JEWETT CAMERON TRADING CO LTD
For the period ended Nov 30, 2025. Filed Jan 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 30, 2025 · Filed Jan 14, 2026
JCTC$2.85-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-31; filed 2025-07-14.
0001079973-25-001140
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-30; filed 2026-01-14.
0001079973-26-000083
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 89 current paragraphs.
43 unchanged; 22 reworded; 23 added; 81 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Corporate and Administrative Services
Current report
Corporate and Administrative Services – JC USA
Current report
Our operations continue to be challenged by the high levels of import tariffs, negative consumer buying trends, and certain operational issues which we are diligently working to resolve. These issues have negatively affected our first quarter results, as sales declined by 7% and our net loss was ($3,944,139), or ($1.12) per share. The current quarter’s net loss was increased by $2,208,813 for the write-down of inventory during the quarter which was primarily related to our excess lumber inventory and liquidation of certain pet inventory.
Current report
The current import tariffs, including those on imported metal products, remain a significant strain on our operations. Our markets have been tremendously disrupted, both directly and indirectly, by these new tariffs since their implementation began in February 2025. The direct impacts include cost increases to our supply chain and logistics, and indirectly by their negative effect on consumer confidence which has significantly reduced product demand. These higher costs resulted in a double-digit reduction in overall gross margins across the majority of our product lines.
Current report
The new tariffs were announced and became effective very quickly. We were required to pay these tariffs immediately upon effectiveness, but it has been difficult to pass on these higher costs to our customers in the form of price increases for our affected products. Our customers must consent to any price increases, and although we negotiate with our customers to accept higher prices, they may not immediately accept these increases, and any changes may only be accepted after 30 to 90 days, or longer, if at all. Many of our customers did not immediately accept higher prices for our products, but by September 2025, those remaining customers agreed to accept shipments with the higher prices which were implemented in the following weeks. However, the volume of these shipments remain significantly lower than in prior years, which also has negatively affected our revenues. Due to the uncertainty around tariff changes, some of our customers have resisted placing long-term purchases at contracted prices. Although our customers have slowly begun to accept higher product prices, consumers have not yet fully adjusted their expectations. This continues to restrain consumer’s elective purchases, including home improvement and pet products, which lessens demand in the near-term. It is highly probable these increased tariff related costs and their effects will continue to negatively affect our margins and demand for our products for the remainder of fiscal 2026.
Current report
We experienced operational issues with our agreement to supply cedar fencing to one of our larger consignment customers during fiscal 2025. After a major customer lost their primary source of western red cedar fencing in 2023, we entered into a consignment program with this customer. This program provided them with a ready source of cedar fencing and provided us with a steadier flow of orders that stabilized the year-over-year lumber sale fluctuations that we commonly experienced as a secondary supplier to multiple big box retailers. However, under this agreement, we were required to have a higher level of fencing inventory on hand than we had previously. During the Spring of 2025, we failed to acquire an adequate supply of fencing to meet our actual demand and were unable to fulfill all our customers’ orders during the third quarter. To ensure we could meet their needs for the remainder of the busy summer season, we quickly moved to secure additional Western Red Cedar from our supply partners to meet their forecasted level of sales for the remainder of the summer season. Unfortunately, much of the additional cedar fencing inventory was not needed as our customer’s actual level of fencing sales fell short of their forecasts as consumers restrained their elective purchases due to the price volatility in these markets, Therefore, we ended the 2025 fencing season with substantial excess cedar fencing inventory on hand. In November 2025 this customer informed us of their intention to transition away from the consignment agreement in calendar year 2026. Although the consignment program provided us with meaningful revenue, it eroded the margin, profitability, and pricing flexibility we were accustomed toin our cedar sales prior to this consignment arrangement. Due the consignment customer’s fencing sales falling short of their forecasts and the subsequent sudden cancelation of the consignment agreement, we still hold significant excess fencing inventory. Although we are actively seeking customers for this inventory, the peak fencing season has passed, and during the first quarter we recorded an inventory write-down to reflectour current expectations for being able to sell this inventory through alternative sales channels. The write-down supports our efforts to focus on our successful fencing and pet products going forward.
Current report
The pet market continues to be sluggish due to low consumer demand and high retailer inventory levels. We remain burdened with high inventory levels of bulky metal crates and kennels that incurred inflated transportation costs from the supply chain crisis. This has made their pricing less competitive while taking up valuable warehouse space. We began to liquidate this older inventory in the first quarter of fiscal 2026. Although these sales recapture some of our inventory costs and will reduce our warehousing costs, these sales are being made at a substantial discount to our historical costs which had a substantial negative effect on our first quarter margins. Although we believed we had made adequate inventory allowances in the previous fiscal year to reflect market conditions, we have recorded an additional $550,000 inventory allowance in the current quarter to reflect ‘current liquidation rates’ as the pet market remains depressed and we expect to continue the liquidation of these products in future quarters until we have sold all the excess inventory.
Current report
Sales at Greenwood rose by 45% compared to the first quarter of fiscal 2025 with improved sales margins due to new product pricing. Demand for transit related products are continuing to recover from the lows experienced during the pandemic, and the seat shortage that occurred in fiscal 2025 that slowed transit construction has been resolved. We also have ramped up sales to a new industrial non-transit customer as we continue our efforts to acquire new customers and expand our offerings in non-transit markets. However, as we intend to concentrate our operations on the fence and outdoor segment, we are evaluating strategic alternatives for Greenwood and its industrial wood operations.
Current report
We have earnestly been working to reduce our product costs. The multi-country sourcing initiative we began over two years ago has successfully mitigated some of the increased tariffs. We shifted production of our Lifetime Steel Posts® from China to lower-tariffed Vietnam which has helped reduce our direct tariff costs, but shipping and logistic costs in Vietnam remain high. To reduce those costs, we are implementing a new direct import program scheduled to begin later in fiscal 2026. This should improve our LTP and overall margins, as the rollout of our in-store display units continue to successfully grow our lower margin LTP sales, which are up nearly 30% on a dollar basis quarter over quarter.
Current report
We are also actively reducing our operating and administrative costs and selling surplus assets to better align with our anticipated revenue levels. The reduction in our work force that we conducted in fiscal 2025 resulted in a 26% reduction in our wages and employee expenses in the current quarter compared to the first quarter of fiscal 2025 without compromising quality or service. Our surplus Jewett-Cameron Seed property of 11.6 acres of land and 109,500 square feet of buildings in Hillsboro remains listed for sale at a price of $7.223 million. We have also recently listed for sale our innovation studio property which is now surplus to our current needs, as we have moved the operations formerly housed in the building to our nearby headquarters and warehouse in North Plains. This property contains a renovated building of 2,000 square feet of flex space and is listed for $795,000. For both the JCSC and innovation studio properties, these are the current asking prices and there is no guarantee the properties will sell for this amount, if at all.
