Management Estimates. The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) as included in the Accounting Standards Codification (“ASC”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Revenue Recognition. The FASB revenue recognition guidance provides a single, comprehensive model for recognizing revenue from contracts with customers. The revenue recognition model requires revenue to be recognized upon the transfer of promised goods or services to customers in an amount that reflects the consideration an entity expects to receive in exchange for those goods or services. The Company’s revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. Prior to fiscal year ended September 30, 2025, the Company derived revenues from a full-service air base fire retardant contract with the United States Forest Service (“USFS”), which is comprised of three performance obligations, namely product sales, providing operations and maintenance personnel services and leasing of specified equipment. Substantially all of the Company’s revenue is recognized at a point in time when control of the goods transfers to the customer.

The Company typically recognizes revenue at the time of shipment to the customer, which coincides with the transfer of title and risk of ownership to the customer. Sales represent billings to customers net of sales taxes charged for the sale of the product. Sales include amounts charged to customers for shipping and handling costs, which are expensed when the related product is sold.

Fortress Contingent Consideration. On March 25, 2025, the Company announced it was exiting the Fortress fire retardant business. Previously, the Company entered into a contingent consideration arrangement in connection with the acquisition of Fortress for up to $28 million to be paid in cash and/or Compass Minerals common stock upon the achievement of certain performance measures over five years, and a cash earn-out based on volumes of certain Fortress fire retardant products sold over a 10-year period. The approach to valuing the initial contingent consideration associated with the purchase price, including milestone achievement and the earn-out, uses unobservable factors such as projected revenues and expenses over the term of the contingent milestone achievement and earn-out periods, discounted for the period of time over which the initial contingent consideration is measured. The milestone contingent consideration related to the Fortress acquisition was paid in cash and/or Compass Minerals common stock, at the Company’s discretion, at a fixed price of approximately $32 per share upon the achievement of certain performance measures. This fixed share price settlement option was also factored into the fair value of the milestone contingent consideration. The fair value of the milestone contingent consideration was estimated using a probability-weighted discounted cash flow model, including a Black-Scholes option value related to a share conversion feature with significant inputs not observable in the market and is therefore considered a Level 3 measurement while the earn-out was valued using a Monte Carlo simulation, also a Level 3 measurement.

The changes in contingent consideration liability were recorded in Other operating (income) expense in the Consolidated Statements of Operations to reflect the liability at its fair value. For the fiscal years ended September 30, 2025, September 30, 2024 and September 30, 2023, the Company recorded net gains of $7.9 million, $22.1 million and $0.8 million, respectively, included in other operating income. Given the business ceased operations and had no future expected cash flows in the fiscal year ended September 30, 2025, the carrying value of the contingent consideration was reduced to $0 as of March 31, 2025. The change in the fiscal year ended September 30, 2024 was reflective of milestone and earn-out payments made related to calendar year 2023 activity, developments related to the Company’s magnesium chloride-based fire retardants, changes in discount rates and the passage of time. The change in the fiscal year ended September 30, 2023 was reflective of changes in discount rates and the passage of time. See Note 1. Organization and Formation for further information regarding the exit of the Fortress fire retardant business.


Impairment	Financial Statement Line Item	Segment	Fiscal Year Ended September 30, 2024
Lithium long-lived assets, net	Loss on impairments of long-lived assets	Corporate & Other	$	74.8
Plant Nutrition goodwill	Loss on impairments of goodwill	Plant Nutrition	51.0
Fortress goodwill	Loss on impairments of goodwill	Corporate & Other	32.0
Fortress intangible assets, net	Loss on impairments of definite-lived intangible assets	Corporate & Other	15.6
Fortress inventory	Product cost	Corporate & Other	2.4
Water rights	Loss on impairments of indefinite-lived intangible assets	Plant Nutrition	17.6
Total			$	193.4

Fiscal 2025 impairments. As a result of steps taken to exit the Fortress fire retardant business on March 25, 2025, the Company determined that there were indicators of impairment with the associated Fortress intangible assets. Therefore, the Company tested these intangible assets for impairment and recorded a loss on impairment of $53.0 million for the fiscal year ended September 30, 2025, related to customer relationships and trade name.

