SUPPLEMENTARY BALANCE SHEET INFORMATION

9 Months Ended

Sep. 30, 2025

Supplementary Balance Sheet Disclosures [Abstract]

Inventories

The components of inventories are as follows:


	September 30, 2025
Raw materials	$	4,295
Work-in-process	415
Finished goods	3,036
Total inventories, net	$	7,746

ADT's inventory, amounting to $1,444 as of September 30, 2025, consists of component equipment, parts and supplies which are classified as raw materials using the weighted average cost method.

Property and Equipment

Property and equipment consists of the following:


	September 30, 2025
Land	$	1,133
Buildings and leasehold improvements	9,069
Transportation	1,944
Machinery and equipment	11,906
Gross property and equipment	24,052
Accumulated depreciation	(5,678)
Total property and equipment, net	$	18,374

Depreciation expense for the three and nine months ended September 30, 2025 was $420 and $472 respectively, and $67 and $169 for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025, we held non-operating land and a building in Oxford, Maine for investment and potential future use which had a carrying value of $1,800 and was included within property and equipment on the Consolidated Balance Sheets.

Included in machinery and equipment in the above table is rental equipment with a net book value of approximately $4,295 as of September 30, 2025, related to our Energy Services segment.

Warranty Reserves

Within our Building Solutions division, KBS provides a limited assurance warranty on its residential homes that covers substantial defects in materials or workmanship for a period of 12 months after delivery to the owner. EdgeBuilder provides a limited warranty on the sale of its wood foundation products that covers leaks resulting from defects in workmanship for a period of twenty-five years. TT provides a fifty-year limited warranty to the original buyer of its products, qualified by the original buyer’s obligation to ensure that the products are properly handled, stored, and installed. Historical losses related to the Timber Technologies warranty have been insignificant and therefore no reserve has been established. Estimated future warranty costs are accrued and charged to cost of goods sold in the period that the related revenue is recognized. Within our Energy Services division, we do not provide warranties on our products.

Notes Receivable

Notes receivable consists of the following principal and interest balances as of September 30, 2025:


	September 30, 2025
	Principal and interest
Catalyst Note	$	6,341

MDOS Note	670
KBS Customer Note	46
Total note receivable	7,057
Less current portion	270
Note receivable, net of current portion	$	6,787

As a part of the sale of Digirad Health in May 2023, SOC entered into a $7,000 promissory note (the “Catalyst Note”) which represents an unsecured note receivable on our balance sheet. The note has a maturity date of May 3, 2029 with payment-in-kind (non-cash) interest on the outstanding principal balance hereof to accrue at the Interest Rate. The full balance is scheduled to be paid at the maturity date. The Interest Rate is defined as (i) during the period from the date of issuance of the

note through the third anniversary of the date of issuance of the note, a per annum rate equal to the sum of (x) 5.0% per annum plus (y) the greater of 5.0% per annum and the weighted average term SOFR-based interest rate of outstanding loans under the Senior Loan Agreement (as defined in the Purchase Agreement) during such period, and (ii) during the period following the third anniversary of the date of issuance of the note, a per annum rate equal to the sum of (x) 5.0% per annum plus (y) the greater of 7.0% per annum and the weighted average term SOFR-based interest rate of outstanding loans under the Senior Loan Agreement during such period.

In 2021, SOC completed the sale of MD Office Solutions in exchange for a secured promissory note (the “MDOS Note”). This note, the principal of which is approximately $670 at September 30, 2025, is included in “Notes receivable, current portion” and “Notes receivable” in our Consolidated Balance Sheet at September 30, 2025 for $223 and $447, respectively. The MDOS Note requires quarterly installments of $74 and incurs interest at a fixed rate of 5.0% through maturity in 2028.

In 2023, KBS issued a promissory note to a customer, incurring 12% interest per annum (the “KBS Customer Note”). The KBS Customer Note is included in “Notes receivable, current portion” in the Consolidated Balance Sheets at September 30, 2025.

The Company evaluates its notes receivable portfolio under the Current Expected Credit Loss (“CECL”) model.

Long Term Investments

Below are the components of our Long Term Investments as of September 30, 2025:

Method of Accounting

September 30, 2025

Investment in Catalyst

Cost Method

953

Investment in Enservco-Common Stock

Fair Value Election

—

Investment in Enservco-Preferred Stock

Fair Value Election

—

Investment in Enservco-Call Option

Fair Value Election

—

Total

953

Investment in Catalyst

As a part of the sale of Digirad Health, SOC received common equity of Catalyst Parent, which is held in our Investments Segment at a fair value of $953 at September 30, 2025. We have elected the measurement alternative under ASC 321, Investments-Equity Securities. The measurement alternative election allows for equity securities that do not have readily determinable fair values to be recorded at cost, with adjustments for impairment and certain observable price changes reflected in earnings. Such securities are adjusted to fair value when an observable price change occurs or impairment is identified.

Investment in Enservco

On August 9, 2024, SOC entered into an investment in Enservco pursuant to a Share Exchange Agreement in which SOC agreed to issue to Enservco 250,000 shares of 10% Series A Cumulative Perpetual Preferred Stock representing $2,600 of value in exchange for 9,023,035 Enservco Common Shares, representing 19.9% of the equity interests of Enservco, and 3.5 million Enservco Preferred Shares and certain options included in the Share Exchange Agreement. Enservco also agreed to appoint one Company representative to the Enservco board of directors. We also issued a $1,000 Note to Enservco to facilitate Enservco’s acquisition of Buckshot Trucking, LLC.

We hold the Investment in Enservco in the Investments Segment. As of September 30, 2025, we owned 9.0 million shares of Enservco Common Stock, representing approximately 15.5% of Enservco’s outstanding common stock, and 3.5 million shares of Mandatorily Convertible Preferred Stock representing approximately 22.0% of the total outstanding Enservco Common Stock assuming all preferred stock was converted. At September 30, 2025, the current value of the investment in Enservco and the Note had a value of zero.