On August 19, 2024, the Company entered into an exclusive distribution, manufacturing and licensing agreement with Byrna LATAM (the “LATAM Licensing Agreement”). This LATAM Licensing Agreement allows Byrna LATAM to exclusively manufacture the Byrna SD launcher and ammunition in certain South American countries and requires Byrna LATAM to pay the Company a royalty on Byrna products manufactured. The amount of royalty earned during the three months ended February 28, 2026 was $0.2 million, and royalties receivable outstanding as of February 28, 2026 totaled $1.4 million, net of allowance for expected credit losses, and are included in accounts receivable. The amount outstanding as of November 30, 2025 was $1.1 million.

In January 2023 and as amended in August 2024, the Company loaned $1.6 million to Byrna LATAM.  The loan bears an annual rate of interest of 5% per annum. The loan is to be repaid in twelve equal monthly installments beginning on August 19, 2025. Interest income related to the loan receivable was less than $0.1 million for the three months ended February 28, 2026 and 2025. The interest income is included in interest income in the Condensed Consolidated Statements of Operations and Comprehensive Income. The loan receivable of $1.0 million and $1.1 million was recorded in Prepaid expenses and other current assets in the condensed consolidated balance sheet as of February 28, 2026 and November 30, 2025, respectively.

Subsequent to February 28, 2026, the Company and Byrna LATAM entered into a third amendment to the loan agreement, pursuant to which accrued interest from the stub period was capitalized into principal and the outstanding loan balance was restated at approximately $0.6 million. The amended agreement provides for repayment of the restated principal balance, together with interest at 5%, in thirteen equal monthly installments commencing April 20, 2026 and concluding April 20, 2027.