Additionally, the Company performed an impairment test on the remaining Fortress asset group (including PP&E), inventory and in-process research and development (“IPR&D”), with a carrying amount of $19.7 million. The impairment test under ASC 360, Property, Plant Equipment and Other Assets, compared the asset group’s undiscounted cash flows to its carrying amount. The Company determined the fair value of the asset group using a market approach under ASC 820, Fair Value Measurement (Level 2 inputs, see Note 15. Fair Value Measurements). The asset group (PP&E, inventory and IPR&D) was not impaired as its fair value, based on market indications, approximated or exceeded its carrying value and the assets were subsequently either sold or disposed of at its approximate fair value.

Fiscal 2024 impairments. On January 23, 2024, the Company terminated its pursuit of its lithium development. The passage of Utah House Bill 513 in March 2023 and the subsequent rulemaking process altered certain aspects of the regulatory landscape that will govern the development of lithium at the Great Salt Lake, introducing uncertainty into how development would proceed. As previously disclosed in the Company’s 2023 Form 10-K, the Company indefinitely paused new investment in its lithium development project pending greater clarity on the evolving regulatory environment in Utah. In December of 2023, a revised draft of the aforementioned rulemaking was published that continued to be, in the Company's assessment, adverse to its lithium development project. In addition, in December of 2023, the Company further refined its engineering estimates that, taken together with the proposed rules and decline in market price for lithium products, would result in inadequate risk-adjusted returns on capital.

On January 23, 2024, the Company severed certain members of its lithium development team and terminated its pursuit of the lithium development. Consequently, the Company evaluated the capitalized assets, including site preparation, project engineering, equipment and materials and capitalized labor and interest. As a result, the Company recorded an impairment charge of $74.8 million, including $7.6 million associated with future commitments for the year ended September 30, 2024 to

reflect the assets at their estimated fair value, considering equipment expected to be used by the on-going business and amounts estimated to be recoverable through returns or salvage value. Prior to recording an impairment, the Company had capitalized $72.7 million to its property, plant and equipment on its Consolidated Balance Sheet with approximately $4.8 million of spare parts remaining in inventories as of September 30, 2024. The Company engaged a valuation specialist to assist in determining the appropriate fair value of the lithium assets and the resulting impairment charge. Given the assets are likely to either be used in other operations or liquidated at a later date, the Company utilized a market-based approach that relied on Level 3 inputs (see Note 15. Fair Value Measurements for a discussion of the levels in the fair value hierarchy).

As a result of a sustained decrease in the Company’s publicly quoted share price and market capitalization continuing into fiscal 2024 and developments related to its magnesium chloride-based fire retardants impacting its Fortress business, the Company determined in the second quarter of fiscal 2024 that there were indicators of impairment and therefore performed long-lived assets and goodwill impairment testing. The analysis for Plant Nutrition resulted in no long-lived asset impairment but did result in a goodwill impairment, as discussed further below. The Fortress analysis resulted in an impairment of the Company’s magnesium chloride-related assets and goodwill; see below for additional details.

On March 22, 2024, the Company was notified of the decision by the U.S. Forest Service that the Company would not be awarded a contract to supply its magnesium chloride-based aerial fire retardant for the calendar 2024 fire season. For purposes of the long-lived asset impairment evaluation, management grouped and tested the magnesium chloride-related assets given their unique classification and separately identifiable cash flows. As a result of the evaluation using the income approach, the Company impaired all magnesium chloride-related assets which resulted in a finite-lived intangible asset impairment of $15.6 million related to the Company’s developed technology intangible asset and an impairment of $2.4 million of inventory for the fiscal year ended September 30, 2024. The long-lived asset impairment is included in loss on impairments, while the inventory impairment is reflected in product cost, both on the Consolidated Statements of Operations. The undiscounted cash flows for the remaining Fortress assets were greater than their carrying value resulting in no incremental impairment.

