent of pre-tax income		24.7	%		29.8	%			5.1	%

The Company currently has an available $20.0 million line of credit with the Bank. The Company entered into a Change in Terms Agreement dated April 12, 2024 with the Bank, which increased the principal loan amount under the line of credit to $20.0 million and extended the maturity date of the line of credit from July 5, 2024 to February 15, 2026. The line of credit has a variable interest rate set at the bank prime index rate, provided that in no event would such interest rate be less than 3.5% per annum. Borrowings are secured by

13The provision for income taxes increased by $4,283,000 in fiscal 2025 compared to fiscal 2024, which was primarily a result of higher book income in fiscal 2025 as compared to fiscal 2024. The income tax provision as a percentage of pre-tax income decreased by 5.1% in fiscal 2025 compared to fiscal 2024, which was primarily due to our prior year tax payable reconciliations and IRS refunds received in 2025.

~~Table~~Liquidity ofand ~~Contents~~Capital Resources

~~substantially~~As ~~all~~ of ~~the~~August ~~assets~~31, of2025 and 2024, the Company ~~and~~held ~~its~~approximately ~~subsidiaries.~~$738,000 ~~The~~and ~~line~~$843,000 of ~~credit~~unrestricted ~~agreement~~cash ~~contains certain nonfinancial~~ and ~~financial~~cash ~~covenants~~equivalents, ~~including~~respectively. ~~the~~The ~~maintenance~~Company ofalso ~~certain~~held ~~financial~~$30,375,000 ~~ratios.~~and As$14,748,000 of ~~each~~marketable ofsecurities at August 31, ~~2024~~2025 and August 31, ~~2023~~2024, ~~the~~respectively, which could be liquidated, if necessary. The Company ~~was~~on ina ~~compliance~~regular ~~with~~basis, ~~all~~uses ~~such~~its ~~covenants.~~excess ~~There~~cash ~~was~~from nooperating ~~outstanding~~activities ~~balance~~to onpurchase ~~the~~short ~~line~~term ofinvestments. ~~credit~~The asCompany ofalso ~~each~~liquidates ofthese ~~August~~investments ~~31,~~time ~~2024~~to ~~and~~time ~~August~~when ~~31,~~cash ~~2023~~is needed to cover operating or extraordinary expenses.

OnThe ~~October~~Company 5,currently ~~2023~~has an available $20,000,000 ~~Bisco~~line of credit with the Bank. The Company entered into ~~the~~a ~~Purchase~~Change in Terms Agreement dated April 12, 2024 with the ~~Trust~~Bank, which isincreased ~~beneficially~~the ~~owned~~principal ~~and~~loan ~~controlled~~amount byunder ~~Mr.~~the ~~Glen~~line F.of ~~Ceiley~~credit to $20,000,000 and extended the ~~Company’s~~maturity ~~Chief~~date ~~Executive~~of ~~Officer~~the line of credit from July 5, ~~Chairman~~2024 to February 15, 2026. The line of credit has a variable interest rate set at the ~~Board~~bank ~~and~~prime aindex ~~major~~rate, ~~stockholder~~provided that in no event would such interest rate be less than 3.5% ~~Pursuant~~per toannum. Borrowings are secured by substantially all of the ~~Purchase~~assets ~~Agreement,~~of the ~~Trust~~Company ~~agreed~~and toits ~~sell~~subsidiaries. The line of credit agreement contains certain nonfinancial and financial covenants, including the ~~Hunter~~maintenance ~~Property~~of tocertain ~~Bisco~~financial ~~for~~ratios. aAs ~~purchase~~of ~~price~~each of $August 31, ~~million~~2025 and August 31, 2024, the Company was in ~~cash~~compliance with all such covenants. The ~~transaction~~Company ~~closed~~expects to renew the line of credit in the coming months before the agreement expires. There was no outstanding balance on ~~October~~the 20line of credit as of each of August 31, ~~2023~~2025 and August 31, 2024.

In April 2024, the Company engaged in a mediation concerning a pending class action lawsuit and reached an agreement in principle to settle the lawsuit. The Company is currently negotiating a settlement agreement and expects the aggregate settlement amount to be approximately $7.5 million, which settlement agreement, when finalized, will be subject to court approval. The Company has accrued $7.6 million in fiscal 2024 in anticipation of this settlement and related lawyer fees. The Company expects to use existing cash and cash equivalents, and cash generated from operations to fund this settlement after the legal proceedings are completed in fiscal 2025. See Note 8 of the Notes to Consolidated Financial Statements of this Annual Report for further information.14

~~EACO~~Table ~~has also entered into a business loan agreement (and related $100,000 promissory note) with the Bank that is renewed annually in order to obtain a $100,000 letter~~ of ~~credit as security for the Company’s workers’ compensation requirements.~~Contents

~~Cash~~On ~~Flows~~October ~~from~~5, ~~Operating~~2023, ~~Activities~~Bisco entered into the Purchase Agreement with the Trust, which is beneficially owned and controlled by Mr. Glen F. Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and a major stockholder. Pursuant to the Purchase Agreement, the Trust agreed to sell the Hunter Property to Bisco for a purchase price of $31,000,000 in cash. The transaction closed on October 20, 2023.

~~During~~In ~~fiscal~~April 2024, the Company ~~provided~~engaged ~~$14,077,000~~ in ~~net~~a ~~cash~~mediation ~~from~~concerning ~~its~~a ~~operating~~pending ~~activities.~~class ~~The~~action ~~current~~lawsuit ~~period~~and ~~cash~~settled ~~provided~~with bycourt ~~operating~~approval ~~activities~~for ~~was~~the ~~primarily~~aggregate ~~due~~amount ~~to net income~~ of $147,~~951~~795,000 ~~and~~during anfiscal ~~increase in accrued expenses and in trade accounts payable~~2025. ~~This~~In ~~was~~September ~~partially~~2025, ~~offset~~the byCompany ~~increases~~used inexisting ~~trade~~cash ~~accounts receivable~~ and ~~inventory.~~cash ~~Increases~~equivalents ingenerated ~~accrued~~from ~~expenses~~operations isto ~~primarily~~fund ~~due~~and tocomplete the ~~accrual~~payment of the ~~class~~settlement. ~~action~~See ~~lawsuit~~Note ~~approximately~~8 ~~$7,600,000.~~of ~~Increases~~the inNotes ~~trade~~to ~~accounts~~Consolidated ~~payable~~Financial isStatements ~~primarily~~of ~~due~~this toAnnual anReport ~~increases~~for infurther ~~inventory~~information.

~~During~~EACO ~~fiscal~~has ~~2023,~~also ~~the~~entered ~~Company~~into ~~provided~~a ~~$13,422,000~~business inloan ~~net~~agreement ~~cash~~(and ~~from~~related ~~its~~$100,000 ~~operating~~promissory ~~activities.~~note) ~~The~~with ~~fiscal~~the ~~2023~~Bank ~~period~~that ~~cash~~is ~~provided~~renewed byannually ~~operating~~in ~~activities~~order ~~was primarily due~~ to ~~net~~obtain ~~income~~a of $21100,~~185,~~000 ~~and~~letter anof ~~increase~~credit inas ~~accrued~~security ~~expenses~~for ~~and~~the inCompany’s ~~prepaid~~workers’ ~~and~~compensation ~~other assets~~requirements. ~~This was partially offset by increases in trade accounts receivable and inventory. Increases in accrued expenses is primarily due to increases in inventory.~~

Cash Flows from ~~Investing~~Operating Activities

~~Cash~~During ~~used~~fiscal in2025, ~~investing~~the ~~activities~~Company ~~was~~provided $2017,~~455~~169,000 ~~for~~in ~~fiscal~~net ~~2024~~cash from its operating activities. ~~This~~The current period cash provided by operating activities was primarily due to the ~~purchase~~increases ofin ~~the~~net ~~Hunter~~income, ~~Property~~and ofto ~~$31~~a lesser extent,~~000,000~~ an increase in trade accounts payable and accrued expenses. Increases in net income in fiscal ~~2024,~~2025 ~~which~~is primarily due to increased sales orders and higher gross margin. Increases in accrued expenses is primarily due increases in accrued payroll and accrued accounts payable related to inventory purchases. Increases in trade accounts payable is primarily due to an increase in inventory. The increase in cash provided by operating activities was partially offset by ~~proceeds~~increases ~~from~~in inventory purchases and trade accounts receivable. Increases in trade accounts receivable increased due to increased sales orders during the ~~sale~~period. Inventory ofincreased ~~marketable~~due ~~securities~~to increases in sales and inventory purchases for projected sales.

~~Cash~~During ~~used~~fiscal 2024, the Company provided $14,077,000 in ~~investing~~net cash from its operating activities. The fiscal 2024 period cash provided by operating activities was primarily due to net income of $2314,~~815~~951,000 ~~for~~and ~~fiscal~~an ~~2023~~increase in accrued expenses and in prepaid and other assets. This was partially offset by increases in trade accounts receivable and inventory. Increases in accrued expenses is primarily due to ~~the~~increases ~~purchase~~in ~~of marketable securities~~inventory.

Cash Flows from ~~Financing~~Investing Activities

Cash used in ~~financing~~investing activities ~~for fiscal 2024~~ was $116,~~372~~442,000, ~~which~~for fiscal 2025. This was primarily due to athe ~~decrease~~purchase inof ~~bank~~marketable ~~overdraft when comparing fiscal 2024 to fiscal 2023~~securities. ~~Bank~~with ~~overdraft represents outstanding checks in~~ excess of cash ~~held in our bank account. If~~ the ~~bank account is over drawn, the~~ Company ~~has~~accumulated athrough ~~nightly~~its ~~sweep~~business ~~feature,~~operations. ~~which~~Management ~~funds~~expects ~~the cash account~~ to ~~the~~continue ~~line~~moving ofexcess ~~credit with the Bank. The~~ cash ~~used in financing activities for the prior period is primarily due~~ to aninvestments ~~increase~~though in the ~~bank~~following ~~overdraft~~fiscal ~~balance~~year.

~~Contractual~~Cash ~~Financial~~used ~~Obligations~~in investing activities was $20,455,000 for fiscal 2024. This was primarily due to the purchase of the Hunter Property for $31,000,000 in October 2023, which was partially offset by proceeds from the sale of marketable securities.

InCash ~~addition~~Flows ~~to using cash flow generated~~ from ~~operations,~~Financing the Company finances its operations through borrowings from banks. These financial obligations are recorded in accordance with accounting rules applicable to the underlying transactions, with the result that debt agreements are recorded as liabilities in the accompanying consolidated balance sheets while obligations under operating leases are disclosed in the notes to the accompanying consolidated financial statements. Activities

Cash used in financing activities for fiscal 2025 was $843,000, which was primarily due to a decrease in bank overdraft when comparing fiscal 2025 to fiscal 2024. Bank overdraft represents outstanding checks in excess of cash held in our bank account. If the bank account is over drawn, the Company has a nightly sweep feature, which funds the outgoing cash account from the main deposit bank account. If the main deposit account does not have enough cash to cover the sweep, the deposit account is funded by the line of credit to cover the remaining sweep balance. The cash used in financing activities for the prior period is primarily due to a decrease in the bank overdraft balance.

14Contractual Financial Obligations

~~Table~~In ofaddition ~~Contents~~to using cash flow generated from operations, the Company finances its operations through borrowings from banks. These financial obligations are recorded in accordance with accounting rules applicable to the underlying transactions, with the result that debt agreements, including lease obligations, are recorded as liabilities in the accompanying consolidated balance sheets.

Table of Contents

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and is not required to provide the information required under this item.

Table of Contents

Item 8. Financial Statements and Supplementary Data

EACO CORPORATION

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID 200)	1618
Consolidated Balance Sheets as of August 31, 2024 and 2023	17
Consolidated Balance Sheets as of August 31, 2025 and 2024	19
Consolidated Statements of Operations for the years ended August 31, 2024 and 2023	18
Consolidated Statements of Operations for the years ended August 31, 2025 and 2024	20
Consolidated Statement of Comprehensive Income for the years ended August 31, 2024 and 2023	19
Consolidated Statement of Comprehensive Income for the years ended August 31, 2025 and 2024	21
Consolidated Statements of Shareholders’ Equity for the years ended August 31, 2024 and 2023	20
Consolidated Statements of Shareholders’ Equity for the years ended August 31, 2025 and 2024	22
Consolidated Statements of Cash Flows for the years ended August 31, 2024 and 2023	21
Consolidated Statements of Cash Flows for the years ended August 31, 2025 and 2024	23
Notes to Consolidated Financial Statements	2224

1517

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Shareholders of EACO Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of EACO Corporation (the “Company”) as of August 31, ~~2024~~2025 and ~~2023~~2024, and the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for each of the years ended August 31, ~~2024~~2025 and ~~2023~~2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, ~~2024~~2025 and ~~2023~~2024, and the results of its operations and its cash flows for each of the years ended August 31, ~~2024~~2025 and ~~2023~~2024, in conformity with accounting principles generally accepted in the United States of America..

