Debt

6 Months Ended

Feb. 28, 2026

Debt Disclosure [Abstract]

Debt

Note 4.    Debt

The Company has a $20,000,000 line of credit with Citizens Business Bank (the “Bank”) under a Business Loan Agreement. On February 15, 2026, the Company executed a Change in Terms Agreement dated as of February 15, 2026 (the “February 2026 Amendment”) with the Bank to modify terms of that certain Business Loan Agreement dated as November 5, 2022, as amended by that first amendment dated as of April 12, 2024(the “April 2024 Amendment”), between Bisco and the Bank. The February 2026 Amendment (i) extended the expiration date of the line of credit under the Business Loan Agreement to February 15, 2028; (ii) provided that the interest rate under the revolving line of credit will not be less than 4.000% per annum or more than the maximum rate allowed by applicable law; and (iii) modified certain financial reporting covenants referenced   in the April 2024 Amendment. Except as expressly modified, the terms of the existing indebtedness remain in full force and effect.

Borrowings on the line of credit with the Bank are secured by substantially all of the assets of the Company and its subsidiaries. The amount outstanding under this line of credit as of each of February 28, 2026 and August 31, 2025 was zero. The line of credit contains certain nonfinancial and financial covenants, including the maintenance of certain financial ratios. As of each of February 28, 2026 and August 31, 2025, the Company was in compliance with all such covenants. The line of credit is primarily utilized for vendor payments if sufficient cash is unavailable. When balances are present on the line of credit, it is paid down daily with excess cash in our main deposit bank account.

The Company also entered into a loan agreement with the Bank on July 12, 2019 to borrow up to $5,000,000 (the “Construction Loan”) for the primary purpose of financing tenant improvements at the Hunter Property. The Construction Loan was a line of credit evidenced by a Promissory Note in the original principal amount of up to $5,000,000 with a maturity date of May 15, 2027. The terms of the Construction Loan provide that the Company may only request advances through July 15, 2020, and thereafter, the Construction Loan would convert to a term loan with a fixed interest rate of 4.6%, which is entitled to a .25% rate discount if a demand deposit account is held with the Bank. On July 15, 2020, the amount drawn on the Construction Loan and converted to a term loan (the “Term Loan”) was $4,807,000. Interest on the Term Loan is payable monthly. The interest rate was 4.35% at February 28, 2026 and August 31, 2025. Concurrent with the execution of this Term Loan, Bisco entered into a commercial security agreement, dated July 12, 2019, with the Bank, pursuant to which Bisco granted the Bank a security interest in substantially all of Bisco’s personal property to secure Bisco’s

obligations under the Term Loan. The outstanding balance of the Term Loan at February 28, 2026 and August 31, 2025 was $4,148,000 and $4,214,000, respectively. The Term Loan’s future principal due until maturity by fiscal year is as follows:

Fiscal Year	Principal Amount Due
2026	$	138,000
2027		4,010,000
Total	$	4,148,000

The Company has also entered into a business loan agreement (and related $100,000 promissory note) with the Bank in order to obtain a $100,000 letter of credit as security for the Company’s worker’s compensation requirements.