Q1 FY27 swings to $2.8M loss on 9% sales decline and 610bp margin compression

Filed June 3, 2026 · Period ending April 30, 2026 · Compared to 10-Q Jun 6, 2025 · ~1 min read

Key Changes

• high

  Net loss of $2.8M vs. $0.7M income prior year as sales fell 9.1% to $30.7M; gross margin compressed 610 basis points to 41.4% on lower volume and unfavorable overhead variance from reduced production.

  MD&A: Q1 Results verify on EDGAR →
• high

  Revolving credit limit reduced $10M (to $60M in summer months) and seasonal over-advance cut from $15M to $10M under December 2025 amendment, tightening liquidity headroom.

  MD&A: Credit Agreement Amendment verify on EDGAR →
• medium

  Company paid ~$1.0M in IEEPA tariffs since Feb 2025 and is seeking refunds following Supreme Court ruling; no refund recognized yet due to process uncertainty.

  MD&A: Tariff Refund verify on EDGAR →