Commitments and Contingencies	9 Months Ended
May 31, 2025
Commitments and Contingencies.
Commitments and Contingencies	Note 8. Commitments and Contingencies From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations. In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and the present time. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation commenced in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter for approximately $7,500,000, which settlement amount was increased to $7,683,000 in May 2025. In July 2025, the court approved the settlement. Pursuant to the settlement agreement, as amended, the aggregate settlement payment (less the $154,000 that has already been paid) is expected to be paid by the Company within the next few months after the final order is issued in the litigation. At that time, the Company will also pay the Company’s share of the employment taxes related to the portion of the settlement amount that is payable to the Company’s employees. The Company accrued $7,390,000 and $285,000 in fiscal 2024 and fiscal 2023, respectively, in anticipation of this settlement.

Commitments and Contingencies

9 Months Ended

May 31, 2025

Note 8. Commitments and Contingencies

From time to time, the Company may be subject to legal proceedings and claims which arise in the normal course of our business. Any such matters and disputes could be costly and time consuming, subject the Company to damages or equitable remedies, and divert management and key personnel from core business operations.

In January 2023, a class action lawsuit was filed with the Los Angeles County Superior Court against Bisco, alleging wage and hour violations and related claims. The class action covers a class of former and current employees of Bisco who were employed between January 13, 2019 and the present time. In March 2023, Plaintiff filed a First Amended Complaint that added claims under the California Private Attorneys General Act (“PAGA”). Both parties requested to stay the litigation pending mediation, which mediation commenced in April 2024. As a result of the mediation, the parties agreed in principle to settle this matter for approximately $7,500,000, which settlement amount was increased to $7,683,000 in May 2025. In July 2025, the court approved the settlement. Pursuant to the settlement agreement, as amended, the aggregate settlement payment (less the $154,000 that has already been paid) is expected to be paid by the Company within the next few months after the final order is issued in the litigation. At that time, the Company will also pay the Company’s share of the employment taxes related to the portion of the settlement amount that is payable to the Company’s employees. The Company accrued $7,390,000 and $285,000 in fiscal 2024 and fiscal 2023, respectively, in anticipation of this settlement.