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ HASKELL & WHITE LLP

We have served as the Company’s auditor since 2022.

Irvine, California

November 2920, ~~2024~~2025

1618

Table of Contents

EACO Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share information)


	August 31,		August 31,
	~~2024~~2025		~~2023~~2024
ASSETS
Current Assets:
Cash and cash equivalents	$	~~843~~728	$	~~8,558~~843
Restricted cash		10		10
Trade accounts receivable, net		5365,~~272~~863		4653,~~654~~272
Inventory, net		6983,~~602~~980		5669,~~270~~602
Marketable securities, trading		1430,~~748~~375		2714,~~228~~748
Prepaid expenses and other current assets		35,~~526~~009		3,~~843~~526
Total current assets		~~142~~185,~~001~~965		142,~~563~~001
Non-current Assets:
Property, equipment and leasehold improvements, net		3534,~~061~~670		835,~~041~~061
Operating lease right-of-use assets		76,~~513~~814		97,~~988~~513
Other assets, net		32,~~963~~704		13,~~652~~963
Total assets	$	~~188~~230,~~538~~153	$	~~162~~188,~~244~~538
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Trade accounts payable	$	2833,~~054~~179	$	2228,~~505~~054
Accrued expenses and other current liabilities		2429,~~910~~762		1624,~~375~~910
Current portion of long-term debt		~~129~~135		~~120~~129
Current portion of operating lease liabilities		2,~~708~~843		32,~~950~~708
Total current liabilities		5565,~~801~~919		4255,~~950~~801
Non-current Liabilities:
Long-term debt		4,~~214~~079		4,~~348~~214
Operating lease liabilities		4,~~892~~305		64,~~225~~892
Total liabilities		6474,~~907~~303		5364,~~523~~907
Commitments and Contingencies Note 8
Commitments and Contingencies (Note 8)
Shareholders’ Equity:
Convertible preferred stock, $0.01 par value per share; 10,000,000 shares authorized; 36,000 shares outstanding (liquidation value $900)		1		1
Common stock, $0.01 par value per share; 8,000,000 shares authorized; 4,861,590 shares outstanding		49		49
Additional paid-in capital		12,378		12,378
Accumulated other comprehensive income		7374		3873
Retained earnings		~~111~~143,~~130~~348		96111,~~255~~130
Total shareholders’ equity		~~123~~155,~~631~~850		~~108~~123,~~721~~631
Total liabilities and shareholders’ equity	$	~~188~~230,~~538~~153	$	~~162~~188,~~244~~538

See accompanying notes to consolidated financial statements.

1719

Table of Contents

EACO Corporation and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share amounts)


	Years Ended
	August 31,
	~~2024~~2025		~~2023~~2024
Revenues	$	~~356~~427,~~231~~931	$	~~319~~356,~~397~~231
Cost of revenues		~~250~~299,~~019~~225		~~226~~250,~~981~~019
Gross margin		~~106~~128,~~212~~706		92106,~~416~~212
Operating expenses:
Selling, general and administrative expenses		8086,~~971~~863		6480,~~936~~971
Impairment on termination of lease		~~3,906~~—		—3,906
Income from operations		2141,~~335~~843		2721,~~480~~335

Other income (expense):
Net gain on trading securities		~~128~~1,273		~~1,284~~128
Interest and other expense		(~~177~~204)		(59177)
Other (expense) income, net		(49)		1,225
Other income (expense), net		1,069		(49)
Income before income taxes		2142,~~286~~912		2821,~~705~~286
Provision for income taxes		610,~~335~~618		76,~~520~~335
Net income		1432,~~951~~294		2114,~~185~~951
Cumulative preferred stock dividend		(76)		(76)
Net income attributable to common shareholders	$	1432,~~875~~218	$	2114,~~109~~875

Basic earnings per common share	$	36.0663	$	43.3406
Diluted earnings per common share		36.0559		43.3205
Basic weighted average common shares outstanding		4,861,590		4,861,590
Diluted weighted average common shares outstanding		4,901,590		4,901,590

See accompanying notes to consolidated financial statements.

1820

Table of Contents

EACO Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

(in thousands)


	Years Ended
	August 31,
	~~2024~~2025		~~2023~~2024
Net income	$	1432,~~951~~294	$	2114,~~185~~951
Other comprehensive income, net of tax
Foreign currency translation gain (loss)		35		(136)
Foreign currency translation gain		1		35
Total comprehensive income	$	1432,~~986~~295	$	2114,~~049~~986

See accompanying notes to consolidated financial statements.

1921

Table of Contents

EACO Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity

For the Years Ended August 31, ~~2024~~2025 and ~~2023~~2024

(in thousands, except share information)


									Accumulated
	Convertible						Additional		Other				Total
	Preferred Stock			Common Stock			Paid-in		Comprehensive		Retained		Shareholders’
	Shares	Amount		Shares	Amount		Capital		Income		Earnings		Equity

Balance, August 31, 2022	36,000	$	1	4,861,590	$	49	$	12,378	$	174	$	75,146	$	87,748
Balance, August 31, 2023	36,000	$	1	4,861,590	$	49	$	12,378	$	38	$	96,255	$	108,721
Preferred dividends	—		—	—		—		—		—		(76)		(76)
Foreign translation loss	—		—	—		—		—		(136)		—		(136)
Net income	—		—	—		—		—		—		21,185		21,185
Balance, August 31, 2023	36,000	$	1	4,861,590	$	49	$	12,378	$	38	$	96,255	$	108,721
Preferred dividends	—		—	—		—		—		—		(76)		(76)
Foreign translation gain	—		—	—		—		—		35		—		35
Net income	—		—	—		—		—		—		14,951		14,951
Balance, August 31, 2024	36,000	$	1	4,861,590	$	49	$	12,378	$	73	$	111,130	$	123,631
Preferred dividends	—		—	—		—		—		—		(76)		(76)
Foreign translation gain	—		—	—		—		—		1		—		1
Net income	—		—	—		—		—		—		32,294		32,294
Balance, August 31, 2025	36,000	$	1	4,861,590	$	49	$	12,378	$	74	$	143,348	$	155,850

See accompanying notes to consolidated financial statements

2022

Table of Contents

EACO Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)


	Years Ended August 31,
	~~2024~~2025		~~2023~~2024
Operating activities:
Net income	$	1432,~~951~~294	$	2114,~~185~~951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,~~685~~675		1,~~398~~685
Bad debt expense		454		614
Bad debt credit losses		359		454
Unrealized loss (gain) on trading securities		324		(448)
Unrealized (gain) loss on trading securities		(469)		324
Deferred tax provision		(21,~~401)~~281		(~~277~~2,401)
Impairment on termination of lease		~~3,906~~—		—3,906
Increase (decrease) in cash flow from change in:
Trade accounts receivable		(712,~~072~~950)		(27,~~631~~072)
Inventory		(1314,~~332~~378)		(713,~~462~~332)
Prepaid expenses and other assets		~~407~~(1,505)		~~829~~407
Operating lease right-of-use assets		~~2,475~~699		~~401~~2,475
Trade accounts payable		65,~~720~~763		(16,~~150)~~720
Accrued expenses and other current liabilities		84,~~535~~852		18,~~355~~535
Operating lease liabilities		(~~2,575~~452)		(~~392~~2,575)
Net cash provided by operating activities		1417,~~077~~169		1314,~~422~~077
Investing activities:
Additions to property, equipment, and leasehold improvements		(321,~~611~~284)		(~~960~~32,611)
Purchase of marketable securities, trading		12,156		(22,855)
(Purchase) sale of marketable securities, trading		(15,158)		12,156
Net cash used in investing activities		(20,455)		(23,891)
Net cash (used in) investing activities		(16,442)		(20,455)
Financing activities:
Preferred stock dividend		(76)		(76)
Repayments on long-term debt		(~~125~~129)		(~~116~~125)
Bank overdraft		(~~1,171~~638)		(1,~~893~~171)
Net cash (used in) provided by financing activities		(1,372)		1,777
Net cash (used in) financing activities		(843)		(1,372)
Effect of foreign currency exchange rate changes on cash and cash equivalents		351		~~(136)~~35
Net decrease in cash, cash equivalents, and restricted cash		(7,715)		(8,828)
Net (decrease) in cash, cash equivalents, and restricted cash		(115)		(7,715)
Cash, cash equivalents, and restricted cash - beginning of period		~~8,568~~853		178,~~396~~568
Cash, cash equivalents, and restricted cash - end of period	$	~~853~~738	$	~~8,568~~853
Supplemental disclosures of cash flow information:
Cash paid for interest	$	~~243~~204	$	~~202~~243
Cash paid for income taxes	$	811,~~505~~995	$	78,~~473~~505

See accompanying notes to consolidated financial statements.

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EACO CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

August 31, ~~2024~~2025 and ~~2023~~2024

Note 1. Organization

EACO Corporation (“EACO”), incorporated in Florida in September 1985, is a holding company, primarily comprised of its wholly-owned subsidiary, Bisco Industries, Inc. (“Bisco”) and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited. Substantially all of EACO’s operations are conducted through Bisco and Bisco Industries Limited. Bisco was incorporated in Illinois in 1974 and is a distributor of electronic components and fasteners with 51 sales offices and seven distribution centers located throughout the United States and Canada and one additional sales office in Asia located in the Philippines. Bisco supplies parts used in the manufacture of products in a broad range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries. All references herein to “fiscal ~~2024~~2025” and “fiscal ~~2023~~2024” shall refer to the fiscal years ended August 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Note 2. Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements for all periods presented include the accounts of EACO, its wholly-owned subsidiary, Bisco, and Bisco’s wholly-owned Canadian subsidiary, Bisco Industries Limited (all of which are collectively referred to herein as the “Company”, “we”, “us” and “our”). All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates include allowance for credit losses, provision for slow moving and obsolete inventory, recoverability of the carrying value and estimated useful lives of long-lived assets, and the valuation allowance against deferred tax assets, if any. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. The Company on a regular basis, uses its excess cash from operating activities to purchase short term investments. The Company also liquidates these investments time to time when cash is needed to cover operating or extraordinary expenses.

Trade Accounts Receivable

Trade accounts receivable are carried at original invoice amount, less an estimate for an allowance for credit losses. Management determines the allowance for credit losses by analyzing historical loss experience adjusted for current economic conditions, specific customer credit issues, and reasonable forecasts of future collectability. by identifying probable credit losses in the Company’s accounts receivable and reviewing historical data to estimate the collectability on items not yet specifically identified as problem accounts. Trade accounts receivable are written off when deemed uncollectible. Recoveries of trade accounts receivable previously written off are recorded when received. A trade account receivable is considered past due if any portion of the receivable balance is outstanding past the customer’s credit terms. The Company does not charge interest on past due balances. The allowance for credit losses was approximately $ ~~298~~366,000 and $~~245~~298,000 at August 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Inventories

Inventories consist primarily of electronic fasteners and components, and are stated at the lower of cost or estimated net realizable value. Cost is determined using the weighted average cost that approximates the first-in, first-out method. Inventories are adjusted for slow moving or obsolete items approximating $1,~~837~~975,000 and $1,~~806~~837,000 at August 31, ~~2024~~2025 and ~~2023~~2024, respectively. The adjustments to ~~inventory costs are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company.~~

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inventory costs are based upon management’s review of inventories on-hand over their expected future utilization and length of time held by the Company.

Property, Equipment, and Leasehold Improvements

Property, equipment, and leasehold improvements are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization expense is determined using the straight-line method over the estimated useful lives of the assets. The depreciable life for buildings is thirty-five years and five to seven years for furniture, fixtures and equipment. Leasehold improvements are amortized over the estimated useful life of the asset or the remaining lease term, whichever is less. Maintenance and repairs are charged to expense as incurred. Renewals and improvements of a major nature are capitalized. At the time of retirement or disposition of the asset, the cost and accumulated depreciation or amortization are removed from the accounts and any gains or losses are reflected in earnings.

