7. Motor Floorplan Arrangements

On March 31, 2026 and December 31, 2025, 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 the Company’s Wells Fargo line 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 March 31, 2026 and December 31, 2025 the interest rate on the line of credit was approximately 1.9% and 1.2%, respectively.

Interest on the Company’s Yamaha line is calculated on the average daily balance +4%, with a minimum prime at 8.0%. On March 31, 2026 and December 31, 2025, the interest rate was 11.9% and 5.1%, respectively.

On March 31, 2026 and December 31, 2025, the outstanding motor balance with Wells Fargo was $122,158 and $57,285, respectively. On March 31, 2026 and December 31, 2025, the outstanding motor balance with Yamaha Motor Finance was $92,279 and $238,125, respectively. The outstanding balances are included in accounts payable on the condensed consolidated balance sheets.