The Company performed the interim goodwill impairment tests consistent with its approach for annual impairment testing, including using similar models, inputs and assumptions. As a result of the interim goodwill impairment test in the second quarter of fiscal 2024, the Company recognized impairment charges totaling $83.0 million included in loss on impairments, on the Consolidated Statements of Operations for the fiscal year ended September 30, 2024. Goodwill impairment of $51.0 million was related to the Company’s Plant Nutrition segment, primarily due to decreases in projected future revenues and cash flows and an increase in discount rates due to the uncertain regulatory environment in Utah. The remaining goodwill impairment of $32.0 million was related to the Company’s Fortress reporting unit (included in the Corporate and Other segment), primarily due to changes in assumptions surrounding the magnesium chloride-based fire retardants which impacted projected future revenues and cash flows. Following the impairment charges, there is no remaining goodwill balance for the Plant Nutrition and Fortress reporting units. Refer to Note 7. Goodwill and Other Intangible Assets for a summary of goodwill by segment.

On September 3, 2024, the Company announced a binding Voluntary Agreement (“Voluntary Agreement”) with the Utah Division of Forestry, Fire and State Lands (“FFSL”) outlining water and land conservation commitments the Company is making toward the long-term health of the Great Salt Lake. Per the terms of the Voluntary Agreement, the Company completed the donation of the non-production-related water rights totaling approximately 201,000 acre feet annually to be used by the State of Utah for lake conservation and preservation during the fiscal year ended September 30, 2025. In connection with the annual impairment analysis, the Company performed a fair value analysis of the indefinite-lived intangible asset that resulted in an impairment of approximately $17.6 million.

Foreign Currency. Assets and liabilities are translated into U.S. dollars at end of period exchange rates. Sales and expenses are translated using the monthly average rates of exchange during the year. Adjustments resulting from the translation of foreign-currency financial statements into the reporting currency, U.S. dollars, are included in accumulated other comprehensive loss. The Company recorded foreign exchange gain (loss) of $2.0 million, $(0.2) million and $(1.6) million for the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, respectively, in accumulated other comprehensive loss related to intercompany notes which, had been deemed to be of long-term investment nature. Aggregate exchange losses and gains from transactions denominated in a currency other than the functional currency, which are included in other (income) expense for the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, were $(0.1) million, $0.7 million and $2.3 million, respectively. These amounts include the effect of translating intercompany notes which were deemed to be temporary in nature.

Cash and Cash Equivalents. The Company considers all investments with original maturities of three months or less to be cash equivalents. The Company maintains the majority of its cash in bank deposit accounts with several commercial banks with high credit ratings in the U.S., Canada, and the UK. Typically, the Company has bank deposits in excess of federally insured limits. Currently, the Company does not believe it is exposed to significant credit risk on its cash and cash equivalents.

Accounts Receivable and Allowance for Credit Losses. Receivables consist of trade accounts receivable and miscellaneous receivables. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Miscellaneous receivables includes amounts pertaining to insurance receivables. See Note 3. Revenues for further information on trade account receivable and miscellaneous receivable balances and Note 11. Commitments and Contingencies for additional information regarding insurance miscellaneous receivables. The allowance for credit losses is the Company’s best estimate of the amount of expected credit losses in its existing trade accounts receivable. The Company determines the allowance based on historical write-off experience, adjusted for current and expected future conditions. The Company reviews its account balances for collectability and adjusts its allowance for credit losses on a quarterly basis, or more frequently if conditions warrant. Account balances are charged off against the allowance for credit losses when the Company deems the amounts to be uncollectible and it is probable that the trade accounts receivable will not be recovered.

Inventories. Inventories are stated at the lower of cost or net realizable value. Finished goods, work in process and raw material are predominately valued using the average cost method on a first-in-first-out basis. Spare parts and supply costs are valued at average costs. Work in process costs primarily consist of costs incurred to operate the Company’s evaporation ponds prior to their harvest. Raw materials and supply costs primarily consist of raw materials purchased to aid in the production of mineral products, maintenance materials and packaging materials. Finished goods are primarily comprised of salt, magnesium chloride, SOP products and fire retardants readily available for sale. Substantially all costs associated with the production of finished goods at the Company’s production locations are captured as inventory costs. As required by GAAP, a portion of the fixed costs at a location are not included in inventory and are expensed as a product cost if production at that location is determined to be abnormally low in any period or if the nature of the cost incurred is not attributable to its production processes. Additionally, since the Company’s products are often stored at warehousing locations, the Company includes in the cost of inventory the freight and handling costs necessary to move the product to storage until the product is sold to a customer.