Impairment of Long Lived Assets

The Company’s policy is to review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the purpose of the impairment review, assets are tested on an individual basis. The recoverability of the assets is measured by a comparison of the carrying value of each asset to the future net undiscounted cash flows expected to be generated by such assets. If such assets are considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the assets exceeds their estimated fair value.

On October 20, 2023, the Company completed the purchase of its corporate headquarters located at 5065 East Hunter Avenue in Anaheim, California (the “Hunter Property”) from the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”) for $31,000,000 in cash. An appraisal, conducted in September 2023 by an independent third party, valued the Hunter Property at $31 ~~million~~,000,000, which was inclusive of tenant improvements previously purchased and recorded by the Company. Upon completion of the Hunter Property purchase and the termination of the Hunter Lease during the first quarter of fiscal 2024, the Company recorded an asset impairment of $3~~.9 million~~,906,000, which was the net book carrying value of the tenant improvements at the date the building was acquired.

Marketable Trading Securities

The Company invests in marketable trading securities, which include long and short positions in equity securities. Short positions represent securities sold, but not yet purchased. Short sales result in obligations to purchase securities at a later date and are separately presented as a liability in the Company’s consolidated balance sheets. As of August 31, ~~2024~~2025 and ~~2023~~2024, the Company’s total obligation for securities sold, but not yet purchased was zero. Restricted cash to collateralize the Company’s obligations for short sales was zero at August 31, ~~2024~~2025 and ~~2023~~2024.

These securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Realized gains and losses on investment transactions are recognized as incurred in the consolidated statements of operations. Net unrealized gains and losses are reported in the statements of operations and represent the change in the market value of investment holdings during the period. See Note 1011.

Revenue Recognition

The Company derives its revenue primarily from product sales. Revenue recognition is determined through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, performance obligations are satisfied.

The Company’s contract with the customer is executed with a customer purchase order and performance obligations consist solely of product shipped to customers. Revenue from product sales is recognized upon transfer of control of promised products, which the Company’s standard terms and conditions are shipping point, to customers at a point in time in an amount that reflects the consideration we expect to receive in exchange for these products as stated on the Company’s invoice to the customer. Revenue is recognized net of returns and any taxes collected from customers. We offer industry standard contractual terms in our terms and conditions stated on our invoices and Company website.

Freight revenue associated with product sales are recognized at point of shipment and when the criteria discussed above have been met. Freight revenues have represented less than 1% of total revenues for fiscal 2024 and fiscal 2023.25

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Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date.

We recognize DTAs to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under the tax law, and results of recent operations. If we determine that we would not be able to realize our DTAs in the future in excess of their net recorded amount, we would make an adjustment to the DTA through recognizing a valuation allowance, which would increase the provision for income taxes.

We record uncertain tax positions in accordance with Accounting Standards Codification (“ASC”) 740, Income Taxes, on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit or expense that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

We recognize interest and penalties related to the unrecognized tax benefit (“UTB”) on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing DTAs. On the basis of this evaluation, as of August 31, ~~2024~~2025 no valuation allowance has been recorded.

We are subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, ~~2024~~2025, we are no longer subject to U.S. federal, state, local, Canada examinations by tax authorities for years before ~~2020~~2021.

Freight and Shipping/Handling

Shipping and handling expenses are included in cost of revenues and were approximately $56,~~530~~360,000 and $5,~~510~~530,000 for the years ended August 31, ~~2024~~2025 and ~~2023~~2024, respectively.

Advertising Costs

Advertising costs are expensed as incurred and are primarily comprised of digital and online advertising. For fiscal ~~2024~~2025 and fiscal ~~2023~~2024, the Company spent approximately $~~436~~439,000 and $~~431~~436,000 respectively, on advertising.

Operating Leases

~~The~~Management ~~Company~~ determines if a contractual arrangement contains a lease, for accounting purposes, at contract inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and the current and non-current portion of operating lease liabilities in the accompanying consolidated balance sheets.

The ROU assets represent the Company’s right to control the use of a leased asset for the contractual term, and lease liabilities represent the related obligation to make lease payments arising from the contractual arrangement. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the contractual term. The operating lease ROU assets also include any prepaid lease payments made and exclude lease incentives. Lease expense is recognized on a straight-line basis over the contractual term.

Many of the Company’s leases include both lease (such as fixed payment amounts including rent, taxes, and insurance costs) and nonlease components (such as common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and nonlease components for all leases.26

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Many of the Company’s leases include both lease (such as fixed payment amounts including rent, taxes, and insurance costs) and non-lease components (such as common-area or other maintenance costs) which are accounted for as a single lease component as the Company has elected the practical expedient to group lease and non-lease components for all leases.

Many leases include one or more options to renew the contract. Therefore, renewals to extend the lease terms are not included in our ROU assets and lease liabilities as they are not reasonably certain to be exercised. We regularly evaluate the renewal options each reporting period and when they are reasonably certain to be exercised, management will include the lease renewal period in our contractual term when estimating the ROU assets and related liabilities.

Since most of the Company’s leases do not provide an implicit rate, as defined by GAAP, we use an incremental borrowing rate based on information available to us at the lease commencement date in order to determine the present value of the lease payments. The Company applies a portfolio approach for determining the incremental borrowing rate. ~~As of August 31, 2024, the Company has right of use assets of approximately $7.5 million and lease liabilities of approximately $7.6 million recorded in the consolidated balance sheet.~~

Earnings Per Common Share

Basic earnings per common share for the years ended August 31, ~~2024~~2025 and ~~2023~~2024 were computed based on the weighted average number of common shares outstanding. Diluted earnings per share for those periods have been computed based on the weighted average number of common shares outstanding, giving effect to all potentially dilutive common shares that were outstanding during the respective periods. Potentially dilutive common shares represent 40,000 common shares issuable upon conversion of 36,000 shares of Series A convertible preferred stock, which were outstanding at August 31, ~~2024~~2025 and ~~2023~~2024. Such securities are included with the weighted average shares outstanding used to calculate diluted earnings per common share for the years ended August 31, ~~2024~~2025 and ~~2023~~2024.

Foreign Currency Translation and Transactions

Assets and liabilities recorded in functional currencies other than the U.S. dollar (specifically, Canadian dollars used to record the assets and liabilities for Bisco Industries limited) are translated into U.S. dollars at the period-end rate of exchange. The exchange rate for Canadian dollars at August 31, ~~2024~~2025 and ~~2023~~2024 was $0.7473 ~~for~~and ~~both~~$0.74, ~~periods~~respectively. The resulting balance sheet translation adjustments are charged or credited directly to accumulated other comprehensive income. Revenue and expenses are transacted at the average exchange rates for the years ended August 31, ~~2024~~2025 and ~~2023~~2024. The average exchange rate for the years ended August 31, ~~2024~~2025 and ~~2023~~2024 was $0.7471 ~~for~~and ~~both~~$0.74, ~~periods~~respectively. The percentage of total assets held outside the United States, in Canada, was 3% as of August 31, ~~2024~~2025 and ~~2023~~2024. All foreign sales, excluding Canadian sales, are denominated in U.S. dollars and, therefore, are not subject to foreign currency risk exposure.

Concentrations

Financial instruments that subject the Company to credit risk include cash balances in excess of federal depository insurance limits and accounts receivable. Cash accounts maintained by the Company at U.S. and Canadian financial institutions are insured by the Federal Deposit Insurance Corporation and Canadian Deposit Insurance Corporation, respectively. A portion of the Company’s cash was held by its Canadian subsidiary. The Company has not experienced any losses in such accounts.

Net sales to customers outside the United States was 11% and related trade accounts receivable were ~~both~~ approximately 1110% at August 31, ~~2024,~~2025. ~~and~~Net ~~11%~~sales to customers outside the United States and ~~14%,~~related ~~respectively~~trade accounts receivable were both approximately at 11% at August 31, ~~2023~~2024. No single customer accounted for more than 10% of total revenues for either of the years ended August 31, ~~2024~~2025 or ~~2023~~2024. In addition, no single customer’s receivable balance accounted for more than 10% of the Company’s customer receivables as of either August 31, ~~2024~~2025 or ~~2023~~2024.

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The following table presents our sales within geographic regions as a percentage of net revenue, which is based on the “bill-to” location of our customers:


	Years Ended August 31,
	~~2024~~2025		~~2023~~2024
U.S.	8988.39	%	8889.73	%
Asia	4.37	%	4.53	%
Canada	2.89	%	42.18	%
Other	3.65	%	23.76	%
Total	100.0	%	100.0	%

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Estimated Fair Value of Financial Instruments and Certain Nonfinancial Assets and Liabilities

The Company’s financial instruments other than its marketable securities include cash and cash equivalents, trade accounts receivable, prepaid expenses, security deposits, trade accounts payable, line of credit, accrued expenses and long-term debt. Management believes that the fair value of these financial instruments approximate their carrying amounts based on their relatively short-term nature and current market indicators, such as prevailing interest rates. The Company’s marketable securities are measured at fair value on a recurring basis. See Note 1011.

During the years ended August 31, ~~2024~~2025 and ~~2023~~2024, the Company did not have any nonfinancial assets or liabilities that were measured at estimated fair value on a recurring or nonrecurring basis.

Significant Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In ~~June~~November ~~2016~~2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ~~2016~~ 2023- 1307, ~~“Financial~~Segment ~~Instruments~~Reporting –(Topic ~~Credit~~280). ~~Losses”,~~The ~~which~~amendments ~~will~~in ~~require~~this ~~the~~update ~~measurement~~improve ofreportable ~~all~~segment ~~expected~~disclosure ~~credit~~requirements, ~~losses~~primarily ~~for~~through ~~financial~~enhanced ~~assets~~disclosures ~~held~~about atsignificant ~~the~~segment ~~reporting~~expenses. ~~date~~ASU ~~based~~2023-07 onbecame ~~historical~~effective ~~experience,~~for ~~current~~the ~~conditions~~Company’s annual period ending August 31, 2025 and ~~reasonable~~interim ~~and~~periods ~~supportable~~beginning ~~forecasts~~after September 1, 2025. The ~~guidance~~Company isadopted ~~effective,~~this asASU ~~amended~~ for ~~smaller~~the ~~reporting~~annual ~~companies~~report for ~~all~~the ~~periods~~year ~~beginning~~ended ~~after~~August ~~December 15~~31, ~~2022~~2025. As a result, ~~including~~the ~~interim~~Company ~~periods~~has ~~within~~updated ~~those~~its ~~fiscal~~segment ~~years.~~disclosures ~~Management~~in ~~has~~“Note ~~evaluated~~9– ~~and~~Segment ~~implemented~~Reporting ~~this~~(Topic ~~standard~~280, ~~effective~~“Operating ~~9/1/2023~~Segments”),” ~~and~~providing ~~had~~more nodetailed ~~material~~information ~~impact~~ on ~~its~~relevant ~~results~~segment items in accordance with the new guidance. The adoption of ~~operations~~ASU or2023-07 ~~financial~~did ~~position~~not result in any changes to the Company’s reportable segments.

In June 2016, the FASB issued ASU 2016 - 13, “Financial Instruments – Credit Losses”, which will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance is effective, as amended for smaller reporting companies for all periods beginning after December 15, 2022, including interim periods within those fiscal years. Management has evaluated and implemented this standard effective September 1, 2023, which had no material impact on the Company’s results of operations or financial position.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which is intended to enhance transparency into the nature and function of expenses. The amendments require that on an annual and interim basis, entities disclose disaggregated operating expense information about specific categories, including purchases of inventory, employee compensation, depreciation, amortization and depletion. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the impact ASU 2024-03 will have on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which is intended to enhance the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments require that on an annual basis, entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments require that entities disclose additional information about income taxes paid as well as additional disclosures of pretax income and income tax expense, and remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements. The Company expects to adopt the new annual disclosures as required for fiscal year ended August 31, 2025 (“fiscal 2025”) and the interim disclosures as required beginning subsequent to fiscal 2025.28

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addition, the amendments require that entities disclose additional information about income taxes paid as well as additional disclosures of pretax income and income tax expense, and remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted.

Other recently issued accounting pronouncements are not expected to have a material impact on the Company’s consolidated financial statements.

