# EDGAR Filing Document

**Accession Number:** 0001133062
**File Stem:** 0001140361-26-020223
**Filing Date:** 2026-5
**Character Count:** 432627
**Document Hash:** 573ab2490efd721e3f60502376dfb9d5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001140361-26-020223.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001140361-26-020223

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 112

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** JANEL CORP
- **CENTRAL INDEX KEY:** 0001133062
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 861005291
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-60608
- **FILM NUMBER:** 26959477

**BUSINESS ADDRESS:**
- **STREET 1:** 80 EIGHTH AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10011
- **BUSINESS PHONE:** 718-527-3800

**MAIL ADDRESS:**
- **STREET 1:** 80 EIGHTH AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10011

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** JANEL WORLD TRADE LTD
- **DATE OF NAME CHANGE:** 20020730

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WINE SYSTEMS DESIGN INC
- **DATE OF NAME CHANGE:** 20010123

?xml version='1.0' encoding='ASCII'?

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D. C. 20549**

**FORM 10-Q**

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended March 31, 2026

OR

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

For the transition period from ____ to ____

**Commission file number: <u>333-60608</u>**

## JANEL CORPORATION
(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **86-1005291** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

---

| | |
|:---|:---|
| **80 Eighth Avenue**  |  |
| **New York, New York**  | **10011**  |
| (Address of principal executive offices)  | (Zip Code)  |

---

Registrant's telephone number, including area code: **(212) 373-5895**

Former name, former address and former fiscal year, if changed from last report: N/A

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbols(s) | Name of each exchange<br> on which registered |
| **None** | **None** | **None** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | |
|:---|:---|:---|
| Large accelerated filer ☐  | Accelerated filer  | ☐  |
| Non-accelerated filer ☐  | Smaller reporting company  | ☒  |
|  | Emerging growth company  | ☐  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

The number of shares of Common Stock outstanding as of May 8, 2026 was 1,186,354.

------

*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**JANEL CORPORATION**

**QUARTERLY REPORT ON FORM 10-Q**

**For Quarterly Period Ended March 31, 2026**

**<u>**TABLE OF CONTENTS**</u>**

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Page** |
| [Part I - FINANCIAL INFORMATION](#FINANCIAL_INFORMATION) | [Part I - FINANCIAL INFORMATION](#FINANCIAL_INFORMATION) | [Part I - FINANCIAL INFORMATION](#FINANCIAL_INFORMATION) | 3 |
|  | Item 1. | [Financial Statements (Unaudited)](#Item_1) | 3 |
|  |  | [Condensed Consolidated Balance Sheets as of March 31, 2026 and September 30, 2025](#BALANCE_SHEETS) | 3 |
|  |  | [Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2026 and 2025](#STATEMENTS_OF_OPERATIONS)  | 4 |
|  |  | [Condensed Consolidated Statement of Stockholders' Equity for the three and six months ended March 31, 2026 and 2025](#STOCKHOLDERS_EQUITY)  | 5 |
|  |  | [Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2026 and 2025](#STATEMENTS_OF_CASH_FLOWS)  | 6 |
|  |  | [Notes to Condensed Consolidated Financial Statements](#NOTES_TO_CONDENSED)  | 7 |
|  | Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#MANAGEMENTS_DISCUSSION) | 21 |
|  | Item 3. | [Quantitative and Qualitative Disclosure about Market Risk](#QUANTITATIVE_AND) | 30 |
|  | Item 4. | [Controls and Procedures](#CONTROLS_AND_PROCEDURES) | 30 |
| [Part II - OTHER INFORMATION](#OTHER_INFORMATION) | [Part II - OTHER INFORMATION](#OTHER_INFORMATION) | [Part II - OTHER INFORMATION](#OTHER_INFORMATION) | 31 |
|  | Item 1. | [Legal Proceedings](#LEGAL_PROCEEDINGS) | 31 |
|  | Item 1A. | [Risk Factors](#RISK_FACTORS) | 31 |
|  | Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#UNREGISTERED) | 31 |
|  | Item 6. | [Exhibit Index](#EXHIBIT_INDEX) | 31 |
|  |  | [Signatures](#SIGNATURES) | 32 |

---

------

*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**PART I - FINANCIAL INFORMATION**