Property, Plant and Equipment. Property, plant and equipment is stated at cost and includes capitalized interest. The costs of replacements or renewals, which improve or extend the life of existing property, are capitalized. Maintenance and repairs are expensed as incurred. Upon retirement or disposition of an asset, any resulting gain or loss is included in the Company’s operating results.

Property, plant and equipment also includes mineral interests. The mineral interests for the Company’s Winsford UK mine are owned. The Company leases probable mineral reserves at its Cote Blanche and Goderich mines, its Ogden facility and several of its other North American facilities. These leases have varying terms, and many provide for a royalty payment to the lessor based on a specific amount per ton of mineral extracted or as a percentage of sales. The Company’s rights to extract minerals are contractually limited by time. The Cote Blanche mine is operated under land and mineral leases, and the mineral lease expires in 2060 with two additional 25-year renewal periods. The Goderich mine mineral reserve lease expires in 2043 with the Company’s option to renew for an additional twenty-one years after demonstrating to the lessor that the mine’s useful life is greater than the lease’s term. The Ogden facility mineral reserve lease renews annually. The Company believes it will be able to continue to extend lease agreements as it has in the past, at commercially reasonable terms, without incurring substantial costs or material modifications to the existing lease terms and conditions, and therefore, management believes that assigned lives are appropriate. The Company’s mineral interests are depleted on a units-of-production basis based upon the latest available mineral study. The weighted average amortization period for the leased probable mineral reserves is 84 years as of September 30, 2025. The Company also owns other mineral properties. The weighted average life for the probable owned mineral reserves is 32 years as of September 30, 2025, based upon management’s current production estimates.

The Company has finance leases which are recorded in property, plant and equipment at the beginning of the lease at the lower of the fair value of the leased property or the present value of the minimum lease payments. Lease payments are recorded as interest expense and a reduction of the lease liability. A finance lease right-of-use asset is amortized over the lower of its useful life or the lease term.

The Company has capitalized computer software costs of $0.8 million and $3.0 million as of September 30, 2025 and September 30, 2024, respectively, recorded in property, plant and equipment. The capitalized costs are being amortized over a range of three to five years. The Company recorded $0.9 million, $1.6 million and $3.3 million of amortization expense related to capitalized computer software for the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, respectively.

The Company reviews its long-lived assets and the related mineral reserves for impairment whenever events or changes in circumstances indicate the carrying amounts of such assets may not be recoverable. If an indication of a potential impairment exists, recoverability of the respective assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate, to the carrying amount, including associated intangible assets, of such operation. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. See the “Impairments” section above within Note 2. Summary of Significant Accounting Policies for information regarding the loss on impairments of long-lived assets for the fiscal years ended September 30, 2025 and September 30, 2024. During the fiscal year ended September 30, 2023, there were no loss on impairments of long-lived assets recorded.

Leases. In accordance with U.S. GAAP, lessees are required to recognize on their balance sheet a right-of-use asset which represents a lessee’s right to use the underlying asset, and a lease liability which represents a lessee’s obligation to make lease payments for the right-of-use asset. In addition, the guidance requires expanded qualitative and quantitative disclosures. Refer to Note 4. Leases for additional details.

Intangible Assets. The Company amortizes its intangible assets deemed to have finite lives on a straight-line basis over their estimated useful lives which, for the Company, range from 10 to 50 years. The Company evaluates definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be fully recoverable. During fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, the Company recorded a loss on impairment of definite-lived intangible assets of $53.0 million, $15.6 million, and $0.0 million, respectively.

