Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in raw material prices, interest rates, and inflation. Raw Materials Pricing Risk Our profitability is dependent on, among other things, our ability to anticipate and react to commodity and packaging costs. The prices and availability of ingredients we use in the process of manufacturing our products are subject to many factors beyond our control, such as the number, size and production levels of farms that provide ingredients, the vagaries of these farming businesses, including poor harvests due to adverse weather conditions, natural disasters and pestilence and changes in national and world economic conditions. In addition, we purchase some ingredients and other materials offshore. The price and availability of such ingredients and materials is affected by political events, labor shortages, transportation and logistics disruptions or other conditions in these countries or tariffs or trade wars. New or increased tariffs or resultant trade wars, as well as labor shortages or disruptions in transportation and logistics networks, could have an adverse effect on us or on our suppliers, distributors or customers, which could lead to significant increases in the costs of materials and services, resulting in product cost increases and reduced consumer demand. A hypothetical 10% increase or decrease in the weighted-average cost of these commodities and raw materials would have resulted in an increase or decrease to cost of goods sold of approximately $2.0 million and $3.5 million for the 36 three and six months ended June 30, 2026. We seek to mitigate the impact of raw materials cost increases by negotiating pricing agreements and by a combination of cost savings initiatives and efficiencies and price increases to our customers. Interest Rate Risk We are subject to interest rate risk on amounts drawn under our Nonconvertible Debt, which incurs interest at variable rates. See Part I, Item 2. “Management’s Discussion of Results of Operation and Financial Condition —Liquidity and Capital Resources—Nonconvertible Debt.” Following completion of the IPO in February 2026, we used a portion of the proceeds therefrom to repay all outstanding amounts under the Nonconvertible Debt. Our interest-earning instruments, including cash held in on demand interest-bearing accounts, also carry a degree of interest rate risk. We do not believe that a hypothetical 100 basis points change in interest rates would have a material effect on our results of operations or financial condition. We do not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage our interest rate risk exposure. Inflation Risk Inflation generally affects us by increasing our cost of labor, logistics, commodities, packaging and manufacturing costs, as well as fuel and energy costs. We do not believe that inflation has had a material effect on our business, results of operations or financial condition. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, results of operations and financial condition.