**ITEM 1.**

**FINANCIAL STATEMENTS**

**JANEL CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands, except share and per share data)**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **September 30,<br> 2025** |
|  **ASSETS**  |  |  |
|  **Current Assets:**  |  |  |
|  Cash and cash equivalents  | $8785 | $10962 |
|  Restricted cash  |  | 1078 |
|  Accounts receivable, net of allowance for credit losses of $1,187 and $367, respectively  | 55300 | 66489 |
|  Inventory, net  | 3902 | 4207 |
|  Prepaid expenses and other current assets  | 6410 | 6095 |
| &nbsp;&nbsp; **Total current assets**  | **74397** | **88831** |
|  **Property and Equipment, net**  | **5795** | **5971** |
|  **Other Assets:**  |  |  |
|  Intangible assets, net  | 29340 | 30998 |
|  Goodwill  | 31592 | 31592 |
|  Deferred tax assets, net  | 5372 |  |
|  Restricted investments  | 250 | 250 |
|  Investment in marketable securities at fair value  | 263 | 4664 |
|  Operating lease right of use asset  | 6582 | 7760 |
|  Security deposits and other long-term assets  | 597 | 687 |
| &nbsp;&nbsp; **Total other assets**  | **73996** | **75951** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total assets**  | $**154188** | $**170753** |
|  **LIABILITIES AND STOCKHOLDERS' EQUITY**  |  |  |
|  **Current Liabilities:**  |  |  |
|  Lines of credit  | $17845 | $3801 |
|  Accounts payable - trade  | 73589 | 98244 |
| Duties and taxes payable | 4457 | 4323 |
|  Accrued expenses and other current liabilities  | 5918 | 5853 |
|  Dividends payable  | 1024 | 1649 |
|  Current portion of contingent earnout  | 39 | 2592 |
|  Current portion of long-term debt  | 683 | 911 |
|  Current portion of subordinated promissory notes-related party  | 1174 | 1174 |
|  Current portion of operating lease liabilities  | 2054 | 2114 |
| &nbsp;&nbsp; **Total current liabilities**  | **106783** | **120661** |
|  **Other Liabilities:**  |  |  |
|  Long-term portion of long-term debt  | 7162 | 7166 |
|  Long-term portion of contingent earnout  | 55 | 55 |
|  Long-term portion of subordinated promissory notes-related party  | 1276 | 1766 |
|  Mandatorily redeemable non-controlling interest  | 2706 | 4161 |
|  Deferred tax liabilities, net  |  | 4547 |
|  Long-term portion of operating lease liabilities  | 5173 | 6310 |
|  Other liabilities  | 280 | 285 |
| &nbsp;&nbsp; **Total other liabilities**  | **16652** | **24290** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities**  | **123435** | **144951** |
|  **Stockholders' Equity:**  |  |  |
|  Preferred Stock, $0.001 par value; 100,000 shares authorized  |  |  |
|  Series C 30,000 preferred stock shares authorized and 11,368 shares issued and outstanding as of March 31, 2026 and September 30, 2025, liquidation value of $6,708 as of March 31, 2026 and $7,333 as of September 30, 2025  |  |  |
|  Common stock, $0.001 par value; 4,500,000 shares authorized, 1,206,354 issued and 1,186,354 outstanding as of both March 31, 2026 and September 30, 2025  | 1 | 1 |
|  Paid-in capital  | 15965 | 17730 |
|  Common treasury stock, at cost, 20,000 shares as of both March 31, 2026 and September 30, 2025  | (240) | (240) |
|  Accumulated earnings  | 9447 | 8311 |
|  **Total Janel Corporation stockholders' equity**  | **25173** | **25802** |
| &nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interests  | 5580 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity**  | **30753** | **25802** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and stockholders' equity**  | $**154188** | $**170753** |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**JANEL CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except per share data)**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** | **Six Months Ended<br> March 31,** | **Six Months Ended<br> March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
|  **Revenues:**  |  |  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Logistics  | $51484 | $44044 | $102313 | $90130 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Life Sciences and Manufacturing  | 5960 | 6687 | 11170 | 11955 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total revenues**  | **57444** | **50731** | **113483** | **102085** |
|  **Forwarding expenses and cost of revenues:**  |  |  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwarding expenses - Logistics  | 37105 | 32188 | 73534 | 66896 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenues - Life Sciences and Manufacturing  | 1771 | 1972 | 3264 | 3476 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total forwarding expenses and cost of revenues**  | **38876** | **34160** | **76798** | **70372** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Gross profit**  | **18568** | **16571** | **36685** | **31713** |
|  **Operating expenses:**  |  |  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative  | 16194 | 13759 | 32504 | 27051 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets  | 829 | 642 | 1658 | 1283 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses**  | **17023** | **14401** | **34162** | **28334** |
|  **Income from operations**  | **1545** | **2170** | **2523** | **3379** |
|  **Other income and expenses:**  |  |  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | (410) | (560) | (715) | (1226) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on consolidation of acquisition  |  |  | 849 |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (expense) income, net  | 66 | 245 | (311) | 559 |
|  **Income before income taxes**  | **1201** | **1855** | **2346** | **2712** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense  | (202) | (415) | (647) | (613) |
|  **Consolidated net income**  | **999** | **1440** | **1699** | **2099** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to non-controlling interests  | (282) |  | (563) |  |
|  **Net income attributable to Janel Corporation**  | **717** | **1440** | **1136** | **2099** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | (112) | (108) | (212) | (194) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest dividends  |  |  |  | (243) |
|  **Net income available to common stockholders**  | $**605** | $**1332** | $**924** | $**1662** |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income per share:  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic  | $0.84 | $1.21 | $1.43 | $1.77 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted  | $0.83 | $1.19 | $1.40 | $1.74 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income per share available to common stockholders:  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic  | $0.51 | $1.12 | $0.78 | $1.41 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted  | $0.50 | $1.10 | $0.76 | $1.38 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average number of shares outstanding:  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic  | 1186 | 1186 | 1186 | 1186 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted  | 1210 | 1206 | 1215 | 1206 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**JANEL CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY**

**(in thousands, except share and per share data)**

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **PREFERRED STOCK** | **COMMON STOCK** | **COMMON TREASURY<br> STOCK** |
|  | **SHARES** | **SHARES** | **SHARES** |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance - September 30, 2025**  | **11368** | **1206354** | **20000)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rubicon acquisition remeasurement  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends to preferred stockholders  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation  | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance - December 31, 2025**  | **11368** | **1206354** | **20000)** |
| Net income |  |  |  |
| Purchase of remaining interest in subsidiary |  |  |  |
| Dividends to preferred stockholders |  | —) | —) |
| Stock-based compensation |  |  |  |
| **Balance - March 31, 2026** | **11368** | $**1206354** | **20000)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **PREFERRED STOCK** | **COMMON STOCK** | **COMMON TREASURY<br> STOCK** |
|  | **SHARES** | $**SHARES** | **SHARES** |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance - September 30, 2024**  | **11368** | **1206354** | **20000)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| Dividends to preferred stockholders  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;—) |
| Dividends to non-controlling interest  | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;—) | &nbsp;&nbsp;&nbsp;&nbsp;—) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation  | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— |
| **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance - December 31, 2024**  | **11368** | **1206354** | **20000)** |
| Net income |  |  |  |
| Dividends to preferred stockholders |  | —) | —) |
| Dividends to non-controlling interest |  |  |  |
| Stock based compensation |  |  |  |
| Indco stock option exercise |  |  |  |
| **Balance - March 31, 2025** | **11368** | **1206354** | **20000)** |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

