Product sales primarily consist of sales of manufactured homes to consumers and mobile home parks through various sales channels, which include Direct Sales, Commercial Sales, Inventory Finance Sales, and Retail Store Sales. Direct Sales include homes sold directly to independent retailers or customers that are not financed by the Company and are not sold under an inventory finance arrangement. These types of homes are generally paid for prior to shipment. Commercial Sales include homes sold to mobile home parks under commercial loan programs or paid for upfront. Inventory Finance Sales include sales of homes to independent retailers, or dealers, who then resell the homes to consumers. Retail Store Sales are homes sold through Company-owned retail locations. Inventory Finance Sales and Retail Store Sales of homes may be financed by the Company or a third party, or they may be paid in cash.

Revenue from product sales is recognized when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customers.

For inventory financed sales, the independent dealer enters into a financing arrangement with the Company and is required to make monthly interest payments. Interest income is recorded separately in the statement of income. For other financed sales by the Company, the individual customer enters into a sales and financing contract and is required to make a down payment. These financed sales contain a significant financing component and any interest income is recorded separately in the statement of income.

Revenue is measured at the amount of consideration expected to be received in exchange for transferring the homes to the customers. Sales and other similar taxes collected concurrently with revenue-producing activities are excluded from revenue.

The Company made an accounting policy election to account for any shipping and handling costs that occur after the transfer of control as a fulfillment cost that is accrued when control is transferred. Warranty obligations associated with the sale of a unit are assurance-type warranties for a period of twelve months that are a guarantee of the home’s intended functionality and, therefore, do not represent a distinct performance obligation within the context of the contract. The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract

if the amortization period of the asset that the Company would have otherwise recognized is one year or less. Warranty costs are included in selling, general, and administrative expenses, in the statements of income. Warranty costs were $0.6 million and $0.5 million for the three months ended June 30, 2026 and 2025, respectively. Warranty costs were $1.1 million and $1.0 million for the six months ended June 30, 2026 and 2025, respectively.

For the three months ended June 30, 2026 and 2025, total cost of product sales included $3.0 million and $2.5 million, respectively, consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales. For the six months ended June 30, 2026 and 2025, total cost of product sales included $4.7 million and $4.2 million, respectively, consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

Other revenue consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income. Consignment fees are charged to independent retailers on a monthly basis for homes held by the independent retailers pursuant to a consignment arrangement until the home is sold to an individual customer. Consignment fees are determined as a percentage of the home’s wholesale price to the independent dealer. Revenue recognition for consignment fees is recognized over time using the output method as it provides a faithful depiction of the Company’s performance toward completion of the performance obligation under the contract and the value transferred to the independent retailer for the time the home is held under consignment. Revenue for commercial leases is recognized as earned monthly over a contractual period of 96 or 120 months. Revenue for service fees and miscellaneous income is recognized at a point in time when the performance obligation is satisfied. Land sales revenue is comprised of sales of land (real property) that was acquired as a result of maintaining or furthering our primary business of producing, selling, and financing manufactured homes. Land sale revenue for the three months ended June 30, 2026 and 2025 were $0.3 million and $0.1 million, respectively. Land sale revenue for the six months ended June 30, 2026 and 2025 were $1.4 million and $0.1 million, respectively.

For the three months ended June 30, 2026, two customers accounted for 41.6% of our total product sales. For the six months ended June 30, 2026, two customers accounted for 29.7% of our total product sales. For the three and six months ended June 30, 2025, there were no customers that accounted for more than 5% of our total product sales.

During the first quarter of 2026, the Company received a non-refundable advance deposit of approximately $7.1 million from a single customer in connection with a large order of manufactured homes (380 units) intended for use as workforce housing. Production commenced in the first quarter of 2026, and the Company began deliveries during the second quarter of 2026, delivering 113 units and recognizing the related product sales upon delivery and transfer of title. Amounts received in advance of delivery are recorded in customer deposits as deferred revenue. The Company expects to complete deliveries under the contract during the remainder of 2026. In addition, there was a customer with five workforce housing contracts. The company shipped 136 units to the customer and recognized the revenue when the homes shipped. All houses related to the five contracts shipped.

Disaggregation of Revenue. The following table summarizes customer contract revenues disaggregated by the source of the revenue (in thousands):


	Three months ended						Six months ended
	June 30,						June 30,
	2026			2025			2026			2025
Product sales:
Direct sales	$	1,335	2.0%	$	2,225	4.4%	$	3,110	3.1%	$	3,679	4.3%
Commercial sales		13,186	19.9%		11,724	23.4%		20,108	20.0%		18,519	21.5%
Inventory finance sales		3,610	5.4%		13,668	27.2%		7,055	7.0%		24,724	28.8%
Retail store sales		6,757	10.2%		7,292	14.5%		12,810	12.7%		10,633	12.4%
Workforce Housing (1)		25,510	38.4%		1,061	2.1%		27,217	27.0%		1,172	1.4%
Other product sales (2)		3,362	5.1%		2,417	4.8%		5,010	5.0%		3,950	4.6%
Total product sales		53,760	81.0%		38,387	76.4%		75,310	74.8%		62,677	73.0%
Loan portfolio interest:
Interest - consumer installment notes		6,413	9.7%		5,936	11.8%		12,834	12.7%		11,590	13.5%
Interest - MHP notes		4,284	6.4%		4,208	8.5%		8,429	8.4%		8,431	9.8%
Interest - dealer finance notes		777	1.2%		739	1.5%		1,529	1.5%		1,517	1.8%
Total loan portfolio interest		11,474	17.3%		10,883	21.8%		22,792	22.6%		21,538	25.1%
Other revenue		1,114	1.7%		891	1.8%		2,612	2.6%		1,616	1.9%
Total net revenue	$	66,348	100.0%	$	50,161	100.0%	$	100,714	100.0%	$	85,831	100.0%