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Note 3. Property, Equipment and Leasehold Improvements

Property, equipment and leasehold improvements are summarized as follows:


	August 31,
	2024		2023
Held for use:
Land	$	13,155,000	$	—
Building		18,713,000		—
Machinery and equipment		12,053,000		11,052,000
Furniture and fixtures		3,462,000		3,204,000
Vehicles		137,000		137,000
Leasehold improvements		2,766,000		7,725,000
Construction in progress		—		648,000
Total held for use		50,286,000		22,766,000
Less: accumulated depreciation and amortization		(15,225,000)		(14,725,000)
Total property, equipment, and leasehold improvements held for use, net	$	35,061,000	$	8,041,000

On October 20, 2023, the Company purchased the Hunter Property from the Trust for a purchase price of $31,000,000. See Note 9.


	August 31,
	2025		2024
Held for use:
Land	$	13,155,000	$	13,155,000
Building		19,281,000		18,713,000
Machinery and equipment		12,415,000		12,053,000
Furniture and fixtures		3,598,000		3,462,000
Vehicles		151,000		137,000
Leasehold improvements		2,796,000		2,766,000
Construction in progress		179,000		—
Total held for use		51,575,000		50,286,000
Less: accumulated depreciation and amortization		(16,905,000)		(15,225,000)
Total property, equipment, and leasehold improvements held for use, net	$	34,670,000	$	35,061,000

For the years ended August 31, ~~2024~~2025 and ~~2023~~2024, depreciation and amortization expense was $1,~~685~~675,000 and $1,~~398~~685,000, respectively.

Note 4. Debt

The Company has a $20.0,000,000 ~~million~~ line of credit agreement with Citizens Business Bank (“the Bank”). On May 10, 2024, the Company executed a Change in Terms Agreement dated as of April 12, 2024 (the “Amendment”) with the Bank to modify terms of that certain Business Loan Agreement dated as of November 5, 2022 between Bisco and the Bank. The Amendment (i) extends the expiration date of the line of credit under the Loan Agreement to February 15, 2026; and (ii) increases the principal loan amount under the line of credit to $20 ~~million~~,000,000.

The line of credit has a variable interest rate set at the bank prime index rate, but provided that in no event would such interest rate be less than 3.5% per annum. Borrowings are secured by substantially all of the assets of the Company and its subsidiaries. The ~~amount~~Company expects to renew the line of credit in the coming months before the agreement expires. No amounts were outstanding under this line of credit as of each of August 31, ~~2024~~2025 and August 31, ~~2023 was zero~~2024. The line of credit agreement contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of each of August 31, ~~2024~~2025 and August 31, ~~2023~~2024, the Company was in compliance with all such covenants.

The Company also entered into the Construction Loan for the primary purpose of financing tenant improvements at the Hunter Property. The Construction Loan was a line of credit evidenced by a Promissory Note in the principal amount of up to $5,000,000 with a maturity date of May 15, 2027. The terms of the Construction Loan provide that the Company may only request advances through July 15, 2020, and thereafter, the Construction Loan would convert to a term loan with a fixed rate of 4.6%, which is entitled to a .25% rate discount if a demand deposit account is held with the Bank. On July 15, 2020, the amount drawn on the Construction Loan and converted to a term loan was $4,807,000. Interest on the Construction Loan is payable monthly (4.35% at August 31, ~~2024~~2025 and August 31, ~~2023~~2024). Concurrent with the execution of this Construction Loan, Bisco entered into a commercial security agreement, dated July 12, 2019, with the Bank, pursuant to which Bisco granted the Bank a security interest in substantially all of Bisco’s personal property to secure Bisco’s obligations under the Construction Loan. The outstanding balance of the Construction Loan at August 31, ~~2024~~2025 and August 31, ~~2023~~2024 was $4,~~343~~214,000 and $4,~~468~~343,000, respectively. The Construction loan future principal due until maturity by fiscal year is as follows:


Fiscal Year	Principal amount due
2025	$	129,000
2026		135,000
2027		4,079,000
Total	$	4,343,000

The Company has also entered into a business loan agreement (and related $100,000 promissory note) with the Bank in order to obtain a $100,000 letter of credit as security for the Company’s worker’s compensation requirements.

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Fiscal Year	Principal Amount Due
2026	$	135,000
2027		4,079,000
Total	$	4,214,000

Note 5. Shareholders’ Equity

Earnings Per Common Share (“EPS”)

The following is a reconciliation of the numerators and denominators used in the basic and diluted computations of earnings per common share:


	Years Ended August 31,
(In thousands, except per share information)	2024		2023
EPS – basic and diluted:
Net income	$	14,951	$	21,185
Less: cumulative preferred stock dividend		(76)		(76)
Net income attributable to common shareholders for basic and diluted EPS computation	$	14,875	$	21,109
Weighted average common shares outstanding for basic EPS computation		4,861,590		4,861,590
Earnings per common share – basic	$	3.06	$	4.34
Weighted average common shares outstanding for diluted EPS computation		4,901,590		4,901,590
Earnings per common share – diluted	$	3.05	$	4.32

For the years ended August 31, 2024 and 2023, 40,000 potential common shares (issuable upon conversion of 36,000 shares of the Company’s Series A cumulative convertible preferred stock) are included in the computation of diluted earnings per share.


	Years Ended August 31,
(In thousands, except per share information)	2025		2024
EPS – basic and diluted:
Net income	$	32,294	$	14,951
Less: cumulative preferred stock dividend		(76)		(76)
Net income attributable to common shareholders for basic and diluted EPS computation	$	32,218	$	14,875
Weighted average common shares outstanding for basic EPS computation		4,861,590		4,861,590
Earnings per common share – basic	$	6.63	$	3.06
Weighted average common shares outstanding for diluted EPS computation		4,901,590		4,901,590
Earnings per common share – diluted	$	6.59	$	3.05

For the years ended August 31, 2025 and 2024, 40,000 potential common shares (issuable upon conversion of 36,000 shares of the Company’s Series A cumulative convertible preferred stock) are included in the computation of diluted earnings per share.

Preferred Stock

The Company’s Board of Directors is authorized to establish the various rights and preferences for the Company’s preferred stock, including voting, conversion, dividend and liquidation rights and preferences, at the time shares of preferred stock are issued. In September 2004, the Company sold 36,000 shares of its Series A cumulative convertible preferred stock (the “Preferred Stock”) to the Company’s CEO, with an 8.5% dividend rate at a price of $25 per share for a total cash purchase price of $900,000. The holder of the Preferred Stock has the right at any time to convert the Preferred Stock and accrued but unpaid dividends into shares of the Company’s common stock at the conversion price of $22.50 per share. In the event of a liquidation or dissolution of the Company, the holder of the Preferred Stock is entitled to be paid out of the assets of the Company available for distribution to shareholders at $25.00 per share plus all unpaid dividends before any payments are made to the holders of common stock.

Note 6. Profit Sharing Plan

The Company has a defined contribution 401(k) profit sharing plan (“401(k) plan”) for all eligible employees. Employees are eligible to contribute to the 401(k) plan after six months of employment. Under the 401(k) plan, employees may contribute up to 15% of their compensation. The Company has the discretion to match 50% of the employee contributions up to 6% of employees’ compensation. The Company’s contributions are subject to a five-year vesting period beginning the second year of service. The Company’s contribution expense was approximately $~~925~~1,117,000 and $~~851~~925,000 for the years ended August 31, ~~2024~~2025 and ~~2023~~2024, respectively.

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Note 7. Income Taxes

The following summarizes the Company’s provision for income taxes on income from operations:


	Years Ended August 31,
	~~2024~~2025		~~2023~~2024
Current:
Federal	$	6,~~408~~675,000	$	56,~~620~~408,000
State		2,~~218~~403,000		2,~~048~~218,000
Foreign		~~387~~260,000		~~129~~387,000
		9,~~013~~338,000		79,~~797~~013,000
Deferred:
Federal		(21,~~253~~276,000)		—(2,253,000)
State		~~(425~~5,000)		56(425,000)
Foreign		––—		~~(333,000)~~—
		(21,~~678~~281,000)		(~~277~~2,678,000)
Total	$	610,~~335~~618,000	$	76,~~520~~335,000

Income taxes for the years ended August 31, 2025 and 2024 differ from the amounts computed by applying the federal blended and statutory corporate rates of 21% for both 2025 and 2024 to the pre-tax income. The differences are reconciled as follows:

Income taxes for the years ended August 31, 2024 and 2023 differ from the amounts computed by applying the federal blended and statutory corporate rates of 21% for both 2024 and 2023 to the pre-tax income. The differences are reconciled as follows:


	Years Ended August 31,
	2025			2024
Current:
Expected income tax provision at statutory rate		21.0	%		21.0	%
Increase (decrease) in taxes due to:
State tax, net of federal benefit		5.5	%		6.3	%
Permanent differences		(0.6)	%		(0.7)	%
Other, net		(1.2)	%		3.2	%
Income tax expense		24.7	%		29.8	%

The components of deferred taxes at August 31, 2025 and 2024 as included in other assets on the consolidated balance sheets, are summarized below:


	~~Years Ended~~ August 31,
	2024			2023
Deferred tax assets (liabilities):	2025			2024
Current:
Net operating loss	$	—		$	—
Expected income tax provision at statutory rate		21.0	%		21.0	%
Accruals and reserves		1,936,000			3,448,000
Increase (decrease) in taxes due to:
Income tax credits		—			1,000
State tax, net of federal benefit		6.3	%		5.5	%
Capital loss		42,000			39,000
Permanent differences		(0.7)	%		(0.8)	%
Lease liability		1,902,000			1,871,000
Other, net		3.2	%		0.5	%
Property and equipment, net		186,000			(101,000)
Income tax expense		29.8	%		26.2	%
Operating lease, right-of-use assets		(1,814,000)			(1,849,000)
Unrealized gains/losses		(71,000)			53,000
Total deferred tax assets, net	$	2,181,000		$	3,462,000

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing DTA. On the basis of this evaluation, as of August 31, 2025, no valuation allowance has been recorded.

We are subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2025, we are no longer subject to U.S. federal, state, local, Canadian examinations by tax authorities for years before 2021.

~~The components of deferred taxes at August~~ 31~~, 2024 and 2023 are summarized below:~~


	August 31,
Deferred tax assets (liabilities):	2024		2023
Net operating loss	$	—	$	57,000
Accruals and reserves		3,448,000		1,230,000
Income tax credits		1,000		1,000
Capital loss		39,000		41,000
Lease liability		1,871,000		2,689,000
Property and equipment, net		(101,000)		(798,000)
Operating lease, right-of-use assets		(1,849,000)		(2,640,000)
Unrealized gains/losses		53,000		204,000
Total deferred tax assets, net	$	3,462,000	$	784,000

We are subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2024, we are no longer subject to U.S. federal, state, local, Canadian examinations by tax authorities for years before 2020.

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Note 8. Commitments and Contingencies

Legal Matters

From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations.

In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and the present time. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation commenced in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter for approximately $7.5,500,000 ~~million.~~which ~~The~~ settlement ~~agreement~~amount, isinclusive ~~subject~~of payroll taxes, was increased to $7,795,000 in May 2025. In July 2025, the court ~~approval~~approved the settlement. In ~~The~~anticipation of this settlement, the Company accrued $7.6,390,000 ~~million~~and $285,000 in fiscal 2024 and fiscal 2023, respectively, and an additional $120,000 was accrued in ~~anticipation~~fiscal of2025 ~~this~~to cover the remaining settlement ~~and~~expense. The Company made the ~~related~~full ~~legal~~settlement ~~fees~~payment in September 2025.

Operating Lease Obligations

The Company leases its facilities and automobiles under operating lease agreements (one leased facility is currently leased from the Trust, which is beneficially owned by the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder – see Note 910), which expire on various dates through September 2029 and require minimum rental payments ranging from $1,000 to $28,000 per month. Certain of the leases contain options for renewal under varying terms.

On October 20, 2023, ~~The~~the Company purchased the Hunter Property from the Trust for a purchase price of $31,000,000 in cash. The Hunter Property was also previously leased from the Trust, which lease terminated upon the completion of the purchase. See ~~Note~~Notes 2 and 10 for further explanation.

Minimum future rental payments under operating leases are as follows:


Years Ending August 31:
2025	$	3,156,000
2026	$	3,166,000
2026		2,525,000
2027		2,416,000
2027		1,631,000
2028		1,283,000
2028		717,000
2029		658,000
2029		517,000
2030		183,000
Thereafter		36309,000
Future minimum lease payments	$	8,~~582~~015,000
Less interest		~~(982~~867,000)
Present value of minimum lease payments	$	7,~~600~~148,000

Operating lease cost under these leases was approximately $3,419,000 and $2,987,000 for fiscal years ended August 31, 2025 and 2024, respectively.