------

*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**JANEL CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> March 31,** | **Six Months Ended<br> March 31,** |
|  | **2026**  | **2025**  |
|  **Cash flows from operating activities:**  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income  | $1699 | $2099 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash (used in) provided by operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for uncollectible accounts  | 845 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation  | 341 | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes, net  | 209 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on consolidation of acquisition  | (849) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets  | 1658 | 1283 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of acquired inventory valuation  | 315 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of loan costs  | 89 | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on debt extinguishment  | 445 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation  | 125 | 245 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain on marketable securities  | (35) | (873) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in fair value of mandatorily redeemable noncontrolling interest  |  | 337 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use non-cash lease expense  | 1294 | 1301 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value adjustments of contingent earnout liabilities  | 32 | 189 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities, net of effects of acquisitions:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable  | 10575 | (2179) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory  | 52 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | (305) | (274) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Security deposits and other long-term assets  | 90 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;Duties and taxes payable | 156 | 684 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses  | (25114) | 4762 |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities  | (1313) | (1021) |
| &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities  | (5) | (4) |
|  **Net cash provided by (used in) operating activities:**  | **(9696)** | **7067** |
|  **Cash flows from investing activities:**  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment  | (216) | (375) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of property and equipment  | 52 |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in marketable securities, net of dividends  | (195) | (63) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of noncontrolling interest  | (574) | (197) |
|  **Net cash used in investing activities:**  | **(933)** | **(635)** |
|  **Cash flows from financing activities:**  |  |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from term loan  | &nbsp;&nbsp; — | &nbsp;&nbsp;4174 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments of term loan  | (301) |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt issuance  | 9120 |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from line of credit issuance  | 24843 |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of term-debt  | (8283) | (840) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of lines of credit  | (24738) | (2438) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of deferred financing costs  | (1203) |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of subordinate promissory notes  | (490) | (841) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from lines of credit | 386665 |  |
| &nbsp;&nbsp;Repayment of lines of credit | (372826) |  |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of acquisition loan  |  | (3700) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling interests  |  | (244) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to preferred shareholders  | (837) | (192) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnout payment  | (2553) | (1078) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of subsidiary stock  | (2023) |  |
|  **Net cash provided by (used in) financing activities**  | **7374** | **(5159)** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (decrease) increase in cash and cash equivalents and restricted cash  | (3255) | 1273 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents and restricted cash at beginning of the period  | 12040 | 3082 |
|  **Cash and cash equivalents and restricted cash at end of period**  | $**8785** | $**4355** |
|  **Supplemental disclosure of cash flow information:**  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid during the period for:  |  |  |
| &nbsp;&nbsp; *Interest*  | $336 | $951 |
| &nbsp;&nbsp; *Income taxes*  | $224 | $178 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash financing activities:  |  |  |
| &nbsp;&nbsp; *Dividends declared to preferred stockholders*  | $212 | $194 |

---

*The accompanying notes are an integral part of these condensed consolidated financial statements.*

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**JANEL CORPORATION AND SUBSIDIARIES**

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands, except per share data)

**1.** **BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**

The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of Article 8 of Regulation S-X and the instructions to Form 10-Q of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Janel Corporation (the "Company" or "Janel") believes that the disclosures made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for a full fiscal year, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company's Form 10-K as filed with the Securities and Exchange Commission.

***Business Description***

Janel is a holding company with subsidiaries in three business segments: Logistics, Life Sciences and Manufacturing. The Company strives to create shareholder value primarily through three strategic priorities: supporting its businesses' efforts to make investments and to build long-term profits; allocating Janel's capital at high risk-adjusted rates of return; and attracting and retaining exceptional talent.

Management at the holding company focuses on significant capital allocation decisions, corporate governance and supporting Janel's subsidiaries where appropriate. Janel expects to grow through its subsidiaries' organic growth and by completing acquisitions. The Company plans to either acquire businesses within its existing segments or expand its portfolio into new strategic segments. The company's acquisition strategy focuses on reasonably-priced companies with strong and capable management teams, attractive existing business economics and stable and predictable earnings power.

***Foreign Currency***

&nbsp;&nbsp;&nbsp;&nbsp; The Company translates foreign assets and liabilities at exchange rates in effect at the balance sheet dates, and the revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheets to the extent they are significant. Exchange rate fluctuations on short-term intercompany loans are included in other expense in the consolidated statement of operations.

***Noncontrolling Interests***

&nbsp;&nbsp;&nbsp;&nbsp; The Company accounts for an equity interest in a less-than-wholly owned consolidated subsidiary that is not attributable, either directly or indirectly, to the Company as a noncontrolling interest in accordance with Accounting Standards Codification ("ASC") Topic 810, *Consolidation*. The noncontrolling interest is recognized as equity in the Company's consolidated balance sheets and presented separately from the equity attributable to the Company's stockholders. Any change in ownership of a less-than-wholly-owned consolidated subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between the controlling and noncontrolling interests. The amounts of consolidated net income or loss attributable to the Company's stockholders and noncontrolling interest are separately presented in the consolidated statements of operations. The Company's net loss per share attributable to the Company's stockholders excludes net losses attributable to noncontrolling interests.

***Cash***

The Company maintains cash balances at various financial institutions. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250. The Company's accounts at these institutions may, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts.

The Company considers all highly liquid investments with an original maturity of three months or less, when purchased, to be cash equivalents.

***Restricted Cash and Investments***

In the second half of 2024, the Company began insuring certain risks through a wholly-owned captive insurance company, Gainesville Insurance Company, Inc. ("Gainesville"). In addition, the Company maintains insurance policies with third-party insurers. Gainesville maintains at least $250 in cash, cash equivalents, or equity investments at all times as required by state insurance regulations. As of both March 31, 2026 and September 30, 2025, Gainesville held $250 in restricted investments.

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During the first quarter of 2025, as part of the Eighth Amendment (the "Eighth Santander Amendment") to the Santander Loan Agreement (as defined herein), the Company deposited $2,164 into a restricted cash account. Following a pre-approved contingent earnout payment in January 2026, the Company held no restricted cash as of March 31, 2026.

***Accounts receivable and allowance for expected credit losses***

Accounts receivable is recorded at the contractual amount. The Company records its allowance for expected credit losses based upon its assessment of various factors. The Company considers historical collection experience, the age of the accounts receivable balances, credit quality of the Company's customers, any specific customer collection issues that have been identified, current economic conditions and other factors that may affect the customers' ability to pay. The Company writes off accounts receivable balances that have aged significantly once all collection efforts have been exhausted and the receivables are no longer deemed collectible from the customer. The activity in the allowance for expected credit losses is as follows:

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| | |
|:---|:---|
| Balance as of September 30, 2025 | $367 |
| Provision for expected credit losses | 845 |
| Accounts receivable write-offs | (25) |
| Balance as of March 31, 2026 | $**1187** |

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***Inventory***

Inventory is valued at the lower of cost (using the first-in, first-out method) or net realizable value. The Company maintains an inventory valuation reserve to provide for slow moving and obsolete inventory, inventory not meeting quality control standards and inventory subject to expiration for its Life Sciences business. The products of the Life Sciences business require the initial manufacture of multiple batches to determine if quality standards can consistently be met. In addition, the Company will produce larger batches of established products than current sales requirements due to economies of scale. The manufacturing process for these products, therefore, has and will continue to produce quantities in excess of forecasted usage. The Company values acquired manufactured antibody inventory based on a three-year forecast. Inventory quantities in excess of the forecast are not valued due to uncertainty over salability.