Current report
During the first quarter in October 2025, we experienced a cybersecurity incident as a threat actor gained unauthorized access to portions of the Company’s information technology (“IT”) environment. We immediately activated our cyber incident response process to contain the intrusion, assess and investigate the incident, and implemented remedial measures, including retaining external cybersecurity experts and notifying law enforcement. Based on our investigation, we believe the cybersecurity incident consisted of unauthorized access and deployment of encryption and monitoring software by a third party to a portion of the Company’s internal corporate IT systems. We believe the unauthorized activity was contained and our IT systems and individual computer devices were brought back online, and we implemented additional cybersecurity measures. The incident caused disruptions and limitation of access to portions of our business applications, which affected our ability to process and ship orders for several weeks. We believe that the costs associated with these activities will not be material and that the costs related to the services provided by experts and the disruption to our business will be largely covered by the Company’s insurance policies, although there can be no assurance that the insurance carriers will accept liability for these costs, in which eventour costs would increase and have a material adverse effect on our future financial performance in the period in which we are required to absorb these costs.
Current report
As of November 30, 2025, we had borrowed $4,233,236 against our credit line with Northrim Funding Services (“Northrim”). Under the current terms of the agreement, Northrim provides short-term operating capital by either purchasing the Company’s accounts receivable invoices or as a loan against our inventory position. In December 2025, subsequent to the end of the first quarter, we entered into a revised agreement with Northrim to increase our borrowing capacity under the line. Under the revised agreement, the maximum amount of AR invoices Northrim will purchase at one time is limited to an amount equal to 90% of the maximum eligible accounts and is not to exceed $8,000,000, which was increased from the prior 80% of the net eligible accounts and a $6,000,000 limit. Borrowing against the Company’s inventory was increased to an amount equal to 50% of all eligible inventory from the prior 25%, and the maximum amount the Company may borrow was increased to $6,500,000 from $4,000,000. Amounts provided by Northrim will be secured by certain of the Company’s real estate assets. Proceeds from the sale of any such assets will be used to pay down the credit line and thereafter the funding arrangement will revert to the original conditions and limits set forth prior to the recent amendments. The increase in our line provides us with additional flexibility to provide funds to help our operational realignment and the purchase of inventory ahead of our traditionally busier Spring and Summer seasons.
Current report
In addition to the revised credit line with Northrim, we are currently evaluating other strategies to strengthen our liquidity position. These strategies may include, but are not limited to, disposition of certain non-core assets and unused real property, and seeking additional financing from both the public and private markets through the issuance of equity or debt securities. There can be no assurance that we will be successful in achieving these strategies. See “Management’s Discussion and Analysis – Liquidity and Capital Resources” for additional information.
Current report
Our strategic plan for the remainder of fiscal 2026 is to concentrate our resources on our successful fencing and pet product lines while monetizing non-core assets and disposing of excess inventory. Management and the Board are also evaluating strategic alternatives for the Company as well as its individual operating segments and assets that prioritize the Company’s overall value. We are also reducing our costs, including refining our development efforts to concentrate on improving our existing products, both in design and packaging, that can potentially provide market advantages. Due to the continued uncertainty and higher costs stemming from the high global tariff levels, we expect fiscal 2026 to remain challenging. We will continue to focus on our operational strengths while reducing costs where possible in our efforts to increase our sales and margins and return to profitability.
Current report
For the three months ended November 30, 2025, sales were $8,653,467 compared to sales of $9,267,001 for the three months ended November 30, 2024. This is a decrease of $613,534, or 7%. Our sales were negatively affected by the higher tariff rates and lower lumber sales in the current period combined with the continuing negative consumer sentiment. The cybersecurity incident we suffered in October also impacted our ability to process and deliver orders for several weeks which reduced our revenues during the quarter.
Current report
Sales at JCC were $7,429,015 compared to sales $8,424,968 for the three months ended November 30, 2024, which was a decrease of $995,953, or 12%. Our customers continue to be slow to accept higher prices for our products caused by inflation and tariffs, and the impacts of the cybersecurity incident also reduced our sales in October. Sales of our fencing products were up 2% from the 1 st quarter in fiscal 2025, which was driven by higher sales of our LifeTime Steel Posts (LTP), although pricing for these products remained relatively static due to customers resisting price increases. This compressed our margins as our costs increased due to higher raw material, shipping and tariff costs, which also affected our revenues and margins for our other fencing products. In lumber, our consignment customer reduced their purchases in advance of their notification of terminating the agreement we received in November. For our pet products, we commenced some liquidation of our slower moving inventory which hurt our revenues and margins compared to the comparable prior year’s quarter. Operating loss for JCC was ($3,893,158) compared to an operating loss of ($920,237) for the quarter ended November 30, 2024. The loss in the current quarter included a $2,208,813 inventory write-down related to our excess lumber and liquidation of certain pet inventory. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year historically being slower than the final two quarters of the fiscal year.
Current report
Gross margin for the three month period ended November 30, 2025 was negative 12.5% compared to a positive 18.3% for the three months ended November 30, 2024. The largest effects on our current margins were due to the $2,208,813 in additional inventory write-downs we took during the current quarter and a shift in our sales to a higher volume of lower margin products. Our product costs continued to rise in the quarter, particularly due to the higher import tariffs and higher shipping and logistic costs, while our ability to pass on these costs to customers remained limited as they have been slow to accept higher prices. Our margins were also negatively affected by the liquidation sales of certain of our pet inventory which began in the current quarter. Without these negative impacts, we believe our margins would have been higher but still below where we need them to be.
Current report
Operating expenses rose to $2,705,683 in the current quarter compared to $2,552,047 expended in the three months ended November 30, 2024. Selling, General and Administrative Expenses rose to $1,401,035 from $809,213 which was primarily due to higher professional fees related to the engagement of additional consultants in the period and increases to our lumber warehousing costs. Wages and employee benefits dropped significantly to $1,227,038 from $1,661,768 as we continued to reduce our headcount. Depreciation and Amortization decreased to $77,610 from $81,066.
Current report
Loss from operations for the current quarter was ($3,784,615) compared to a loss of ($858,145) for the quarter ended November 30, 2024 as the additional inventory reserves taken in the current quarter increased the quarterly loss by ($2,208,813).
Current report
Other items in the current quarter included interest expense of ($129,149) which was primarily due to interest paid on our line of credit. In the prior year’s quarter, we recorded a gain on sale of property, plant and equipment of $800 and interest income on our cash balances of $21,998.