Operating lease cost under these leases was approximately $2,987,000 and $3,531,000 for fiscal years ended August 31, 2024 and 2023, respectively.

Other information related to operating leases is as follows:


	~~Year~~Years Ended August 31,
	~~2024~~2025		~~2023~~2024
Weighted average remaining lease term	32.18	years	4.3.1	years
Weighted average discount rate	7.472	%	47.735	%

The discount rate used on the operating right-of-use assets represented the Company’s incremental borrowing rate at lease inception.

~~Note 9. Related Party Transactions~~32

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~~Chairman~~Note ~~of the Board, and majority shareholder~~9. ~~The~~Segment ~~Glendale~~Reporting ~~Lease~~(Topic ~~is a ten - year lease with an initial monthly rental rate of $22~~280,~~600,~~ ~~which~~“Operating is subject to annual rent increases of approximately 2.5% as set forth in the Glendale Lease. During the twelve months ended August 31, 2024 and 2023, the Company had cash payments related to the Glendale Lease of approximately $313,000 and $305,000, respectively.Segments”)

OnThe ~~July 26, 2019, the~~ Company ~~entered~~applied ~~into a Commercial Lease Agreement with~~ the ~~Trust~~provisions ~~(the “Hunter Lease”), for the lease~~ of ~~the~~ASU ~~Hunter~~2023 ~~Property~~07, ~~which~~Segment ~~houses~~Reporting ~~the~~(Topic ~~Company’s~~280): ~~corporate~~Improvements ~~headquarters. The Company completed its move~~ to ~~the~~Reportable ~~headquarters~~Segment ~~located~~Disclosures, atfor the ~~Hunter~~fiscal ~~Property~~year inended ~~March~~August ~~2020. The term of the Hunter Lease commenced on September 2~~31, ~~2019~~2025 and ~~ended~~a onretroactive ~~October~~implementation ~~20,~~to ~~2023,~~fiscal ~~when the Company purchased the Hunter Property~~2024. The ~~Hunter~~amendment ~~Lease~~enhances ~~had~~entities’ andisclosures ~~initial~~about ~~monthly~~operating ~~rental rate of $66~~segments,~~300,~~ ~~which~~products ~~was subject to annual rent increases of approximately 2.5% as was set forth in the Hunter Lease. During the twelve months ended August 31, 2024~~ and ~~2023~~services, ~~the~~geographic ~~Company~~areas ~~had cash payments related to the Hunter Lease of approximately $123,000~~ and ~~$857,000,~~major ~~respectively~~customers.

OnCorporate ~~October~~Structure 5,and ~~2023,~~Chief ~~the~~Operating ~~Company~~Decision ~~entered~~Maker ~~into a Standard Purchase Agreement and Escrow Instructions~~ (~~the~~ “~~Purchase Agreement~~CODM”) to purchase the Hunter Property for a purchase price of $31 million in cash, which closed on October 20, 2023. The Hunter Property is expected to continue to house the Company’s corporate headquarters and Anaheim distribution center for the foreseeable future. The Hunter Property was purchased with cash, funded by the Company’s available cash accounts and liquidated securities.

Management determined that the CODM is Mr. Don Wagner, the President and Chief Operating Officer of Bisco Industries, Inc. The CODM reviews the consolidated results and allocates resources at the enterprise level. The Company’s operations are conducted through its wholly-owned industrial distribution business (Bisco Industries and its Canadian subsidiary), which operates across 51 sales offices and seven distribution centers and one sales office in the Philippines. Although the business is conducted across multiple sales offices and distribution centers, management concluded that the nature of the operations, the economic environment, and the way resources are managed and performance is evaluated support a single-segment determination. Management considered the guidance in ASC 280-10-50-4 and determined that the single reportable segment is managed on a consolidated basis. Because the CODM manages the business as a single integrated unit, the management has identified one operating segment and one reportable segment in accordance with ASC 280.

Measurement of Segment Financials

The CODM uses consolidated revenue, regional sales reports, sales forecasting, sales and administrative headcount reports, significant operating and selling expenses, financial fluctuation analysis, forecasted inventory usage, operating income and total assets to assess the Company’s performance and to allocate resources. As a result, segment amounts are equal to the Company’s consolidated amounts for those metrics.

Description of Reportable Segment

The Company’s sole reportable segment is the industrial distribution business conducted through Bisco Industries and its Canadian subsidiary. The Company’s revenues are primarily comprised of product sales of electronic components, cable components, and a large variety of fasteners and hardware. There have been no changes to the internal segment reporting structure during fiscal 2025.

Segment Information

The Company operates as one reportable segment. The CODM reviews consolidated results to assess performance and allocate resources. Accordingly, the accompanying consolidated financial statements reflect the results of the single operating segment.

Significant Judgments and Estimate

The identification of the CODM and determination that there is a single operating and reportable segment required management judgment. Changes in the operational structure, management reporting practices or resource allocation methods could result in multiple reportable segments in future periods.

Impact of the Standard

The adoption and application of ASU 2023-07 did not change the Company’s determination of operating or reportable segments, its performance measures or the way resource allocation decisions are made. Accordingly, the application of the standard had no material effect on the Company’s consolidated financial statements or the presentation of segment information.

Note 10. Related Party Transactions

The Company leases its Chicago area sales office and distribution center located in Glendale Heights, Illinois under an operating lease agreement (the “Glendale Lease”) from the Trust, which is the grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board, and majority shareholder. The Glendale Lease is a ten - year lease with an initial monthly rental rate of $22,600, which is subject to annual rent increases of approximately 2.5% as set forth in the Glendale Lease. During the fiscal year ended August 31, 2025 and 2024, the Company had cash payments related to the Glendale Lease of approximately $321,000 and $313,000, respectively.

On July 26, 2019, the Company entered into a Commercial Lease Agreement with the Trust (the “Hunter Lease”), for the lease of the Hunter Property, which houses the Company’s corporate headquarters. The Company completed its move to the headquarters located at the Hunter Property in March 2020. The term of the Hunter Lease commenced on September 2, 2019 and ended on October 20, 2023,

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when the Company purchased the Hunter Property. The Hunter Lease had an initial monthly rental rate of $66,300, which was subject to annual rent increases of approximately 2.5% as set forth in the Hunter Lease. During the fiscal year ended August 31, 2025 and 2024, the Company made cash payments related to the Hunter Lease of approximately $0 and $123,000, respectively.

On October 5, 2023, the Company entered into a Standard Purchase Agreement and Escrow Instructions (the “Purchase Agreement”) to purchase the Hunter Property for a purchase price of $31,000,000 in cash, which closed on October 20, 2023. The Hunter Property is expected to continue to house the Company’s corporate headquarters and Anaheim distribution center for the foreseeable future. The Hunter Property was purchased with cash, funded by the Company’s available cash accounts and liquidated securities.

Note 1011. Fair Value of Financial Instruments

Management estimates the fair value of its assets or liabilities measured at fair value based on the three levels of the fair-value hierarchy are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities. For the Company, Level 1 inputs include marketable securities and liabilities for short sales of trading securities that are actively traded.

Level 2: Inputs other than Level 1 are observable, either directly or indirectly. The Company does not hold any Level 2 financial instruments.

Level 3: Unobservable inputs. The Company does not hold any Level 3 financial instruments.

Marketable Trading Securities – The Company holds marketable trading securities, which include long and short positions that are all publicly traded securities with quoted prices in active markets. These securities are stated at fair value, which is determined using the quoted closing prices at each reporting date. Short positions represent securities sold, but not yet purchased. Short sales result in obligations to purchase securities at a later date and are separately presented as a liability in the Company’s consolidated balance sheets. The fair value of the marketable trading securities and short positions are considered to be Level 1 measurements. All marketable securities held by the Company are level 1 as of August 31, 2025 and 2024.

The following table sets forth by level, within the fair value hierarchy, certain assets at estimated fair value as of August 31, 2024 and 2023:


	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
August 31, 2024
Marketable securities	$	14,748,000		—		—	$	14,748,000

August 31, 2023
Marketable securities	$	27,228,000		—		—	$	27,228,000

Note 12. Subsequent Events

Management has evaluated events subsequent to August 31, 2025, through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission, for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

Note 11. Subsequent Events

Management has evaluated events subsequent to August 31, 2024, through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission, for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. As required by Rule 13a-15©(c) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of the Company’s Chief Financial Executive, who also serves as the Company’s principal financial officer. Based upon that evaluation, the Company’s Chief Financial Executive ~~has~~ concluded that the Company’s controls and procedures were not effective as of August 31, ~~2024~~2025, due to a material weakness related to the Company’s internal controls over ~~the~~ financial statement closing ~~process~~and reporting processes.

(b) Management’s annual report on internal control over financial reporting. Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company’s internal control over financial reporting is intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles.

The Company’s management, with the participation of its Chief Financial Executive, assessed the effectiveness of the Company’s internal control over financial reporting as of August 31, ~~2024~~2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in its report entitled “Internal Control-Integrated Framework (2013).” Based on that assessment under such criteria, management concluded that the Company’s internal control over financial reporting ~~has~~is not effective due to the existence of material weaknesses as of August 31, ~~2024~~2025, related to the Company’s internal controls over the financial statement closing process, including ~~manual~~lease ~~journal~~accounting ~~entries~~and ~~recorded~~reconciliations, and accumulation of information for disclosure in the preparation of the consolidated financial statements.

Due to its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, and/or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Remediation Plan

We are in the process of developing and implementing a ~~detailed~~ plan for remediation of the material weakness, including ~~developing~~improving ~~and~~the ~~maintaining~~capture, ~~additional~~accounting ~~levels~~for, ofand ~~review~~reporting ~~and~~of ~~approval~~leases. ~~The~~We ~~Company~~also ~~has~~continue ~~hired~~to aimprove ~~third-party~~controls ~~accounting~~over ~~consultant~~reconciliations ~~and~~by ~~has~~implementing ~~recently~~improved ~~hired~~accounting ansoftware ~~Assistant~~that ~~Controller~~will to aid in ~~implementing~~reconciliations ~~additional~~and ~~levels~~monitoring of ~~review~~the ~~and~~general ~~approval~~ledger accounts. We will continue to assess the effectiveness of our remediation efforts in connection with our future assessments of the effectiveness of internal control over financial reporting and disclosure controls and procedures.

The Company is a smaller reporting company as defined by Rule 12b-2 of the Exchange Act. As such, this annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.

(c) Changes in internal control over financial reporting. There was no change in our internal control over financial reporting that occurred during the fourth quarter of fiscal ~~2024~~2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

(b) During the fourth quarter of fiscal ~~2024~~2025, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 105b-1 trading arrangement” (as those terms are defined in Item 408 of Regulation S-K).

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Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance

Set forth below is certain information, as of August 31, ~~2024~~2025, regarding our directors and executive officers, including information regarding the experience, qualifications, attributes or skills of each director that led the Board of Directors to conclude that such individual should serve on the Board.

Directors and Executive Officers

Directors

Each director serves a one-year term, or until such director’s successor has been elected and qualified.

Glen F. Ceiley, age 7879, has served as EACO’s Chief Executive Officer and Chairman of the Board since 1999. Mr. Ceiley is also the Chief Executive Officer and Chairman of the Board of Bisco, and has held those positions since he founded Bisco in 1973. He also served as President of Bisco prior to June 2010. In addition, Mr. Ceiley is a former director of Data I/O Corporation, a publicly-held company that provides programming systems for electronic device manufacturers. Mr. Ceiley has served as a director of EACO since 1998. As the founder of Bisco with over 50 years of experience in that industry, Mr. Ceiley is uniquely qualified to provide insights into and guidance on the industry, and growth and development of the Company.

William L. Means, age 8182, has served as a director of EACO since July 1999. Mr. Means served as the Vice President of Information Technology of Bisco from 2001 until his retirement in June 2010. Prior to that, from 1997 to 2001, Mr. Means was Vice President of Corporate Development of Bisco. ~~Mr. Means has served as a director of EACO since July 1999.~~ He holds an M.B.A. degree from San Jose State University. Mr. Means provides extensive industry and information technology expertise to the Board, as well as a deep and broad understanding of the Company and its operations resulting from his years of service as an officer of Bisco.