***Property and equipment and depreciation policy***

Property and equipment are recorded at cost. Property and equipment acquired in business combinations are initially recorded at fair value. Depreciation is provided for in amounts sufficient to amortize the costs of the related assets over their estimated useful lives on the straight-line and accelerated methods for both financial reporting and income tax purposes. Maintenance and repairs are recorded as expenses when incurred.

***Goodwill***

&nbsp;&nbsp;&nbsp;&nbsp; The Company records as goodwill the excess of purchase price over the fair value of the tangible and identifiable intangible assets acquired in a business combination. Under current authoritative guidance, goodwill is not amortized but is tested for impairment annually as well as when an event or change in circumstance indicates impairment may have occurred. Goodwill is tested for impairment by comparing the fair value of the Company's individual reporting units to their carrying amount to determine if there is potential goodwill impairment. If the fair value of the reporting unit is less than the carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill of the reporting unit is less than its carrying value. If there is a material change in economic conditions, or other circumstances influencing the estimate of future cash flows or significantly affecting the fair value of the Company's reporting units, the Company could be required to recognize impairment charges in the future.

&nbsp;&nbsp;&nbsp;&nbsp; The fair value of the Company's reporting units were in excess of carrying value and goodwill was not deemed to be impaired as of March 31, 2026.

***Intangibles and long-lived assets***

Long-lived assets, including fixed assets and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition.

If such cash flows are not sufficient to support the asset's recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value.

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The determination of future cash flows, as well as the estimated fair value of long-lived assets, involves significant estimates on the part of management. If there is a material change in economic conditions, or other circumstances influencing the estimate of future cash flows or fair value, the Company could be required to recognize impairment charges in the future.

The Company concluded that the fair value of intangibles and long-lived assets were not deemed to be impaired as of March 31, 2026.

***Revenues and revenue recognition***

**Logistics**

Revenues are recognized upon transfer of control of promised services to customers. With respect to its Logistics segment, the Company has determined that, in general, each shipment transaction or service order constitutes a separate contract with the customer. When the Company provides multiple services to a customer, different contracts may be present for different services.

&nbsp;&nbsp;&nbsp;&nbsp; A performance obligation is created once a customer agreement with an agreed-upon transaction price exists. The Company typically satisfies its performance obligations as services are rendered. The Company's transportation transactions provide for the arrangement of the movement of freight to a customer's agreed-upon destination. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final delivery. The Company measures the performance of its obligations as services are rendered over time during the life of a shipment, including services at origin, freight and destination. Revenue is recognized accordingly over time based on the estimated and actual satisfaction of the underlying performance obligations. At period end the Company evaluates shipments in-transit within the respective performance obligations to evaluate the earned revenue given the continuous transfer of control to the customer over the course of the shipment. Since services are continuously provided over-time, revenue and related transportation costs are recognized based on relative transit time, which is based on the extent of progress towards completion. Determination of the estimated transit period and the percentage of completion of the shipment as of the reporting date requires management to make judgments that affect the timing and amount of revenue recognition. The Company has determined that revenue recognition over the transit period provides a reasonable estimate of the transfer of services to its customers as it depicts the pattern of the Company's performance under the contracts with its customers. The Company fulfills nearly all of its performance obligations within a one- to two-month period. The transaction price is generally fixed for each performance obligation. Duties and taxes collected from the customer and paid to the customs agent on behalf of the customer are excluded from revenue. Customs brokerage fees are earned for the discrete service of filing the customs entry, and revenue is recognized at the point in time when the entry is filed with U.S. Customs. The timing of revenue recognition, billings, cash collections, and allowance for expected credit losses results in billed and unbilled receivables. The Company receives the unconditional right to bill when shipments are delivered to their destination.

&nbsp;&nbsp;&nbsp;&nbsp; The Company evaluates whether amounts billed to customers should be reported as gross or net revenues. Generally, revenues are recorded on a gross basis when the Company is acting as principal and is primarily responsible for fulfilling the promise to provide the services, when it has discretion in setting the prices for the services to the customers, and the Company has the ability to direct the use of the services provided by the third-party. Revenues are recognized on a net basis when the Company is acting as agent, and the Company does not have latitude in carrier selection or in establishing rates with the carrier. Revenues recognized net were insignificant for the three and six months ended March 31, 2026 and 2025.

&nbsp;&nbsp;&nbsp;&nbsp; Contract assets, which were insignificant as of March 31, 2026 and September 30, 2025, represent estimated amounts for which the Company has the right to consideration for transportation services related to the completed portion of in-transit shipments at period end, but for which it has not yet completed the performance obligations. Upon completion of the performance obligations, which can vary in duration based upon the mode of transportation, the balance is included in Accounts Receivable.

In the Logistics segment, the Company disaggregates its revenues by its four primary service categories: trucking, ocean freight, customs brokerage and other, and air freight. A summary of the Company's revenues disaggregated by major service lines for the three and six months ended March 31, 2026 and 2025 was as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> March 31,** | **Three Months Ended <br> March 31,** | **Six Months Ended <br>March 31,** | **Six Months Ended <br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| **Service Type**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trucking  | $21254 | $17992 | $40400 | $35712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ocean freight  | 12547 | 11720 | 25445 | 24883 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Customs brokerage and other  | 11344 | 8148 | 21521 | 15675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Air freight  | 6339 | 6184 | 14947 | 13860 |
| **Total**  | $**51484** | $**44044** | $**102313** | $**90130** |

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Customs brokerage and other revenues contains revenues recognized at a point in time and revenues recognized over time based on the satisfaction of the underlying performance obligations. Customs brokerage and other revenues recognized at a point in time totaled $7,883 and $6,061 for the three months ended March 31, 2026 and 2025, respectively. Customs brokerage and other revenues recognized at a point in time totaled $14,968 and $12,009 for the six months ended March 31, 2026 and 2025, respectively.