Current report
Cash and cash equivalents totaled $1,036,218, an increase of $810,005 from cash of $226,213 as of August 31, 2025. The increase was due to the timing of collection of accounts receivable, which declined to $3,313,266 from $3,863,678, and prepaid expenses, which are largely related to down payments for future inventory purchases, which increased to $1,109,415 from $1,000,439. Inventory declined by $2,358,777 to $13,526,812 from $15,885,589 as we began liquidating our older pet inventory, and we wrote-down our older inventory by $2,208,813. Prepaid income taxes declined to $157,276 from $180,151.
Current report
Current liabilities rose to $6,408,759 from $4,695,620 as bank indebtedness increased to $4,233,236 from $2,101,835. Accounts payable declined to $1,204,550 from $1,510,173, and accrued liabilities fell to $970,973 from $1,083,612.
Current report
During the quarter, the Company issued no common shares.
Removed paragraphs (81)
Previous report
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Previous report
Seed processing and sales
Previous report
Corporate and administration
Previous report
JCSC operated out of a Company-owned 11.6 acre facility located adjacent to North Plains, Oregon. JCSC processed and distributed agricultural seed. Most of this segment’s sales came from selling seed to distributors with a lesser amount of sales derived from cleaning seed.
Previous report
We ended regular operations at JCSC effective August 31, 2023 and have sold all of our remaining seed inventory and are working to sell the remaining JCSC equipment. Seed storage operations continued through July, 2024.
Previous report
Corporate and Administration – JC USA
Previous report
Seed Segment
Previous report
The Company formerly operated agricultural seed processing, distribution and sales through JCSC. Most of this segment’s sales were derived from selling seed to distributors with a lesser amount of sales derived from cleaning seed. During the fiscal year ended August 31, 2023, the Company decided to close its JCSC seed subsidiary effective August 31, 2023. JCSC has now been wound up and all remaining assets have been transferred to JC USA.
Previous report
Our results in the 3 rd quarter was challenging, as the turmoil over the higher tariffs and certain operational issues significantly reduced our revenues, and negatively impacted our margins and operating results. Sales for the current 3 rd quarter declined by 21% from the prior year’s 3 rd quarter, and we had a net loss of ($0.18) per share.
Previous report
Currently, the most significant factor affecting our business is the new US tariffs, primarily on our imported metal products. The rapid and unpredictable changes to rates, products, and which countries are affected have caused immense turmoil in our markets including stressing key logistics lines and increasing costs. This has resulted in significantly higher pricing and uncertainty in deliveries to customers. Tariffs on Chinese goods were originally subject to a 25% tariff implemented in 2019. Additional China specific tariffs were added in February, March, and April, with further increases announced in May. The diversification of our suppliers to additional countries beyond China successfully allowed us to initially mitigate some of the recent tariff increases as those new suppliers outside of China were primarily subject only to the universal 10% baseline tariff rate as a floor. However, some nations have been notified of possible other country specific tariffs subject to negotiation. Steel and aluminum imports were originally assigned a global 25% tariff rate. Subsequently, that rate was doubled to 50% as of June 4 th, just five days after it was announced on May 30 th leaving us and other importers with no time to plan or adjust import shipments.
Previous report
As a result of the frequent and unpredictable rate changes, and the indications of further significant increases, many retailers and consumers have deferred purchases of imported metal products until further clarity on prices is available. We have made strenuous efforts to adjust our selling prices to correctly reflect the new tariff rates, but the rapid and unpredictable announcements of new rates over the last 6 months have made that process extremely difficult. It takes time to compute the new prices, communicate that to the customer, and have them accept them for future shipments. Because the rates have changed frequently, many of our new prices have become obsolete before they were able to take effect. Therefore, it has caused our customers to pause their purchasing until they receive greater certainty on tariffs, as they are reluctant to make long-term purchases at contracted prices that may decline based on the rapidly changing tariff rates.
Previous report
The current trade negotiations occurring between the US and multiple nations to set country specific tariff rates provides optimism that clarity on final rates may be forthcoming. We have consulted with experts and legal counsel to accurately interpret how to properly apply the rates to our products to ensure compliance and to make sure our prices remain cost competitive. Although consumers will eventually adjust their buying to accept higher prices over time, it will likely continue to dampen demand in the short-term until consumers and retailers become more accepting of the higher prices. These increased costs will likely continue to negatively affect our margins and demand for certain of our products in the short term.
Previous report
Our rollout of Lifetime Steel Posts® (“LTP”) displayers continued in the 3 rd quarter, and sales of the product were up 85% compared to the third quarter of fiscal 2024. 55 new display units were deployed through the end of May. However, we have temporarily paused adding new display units to prioritize our existing inventory to support existing display replenishment demand. We are actively managing production capacity constraints and logistical issues from new factories outside of China which naturally impacted our previous schedule of deliveries designed to support continued displayer expansion efforts. The higher tariff rates on Chinese goods caused many US companies to quickly shift production to other nations, and the available logistic infrastructure in these other countries has been overtaxed by the rapid increase in production and shipping demands. Once the logistic issues have been corrected, we expect to resume the placement expansion of the in-store display units.
Previous report
We experienced an interruption to our ability to fulfill our cedar fencing orders during the current 3 rd quarter. It is customary to purchase ample supply ahead of the increase in demand each Spring, but this year we failed to acquire an adequate supply to meet our actual demand. As a result, we were unable to fulfill all our customers’ orders, and our wood fencing sales were down 33% in the third quarter. We have now moved quickly to aggressively secure additional Western Red Cedar from our supply partners. We are on track to meet all demand in July and we are well positioned to support this program through the remainder of the calendar year. We have also implemented important process changes to prevent shortages like this in the future.
Previous report
The pet market remains very soft. The anticipated rebound in consumer demand has not yet materialized and retailers remain burdened with high inventory levels. The one recent exception has been in our dog bowls, which have been selling well. We maintain available inventory in our warehouse of pre-tariff metal crates and kennels which may offer a price advantage to newly imported products. We are exploring ways to reduce our inventory levels of these larger pet products. This may involve short-term price reductions which could reduce our margins on these products but will help clear older inventory from our warehouse.
Previous report
MyEcoWorld® sales for the current nine months are up 265% over the comparative period in fiscal 2024 asconsumers continue to look for high quality sustainable products as alternatives to disposable traditional single-use plastics. Some of this increase is due to shifting our entire LuckyDog® compostable dog waste bag line to a new MyEcoWorld® product. One part of our growth strategy for this line has been entering the grocery store segment, and we secured our first placement with the launch of Pet Waste Bags into 59 Tops Friendly Markets across the Northeast beginning in late February. However, the recent increase in tariffs on these products have made growth in the grocery segment much more challenging. We will continue to focus on expanding upon our successful introductions into big box stores where we have existing strong supplier relationships, and into foreign markets that are unburdened by the new US tariffs. We have been receiving strong demand from big box stores in Mexico where the lack of US tariffs has made the product very competitive.