Stephen Catanzaro, age 7172, has served as a director of EACO since 1999. Mr. Catanzaro previously owned and operated an accounting and tax practice until his retirement in 2022. Prior to that, Mr. Catanzaro ~~has also~~ served as the Chief Financial Officer of Allied Business Schools, Inc., a company that provides home study courses and distance education, from April 2004 until May 2018. He also served as the Chief Financial Officer of V&M Restoration, Inc., a building restoration company, from September 2002 to February 2004, and the Chief Financial Officer of Bisco from September 1992 to March 2002. ~~Mr. Catanzaro has served as a director of EACO since 1999.~~ He holds a B.S. degree in Accounting from Lehman College of The City University of New York and an M.B.A. degree from Golden Gate University. Mr. Catanzaro offers to the Board valuable business and strategic insights obtained through his work in a variety of industries, as well as experience as a certified public accountant which is invaluable to his service in the Audit Committee. Mr. Catanzaro serves as the Company’s audit committee chair.

Ellen S. Bancroft, age 5960, ~~joined~~has ~~the~~served ~~Board~~as ina director of EACO since July 2022. Ms. Bancroft served as the Executive Vice President, Chief Legal Officer and Secretary of Semtech Corporation (Nasdaq: SMTC), a high-performance semiconductor, IoT systems, and cloud connectivity service provider from March 2024 until her retirement in November 2024. At Semtech, Ms. Bancroft was responsible for all corporate, legal, governance, M&A and SEC matters. Ms. Bancroft also served as the General Counsel and Secretary of indie Semiconductor (Nasdaq: INDI), an automotive semiconductor company, from March 2021 until May 2022. Prior to that, she was a partner at the international law firm of Morgan, Lewis & Bockius LLP since 2013, where she served as the Office Managing Partner for over five years. From 2003 to 2013, she was a partner and the California Corporate Group Head at Dorsey & Whitney LLP. As a corporate partner, she regularly counseled corporate boards and related committees, advised various public companies on their public company reporting obligations and corporate governance matters, and led a variety of M&A and corporate finance transactions. From 2018 to 2021, Ms. Bancroft served as a guest lecturer for the Corporate Governance Program at UCLA Anderson School of Business. She holds a J.D. degree from Vanderbilt University, and a B.S. degree in Business from Indiana University, Bloomington. Ms. Bancroft brings to the Board both public company, ~~and~~ corporate governance and M&A expertise, as well as a broad legal and corporate finance background.

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Executive Officers

Each executive officer holds office at the discretion of the Company’s Board, or until the officer’s successor has been elected and qualified. See above for biographical information for Mr. Ceiley, our Chief Executive Officer and Chairman of the Board.

33Donald S. Wagner, age 63, has served as the President of Bisco since June 2010 and as its Chief Operating Officer since November 2007. Prior to his promotion to President, Mr. Wagner also held the title of Executive Vice President of Bisco since November 2007. Mr. Wagner has worked at Bisco since 1994 in a number of other capacities, including as Vice President of Product Management. Prior to joining Bisco, Mr. Wagner worked in the defense division at Rockwell International. He holds a B.A. degree in Communications from California State University, Fullerton.

~~Table~~Michael Narikawa, age 44, has served as the Chief Financial Executive and the Principal Accounting Officer of ~~Contents~~EACO and Bisco since May 2014. Prior to his promotion as Chief Financial Executive, Mr. Narikawa served as Bisco’s Accounting Supervisor from February 2009 to April 2014. Prior to joining Bisco, he was a Senior Auditor at KPMG, LLP from June 2005 to December 2008. Mr. Narikawa has a B.S. degree in Business Administration with a concentration in Accountancy from California Polytechnic State University, San Luis Obispo.

~~Donald~~Zach ~~S. Wagner~~Ceiley, age 6245, has served as the Executive Vice President of Bisco since ~~June~~December ~~2010~~2019. ~~and~~Prior asto ~~its~~such ~~Chief~~promotion, ~~Operating~~Mr. Ceiley ~~Officer~~served ~~since~~as ~~November 2007.~~Vice ~~Prior~~President toof ~~his~~Sales ~~promotion~~and toMarketing ~~President,~~of ~~Mr.~~Bisco since September ~~Wagner~~2012 ~~also~~and ~~held~~was the ~~title~~Northern Regional Manager of ~~Executive~~Bisco ~~Vice~~from ~~President~~September 2010. ofSince he joined Bisco ~~since~~in ~~November~~February ~~2007.~~2003, Mr. ~~Wagner~~Ceiley has ~~worked~~served atthe ~~Bisco~~Company ~~since 1994~~ in a number of other capacities in the sales department, including as ~~Vice~~Cell ~~President~~Manager ofand ~~Product~~Area ~~Management~~Manager. ~~Prior~~Mr. Ceiley tohas ~~joining~~a ~~Bisco, Mr~~B. ~~Wagner~~S. ~~worked~~degree in ~~the~~Communications ~~defense~~from ~~division~~the atUniversity ~~Rockwell~~of ~~International~~Colorado. HeZach ~~holds~~Ceiley ais ~~B.A.~~the ~~degree~~son inof ~~Communications~~Glen ~~from~~Ceiley, ~~California~~who ~~State~~is ~~University~~EACO’s Chairman of the Board, ~~Fullerton~~Chief Executive Officer and majority shareholder and Bisco’s Chief Executive Officer and Chairman of the Board.

Michael Narikawa, age 43, has served as the Chief Financial Executive and the Principal Accounting Officer of EACO and Bisco since May 2014. Prior to his promotion as Chief Financial Executive, Mr. Narikawa served as Bisco’s Accounting Supervisor from February 2009 to April 2014. Prior to joining Bisco, he was a Senior Auditor at KPMG, LLP from June 2005 to December 2008. Mr. Narikawa has a B.S. degree in Business Administration with a concentration in Accountancy from California Polytechnic State University, San Luis Obispo.

Zach Ceiley, age 44, has served as the Executive Vice President of Bisco since December 2019. Prior to such promotion, Mr. Ceiley served as Vice President of Sales and Marketing of Bisco since September 2012 and was the Northern Regional Manager of Bisco from September 2010. Since he joined Bisco in February 2003, Mr. Ceiley has served the Company in a number of other capacities in the sales department, including as Cell Manager and Area Manager. Mr. Ceiley has a B.S. degree in Communications from the University of Colorado. Zach Ceiley is the son of Glen Ceiley, who is EACO’s Chairman of the Board, Chief Executive Officer and majority shareholder and Bisco’s Chief Executive Officer and Chairman of the Board.

CORPORATE GOVERNANCE

Code of Ethics

EACO has adopted a code of ethics applicable to its senior executive and financial officers. You may receive, without charge, a copy of the Financial Code of Ethical Conduct by contacting our Corporate Secretary, c/o Bisco Industries, Inc., at 5065 East Hunter Avenue, Anaheim, California 92807.

Concerns relating to accounting, internal controls or auditing matters should be brought to the attention of a member of our senior management or the Audit Committee as appropriate, and will be handled in accordance with the procedures established by the Audit Committee with respect to such matters.

Director Independence

EACO’s Board currently consists of the following directors: Stephen Catanzaro, Glen Ceiley, Ellen Bancroft, and William L. Means. The Board has determined that three of its four directors, Stephen Catanzaro, Ellen Bancroft, and William L. Means, are independent as defined by the NASDAQ Stock Market’s Marketplace Rules. In addition to such rules, the Board considered transactions and relationships between each director (and his immediate family) and the Company to determine whether any such relationships or transactions were inconsistent with a determination that the director is independent. As a result, the Board determined that Mr. Ceiley is not independent, as he is an executive officer of EACO and Bisco, a member of Bisco’s steering committee and the holder of a majority of the outstanding voting stock of the Company. Bisco’s steering committee handles the day to day operations of the Company, and Mr. Ceiley has been intimately involved with decision-making that directly affects the consolidated financial statements of the Company.

Board Structure

The Board does not have a policy regarding the separation of the roles of the Chief Executive Officer and Chairman of the Board as the Board believes it is in the best interest of the Company to make that determination based on the position and direction of the Company and the membership of the Board from time to time. Currently, Glen Ceiley, serves as the Chairman of the Board and CEO of both EACO and Bisco. The Board does not have a separate lead independent director, but the independent directors of the Company are actively involved in decision making by the Board. The Board has determined that the current structure is appropriate for the Company and enhances the Company’s ability to execute its business and strategic plans and makes the best use of the CEO’s knowledge of the Company and the industries that it serves, while maintaining strong independence over Board decisions and oversight through the involvement and participation of the independent directors.

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and enhances the Company’s ability to execute its business and strategic plans and makes the best use of the CEO’s knowledge of the Company and the industries that it serves, while maintaining strong independence over Board decisions and oversight through the involvement and participation of the independent directors.

Board Meetings and Committees

In accordance with the Bylaws of EACO, which empower the Board to appoint such committees as it deems necessary and appropriate, the Board has established an Audit Committee and an Executive Compensation Committee (the “Compensation Committee”). During ~~the~~ fiscal ~~2024~~2025, the Board of Directors and ~~the~~ various committees of the Board held the following number of meetings: Board of Directors – 4; Audit Committee – 4; and Compensation Committee - 1. During fiscal ~~2024~~2025, no director attended ~~fewer~~less than 75% of the aggregate of the total number of meetings of the Board of Directors and the total number of meetings of any committees of the Board held while he was serving on the Board or such committee.

Audit Committee

The Audit Committee’s basic functions are to assist the Board in discharging its fiduciary responsibilities to the shareholders and the investment community in the preservation of the integrity of the financial information published by the Company, to maintain free and open means of communication between the Company’s directors, independent auditors and financial management, and to ensure the independence of the independent auditors. The Board has adopted a written charter for the Audit Committee, a copy of which was attached as Annex A to the Company’s proxy statement for the 2016 Annual Meeting of Shareholders, as filed with the SEC on April 12, 2016. The Audit Committee charter is not available on EACO’s website.

The members of the Audit Committee are Stephen Catanzaro (Chairman), William Means, and Ellen Bancroft. The Board has determined that each of Stephen Catanzaro, William Means and Ellen Bancroft are independent under the independence standards for audit committee members as set forth in the NASDAQ Stock Market’s Marketplace Rules and the applicable SEC rules. The Board has identified Mr. Catanzaro as the member of the Audit Committee who qualifies as an “audit committee financial expert” under applicable SEC rules and regulations governing the composition of the Audit Committee.

Compensation Committee

The Compensation Committee is generally responsible for establishing the salary and annual bonuses paid to executive officers of EACO and administering EACO’s equity incentive plans, if any, including granting stock options to officers and employees of EACO. The Compensation Committee has not adopted a formal charter. The current members of the Compensation Committee are Glen Ceiley (Chairman) and William Means. The Board has determined that William Means is independent under the independence standards for Compensation Committee members as set forth in the NASDAQ Stock Market’s Marketplace Rules. Mr. Ceiley is not an independent director.

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Nomination of Directors

The Board does not have a Nominating Committee, but each director participates in the consideration of director nominees. Given the size and resources of EACO (and the large number of shares of common stock held by our majority shareholder), the Board believes that this approach is appropriate. The Board believes that having a separate committee would not enhance the nomination process. While the Board does not have a formal policy with regard to the consideration of diversity in identifying director nominees, it strives to nominate directors with a variety of complementary skills and backgrounds so that, as a group, the Board will possess the appropriate talent, skills, insight and expertise to oversee our business. These factors, and others as considered useful by the Board, are reviewed in the context of an assessment of the perceived needs of the Board at a particular point in time. As a result, the priorities and emphasis of the Board may change from time to time to take into account changes in business and other trends, and the portfolio of skills and experience of current and prospective directors. The Board periodically reviews the performance of each Board member and concludes whether or not the member should continue in their current capacity. EACO has not adopted a charter relating to the director nomination process, however, the Board will consider candidates for directors recommended by our shareholders who meet the eligibility requirements for submitting recommendations as set forth in EACO’s Bylaws. Eligible stockholders who seek to recommend a nominee must submit such recommendation in writing to the our Corporate Secretary (c/o Bisco Industries, Inc., at 5065 East Hunter Ave, Anaheim, California 92807), by the deadline for director nominations set forth in our last proxy statement, specifying the following information: (i) the name and address of the candidate; (ii) a brief biographical description, including the candidate’s occupation for at least five years; (iii) a statement of the qualifications of the candidate; and (iv) the additional information concerning the candidate and the shareholder proposing such candidate as required by EACO’s Bylaws. Such notice must be accompanied by a written consent of each candidate to being named as a nominee and to serve as a director if elected. Directors should possess qualities such as an understanding of the Company’s business and operations and corporate governance principles. In connection with its evaluation, the Board may request additional information from the candidate or the recommending shareholder, and may request an interview with the candidate. The Board has the discretion to decide which individuals to recommend for nomination as directors. No candidates for director nominations were submitted to the Corporate Secretary by any shareholder in connection with the election of directors at the Annual Meeting.

