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 and six months ended May 31, 2026 was less than $0.1 million and $0.2 million, respectively, and royalties receivable outstanding as of May 31, 2026 totaled $0.8 million, net of allowance for expected credit losses, and are included in accounts receivable. The amount of royalty earned during the three and six months ended May 31, 2025 was $0.8 million. The amount outstanding as of November 30, 2025 was $1.1 million.

In January 2023 and as amended from time to time, the Company loaned $1.6 million to Byrna LATAM. The loan bears interest at a fixed annual rate of 5% per annum. In April 2026, the Company and Byrna LATAM entered into a third amendment to the loan agreement, pursuant to which accrued interest of less than $0.1 million from the period between the last scheduled payment date under the prior repayment schedule and the effective date of the third amendment (the "stub period") was capitalized into the outstanding principal balance of approximately $0.6 million, resulting in a restated principal balance of 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. Interest income related to the loan receivable was less than $0.1 million for the three and six months ended May 31, 2026, and is included in interest income in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The loan receivable of $0.7 million and $1.1 million was recorded in Prepaid expenses and other current assets in the condensed consolidated balance sheet as of May 31, 2026 and November 30, 2025, respectively. Subsequent to May 31, 2026, the Company and Byrna LATAM entered into a fourth amendment to the loan agreement; see Note 25, Subsequent Events.