**Life Sciences and Manufacturing**

Revenues from the Life Sciences segment are derived from the sale of high-quality monoclonal and polyclonal antibodies, diagnostic reagents, diagnostic kits, and other immunoreagents for biomedical research and antibody manufacturing.

&nbsp;&nbsp;&nbsp;&nbsp; Revenues from the Company's Manufacturing segment, which is comprised of Indco, Inc. ("Indco"), a wholly-owned subsidiary of the Company that manufactures and distributes mixing equipment and apparatus for specific applications within various industries, are derived from the engineering, manufacture and delivery of specialty mixing equipment and accessories, and Rubicon Technology, Inc. ("Rubicon"), majority-owned subsidiary of the Company that sells monocrystalline sapphire for applications in optical and industrial systems. Revenues for Life Sciences and Manufacturing are recognized when products are shipped and control of the product, title, and risk of loss have been transferred to the customers.

***Income taxes***

The Company uses the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, "Income Taxes." Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity's financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. The benefit of tax positions taken or expected to be taken in the Company's income tax returns are recognized in the consolidated financial statements if such positions are more likely than not of being sustained.

***Reclassifications***

Certain amounts in the prior-period financial statements have been reclassified to conform to the current-period presentation. These reclassifications had no effect on previously reported net income, total assets, total liabilities, or stockholders' equity.

**2.** **ACQUISITIONS AND INVESTMENTS**

**Fiscal 2026 Acquisitions**

***Manufacturing***

On October 14, 2025, Janel Corporation and Rubicon completed the transfer (the "Contribution") of all of the issued and outstanding membership interests in Janel Group LLC ("Janel Group"), a New York limited liability company and a wholly owned subsidiary of Janel Corporation, held by Janel Corporation in exchange for 7,000,000 newly issued shares of Rubicon's common stock, par value $0.001 per share ("Rubicon Common Stock"), pursuant to a contribution agreement dated as of August 20, 2025 between the Company and Rubicon. The Company determined the transaction represents a business combination under ASC 805, *Business Combinations* in which the Company is the accounting acquirer. The purchase price accounting related to this acquisition is preliminary and subject to subsequent adjustment. Prior to the acquisition, the Company held a 46.6% equity interest in Rubicon. Immediately following the acquisition, the Company obtained a controlling financial interest in Rubicon through its ownership of 86.5% of Rubicon's outstanding equity.

&nbsp;&nbsp;&nbsp;&nbsp; Rubicon is a U.S.-based distributor of monocrystalline sapphire for applications in optical and industrial systems. Rubicon sells its products on a global basis to customers in North America, Europe and Asia and leases its operating and storage facilities in the Chicago metropolitan area on a month-to-month basis.

The fair value of the total consideration transferred was $9,082, which consisted of the acquisition-date fair value of the 13.5% equity interest of Janel Group transferred in exchange for the newly issued shares of Rubicon Common Stock at $3,105, $4,631 of acquisition-date fair value of the previously held equity interest in Rubicon, and the acquisition-date fair value of $1,346 of the noncontrolling interest held by other investors in exchange for $10,128 of deferred tax assets and the assumption of $197 of net liabilities.

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The fair value of the identifiable net assets exceeded the consideration transferred including the fair value of the previously held equity interest and fair value of the noncontrolling interest as it was an opportunistic acquisition. The resulting excess of $849 due to the limited market for the underlying assets was recognized as a gain on consolidation of acquisition on the acquisition date, which primarily reflects the excess value of the deferred tax assets. The gain on acquisition was recognized in gain on consolidation of acquisition in the unaudited condensed consolidated statements of operations.

&nbsp;&nbsp;&nbsp;&nbsp; The estimate of the fair value of assets and liabilities, which consisted primarily of deferred tax assets, required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that management believes to be reasonable; however, actual results may differ materially from these estimates.

&nbsp;&nbsp;&nbsp;&nbsp; Prior to the business combination, the Company held a noncontrolling equity interest in Rubicon, which was recorded under the fair value option method to equity method investment, and the changes in the fair value of the investment were included in Other (expense) income, net in the condensed consolidated statements of operations. At the acquisition date, the acquisition did not result in a gain or loss associated with the remeasurement because its previously held equity interest was measured at fair value prior to the acquisition.

Subsequent to the closing of the contribution, on November 17, 2025, the Company commenced a tender offer to purchase shares of Rubicon Common Stock at $4.75 per share in cash. On November 17, 2025, the tender offer was completed, and the Company purchased 426,000 shares of Rubicon common stock for an aggregate cash consideration of $2,024, and the shares of Rubicon common stock were transferred to Janel Corporation on November 17, 2025. After the tender offer, the Company owns approximately 91.0% of Rubicon's outstanding common stock. The carrying amount of the noncontrolling interest has been adjusted, and the difference between the cash consideration paid and the change in the noncontrolling interest of $510 was recorded in the Company's paid-in capital during the six months ended March 31, 2026, and no gain or loss was recorded.

**Fiscal 2025 Acquisitions**

***Logistics***

&nbsp;&nbsp;&nbsp;&nbsp; On August 1, 2025, the Company acquired a customer list and other intangible assets of, and hired the employees of, a customs broker and freight forwarder, which is included in the Logistics segment.

On September 2, 2025, the Company completed a business combination whereby it acquired a majority ownership position in Interlog USA, Inc. ("Interlog") for an aggregate purchase price of $9,410 and recorded a liability of $1,580 relating to the non-controlling interest. At closing, the Company purchased 80% of the outstanding stock of Interlog for $6,825 in cash with an additional $1,005 to be paid within 90 days subject to the achievement of certain integration goals, which was paid in full as of December 31, 2025. The Company also agreed to purchase the remaining 20% of Interlog stock two years from the closing date for an amount equal to two times Interlog's average annual gross profit for the year ended December 31, 2027. The acquisition was funded through the Company's previous asset-backed facility with Santander Bank, N.A ("Santander"). In connection with the combination, the Company recorded an aggregate of $4,264 in goodwill and $5,844 in other identifiable intangibles during the quarter ended September 30, 2025. Interlog is a non-asset-based freight forwarder and domestic truck broker. The acquisition of Interlog was completed to expand the Company's service offerings in the Logistics segment.

