Interest rate risk Changes in interest rates affect the amount of interest due on our variable rate debt. As of June 30, 2026, we had variable rate borrowings on the Term Debt of $19.5 million and $6.7 million under our Revolving Line of Credit. We currently use Term SOFR as a reference rate for our variable rate debt, and any future increases in Term SOFR will inherently result in an increase in interest expense and cash paid toward interest. We performed a sensitivity analysis to determine the effect of interest rate fluctuations on our interest expense. A hypothetical 1 percentage point increase in Term SOFR would result in an increase to interest expense of $242,725 over 12 months based on amounts outstanding and interest rates in effect as of July 1, 2026. Inflation and Fuel Cost Most of the Company’s operating expenses are inflation-sensitive, with inflation generally producing increased costs of operations. Historically, the Company has limited the effects of inflation on its business through increases in freight rates and certain cost controls. The most relevant items impacted by inflation to the Company are the cost to insure and maintain the fleet. Significant inflation has been experienced in insurance and claims costs related to health insurance and claims as well as auto liability insurance and claims. Significant price increases in revenue equipment have impacted the cost for the Company to acquire new equipment. The cost increases have also impacted the cost of parts for equipment repairs and maintenance, inclusive of tires. Over the long term, general economic growth and industry supply and demand conditions have allowed increases in rates charged to customers, although these rate increases have significantly lagged the increases in tractor prices and related depreciation expense. In addition to inflation, significant fluctuations in fuel prices can adversely affect the Company’s operating results and profitability. The Company has attempted to limit the effects of increases in fuel prices through certain cost control efforts and the fuel surcharge programs administered by customers. The Company receives fuel surcharge revenue on substantially all moves, though it passes this revenue through in many instances in its Subhauler segment. Although the Company historically has been able to recover most long-term increases in fuel prices and operating taxes from customers in the form of surcharge and higher rates, these arrangements generally do not fully protect the Company from short-term fuel price increases or continued rising price environments, as has recently occurred with Middle East conflict and the resulting fuel price spike. Additionally, the Company does not receive fuel surcharge on empty miles. 39