PRECISION OPTICS CORPORATION, INC.

During the three months ended June 30, 2026, no director or officer of the Company adopted orterminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Our loan agreement contains a minimum annual debt service coverage ratio covenant of 1.2x, for the period ending June 30, 2026. We did not meet this annual debt service coverage ratio as of June 30, 2026. Our lender has agreed to waive compliance with the debt service ratio covenant for the period ending June 30, 2026. In addition to the waiver, we have entered into amendments with our lender and modified the Company’s credit arrangements to eliminate the debt service coverage ratio covenant and replace it with a minimum liquidity covenant of $2.0 million, retain the existing term note, and provide the Company access to $750,000 of availability under its revolving line of credit, subject to borrowing-base requirements and a $5,000 waiver fee. The lender further agreed to expand availability under the revolving line of credit to $1,250,000 upon attaining a DSCR of 1.2x.