***Life Sciences***

On June 4, 2025, the Company acquired a majority ownership position in Biosensis Pty Ltd ("Biosensis") for an aggregate purchase price of $5,136, net of $199 cash received and net of non-interest-bearing liabilities assumed of $166. Additionally, the Company assumed debt of $563 and recorded a liability of $1,486 relating to the non-controlling interest during the quarter ended June 30, 2025. At closing, the Company purchased 80% of the outstanding common stock of Biosensis for $2,754 in cash and $298 in the form of a conversion of a note receivable. The majority ownership transaction included put-call options exercisable on June 4, 2028 for the remaining 20% of outstanding common stock. The acquisition was funded by the Company's previous acquisition draw facility with First Merchants Bank ("First Merchants"), and the results of operations of Biosensis are included in Janel's consolidated results of operations since the date of the acquisition. In connection with the acquisition, the Company recorded an aggregate of $2,607 in goodwill and $1,700 in other identifiable intangible assets during the quarter ended June 30, 2025. Biosensis is a developer and manufacturer of antibodies and cell culture media for research and diagnostic uses. Biosensis was founded in 2006 and is headquartered in Thebarton, Australia. The acquisition of Biosensis was completed to expand the Company's product offerings in the Life Sciences segment.

On March 10, 2026, prior to the exercisability date of the put-call options, Antibodies, Inc., entered into an agreement to purchase the remaining 20% of the outstanding common stock of Biosensis for $574. The difference between the carrying value of the non-controlling interest and the cash consideration was recognized in stockholders' equity within paid-in capital on the Company's condensed consolidated balance sheets as of March 31, 2026. No gain or loss was recognized in the Company's condensed consolidated statements of operations as of March 31, 2026. This agreement terminated the previously established put-call option arrangement.

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**3.** **INVENTORY**

Inventories consisted of the following:

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| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **September 30, <br> 2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finished goods  | $2387 | $1514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Work-in-process  | 1087 | 1424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raw materials  | 842 | 1679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross inventory  | 4316 | 4617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less – reserve for inventory valuation  | (414) | (410) |
| **Inventory, net**  | $**3902** | $**4207** |

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**4.** **INTANGIBLE ASSETS**

The following table summarizes the gross book value, accumulated amortization and net book value balances of intangible assets as of March 31, 2026 and September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, <br> 2026** | **September 30, <br> 2025** | **Life** | **Weighted Avg<br> Remaining Life** |
| Customer relationships  | $37725 | $37725 | 10-24 Years | 9.6 Years |
| Trademarks/names  | 5110 | 5110 | 1-20 Years | 10.1 Years |
| Other  | 2192 | 2192 | 2-22 Years | 10.3 Years |
| Gross book value  | 45027 | 45027 |  |  |
| Less: Accumulated amortization  | (16208) | (14550) |  |  |
| Trademarks/names  | 521 | 521 | Indefinite |  |
| **Intangible assets, net**  | $**29340** | $**30998** |  |  |

---

The following table summarizes the gross book value, accumulated amortization and net book value balances of intangible assets by segment as of March 31, 2026 and September 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2026** | **September 30,<br> 2025** |
| Logistics  | $29363 | $29363 |
| Life Sciences  | 8485 | 8485 |
| Manufacturing  | 7700 | 7700 |
| Gross book value  | 45548 | 45548 |
| Less: Accumulated amortization  | (16208) | (14550) |
| **Intangible assets, net**  | $**29340** | $**30998** |

---

Amortization expense for the three and six months ended March 31, 2026 and 2025 was $829 and $642, and $1,658 and $1,283, respectively.

The future amortization of these intangible assets is expected to be as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal Year 2026 (remaining)  | $1658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal Year 2027  | 3278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal Year 2028  | 3235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal Year 2029  | 3188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal Year 2030  | 2910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thereafter  | 14550 |
| **Total**  | $**28819** |

---

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**5.** **GOODWILL**

The Company's goodwill carrying amounts relate to acquisitions in the Logistics, Life Sciences and Manufacturing business segments.

The composition of goodwill balances by segment as of March 31, 2026 and September 30, 2025 was as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **September 30,<br> 2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Logistics  | $17768 | $17768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Life Sciences  | 8778 | 8778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manufacturing  | 5046 | 5046 |
| **Total goodwill**  | $**31592** | $**31592** |

---

**6.** **LONG-TERM DEBT**

The table below sets forth the total long-term debt, net of unamortized debt issuance cost, as of March 31, 2026 and September 30, 2025, respectively:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **September 30,<br> 2025** |
| Total debt  | $8951 | $8445 |
| Less: unamortized debt issuance costs  | (1106) | (368) |
| Less: current portion of long-term debt  | (683) | (911) |
| **Total outstanding long-term debt**  | $**7162** | $**7166** |

---

These obligations mature as follows:

---

| | |
|:---|:---|
| Fiscal year 2026 (remaining)  | $342 |
| Fiscal year 2027  | 686 |
| Fiscal year 2028  | 691 |
| Fiscal year 2029  | 697 |
| Fiscal year 2030  | 703 |
| Thereafter  | 5832 |
| **Total**  | $**8951** |

---

**Current Credit Facility**

***The 2025 Credit Facility***

On December 29, 2025, the Company entered into a new credit facility agreement (the "2025 Credit Facility") with Santander Bank and First Merchants Bank. The 2025 Credit Facility provides for a $40,000 Asset-Based Revolving Credit Facility ("Revolving Facility"), a $6,000 Term Loan ("Term Loan"), a $3,120 Mortgage Loan ("Mortgage Loan") and a $10,000 Revolving Credit Facility ("RCF") to be used for acquisitions, for an aggregate commitment of $59,120. The Revolving Facility, Term Loan and Mortgage Loans mature on December 29, 2030. The RCF matures on December 29, 2027, with any outstanding borrowings at that time being converted into a three-year term loan. Interest on the 2025 Credit Facility accrues at an annual rate equal to either a base rate or, at the election of the Company, a rate based on the term Secured Overnight Financing Rate ("Term SOFR") for the applicable interest period, plus an applicable margin ranging from 1.7% to 3.0%, based upon the consolidated senior leverage ratio of the Company (as defined in the agreement governing the 2025 Credit Facility). The Revolving Facility and RCF have a commitment fee payable on the undrawn amount ranging from 0.25% to 0.35% per annum.