Oversight of Risk Management by the Board

While our management has the primary responsibility for identifying and mitigating risks, the Board has the overall responsibility for the oversight of such risks, with a focus on the most significant risks facing the Company. The Board’s duties in this regard are supplemented by committees of the Board. In particular, the Audit Committee focuses on financial risk, including internal controls, and is responsible for discussing with management and our independent auditors policies with respect to risk assessment and risk management, including the process by which we undertake major financial and accounting decisions. Risks related to our compensation programs are reviewed by the Compensation Committee. In connection with its responsibilities relating to risk assessment, our full Board receives reports on risk management from senior officers of the Company, including the CEO of the Company, and from the Chairman of the Audit Committee, and periodically engages in discussions of the most significant risks that the Company is facing and how these risks are being managed. While the Company has not experienced any material cyber attack or breach, the Board, iswith ~~currently~~the ~~evaluating~~assistance of the Audit Committee, periodically evaluates cyber security risks and has retained a third party consultant to assist it in this regard. Throughout the year, the Board plans to dedicate a portion of their meetings to review and discuss specific risk topics in greater detail.

Shareholder Communications

The Board has established a process by which shareholders may send written communications to the attention of the Board, any committee of the Board or any individual Board member, care of our Corporate Secretary. The name of any specific intended Board recipient should be noted in the communication. Our Corporate Secretary will be primarily responsible for collecting, organizing and monitoring communications from shareholders and, where appropriate depending on the facts and circumstances outlined in the communication, providing copies of such communications to the intended recipients. Communications will be forwarded to directors if they relate to appropriate and important substantive corporate or Board matters. Communications that are of a commercial or frivolous nature, or are offensive or otherwise inappropriate for the Board’s consideration will not be forwarded to the Board. Shareholders who wish to communicate with the Board can write to the Corporate Secretary at EACO Corporation, c/o Bisco Industries, Inc., at 5065 East Hunter Avenue, Anaheim, California 92807.

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Insider Trading Policy

The Company has adopted an insider trading policy governing the purchase, sale, and/or other dispositions of its securities by its directors, officers, employees and independent contractors that the Company believes is reasonably designed to promote compliance with insider trading laws, rules and regulations, and the exchange listing standards applicable to the Company.

Directors, executive officers, employees and other related persons may not buy, sell or engage in other transactions in the Company’s shares while aware of material non-public information; buy or sell securities of other companies while aware of material non-public information about those companies that they became aware of as a result of business dealings between the Company and those companies; or disclose material non-public information to any unauthorized persons outside of the Company. The policy also restricts trading and other transactions for a limited group of Company employees (including executive officers and directors) to defined window periods that follow the Company’s quarterly earnings. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K.

Item 11. Executive Compensation

The Compensation Committee is responsible for assisting with the establishment of the salary and annual bonuses paid to executive officers of EACO and administering EACO’s equity incentive plans, if any, including granting stock options to officers and employees of EACO. The Compensation Committee has not adopted a formal charter. The current members of the Compensation Committee are Messrs. Glen Ceiley and William Means.

The executive officers of EACO are Mr. Ceiley, the Company’s Chief Executive Officer and Chairman of the Board, and Mr. Michael Narikawa, the Company’s Chief Financial Executive and Principal Accounting Officer. Due to the nature of EACO’s operations and related consolidated financial results, no additional salary or other compensation for their service as officers of EACO was determined to be necessary, and no such compensation was provided to Mr. Ceiley or Mr. Narikawa during fiscal ~~2024~~2025 or fiscal ~~2023~~2024. However, both of them receive compensation from Bisco for their services provided to Bisco.

All compensation for the named executive officers for fiscal ~~2024~~2025 and fiscal ~~2023~~2024 was paid by Bisco. The compensation of named executive officers who serve as officers of Bisco are determined by Bisco’s Chairman of the Board, Glen Ceiley. Mr. Ceiley receives quarterly cash dividends in the amount of $19,125 on his shares of preferred stock of EACO and was paid a total of $76,500 during fiscal ~~2024~~2025.

Summary Compensation

The following table sets forth information regarding compensation earned from the Company (including from Bisco, our wholly-owned subsidiary) during fiscal ~~2024~~2025 and fiscal ~~2023~~2024 by (i) our Chief Executive Officer, and (ii) the two other most highly compensated executive officers who were employed by the Company (including Bisco) as of August 31, ~~2024~~2025 and whose total compensation exceeded $100,000 during that year. The officers listed below are collectively referred to as the “named executive officers” in this Annual Report.

Fiscal

All Other

Name and Principal Position

Year

Salary

Bonus

Compensation

Total

Glen F. Ceiley

~~2024~~2025

188,000

(1)

4,~~338~~881

5,~~423~~228

(2)

~~197~~198,~~762~~109

Chief Executive Officer and Chairman of the Board of EACO and Bisco

~~2023~~2024

188,000

(1)

4,338

5,~~770~~423

(2)

~~198~~197,~~109~~762

Donald S. Wagner

~~2024~~2025

~~314~~342,~~672~~678

~~123~~537,~~291~~364

1417,~~736~~006

(3)

~~452~~897,~~700~~048

President and Chief Operating Officer of Bisco

~~2023~~2024

~~289~~314,~~066~~672

~~224~~123,~~785~~291

1514,~~732~~736

(3)

~~529~~452,~~583~~700

Zachary Ceiley

~~2024~~2025

~~226~~254,~~136~~403

~~113~~487,~~428~~013

14,~~703~~659

(3)

~~354~~756,~~267~~075

Executive Vice President of Bisco

~~2023~~2024

~~205~~226,~~403~~136

~~204~~113,~~393~~428

14,~~361~~703

(3)

~~424~~354,~~158~~267

(1) Includes $18,200 consulting fees payable to Glen Ceiley’s spouse, Barbara Ceiley, in each of fiscal ~~2024~~2025 and fiscal ~~2023~~2024.

(2)	Consists of the Company’s matching contribution for Mr. G. Ceiley pursuant to the Company’s Section 401(k) plan.

(3) Includes (i) auto allowance of $6,696 payable to each of Messrs. Z. Ceiley and Wagner in fiscal ~~2024~~2025 and fiscal ~~2023~~2024; (ii) Section 401(k) matching contributions of $87,~~007~~963 and $8,~~036~~007 payable to Mr. Z. Ceiley in fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively; and (iii) Section 401(k) matching contributions of $810,~~040~~310 and $98,~~036~~040 payable to Mr. Wagner in each of fiscal ~~2024~~2025 and fiscal ~~2023~~2024, respectively.

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Outstanding Equity Awards at Fiscal Year-End

The Company did not grant any equity awards during fiscal ~~2024~~2025 to any named executive officer, and no outstanding equity awards were held by the named executive officers at August 31, ~~2024~~2025.

Director Compensation

The Company pays $12,000 per year in cash to each director who is not employed by EACO or its subsidiary as compensation for their Board services. In addition, directors who do not receive a salary from EACO or its subsidiaries receive a fee of $600 for each Board meeting attended. The Chairman of the Audit Committee receives a fee of $800 per meeting attended. No additional fees are paid to directors for attendance at meetings of the Audit Committee or the Compensation Committee of the Board.

The following table sets forth the compensation of certain Company directors for the year ended August 31, ~~2024~~2025. (See the above “Summary Compensation” for information regarding Mr. Ceiley).


	Fees Earned or
Director	Paid in Cash		Total
Stephen Catanzaro	$	1619,~~800~~200	$	1619,~~800~~200
William Means		15,600		15,600
Ellen Bancroft		1517,~~600~~400		1517,~~600~~400

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management

The table below presents certain information regarding beneficial ownership of the Company’s common stock (the Company’s only voting security) as of October 31, ~~2024~~2025 (i) by each shareholder known to the Company to own more than five percent (5%) of the outstanding common stock, (ii) by each named executive officer and director of the Company, and (iii) by all directors and executive officers of the Company as a group. Under the rules of the SEC, the determinations of “beneficial ownership” of the Company’s common stock are based upon Rule 13d-3 under the Exchange Act. Under Rule 13d-3, shares will be deemed to be “beneficially owned” when a person has, either solely or with others, the power to vote or to direct the voting of shares and/or the power to dispose, or to direct the disposition of shares, or where a person has the right to acquire any such power within 60 days after the date such beneficial ownership is determined. Shares of the Company’s common stock that a beneficial owner has the right to acquire within 60 days are deemed to be outstanding for the purpose of computing the percentage ownership of such owner but are not deemed outstanding for the purpose of computing the percentage ownership of any other person.


	Shares of Common Stock	Percent of
Name and Address of Beneficial Owner⁽¹⁾	Beneficially Owned	Class(2)
Stephen Catanzaro	—	—
Glen F. Ceiley⁽³⁾	4,702,813	95.9	%
William L. Means	322	*
Donald Wagner	—	—
Zachary Ceiley	—	—
Ellen Bancroft	—	—
All executive officers and directors as a group (7 persons)⁽³⁾	4,703,135	95.9	%

* Less than 1%

(1)	The address for each person named in the table is c/o Bisco Industries, Inc., 5065 East Hunter Ave, Anaheim, California 92807.

(2) Based on 4,861,590 shares of common stock outstanding as of November 2620, ~~2024~~2025.

(3)	Includes (i) 4,662,813 shares of common stock held by the Trust; (ii) 40,000 shares of common stock issuable upon conversion of the 36,000 shares of Series A cumulative convertible preferred stock held by the Trust (assuming no accrued unpaid dividends).

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Certain Relationships and Related Transactions

Since September 1, ~~2021~~2022, except as described below or under Item 11 (Executive Compensation), there has not been, nor is there any proposed transaction, where we (or any of our subsidiaries) were or will be a party in which the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of the Company’s total assets at year end for the last two fiscal years and in which any director, director nominee, executive officer, holder of more than 5% of any class of our voting securities, or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest.

On November 21, 2017, Bisco entered into the Chicago Lease with the Trust for the Glendale Heights Property, which consists of office and warehouse space in Glendale Heights, Illinois. The initial base monthly rent is $22,600, which is subject to a 2.5% annual increase. As of August 31, 2024, the Company leased the Glendale Heights Property under operating lease agreements with the Trust, which is a grantor trust of Glen Ceiley, the Company’s Chief Executive Officer, Chairman of the Board and majority shareholder.

On July 26, 2019, the Company entered into the Hunter Lease Agreement with the Trust, for the lease of the Hunter Property, which houses the Company’s corporate headquarters. The Company completed its move to the headquarters located at the Hunter Property in March 2020. The term of the Hunter Lease commenced on September 2, 2019 and ended on October 20, 2023, when the Company purchased the Hunter Property as discussed below. The Hunter Lease had an initial monthly rental rate of $66,300, which was subject to annual rent increases of approximately 2.5% as was set forth in the Hunter Lease.

During fiscal ~~2024~~2025 and fiscal ~~2023~~2024, the Company paid approximately $~~436~~321,000 and $1436,~~162,~~000, respectively, of rent related to the Chicago Lease and Hunter Lease.

~~On July 26, 2019, the Company entered into the Hunter Lease with the Trust, for the lease of the Hunter Property, which houses the Company’s corporate headquarters.~~ The ~~Company completed its move to the new headquarters in March 2020. The~~ term of the Hunter Lease ~~commenced on September 2, 2019 and~~ ended on October 20, 2023, when the Company completed the purchase of the Hunter Property from the Trust for the amount of $31,000,000 in cash. The Company agreed to the Property Purchase primarily to utilize its cash position and to reduce its corporate overhead expenses. The Hunter Property is expected to continue to house the Company’s corporate headquarters and Anaheim distribution center for the foreseeable future. See Note 910.