Previous report
At Greenwood, sales for the current nine-month period were down slightly compared to the year-ago period as a seat shortage has slowed production across the bus industry. Sales in the prior nine months were buoyed by transit operators buying components to catch up on fleet maintenance they deferred during the pandemic. We believe this segment has significant growth potential in both our primary transit sector and in new markets, such as construction. However, possible new tariffs on Canadian wood products could raise prices for our raw materials in future periods.
Previous report
During the 3 rd quarter, we continued our strategy to analyze and implement operational efficiencies in all aspects of our business. We have shifted some employees to better align our workforce with our strategic direction, while adding some employees in specific roles, including sales. Overall, we have reduced our employee headcount by 33% year-to-date. We have also evaluated and commenced the planning andimplementation of upgraded technology in warehouse operations to expedite receiving, cycle counting and shipping activities. These changes will result in increased productivity and reduce our costs without compromising quality or service.
Previous report
The surplus Jewett-Cameron Seed property of 11.6 acres of land and 109,500 square feet of buildings remains listed for sale at a price of $9,000,000. This is the current asking price and there is no guarantee the property will sell for this amount. The land is currently zoned with a rural industrial classification but is well situated on a corner lot at a major interchange immediately adjacent to US Highway 26, which is one of the region’s busiest roadways. We have explored the potential rezoning of the property to other permitted uses, including the inclusion within any expanded Urban Growth Boundaries (UGB). The current economic struggles of both the nearby cities and within greater Portland has reduced the previously perceived need among the nearby cities to quickly expand the UGB, including extending the boundary toward the area containing JCSC property. Therefore, any inclusion of the property in expanded UGBs or reclassification of the property from its limited rural industrial classification now appears unlikely among the prevailing economic and political environment. This could be discouraging potential buyers who may have been interested in the property for other uses and will likely impact our potential sale and sales price. We continue to have meaningful discussions with interested parties. Currently there is no firm agreement for a sale in place and the property remains on the market.
Previous report
We anticipate that many of the challenges we experienced in the 3 rd quarter will extend into our 4 th quarter. The frequently changing tariff rates are continuing to cause hesitation and uncertainly among both retailers and consumers, and we expect this will continue until those rates are finalized and buyers can accurately estimate costs. Besides the tariff disruptions, consumer sentiment and economic conditions remain depressed due to stubborn inflation, high interest rates, and employment concerns. Our orders remain sluggish, and we expect to record a loss in the 4 th quarter and for the full year.
Previous report
We intend to continue to work to improve our operational efficiencies, further develop our multi-sourcing strategy, and resolve the logistical impediments to reduce our costs and better serve our customers.
Previous report
For the three months ended May 31, 2025, sales totaled $12,605,344 compared to sales of $15,896,017 for the three months ended May 31, 2024, which is a decrease of $3,290,673, or 21%. The uncertainty and cost increases due to the changing tariff rates and our shortage in fencing contributed to the decline.
Previous report
Sales at JCC were $11,900,284 compared to sales of $14,957,204 for the quarter ended May 31, 2024, a decrease of $3,056,920, or 20%. Operating loss for JCC for the quarter ended May 31, 2025 was ($861,105) compared to a loss of ($67,000) for the quarter ended May 31, 2024. Pet sales remained weak, and shortages in our cedar supply resulted in lower fencing sales. Our metal products were severely affected by the uncertainty around the higher tariff rates, which caused customers to pause buying during the quarter.
Previous report
JCSC operations were permanently closed as of December 31, 2023, and storage activity ended in July 2024. Therefore, there were no revenue from JCSC compared to sales of $14,046 for the three months ended May 31, 2024.
Previous report
Gross margin for the three months ended May 31, 2025 was 15.0% compared to 18.6% for the three months ended May 31, 2024. Current margins declined due to higher shipping costs, expenditures on the continued roll-out of in-store display units, and a shift towards lower margin products during the quarter.
Previous report
Operating expenses for the three months ended May 31, 2025 were $2,576,788, which was a decrease of $318,693 from expenses of $2,895,481 in the three months ended May 31, 2024. Wages and employee benefits declined to $1,488,446 from $1,790,004 as we reduced our employee headcount by 20% in May 2025. Selling, General and Administrative expenses were down slightly at $1,008,334 compared to $1,026,071. Depreciation increased to $80,008 from $79,406. There was no gain on the sale of assets in the current quarter compared to $1,450 in the period ended May 31, 2024. Interest expense was ($74,147) compared to expense of ($1,437) due to borrowing against the line of credit in the current quarter.
Previous report
Nine Months Ended May 31, 2025 and May 31, 2024
Previous report
For the nine months ended May 31, 2025, sales totaled $30,927,295 compared to sales of $33,931,050 for the nine months ended May 31, 2024, which is a decrease of $3,003,755, or 9%. Consumers have continued to restrain their discretionary spending, particularly on home improvement and pet goods. For the first six months of the period, our sales were relatively flat year-over-year. However, during the third quarter, the rapid and unpredictable increases in tariff rates, particularly on imported steel and aluminum products, caused retailers and consumers to pause their purchases and impacted margins due to tariff driven product re-pricings and delayed customer acceptance.
Previous report
Sales at JCC were $28,268,572 for the nine months ended May 31, 2025 compared to sales of $30,964,142 for the nine months ended May 31, 2024, which is a decrease of $2,695,570, or 9%. Revenue from our pet lines remains weak while shortages of our supply for cedar restrained our wood fencing revenues. Sales were also negatively impacted during the current 2 nd and 3 rd quarters by the increased tariff rates, particularly on imported steel and aluminum products. For the current nine-month period, JCC had an operating loss of ($2,615,470) compared to income of $384,102 for the nine months ended May 31, 2024.
Previous report
Sales at Greenwood were $2,658,723 for the current nine months compared to sales of $2,883,190 for the nine months ended May 31, 2024. This represents a decrease of $224,467, or 8%. Sales in the current period were negatively impacted by a seat shortage which reduced new bus construction, while sales in the prior year’s period were boosted by higher demand by municipalities and transit operators catching up on deferred vehicle maintenance post-pandemic. We have realigned some personnel to Greenwood to support our efforts to increase sales by opening new sales channels and adding customers, both within the transit sector and in new sectors such as construction. For the nine months ended May 31, 2025, Greenwood had an operating loss of ($68,148) compared to operating income of $41,146 for the nine months ended May 31, 2024.
Previous report
JCSC operations were permanently closed as of December 31, 2023, and storage activity ended in July 2024. Therefore, there was no revenue or income from JCSC in the current nine-month period compared to revenue of $83,718 and operating income of $32,242 for nine months ended May 31, 2024.