For borrowings under the 2025 Credit Facility, the Company is subject to a minimum debt consolidated fixed charge coverage ratio of 1.2, a maximum consolidated leverage ratio of 4.5, and a maximum consolidated secured leverage ratio of 3.5 (each as defined in the agreement governing the 2025 Credit Facility). All financial covenants are calculated based on consolidated results.

The proceeds under the 2025 Credit Facility were used to repay the Company's outstanding loan balance of $33,021 under its previous credit facilities and pay loan initiation fees of $942. In connection with the 2025 Credit Facility, the Company recorded a loss of approximately $445 on the write-off of unamortized capitalized loan costs on the extinguishment of the credit agreement entered into with First Merchants Bank on April 25, 2023 (the "First Merchants Credit Agreement"), which is recorded in other (expense) income, net in the condensed consolidated statements of operations for the six months ended March 31, 2026.

As of March 31, 2026, $17,496 and $17,548 were the amounts outstanding and available for borrowing, respectively, under the Revolving Facility. As of March 31, 2026, $349 and $9,651 were the amounts outstanding and available for borrowing, respectively, under the RCF. The effective interest rate on such borrowings outstanding was 6.07% per annum.

&nbsp;&nbsp;&nbsp;&nbsp; The Company was in compliance with the financial covenants defined in the 2025 Credit Facility as of March 31, 2026.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**Prior Credit Facilities**

***The Santander Facility***

The wholly-owned subsidiaries that comprise the Company's Logistics segment (collectively, the "Janel Group Borrowers"), with the Company as a guarantor, had a Loan and Security Agreement (as amended, the "Santander Loan Agreement") with Santander Bank with respect to a revolving line of credit facility (the "Santander Facility"). The Company entered into an Eighth Amendment to the Santander Loan Agreement on November 1, 2024, allowing for maximum borrowings of $35,000 under the Santander Facility. Interest accrued at an annual rate equal to the one-month SOFR plus 2.35%. The Santander Loan Agreement had a maturity date of September 21, 2026.

On December 29, 2025, using the proceeds received from the 2025 Credit Facility, the Santander Facility of $20,838 was paid off in full and extinguished. See "the 2025 Credit Facility" section above for additional details.

***The First Merchants Credit Agreement***

On April 25, 2023, Indco and certain other subsidiaries of the Company that are part of the Life Sciences and Manufacturing segments (together with Indco, the "Borrowers" and each, a "Borrower"), entered into a credit agreement (the "First Merchants Credit Agreement") with First Merchants Bank. The First Merchants Credit Agreement was amended on November 22, 2024 to provide for, among other changes, the conversion and extinguishment of the $3,700 under the existing Acquisition A loan into the Term A loan, an incremental increase to the Term A loan of $1,000, the establishment of a new Acquisition B loan with a borrowing capacity of $7,000, and the extension of the revolving line of credit.

Interest accrued on the previously outstanding revolving Term A loan and Acquisition B loans at an annual rate equal to one-month adjusted Term SOFR plus either (i) 2.75% (if the Borrowers' total funded debt to EBITDA ratio is less or equal to 1.75:1.00) or (ii) 3.50% (if the Borrowers' total funded debt to EBITDA ratio is greater than to 1.75:1.00). Interest accrued on the existing Term B loan at an annual rate equal to the Term A loan. The revolving line of credit had a maturity date of November 22, 2029, and the Acquisition B loan had a maturity date of November 22, 2026.

As of September 30, 2025, there were $2,900 of outstanding borrowings under the acquisition loan, $7,885 of outstanding borrowings under the Term A loan, $559 of outstanding borrowings under the Term B loan and $1,000 of outstanding borrowings on the revolving loan, with interest accruing on all four loans at an effective interest rate of 6.89%. On December 29, 2025, the Company drew on the 2025 Credit Facility for $12,182 to fully pay off the First Merchants Credit Agreement. See "The 2025 Credit Facility" above for additional details. As of March 31, 2026, no amounts were outstanding under the First Merchants Credit Agreement which was extinguished during the quarter ended December 31, 2025.

**7.** **SUBORDINATED PROMISSORY NOTES - RELATED PARTY**

Janel is the obligor on four fixed 4% subordinated promissory notes totaling $6,000 in the aggregate (together, the "ELFS Subordinated Promissory Notes"), payable to certain former shareholders of Expedited Logistics and Freight Services, LLC ("ELFS"), in connection with the Company's business combination whereby it acquired all the membership interest of ELFS and its related subsidiaries. All of the ELFS Subordinated Promissory Notes, as subsequently amended, are guaranteed by the Company and are subordinate to and junior in right of payment for principal, interest, premiums and other amounts payable to the 2025 Credit Facility. The ELFS Subordinated Promissory Notes are payable in quarterly installments of principal together with accrued interest through July 2028.

As of September 30, 2025, the amount outstanding under the ELFS Subordinated Promissory Notes was $2,940, of which $1,174 was included in the current portion of subordinated promissory notes and $1,766 was included in the long-term portion of subordinated promissory notes.

As of March 31, 2026, the gross amount outstanding under the ELFS Subordinated Promissory Notes was $2,450, of which $1,174 was included in the current portion of subordinated promissory notes and $1,276 was included in the long-term portion of subordinated promissory notes.

**8.** **STOCKHOLDERS' EQUITY**

(in thousands, except share and per share data)

Janel is authorized to issue 4,500,000 shares of common stock, par value $0.001. In addition, the Company is authorized to issue 100,000 shares of preferred stock, par value $0.001. The preferred stock is issuable in series with such voting rights, if any, designations, powers, preferences and other rights and such qualifications, limitations and restrictions as may be determined by the Company's Board of Directors or a duly authorized committee thereof, without stockholder approval. The Board of Directors may fix the number of shares constituting each series and increase or decrease the number of shares of any series.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

***(A)*** ***Preferred Stock***

***<u>Series C Cumulative Preferred Stock</u>***

Shares of the Company's Series C Cumulative Preferred Stock (the "Series C Stock") are entitled to receive annual dividends at a rate of 5% per annum of the original issuance price of $500 per share, when and if declared by the Company's Board of Directors, and increased by 1% on January 1, 2024. Such rate is to increase on each January 1 thereafter for four years to a maximum rate of 9%. The dividend rate of the Series C Stock as of March 31, 2026 and September 30, 2025 was 8% and 7%, respectively. In the event of liquidation, holders of Series C Stock shall be paid an amount equal to the original issuance price, plus any accrued dividends thereon. Shares of Series C Stock may be redeemed by the Company at any time upon notice and payment of the original issuance price, plus any accrued dividends thereon. The liquidation value of Series C Stock was $6,708 and $7,333 as of March 31, 2026 and September 30, 2025, respectively.