An intangible asset with an indefinite useful life is not amortized but assessed for impairment at least annually, or sooner if indications of possible impairment are identified. When performing the annual impairment test, the Company first may start with an optional qualitative assessment to determine whether it is not more likely than not that the indefinite-lived intangible assets are impaired. If the Company does not elect to use the qualitative assessment, or if the qualitative assessment indicates that a quantitative analysis should be performed, the Company evaluates the indefinite-lived intangible assets for impairment by comparing the fair value of the asset to its carrying amount. The Company performed a qualitative impairment test as of September 30, 2025, and concluded that it was not more likely than not that the fair value of the indefinite-lived intangible

assets had been reduced below their respective carrying amounts and therefore, no indefinite-lived intangible asset impairment charges were incurred. During the fiscal year ended September 30, 2024, the Company recorded a loss on impairment of indefinite-lived intangible assets related to water rights of $17.6 million, included in the Plant Nutrition segment. During the fiscal year ended September 30, 2023, there were no indefinite-lived intangible asset impairment charges incurred.

Goodwill. The Company’s recorded goodwill was $6.0 million as of both September 30, 2025 and September 2024. The Company evaluates goodwill for impairment annually as of the beginning of the fourth quarter and any time an event occurs or circumstance change that would more likely than not reduce the fair value for a reporting unit below its carrying amount. The Company has an option to first assess the qualitative factors to determine whether it is more likely than not that the fair value of the goodwill recorded in Corporate and Other had been reduced below its respective carrying amounts, as a basis for determining whether it is necessary to perform the quantitative goodwill impairment test. During the fourth quarter of fiscal 2025, the Company assessed the qualitative factors and reached a determination that it is not more likely than not that the fair value of the Company’s Corporate and Other reporting unit was less than its carrying value, and therefore, no impairment charge was incurred. See the “Impairments” section above within Note 2. Summary of Significant Accounting Policies for information regarding the loss on impairments of goodwill for the fiscal year ended September 30, 2024.

Other Noncurrent Assets. Other noncurrent assets include certain spare parts, net of reserve, of $33.0 million and $42.2 million at September 30, 2025 and September 30, 2024, respectively. As of September 30, 2025 and September 30, 2024, other noncurrent assets also include right-of-use operating lease assets, net of amortization, of $52.3 million and $50.0 million, respectively.

Non-Qualified Defined Contribution Plan. The Company sponsors a non-qualified defined contribution plan for certain of its executive officers and key employees as described in Note 9. Pension Plans and Other Benefits. As of September 30, 2025 and September 30, 2024 investments in marketable securities representing amounts deferred by employees, Company contributions and unrealized gains or losses totaling $3.5 million and $3.1 million, respectively, were included in other noncurrent assets in the Consolidated Balance Sheets. The marketable securities are classified as trading securities and accordingly, gains and losses are recorded as a component of other expense, net in the Consolidated Statements of Operations.

Income Taxes. The Company accounts for income taxes using the liability method in accordance with the provisions of U.S. GAAP. Under the liability method, deferred taxes are determined based on the differences between the consolidated financial statements and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company’s foreign subsidiaries file separate company returns in their respective jurisdictions.

The Company recognizes potential liabilities in accordance with applicable U.S. GAAP for anticipated tax issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. If the Company’s estimate of tax liabilities proves to be less than the ultimate assessment, a further charge to expense would result. Any penalties and interest that are accrued on the Company’s uncertain tax positions are included as a component of income tax expense.

In evaluating the Company’s ability to realize deferred tax assets, the Company considers the sources and timing of taxable income, including the reversal of existing temporary differences, the ability to carryback tax attributes to prior periods, qualifying tax-planning strategies, and estimates of future taxable income exclusive of reversing temporary differences. In determining future taxable income, the Company’s assumptions include the amount of pre-tax operating income according to different state, federal and international taxing jurisdictions, the origination of future temporary differences, and the implementation of feasible and prudent tax-planning strategies. In situations where a three-year cumulative loss condition exists, accounting standards limit the ability to consider projections of future results as positive evidence to assess the realizability of deferred tax assets. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized.

If the Company determines that a portion of its deferred tax assets will not be realized, a valuation allowance is recorded in the period that such determination is made. In the future, if the Company determines, based on the existence of sufficient evidence, that more or less of the deferred tax assets are more likely than not to be realized, an adjustment to the valuation allowance will be made in the period such a determination is made.