Previous report
JC USA, the holding company that provides professional and administrative services for the wholly-owned operating subsidiaries had operating income of $325,258 for the nine months ended May 31, 2025 compared to operating income of $634,257 for the nine months ended May 31, 2024. The results of JC USA are eliminated on consolidation.
Previous report
Gross margin for the nine-month period ended May 31, 2025 was 17.5% compared to 20.5% for the nine months ended May 31, 2024. Current margins were negatively affected by higher logistics and ocean shipping costs, our investment in the new in-store fencing product display units, and a shift to lower margin products.
Previous report
Operating expenses declined to $7,715,030 from expenses of $8,431,989 for the nine months ended May 31, 2024. Selling, General and Administrative expenses fell to $2,757,714 from $2,941,978. Wages and Employee Benefits declined to $4,715,013 from $5,221,662 due to the lower headcount in the current period. Depreciation and amortization declined to $242,303 from $268,349.
Previous report
Other items recorded in the current nine-month period include other income of $306, and a gain on sale of assets of $800. We also recorded interest expense of ($43,053) which was primarily due to interest on borrowings against our line of credit. In the prior nine months, the Company successfully settled its arbitration case against one of its former distributors for a cash payment of $2,450,000 which was accounted for as other income. The prior year’s period also had a gain on sale of assets of $90,537, which largely is due to the sale of JCSC equipment, and net interest income of $11,527.
Previous report
Net loss for the nine months ended May 31, 2025 was ($1,881,445), or ($0.54) per basic and diluted share, compared to net income of $912,257, or $0.26 per basic and diluted share, for the nine months ended May 31, 2024.
Previous report
Cash and cash equivalents totaled $1,204,719, a decrease of $3,648,648 from cash of $4,853,367 as of August 31, 2024. The decrease was due to the purchase of inventory for the busier Spring and Summer seasons, which rose to $15,257,917 from $13,157,243, the timing of collection of accounts receivable, which increased to $6,789,582 from $3,668,815, and prepaid expenses, which are largely related to down payments for future inventory purchases, which was $705,448 compared to $891,690. Prepaid income taxes was $Nil, which declined from $50,326 in the period ended May 31, 2024.
Previous report
Asset held for sale was unchanged at $566,022. This asset is the 11.6 acres of land and 109,500 square feet of buildings which formerly housed JCSC operations and is publicly listed for sale.
Previous report
Current liabilities increased to $6,209,261 from $2,639,370. Accounts payable increased to $1,861,519 from $1,237,988, and accrued liabilities increased to $1,911,011 from $1,401,382. Bank indebtedness as of May 31, 2025 was $2,422,305 which was the amounts drawn against the Company’s line of credit.
Previous report
During the nine months ended May 31, 2025, the Company issued 13,317 common shares to officers, directors and employees under the Restricted Share Plan. The value of these shares was $59,926.
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Reworded paragraphs (22)
Previous wording
These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying consolidated financial statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2025 and August 31, 2024 and its results of operations and cash flows for the three and nine month periods ended May 31, 2025 and 2024 in accordance with U.S. GAAP. Operating results for the three and nine month periods ended May 31, 2025 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2025. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year historically being slower than the final two quarters of the fiscal year.
Current wording
These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying consolidated financial statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of November 30, 2025 and August 31, 2025 and its results of operations and cash flows for the three month periods ended November 30, 2025 and 2024 in accordance with U.S. GAAP. Operating results for the three month period ended November 30, 2025 are not necessarily indicative of the results that may be experienced for the fiscal year ending August 31, 2026. Overall, the operating results of JCC are seasonal with the first two quarters of the fiscal year historically being slower than the final two quarters of the fiscal year.
Previous wording
The Company’s operations are classified into three reportable operating segments and the parent corporate and administrative segment, which were determined based on the nature of the products offered along with the markets being served. The segments are as follows:
Current wording
The Company’s operations are classified into two reportable operating segments and the parent corporate and administrative segment, which were determined based on the nature of the products offered along with the markets being served. The segments are as follows:
Previous wording
We have concentrated on building a customer base for Pet, Fencing and our sustainable related products. Management believes these markets are less sensitive to downturns in the U.S. economy than the market for new home construction as its products serve both new and existing home and pet owners. However, the home improvement business is seasonal, with higher levels of sales occurring between February and August. Inventory buildup occurs until the start of the season in February and then gradually declines to seasonal low levels at the end of the summer.
Current wording
We have concentrated on building a customer base for Pet, Fencing and our sustainable related products. Management believes this market is less sensitive to downturns in the U.S. economy than the market for new home construction as its products serve both new and existing home and pet owners. However, the home improvement business is seasonal, with higher levels of sales occurring between February and August. Inventory buildup occurs until the start of the season in February and then gradually declines to seasonal low levels at the end of the summer.
Previous wording
Our wood products, distributed through JCC, are primarily cedar fencing and are not unique. However, Western Red Cedar, which historically has constituted the bulk of our wood fencing, can only be supplied in large volume from a limited number of suppliers and can experience supply shortages on occasion. Other cedar fencing, which serves as a substitute for Western Red Cedar, is more widely available from multiple suppliers. We are committed to find and secure these alternatives from other sources to compliment customer demand as well as offer consumers greater choice. The metal products that JCC manufactures and distributes may be somewhat differentiated from similar products available from other suppliers. We have been successful in garnering key patents and trademarks on multiple products that assist their ability to continue to differentiate based on design and functionality.
Current wording
Our wood products, distributed through JCC, are not unique and are available from multiple suppliers and retail outlets. However, the metal products that JCC manufactures and distributes may be somewhat differentiated from similar products available from other suppliers. We have been successful in garnering key patents and trademarks on multiple products that assist their ability to continue to differentiate based on design and functionality.
Previous wording
We own the patents and manufacturing rights connected with the Adjust-A-Gate® and Fit-Right® products, which are the gate support systems for wood, vinyl, chain link, and composite fences, in addition to our trade secret industry practices and well-known trademarked brands. We believe the ownership of these patents and trademarks is an important competitive advantage for these and certain other products. We completed our purchase of the full global trademark rights for Adjust-A-Gate® and filed its registration with the US Patent and Trademark Office in February 2023. As of the close of fiscal 2024, the Company owns 7 US Patents and 1 patent application pending in the US, Canada, and Mexico relating to its fencing products.
