8. Motor Floorplan Arrangements

On December 31, 2025 and 2024, the Company had a line of credit with Wells Fargo and Yamaha Motor Finance for $1,250,000 and $1,000,000, respectively. Interest on our Wells Fargo line, after the free floor plan period, is calculated in two ways, the average daily balance is prime +5%, with a minimum prime at 5.5%, there is also a monthly flat charge of 0.2%, which, is 2.4% annualized. After the 150-day due in full period, the average daily balance rate goes up to prime +8.5% with no monthly flat charge. On December 31, 2025 and 2024, the interest rate on motors in stock was 1.2% and 11.1%, respectively.

Interest on our Yamaha line, after the free floor plan period, is calculated on the average daily balance +4%, with a minimum prime at 8.0%. On December 31, 2025 and 2024, the interest rate on motors in stock was 5.1% and 11.8%, respectively.

On December 31, 2025 and 2024, the outstanding balance with Wells Fargo was $57,285 and $130,690, respectively. On December 31, 2025 and 2024, the outstanding balance with Yamaha Motor Finance was $238,125 and $255,649, respectively. The outstanding balances are included in accounts payable on the consolidated balance sheets.