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Item 14. Principal Accounting Services

Audit Committee Pre-Approval Policies and Procedures

The Audit Committee is required to pre-approve all auditing services and permissible non-audit services, including related fees and terms, to be performed for the Company by its independent auditor, subject to the de minimus exceptions for non-audit services described under the Exchange Act, which are approved by the Audit Committee prior to the completion of the audit. The Audit Committee also considers whether the provision by its independent accounting firm of any non-audit related services is compatible with maintaining the independence of such firm. For fiscal ~~2024~~2025 and fiscal ~~2023~~2024, the Audit Committee pre-approved all services performed for the Company by the auditor.

Principal Accountant Fees

During fiscal ~~2024~~2025 and fiscal ~~2023~~2024, the Company paid Haskell & White LLP $~~239~~320,000 and $~~245~~239,000, respectively, for audit fees.

Audit Fees

Audit fees consist of fees billed for professional services rendered in connection with the audit of the consolidated financial statements included in the Company’s annual reports on Form 10-K and for the reviews of the unaudited financial statements included in the Company’s quarterly reports on Form 10-Q for the quarters ended during the years ended August 31, ~~2024~~2025 and ~~2023~~2024 and for other regulatory filings for such fiscal years.

Other Fees

There were no other fees billed by Haskell & White LLP during fiscal ~~2024~~2025 or fiscal ~~2023~~2024.

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PART IV

Item 15. Exhibits, Financial Statement Schedules

(a)	Documents filed as part of this report:

Financial Statements.

Our consolidated financial statements are listed in the “Index to Consolidated Financial Statements” under Part II, Item 8 of this report.

Financial Statement Schedules.

All financial schedules have been omitted because they are not required or are not applicable, or the required information is shown in our consolidated financial statements or notes thereto.

3.	Exhibits.

EXHIBIT INDEX

Number		Exhibit

3.1		Articles of Incorporation of Family Steak Houses of Florida, Inc., as filed with the Florida Secretary of State on September 26, 1985. (Exhibit 3.01 to the Company’s Registration Statement on Form S-1, Registration No. 33-1887, is incorporated herein by reference.)
3.2		Articles of Amendment to the Articles of Incorporation of Family Steak Houses of Florida, Inc., as filed with the Florida Secretary of State on March 26, 1986. (Exhibit 3.03 to the Company’s Registration Statement on Form S-1, Registration No. 33-1887, is incorporated herein by reference.)
3.3		Articles of Amendment to the Articles of Incorporation of Family Steak Houses of Florida, Inc., as filed with the Florida Secretary of State on May 1, 1987. (Exhibit 3.04 to the Company’s Registration Statement on Form S-1, Registration No. 33-17620, is incorporated herein by reference.)
3.4		Articles of Amendment to the Articles of Incorporation of Family Steak Houses of Florida, Inc., as filed with the Florida Secretary of State on March 3, 1998. (Exhibit 3.08 to the Company’s Annual Report on Form 10-K, as filed with the SEC on March 31, 1998, is incorporated herein by reference.)
3.5		Articles of Amendment to the Articles of Incorporation of Family Steak Houses of Florida, Inc., as filed with the Florida Secretary of State on August 5, 2002 (Exhibit 3.09 to the Company’s Annual Report on Form 10-K, as filed with the SEC on March 29, 2004 is incorporated herein by reference.)
3.6		Articles of Amendment to the Articles of Incorporation of Family Steak Houses of Florida, Inc., changing the name of the corporation to EACO Corporation, as filed with the Florida Secretary of State on June 18, 2004 (Exhibit 3.10 to the Company’s Quarterly Report on Form 10-Q, as filed with the SEC on September 3, 2004, is incorporated herein by reference.)
3.7		Articles of Amendment Designating the Preferences of Series A Cumulative Convertible Preferred Stock $0.10 Par Value, as filed with the Florida Secretary of State on September 2, 2004 (Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on September 8, 2004, is incorporated herein by reference.)
3.8		Articles of Amendment to Articles of Amendment Designating the Preferences of Series A Cumulative Convertible Preferred Stock, as filed with the Secretary of State of the State of Florida on December 22, 2009 (Exhibit 3.11 to the Company’s Transition Report on Form 10-KT, as filed with the SEC on December 23, 2009, is incorporated herein by reference.)
3.9		Amended and Restated Bylaws of Family Steak Houses of Florida, Inc. (Exhibit 4 to the Company’s Registration Statement on Form 8-A, filed with the SEC on March 19, 1997, is incorporated herein by reference.)
3.10		Amendment to Amended and Restated Bylaws of Family Steak Houses of Florida, Inc. (Exhibit 3.08 to the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2000, is incorporated herein by reference.)
3.11		Certificate of Amendment to Amended and Restated Bylaws effective December 21, 2009 (Exhibit 3.10 to the Company’s Transition Report on Form 10-K filed with the SEC on December 23, 2009 is incorporated herein by reference.)

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Number		Exhibit

3.11		Certificate of Amendment to Amended and Restated Bylaws effective December 21, 2009 (Exhibit 3.10 to the Company’s Transition Report on Form 10-K filed with the SEC on December 23, 2009 is incorporated herein by reference.)
4.1*		Description of Securities (Exhibit 4.1 to the Company’s form 10-K filed with the SEC on November 29, 2024 is incorporated herein by reference)
4.1*		Description of Securities
10.1		Business Loan Agreement dated July 12, 2019 ($10,000,000) between Bisco Industries, Inc. (“Bisco”) and Citizens Business Bank (Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on July 24, 2019).
10.2		Change in Terms Agreement dated July 12, 2019 ($10,000,000) between Bisco and Citizens Business Bank (Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed with the SEC on July 24, 2019, is incorporated herein by reference).
10.3		Commercial Guaranty dated July 12, 2019 ($10,000,000) issued by EACO Corporation (“EACO”) as guarantor in favor of Citizens Business Bank. (Exhibit 10.3 to the Company’s current report on Form 8-K, as filed with the SEC on July 24, 2019, is incorporated herein by reference).
10.4		Change in Terms Agreement dated July 12, 2019 ($10,000,000) between Bisco and Citizens Business Bank. (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on July 30, 2018, is incorporated herein by reference).
10.5		Commercial Security Agreement dated July 12, 2018 ($10,000,000) among Bisco, EACO and Community Bank. (Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the SEC on July 24, 2018, is incorporated herein by reference).
10.6		Change in Terms Agreement dated May 11, 2017 ($10,000,000) among Bisco, EACO and Citizens Business Bank. (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on May 23, 2017, is incorporated herein by reference).
10.7		Business Loan Agreement dated July 14, 2017 ($10,000,000) between Bisco and Community Bank (Exhibit 10.1 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.8		Promissory Note in the original principal amount of $10,000,000 dated July 14, 2016 issued by Bisco and payable to Community Bank. (Exhibit 10.3 to the Company’s Current Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.9		Business Loan Agreement dated July 12, 2019 ($5,000,000) between Bisco and Citizens Business Bank (Exhibit 10.4 to the Company’s Current Report on Form 8-K, as filed with the SEC on July 24, 2019, is incorporated herein by reference).
10.10		Promissory Note dated July 12, 2019 ($5,000,000) issued by Bisco in favor of Citizens Business Bank (Exhibit 10.5 to the Company’s Current Report on Form 8-K, as filed with the SEC on July 24, 2019, is incorporated herein by reference).
10.11		Commercial Security Agreement dated July 12, 2019 ($5,000,000) between Bisco and Citizens Business Bank. (Exhibit 10.6 to the Company’s Current Report on Form 8-K filed, as with the SEC on July 24, 2019, is incorporated herein by reference).
10.12		Change in Terms Agreement dated July 13, 2018 ($100,000 CD) among EACO and Community Bank (executed on July 24, 2018). (Exhibit 10.3 to the Company’s Current Report on Form 8-K, as filed with the SEC on July 30, 2018, is incorporated herein by reference).
10.13		Promissory Note dated July 12, 2016 ($100,000) issued by EACO and payable to Comerica Bank (Exhibit 10.7 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.14		Business Loan Agreement dated May 15, 2017 ($5,400,000) between Bisco and Community Bank (Exhibit 10.8 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.15		Promissory Note dated May 15, 2017 ($5,400,000) issued by Bisco and payable to Community Bank. (Exhibit 10.9 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.16		Commercial Guaranty dated May 15, 2017 issued by EACO in favor of Community Bank. (Exhibit 10.10 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference).
10.17		Deed of Trust dated May 15, 2017 ($5,400,000) between Bisco and Community Bank (Exhibit 10.3 to the Company’s Current Report on Form 8-K. as filed with the SEC on May 23, 2017, is incorporated herein by reference.)
10.18		Assignment of Leases and Rents dated May 15, 2017 ($5,400,000) between Bisco and Community Bank (Exhibit 10.4 to the Company’s Current Report on Form 8-K, as filed with the SEC on May 23, 2017, is incorporated herein by reference.)

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Number		Exhibit

10.18		Assignment of Leases and Rents dated May 15, 2017 ($5,400,000) between Bisco and Community Bank (Exhibit 10.4 to the Company’s Current Report on Form 8-K, as filed with the SEC on May 23, 2017, is incorporated herein by reference.)
10.19		Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate dated September 19, 2019 (Lakeview sale and lease back) between Bisco and Charles S. Alemi or his assignee (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on September 25, 2019, is incorporated herein by reference.)
10.20		Commercial and Industrial Lease Agreement dated November 21, 2017 (Chicago Lease) between Bisco and the Glen F. Ceiley and Barbara A. Ceiley Revocable Trust (the “Trust”) (Exhibit 10.33 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 22, 2017, is incorporated herein by reference.)
10.21		Commercial and Industrial Lease Agreement dated July 26, 2019 (Hunter Lease) between Bisco and the Trust (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on August 1, 2019, is incorporated herein by reference.)
10.22		Business Loan Agreement dated November 27, 2019 ($15,000,000) between Bisco and Citizens Business Bank (executed on December 4, 2019). (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on December 6, 2019, is incorporated herein by reference.)
10.23		Change in Terms Agreement dated November 27, 2019 ($15,000,000) between Bisco and Citizens Business Bank (executed on December 4, 2019) (Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed with the SEC on December 6, 2019, is incorporated herein by reference.)
10.24		Commercial Guaranty dated November 27, 2019 ($15,000,000) between EACO and Citizens Business Bank (executed on December 4, 2019). (Exhibit 10.3 to the Company’s Current Report on Form 8-K, as filed with the SEC on December 6, 2019, is incorporated herein by reference.)
10.25		Hunter Property Purchase Agreement ($31,000,000) for Real Property and Escrow Instructions dated October 5, 2023 between Bisco and the Trust (Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 6, 2023)
10.26		Change In Terms Agreement dated April 12, 2024, between Bisco Industries, Inc. and Citizens Business Bank for $20,000,000 line of credit (Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the SEC on May 14, 2024, is incorporated herein by reference.)
10.27		Business Loan Agreement dated April 12, 2024, between Bisco and Citizens Business Bank for $20,000,000 (Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed with the SEC on May 14, 2024, is incorporated herein by reference.)
19.1*		Statement of Policy regarding Insider Trading
19.1		Statement of Policy regarding Insider Trading (Exhibit 19.1 to the Company’s form 10-K filed with the SEC on November 29, 2024 is incorporated herein by reference)
21.1		Subsidiaries of the Company (Exhibit 21.1 to the Company’s Annual Report on Form 10-K, as filed with the SEC on November 29, 2011, is incorporated herein by reference.)
31.1*		Certification of Chief Executive Officer (principal executive officer and principal financial officer) pursuant to Securities and Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Chief Executive Officer (principal executive officer and principal financial officer) pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

November 29, 2024	EACO Corporation
November 20, 2025	EACO Corporation

	/s/ Glen F. Ceiley
	By: Glen F. Ceiley
	Its: Chairman of the Board and Chief Executive Officer
	(principal executive officer and principal financial officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant in the capacities and on the date indicated.

Signature	Title	Date

/s/ Glen F. Ceiley	Chairman of the Board and Chief Executive Officer	11/2920/~~2024~~2025
Glen F. Ceiley	(principal executive officer and principal financial officer)

/s/ Michael Narikawa	Chief Financial Executive (principal accounting officer)	11/2920/~~2024~~2025
Michael Narikawa

/s/ Steve Catanzaro	Director	11/2920/~~2024~~2025
Steve Catanzaro

/s/ William Means	Director	11/2920/~~2024~~2025
William Means

/s/ Ellen Bancroft	Director	11/2920/~~2024~~2025
Ellen Bancroft

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