Current wording
We own the patents and manufacturing rights connected with the Adjust-A-Gate® and Fit-Right® products, which are the gate support systems for wood, vinyl, chain link, and composite fences, in addition to our trade secret industry practices and well-known trademarked brands. We believe the ownership of these patents and trademarks is an important competitive advantage for these and certain other products. We completed our purchase of the full global trademark rights for Adjust-A-Gate® and filed its registration with the US Patent and Trademark Office in February 2023. As of the close of fiscal 2025, the Company owns 7 US Patents and 1 patent application pending in the United States, Canada and Mexico pertaining to its fencing products.
Previous wording
Greenwood is a wholesale distributor of a variety of specialty wood products. Current products are focused on the transportation industry. Greenwood’s total sales for fiscal 2024 and 2023 were 8% and 5%, respectively, of total Company sales.
Current wording
Greenwood is a wholesale distributor of a variety of specialty wood products. Current products are focused on the transportation industry. Greenwood’s total sales for fiscal 2025 and 2024 were 9% and 8%, respectively, of total Company sales.
Previous wording
In July 2024, we listed the JCSC property for sale or lease. The combined size of the buildings is approximately 109,500 square feet. One of the buildings is specialized for the seed industry, while most are metal warehouse buildings with power, allowing a wide array of possible uses. The property is currently zoned “Rural Industrial” (RIND), which allows for use of the existing property, or development of the site, as approved by Washington County. We are exploring the potential to re-zone the property, or revise the existing code, to expand the list of permitted uses. The listed sale price of the property is $9,000,000. This is the current asking price, and there is no guarantee the property will sell for this amount. If we are able to complete a sale, the net proceeds will be reduced by brokers’ commissions, expenses related to the sale, and taxes.
Current wording
The Company formerly operated agricultural seed processing and sales operations through its Jewett-Cameron Seed Company (“JCSC”) subsidiary. JCSC operated out of a Company-owned 11.6 acre facility located adjacent to North Plains, Oregon. We ended regular operations at JCSC effective August 31, 2023. In July 2024, we listed the JCSC property for sale or lease. The combined size of the buildings is approximately 109,500 square feet. One of the buildings is specialized for the seed industry, while most are metal warehouse buildings with power, allowing a wide array of possible uses. The property is currently zoned “Rural Industrial” (RIND), which allows for use of the existing property, or development of the site, as approved by Washington County. The current listing price for the property is $7.223 million. This is the current asking price, and there is no guarantee the property will sell for this amount, if at all. If we are able to complete a sale, the net proceeds will be reduced by brokers’ commissions, expenses related to the sale, and taxes.
Previous wording
JC USA is the parent company for Greenwood, JCC and JCSC as described in Note 1 to Notes to Consolidated Financial Statements. JC USA operates out of our offices in North Plains, Oregon and provides professional and administrative services, including warehousing, accounting and credit services, to JCTC’s subsidiary companies.
Current wording
JC USA is the parent company for Greenwood, JCC and JCSC as described above. JC USA operates out of our offices in North Plains, Oregon and provides professional and administrative services, including warehousing, accounting and credit services, to JCTC’s subsidiary companies.
Previous wording
The Fencing, Pet and Other businesses are conducted by JCC, which operates out of a 5.6 acre owned facility located in North Plains, Oregon that includes offices, a warehouse, and a paved yard. JCC uses contract manufacturers to make all products. Some of the products that JCC distributes flow through our distribution center located in North Plains, Oregon, and some are shipped direct to the customer from the manufacturer. Primary customers are home centers, eCommerce providers, other retailers, distributors, and direct sales to consumers.
Current wording
The Fencing, Pet and Other businesses are conducted by JCC, which operates out of a 5.6 acre owned facility located in North Plains, Oregon that includes offices, a warehouse, and a paved yard. JCC uses contract manufacturers to make all products. Some of the products that JCC distributes flow through our distribution center located in North Plains, Oregon, and some are shipped direct to the customer from the manufacturer. Primary customers are home centers, eCommerce providers, other retailers, and direct sales to consumers.
Previous wording
Our newest product category is Sustainable and Post-Consumer Recycled (“PCR”) bag products. Sold under the MyEcoWorld® brand, it is making a tangible, positive difference to the planet by working to reduce conventional single-use plastic in our daily lives.
Current wording
We sell Sustainable and Post-Consumer Recycled (“PCR”) bag products under the MyEcoWorld® brand. These products are making a tangible, positive difference to the planet by working to reduce conventional single-use plastic in our daily lives.
Previous wording
Prior to fiscal 2024, our metal products were primarily manufactured in China and subject to the full 25% tariff rate. During fiscal 2024, we engaged suppliers in countries outside of China, including Bangladesh, Vietnam, Malaysia, Taiwan, and Canada. Products manufactured in and imported from these countries were not subject to the China-specific tariffs, but were subject to other duties and fees that are typically much lower than the then 25% tariff on Chinese manufactured metal products.
Current wording
Prior to fiscal 2024, our metal products were primarily manufactured in China and subject to the full 25% tariff rate. During fiscal 2024, we engaged suppliers in countries outside of China, including Bangladesh, Vietnam, Malaysia, and Taiwan. Products manufactured in and imported from these countries were not subject to the China-specific tariffs, but were subject to other duties and fees that are typically much lower than the then 25% tariff on Chinese manufactured metal products.
Previous wording
Beginning in January 2025, the new Presidential administration in the United States began to increase tariff rates on numerous products from a range of nations. Imported steel and aluminum products from all countries globally were assigned a new tariff rate of 25% on top of any country or product specific rates. In early April 2025, the US imposed a universal baseline 10% tariff rate on imports globally along with a list of product exemptions. As of June 4, 2025, the tariff on steel and aluminum imports was raised to 50%. The current schedules exempt steel and aluminum products which are subject to the 50% global steel and aluminum tariff from the 10% universal baseline tariff and from any reciprocal tariffs. Therefore, our steel products imported from countries other than China are subject to only the 50% rate. China, however, has been assigned special rates. Tariff rates on steel products imported from China were at 95% as of the June 4, 2025, consisting of the 2019 tariff of 25%, February 2025 tariff of 10%, March 2025 tariff of 10%, with the additional 50% steel and aluminum tariff.
Current wording
Beginning in February 2025, the new administration in the United States began to increase tariff rates on numerous products from a range of nations. Imported steel and aluminum products from all countries globally were assigned a new tariff rate of 25% in addition to any specific country or product rates. In early April 2025, the U.S. imposed a universal baseline 10% tariff rate on imports globally along with a list of product exemptions. As of June 4, 2025, the tariff on steel and aluminum imports was raised to 50%. Our steel products imported from countries other than China are subject to the 50% tariff rate, but not the 10% universal baseline tariff. China, however, has been assigned special rates. Tariff rates on steel products imported from China were at 95% through November 9, 2025, but were reduced to 85% thereafter.