Environmental Costs. Environmental costs, other than those of a capital nature, are accrued at the time the exposure becomes known and costs can be reasonably estimated. Costs are accrued based upon management’s estimates of all direct costs. Amounts reserved for environmental matters were not material at September 30, 2025 or September 30, 2024.

Equity Compensation Plans. The Company has equity compensation plans under the oversight of the Company’s Board of Directors, whereby stock options, restricted stock units, performance stock units, deferred stock units and shares of common stock are granted to the Company’s employees and directors. The Company elected to estimate forfeitures of unvested awards when recognizing stock-based compensation expense. The forfeiture rate is based on historical experience. Compensation cost is adjusted to reflect actual forfeitures as they occur. See Note 13. Stockholders’ Equity and Equity Instruments for additional discussion.

Net (Loss) Income Per Share. When calculating net (loss) income per share, the Company’s participating securities are accounted for under the two-class method in periods in which dividends are declared. In the second fiscal quarter of 2024, the Company ceased paying dividends. The two-class method requires allocating the Company’s net income to both common shares and participating securities based upon their rights to receive dividends. Net (loss) income per share is computed by dividing net income available to common stockholders by the weighted-average number of outstanding common shares during the period. Diluted income per share reflects the potential dilution that could occur under the more dilutive of either the treasury stock or the two-class method for calculating the weighted-average number of outstanding common shares. The treasury stock method is calculated assuming unrecognized compensation expense, income tax benefits and proceeds from the potential exercise of employee stock options are used to repurchase common stock.

The Company records derivative financial instruments as assets or liabilities measured at fair value. Accounting for the changes in the fair value of a derivative depends on its designation and effectiveness. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. For qualifying hedges, the effective portion of the change in fair value is recognized through earnings when the underlying transaction being hedged affects earnings, allowing a derivative’s gains and losses to offset related results from the hedged item in the Consolidated Statements of Operations. Until the effective portion of a derivative’s change in fair value is recognized in the Consolidated Statements of Operations, the change in fair value is recognized in other comprehensive income. The Company presents derivatives on a net basis when subject to master netting agreements and when the right of offset exists. For derivative instruments that are not accounted for as hedges, or for the ineffective portions of qualifying hedges, the change in fair value is recorded through earnings in the period of change. The Company formally documents, designates and assesses the effectiveness of transactions that receive hedge accounting treatment initially and on an ongoing basis.

Concentration of Credit Risk. The Company sells its salt and magnesium chloride products to various governmental agencies, manufacturers, distributors and retailers primarily in the Midwestern U.S. and throughout Canada and the UK. The Company’s plant nutrition products are sold across the Western Hemisphere and globally. No single customer or group of affiliated customers accounted for more than 10% of the Company’s sales during the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, or more than 10% of receivables at September 30, 2025 or September 30, 2024.

Segment Reporting. In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which updates reportable segment disclosure requirements primarily to include enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 in fiscal 2025 and applied the amendment retrospectively to all periods presented in the Company’s consolidated financial statements. See Note 12. Operating Segments for more information.

Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which updates income tax disclosures by requiring consistent categories and additional disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024, and is effective for the Company beginning in the annual report for the fiscal year ended September 30, 2026. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued amended guidance related to disclosure of disaggregated expenses (“ASU 2024-03”). This amendment requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This guidance is effective for annual periods beginning in the Company’s annual report for the fiscal year ended September 30, 2028 and interim periods following annual adoption, with early adoption permitted. This guidance will be applied on a prospective basis with retrospective application permitted. Management is currently evaluating ASU 2024-03 to determine its impact on the Company’s disclosures.

Internal-Use Software. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other (Subtopic 350-40) Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). This amendment removes references to prescriptive and sequential software development stages, or project stages, and replaces them with a probable-to-complete recognition threshold and also requires disclosures for all capitalized internal-use software costs. ASU 2025-06 is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those reporting periods. The Company is currently evaluating the effect that ASU 2025-06 will have on its consolidated financial statements.