Within the Company’s Industrial Asset division, management allocates gross profit resulting from certain auctions from Auctions and Liquidation (HGP) to Refurbishment & Resale (ALT). From time to time, ALT may source and refer an auction project to HGP or directly sell lab equipment inventory through the auction channel. In these instances, the profits relating to these transactions are allocated to ALT rather than accounted for under the segment profit or loss of HGP. During the three months ended March 31, 2025, the total amount of gross profit allocated to ALT from HGP was approximately $0.3 million, as compared to the total amount of gross profit allocated to ALT during the same period of 2024 of approximately $0.4 million.

[2]

All financing arrangements are originated with Corporate and other. Management may determine from time to time that interest incurred from financing arrangements are directly attributable to a specific segment. As a result, interest incurred may be charged to the segment and included in that segment’s profit or loss as a charge to operating expense. During the three months ended March 31, 2024, the total amount of interest allocated to Specialty Lending (HGC) from Corporate and other was approximately $0.1 million. No interest expense has been allocated to operating segments as of March 31, 2025.