Previous wording
We are continuing our shift to suppliers outside of China which have lower tariff rates. We also face uncertainty in the interpretation of new tariffs and their applicability, including with respect to customs valuation, product classification and country-of-origin determinations. Although we and our suppliers seek to comply with applicable customs laws and regulations, the application of rules regarding new tariffs can be subject to varying interpretations or future re-interpretations. It is possible that US or other relevant authorities could, upon review or audit, disagree with the valuation, rules of origin or classification methods applied to certain products. Any such disagreement could result in the retroactive assessment of additional duties with interest, the imposition of penalties, or other enforcement actions without the ability to mitigate such penalties, thereby adversely affecting our operations or financial results. Furthermore, certain of our competitors may be better positioned than us to withstand or react to border taxes, tariffs or other restrictions on global trade and as a result, we may lose market share to such competitors. Due to broad uncertainty regarding the timing, content and extent of any regulatory changes in the U.S. or abroad, we cannot predict with certainty the impact, if any, that these changes could have to our business, financial condition and results of operations.
Current wording
We are continuing our shift to suppliers outside of China which have lower tariff rates, primarily to Bangladesh and Vietnam. We currently import approximately 5% of our metal products from China. We also face uncertainty in the interpretation of new tariffs and their applicability, including with respect to customs valuation, product classification and country-of-origin determinations. Although we and our suppliers seek to comply with applicable customs laws and regulations, the application of rules regarding new tariffs can be subject to varying interpretations or future re-interpretations. It is possible that U.S. or other relevant authorities could, upon review or audit, disagree with the valuation, rules of origin or classification methods applied to certain products. Any such disagreement could result in the retroactive assessment of additional duties with interest, the imposition of penalties, or other enforcement actions without the ability to mitigate such penalties, thereby adversely affecting our operations or financial results. Furthermore, certain of our competitors may be better positioned than us to withstand or react to border taxes, tariffs or other restrictions on global trade and as a result, we may lose market share to such competitors. Due to broad uncertainty regarding the timing, content and extent of any regulatory changes in the U.S. or abroad, we cannot predict with certainty the impact, if any, that these changes could have to our business, financial condition and results of operations.
Previous wording
Sales at Greenwood for the quarter were $705,059 compared to sales of $924,767 for the three months ended May 31, 2024, which was a decrease of $219,708 or 24%. In the current period, a seat supply issue slowed production across the bus industry, which especially impacted our largest customer. Sales in the prior year’s quarter were boosted by higher demand by municipalities and transit operators catching up on deferred vehicle maintenance post-pandemic. The seat supply issues are now resolving which is expected to strengthen bus construction in the months to come. For the three months ended May 31, 2025, Greenwood had an operating loss of ($20,283) compared to an operating loss of ($237) for the three months ended May 31, 2024.
Current wording
Sales at Greenwood for the three months ended November 30, 2025 were $1,224,452 compared to sales of $842,033 for the three months ended November 30, 2024, which was an increase of $382,419, or 45%. Demand by municipalities and transit operators continues to strengthen, while revenues were further boosted by the addition of a new non-transit industrial customer. For the quarter, Greenwood had an operating profit of $125,281 compared to an operating loss of ($23,830) for the three months ended November 30, 2024.
Previous wording
JC USA is the holding company for the wholly-owned operating subsidiaries. For the quarter ended May 31, 2025, JC USA had income before income taxes of $119,460 compared to operating income of $128,995 for the quarter ended May 31, 2024. The results of JC USA are eliminated on consolidation.
Current wording
JC USA is the holding company for the wholly-owned operating subsidiaries. For the quarter ended November 30, 2025, JC USA had an operating loss of ($145,887) compared to operating income of $108,720 for the quarter ended November 30, 2024. The results of JC USA are eliminated on consolidation.
Previous wording
Income tax recovery for the three months ended May 31, 2025 was $112,294 compared to recovery of $99,254 for the three-month period ended May 31, 2024. The Company estimates income tax expense for the quarter based on combined federal and state rates that are currently in effect.
Current wording
The loss before income taxes was for the quarter ended November 30, 2025 was ($3,913,764) compared to a loss of ($835,347) for the quarter ended November 30, 2024. Income tax expense in the current quarter was ($30,375) compared to recovery of $176,630 in the prior year’s quarter. The Company estimates income tax expense for the quarter based on combined federal and state rates that are currently in effect.
Previous wording
Net loss for the quarter ended May 31, 2025 was ($649,634), or ($0.18) per basic and diluted share, compared to net income of $154,862, or $0.04 per basic and diluted share, for the quarter ended May 31, 2024.
Current wording
The net loss for the quarter ended November 30, 2025 was ($3,944,139), or ($1.12) per share, compared to a net loss of ($658,717), or ($0.19) per share, for the quarter ended November 30, 2024.
Previous wording
As of May 31, 2025, the Company had working capital of $18,314,427 compared to working capital of $20,548,093 as of August 31, 2024, a decrease of $2,233,666.
Current wording
As of November 30, 2025, the Company had working capital of $13,636,039 compared to working capital of $17,026,472 as of August 31, 2025, a decrease of $3,390,433.
Previous wording
As of May 31, 2025, accounts receivable and inventory represented 90% of current assets and 75% of total assets compared to 73% of current assets and 61% of total assets as of August 31, 2024. For the three months ended May 31, 2025, the accounts receivable collection period, or DSO, was 50 compared to 43 for the three months ended May 31, 2024. For the nine-month period ended May 31, 2025, the DSO was 60 compared to 60 for the nine months ended May 31, 2024. Inventory turnover for the three months ended May 31, 2025 was 129 days compared to 110 days for the three months ended May 31, 2024. For the nine months ended May 31, 2025, inventory turnover was 152 days compared to 162 days for the nine months ended May 31, 2024.
Current wording
As of November 30, 2025, accounts receivable and inventory represented 84% of current assets and 72% of total assets compared to 91% of current assets and 78% of total assets as of August 31, 2025.
Previous wording
External sources of liquidity include an asset-based line of credit agreement with Northrim Funding Services (“Northrim”) which we established in fiscal 2024. Under the terms of the agreement, Northrim will provide short-term operating capital by either purchasing the Company’s accounts receivable invoices (“AR invoices”) or as a loan against our inventory position. The maximum amount of AR invoices Northrim will purchase at one time is limited to an amount equal to 80% of the net eligible accounts but is not to exceed $6,000,000. Borrowing against our inventory is computed as an amount equal to 25% of all eligible inventory but is not to exceed $4,000,000. The maximum total draw the Company may borrow under the line is $6,000,000. Interest is computed at the prime rate plus 4.75% with floor of 11%, and is secured by certain of our assets. In March 2025 the Company drew its initial borrowings against this line. As of the end of the most recent fiscal quarter on May 31, 2025, the Company has drawn $2,422,305 against this line of credit at a current interest rate of 12.25% to fund inventory purchases to meet expected demand ahead of our historically busy sales season of Spring and Summer. In June 2025, we successfully renewed the line with Northrim and it now expires on June 30, 2026.
