Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 8

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 8
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Supply Chain The supply chain steps for U.S. operations are detailed below: Step 1: Procure bulbs: Purchase bulbs from established suppliers in the Netherlands or Southern Hemisphere. Step 2: Buffer storage: Bulbs kept in cooled storage in the Netherlands. Step 3: Shipping to U.S.: Bulbs are shipped via ocean containers. Step 4: Rooting: Bulbs are prepared for growing. Step 5: Growing: Bulbs are moved into the greenhouse. Step 6: Harvesting: Tulips are cut and wrapped. Step 7: Storage: Stems are stored in a cooled warehouse to prevent spoilage. Step 8: Transport: Stems are transported to retailer’s distribution centers. Step 9: Sales: Consumer sales at mass-market retailers. During the twelve months ended June 30, 2025, Bloomia sourced bulbs to grow over 90 million stems. Approximately 80% of bulbs were sourced from the Netherlands and 20% from the Southern Hemisphere. The Netherlands has around 600 tulip bulb growers, who jointly export over 2.5 billion tulip bulbs each year. Over the past five years, Bloomia has sourced from the 10 largest producers, 20 medium-sized producers, as well as from smaller producers; 80% of our supply comes from 20% of our suppliers. The Netherlands’ large-scale production of tulip bulbs has created an efficient marketplace for Bloomia to source bulbs. The large majority of Bloomia’s contracts for purchase of bulbs from growers in the Netherlands are short term; however, Bloomia has a long history with most of its suppliers. Bulb contracts obligate Bloomia only to buy an agreed upon volume of bulbs; bulb price is established through market pricing. Due to recent poor growing conditions in the Netherlands, the supply of bulbs has decreased, increasing the price per bulb. To help facilitate year-round growing, Bloomia has routinely sourced bulbs from Chile and more recently began sourcing bulbs from New Zealand. Chile and New Zealand are currently the only countries in the Southern Hemisphere with bulb production at volume. By sourcing bulbs from around the world, Bloomia has bulbs that are ready for planting year-round, limiting its reliance on importing stems. Year-round production results in Bloomia being less exposed to higher logistics costs that result from importing stems. Bloomia has also made investments to automate its greenhouse. The automation of the greenhouse allows Bloomia to:

| ● | scale production faster if needed to meet