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• Fixed cost reduction plan: Secured approximately $5.5 million in annualized savings, with $3.8 million from headcount reductions and $1.7 million from vendor savings.
• AI implementation: Leveraged AI in customer experience operations, improving service quality metrics like 30% improvement in service level performance during seasonal peaks and 20% improvement in talk time.
• Supply chain: Exploring diversification, with some categories like beverage refrigerators having opportunities to source outside China. Pausing new category launches from China in Q2 but restarting for hard electronic goods in 2026 with a focused approach.
• Pricing adjustments: Implemented price increases to mitigate tariff effects, not foreseeing significant additional price increases but expecting competitors to raise prices, making products more competitive in 2026.
• Consumables: Launched Squatty Potty wipes and Talos skincare, sourced primarily in the US, with positive initial reviews and plans to expand, aiming to improve overall profitability.
• Marketplace expansion: Added Home Depot, Best Buy, Bed Bath and Beyond, and expanded in Amazon UK, with focus on growing core channels and merchandising effectively.

• Maintained guidance for net revenue for the six months ended 12/31/2025 of $36 million to $38 million and adjusted EBITDA of breakeven to a loss of $1 million.
• Confident in navigating the current environment without raising additional equity capital due to liquidity position, cost-saving measures, and expected working capital benefit.

Net revenue for Q3 2025 was $19 million, a significant decline from Q3 2024 but a 2% decrease from the previous quarter. The Q3 2025 contribution margin improved by over 700 basis points from Q2 2025 to over 15%. Adjusted EBITDA loss improved by over 80% versus Q2 2025. Revenue decline was driven by strategic price increases to offset tariff costs leading to reduced run rates in areas like humidifiers and steam mops, and a general slowdown in consumer spending in tariff-affected categories.

• Tariff volatility affecting the entire industry, with uncertainty in trade policy impacting consumer demand and pricing.
• Consumer spending slowdown in tariff-affected categories, potentially reducing unit sales despite maintaining best seller rankings.
• Uncertainty in supply chain diversification and potential challenges in finding suitable non-China sourcing for some SKUs.

Q: What percentage of revenue in the third quarter were sales through the Amazon channel versus other platforms? And early trends on new e-commerce sites?

A: Amazon was predominantly over 95% of revenue for the quarter. New e-commerce sites like Home Depot had tiny sales as it's a setup for next season, Best Buy's PureSteam steam mop was launched for holiday period, focus on merchandising these channels for 2026 growth.

Q: How is launch revenue tracking to plans? And bear and bull case in light of capital deployment?

A: Launch revenue like Squatty Potty wipes is muted as sold wholesale to Amazon, marketing held back due to tariffs and Amazon launch limitations. Quality product with 4.6-star reviews, expecting growth in 2026 as marketing ramps up, long-term play.

Q: How quickly can you adjust sourcing once new sourcing is identified?

A: Depends on manufacturer. For beverage refrigerator, manufacturer has facilities outside China, but dehumidifiers depend on tariff stability and manufacturer flexibility. Focus on creating optionality with manufacturer partners for bigger cost goods like dehumidifiers and beverage refrigerators.

Q: Plans to leverage relationships with big box retailers for joint advertising and sell in-store/online at Sam's Club?

A: Big box retail is an important opportunity, products like PureSteam steam station and portable vacuum sealer sold to Walmart, but progress paused in 2025 due to tariff unpredictability; long-term opportunity exists including club stores.

Q: Plans to break into Amazon market in EU and UK like MercadoLibre?

A: Already sell in UK and EU through Photo Paper Direct, expanding core SKUs like steam mop, iron, kettle to UK and EU. Good progress in UK for Q4 holiday season, EU expansion for marquee products in 2026 due to compliance and legal considerations.

Q: Status of share repurchase program?

A: Suspended in May 2025 due to tariff impact on business, preserving capital, will assess going forward but currently suspended.

Q: Insight regarding sales by CEO and CFO compensated in shares?

A: Large portion of executive compensation is restricted stock units, tax liability on vesting is covered by cash or selling shares, current management hasn't sold shares outside tax coverage, board and execs subject to stock ownership guidelines tied to performance.