Current wording
External sources of liquidity include an asset-based line of credit agreement with Northrim Funding Services (“Northrim”) which we originally established in fiscal 2024. Under the terms of the agreement, Northrim will provide short-term operating capital by either purchasing the Company’s accounts receivable invoices (“AR invoices”) or as a loan against our inventory position. Subsequent to the end of the quarter, we completed a revised borrowing agreement with Northrim. Under the revised agreement, the maximum amount of AR invoices Northrim will purchase at one time is limited to an amount equal to 90% of the maximum eligible accounts and is not to exceed $8,000,000, which was increased from the prior 80% of the net eligible accounts and a $6,000,000 limit. Borrowing against the Company’s inventory was increased to an amount equal to 50% of all eligible inventory from the prior 25%, and the maximum amount the Company may borrow was increased to $6,500,000 from $4,000,000. Amounts provided by Northrim will be secured by certain of the Company’s real estate assets. Proceeds from the sale of any such assets will be used to pay down the credit line. Interest is computed at the prime rate plus 4.75% with floor of 11% and is secured by certain or our assets. The line expires on June 30, 2026. As of November 30, 2025, we have borrowed $4,233,236 against the line at a current interest rate of 11.5%.
Previous wording
Based on the Company’s current working capital position, combined with the expected timing of accounts receivable and the capital available under our Line of Credit, the Company is expected to have sufficient liquidity available to meet the Company’s working capital requirements for the next twelve months.
Current wording
Based on the Company’s current working capital position, combined with the expected timing of accounts receivable and the capital available under our newly revised credit arrangement, the Company is expected to have sufficient liquidity available to meet the Company’s working capital requirements for the next 12 months.
Previous wording
The increases in interest rates as a result of the higher level of inflation in the US economy experienced beginning in calendar 2021 and continuing through 2024 has also had a negative effect on our interest expense charged on any borrowing on our lines of credit. The interest rate on our current line of credit is computed using the Prime Interest Rate, which has risen from 3.25% in January 2022 to approximately 7.50% in February 2025. There were no amounts outstanding under this line of credit as of February 28, 2025. However, beginning on March 7, 2025, the Company began drawing against its asset-based line of credit to fund its usual seasonal build of inventory to meet its anticipated needs for the busier Spring and Summer seasons. As of the end of the most recent fiscal quarter on May 31, 2025, the Company has drawn $2,422,305 against this line of credit at a current interest rate of 12.25%.
Current wording
The increases in interest rates as a result of the higher level of inflation in the US economy experienced beginning in calendar 2021 and continuing through fiscal 2025 has also had a negative effect on our interest expense charged on any borrowing on our lines of credit. The interest rate on our current line of credit is computed using the Prime Interest Rate, which has risen from 3.25% in January 2022 to approximately 7.50% in August 2025. In March 2025, the Company began drawing against its asset-based line of credit to fund its usual seasonal build of inventory to meet its anticipated needs for the busier Spring and Summer seasons. As of the end of the fiscal quarter ended November 30, 2025, the Company has drawn $4,233,236 against this line of credit at a current interest rate of 11.5%.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
For the three months ended November 30, 2025, the accounts receivable collection period, or DSO, was 35 days compared to 41 days for the three months ended November 30, 2024. Inventory turnover to the three months ended November 30, 2025 was 166 days compared to 160 days for the three months ended November 30, 2024.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Income tax recovery in the current nine-month period was $476,915 compared to income tax expense of ($179,491) in the prior nine-month period ended May 31, 2024. The Company estimates income tax expense for the period based on combined federal and state rates that are currently in effect.
Previous report — wording carried elsewhere
Since the bulk of our products are supplied from other countries, political actions by either our trading country or our own domestic policy could impact both the availability and the cost of our products. Currently, we see this in regard to tariffs being levied on foreign sourced products entering into the United States, including from China. Beginning in January 2025, the new Presidential administration in the United States began to increase tariff rates on numerous products from a range of nations. Imported steel and aluminum products from all countries globally were assigned a new tariff rate of 25% on top of any country or product specific rates. In early April 2025, the U.S. imposed a universal baseline tariff rate of 10% on all imports globally, although steel and aluminum products tariffed at the 25% rate are exempted from the additional baseline 10% tariff. China, however, has been assigned special additional rates. For steel and aluminum products imported from China, the rates were at 70% at the end of March 2025. In June 2025, the tariff rates on steel and aluminum imports was raised to 50%. We also face uncertainty in the interpretation of new tariffs and their applicability, including with respect to customs valuation, product classification and country-of-origin determinations. Although we and our suppliers seek to comply with applicable customs laws and regulations, the application of rules regarding new tariffs can be subject to varying interpretations or future re-interpretations. It is possible that U.S. or other relevant authorities could, upon review or audit, disagree with the valuation, rules of origin or classification methods applied to certain products. Any such disagreement could result in the retroactive assessment of additional duties with interest, the imposition of penalties, or other enforcement actions without the ability to mitigate such penalties, thereby adversely affecting our operations or financial results. Furthermore, certain of our competitors may be better positioned than us to withstand or react to border taxes, tariffs or other restrictions on global trade and as a result, we may lose market share to such competitors. We cannot control the duration or depth of such actions which may increase our product costs which would in turn reduce our margins and potentially decrease the competitiveness of our products. These actions could have a negative effect on our business, results of operations, or financial condition.
Previous report — wording carried elsewhere
Inflation has many impacts on our business, including increasing our direct costs for raw materials, manufacturing, shipping and logistics, labor, and energy. Our ability to pass on these higher costs to our customers is limited. When we are able to increase our selling prices, it may be delayed several months after we first incur the higher costs and we may not be able to fully recoup the difference. In addition, high rates of inflation can reduce consumer’s discretionary spending and reduce demand for our products. These actions could have a negative effect on our business, results of operations, or financial condition. The increases in interest rates as a result of the higher level of inflation in the US economy experienced beginning in calendar year 2021 and continuing through 2024 has also had a negative effect on our interest expense charged on any borrowing on our lines of credit. The interest rate on our current line of credit is computed using the Prime Interest Rate, which has risen from 3.25% in January 2022 to approximately 7.50% in February 2025. Beginning on March 7, 2025, the Company began drawing against its asset-based line of credit to fund its usual seasonal build of inventory to meet its anticipated needs for the busy Spring and Summer seasons. As of the end of the most recent fiscal quarter on May 31, 2025, the Company has drawn $2,362,760 against this line of credit at a current interest rate of 12.25%.