For the three and six months ended March 31, 2026 and 2025, the Company declared dividends on Series C Stock of $112 and $108, and $212 and $194, respectively. As of March 31, 2026 and September 30, 2025, the Company had accrued dividends of $1,024 and $1,649, respectively.

***(B)*** ***Equity Incentive Plan***

On October 30, 2013, the Board of Directors of the Company adopted the Company's 2013 Non-Qualified Stock Option Plan (the "2013 Option Plan") providing for options to purchase up to 100,000 shares of common stock for issuance to directors, officers, employees of and consultants to the Company and its subsidiaries.

On May 12, 2017, the Company adopted the 2017 Equity Incentive Plan (the "2017 Plan") pursuant to which the Company may grant (i) incentive stock options, (ii) non-statutory stock options, (iii) restricted stock awards and (iv) stock appreciation rights with respect to shares of the Company's common stock, par value of $0.001 per share ("Common Stock"), to directors, officers, employees of and consultants to the Company. On September 21, 2021, the Board of Directors of the Company adopted the Amended and Restated 2017 Janel Corporation Equity Incentive Plan (the "Amended Plan") pursuant to which the Company may grant non-statutory stock options, restricted stock awards and stock appreciation rights of Common Stock to employees, directors and consultants to the Company and its subsidiaries.

The Amended Plan increased the number of shares of Common Stock that may be issued pursuant to the Amended Plan from 100,000 to 200,000 shares of Common Stock of the Company and reflected certain other non-substantive amendments.

Participants and all terms of any grant under the Amended Plan are within the discretion of the Company's Compensation Committee.

The following table summarizes activities under the 2017 Equity Incentive Plan for the indicated periods:

**Options**

The Company uses the Black-Scholes option pricing model to estimate the fair value of the share-based awards. In applying this model, the Company uses the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk-free interest rate - The Company determines the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expected term - The Company estimates the expected term of options on the average of the vesting date and term of the option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expected volatility - The Company estimates expected volatility using daily historical trading data of its common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend yield - The Company has never paid dividends on its common stock and currently have no plans to do so; therefore, no dividend yield is applied.

The fair values of the employee option awards for the three and six months ended March 31, 2026 and 2025 were estimated using the assumptions below, which yielded the following weighted average grant date fair values for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three and Six Months<br>Ended March 31,** | **Three and Six Months<br>Ended March 31,** |
|  | **2026** | **2025** |
| Risk-free interest rate | 3.72% | 3.45% |
| Expected option term in years | 5.5 | 4.5-6.0 |
| Expected volatility | 57.73% | 49.40% |
| Dividend yield | —% | —% |
| Weighted average grant date fair value | $19.87 | $12.91 - $19.86 |

---

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number<br> of Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Term (in years)** | **Aggregate<br> Intrinsic<br> Value<br> (in thousands)** |
| Outstanding balances, September 30, 2025  | 62493 | $28.35 | 6.5 | $705.34 |
| Granted  | 12500 | $36.01 | 5.5 | $— |
| Outstanding balances, March 31, 2026  | 74993 | $29.63 | 6.6 | $1670.92 |
| Exercisable at March 31, 2026  | 62493 | $28.35 | 6.0 | $1474.42 |

---

The aggregate intrinsic value in the above table was calculated as the difference between the closing price of the company's common stock at March 31, 2026 of $51.73 per share and the exercise price of the stock options that had strike prices below such closing price.

As of March 31, 2026, there was $125 unrecognized compensation expense related to the unvested employee stock options, which is expected to be recognized over the next fiscal year.

**9.** **INCOME PER COMMON SHARE**

The following table provides a reconciliation of the basic and diluted earnings per share ("EPS") computations for the three and six months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** | **Six Months Ended<br> March 31,** | **Six Months Ended<br> March 31,** |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (in thousands, except per share data)  | **2026** | **2025** | **2026** | **2025** |
|  **Income:**  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income  | $999 | $1440 | $1699 | $2099 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to noncontrolling interests  | (282) |  | (563) |  |
|  **Net income attributable to Janel Corporation**  | 717 | 1440 | 1136 | 2099 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | (112) | (108) | (212) | (194) |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest dividends  |  |  |  | (243) |
|  **Net income available to common stockholders**  | $**605** | $**1332** | $**924** | $**1662** |
|  **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Shares:**  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic - weighted average common shares  | 1186 | 1186 | 1186 | 1186 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effect of dilutive securities:  |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock options  | 24 | 20 | 29 | 20 |
|  **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted - weighted average common stock**  | **1210** | **1206** | **1215** | **1206** |
|  **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income per Common Share:**  |  |  |  |  |
| Basic |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income  | $0.84 | $1.21 | $1.43 | $1.77 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to noncontrolling interests  | (0.24) |  | (0.47) |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | (0.09) | (0.09) | (0.18) | (0.16) |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest dividends  |  |  |  | (0.20) |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common shareholders  | $0.51 | $1.12 | $0.78 | $1.41 |
| Diluted |  |  |  |  |
| Consolidated net income | $0.83 | $1.19 | $1.40 | $1.74 |
|  **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to noncontrolling interests**  | (0.24) |  | (0.47) |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | (0.09) | (0.09) | (0.17) | (0.16) |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncontrolling interest dividends  |  |  |  | (0.20) |
|  **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income available to common stockholders**  | $0.50 | $1.10 | $0.76 | $1.38 |

---

The computation for the diluted number of shares excludes unexercised stock options that are anti-dilutive. There were 10 anti-dilutive shares for each of the three- and six-month periods ended March 31, 2026 and 22.5 anti-dilutive shares for each of the three- and six-month periods ended March 31, 2025.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**10.** **INCOME TAXES**

The reconciliation of income tax computed at the federal statutory rate to the provision for income taxes from continuing operations for the three and six-month periods ended March 31, 2026 and 2025 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> March 31,** | **Three Months Ended <br> March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal taxes at statutory rates  | $(151) | $(396) | $(492) | $(576) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Permanent differences  | (1) | 93 | (2) | 143 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State and local taxes, net of federal benefit  | (50) | (112) | (153) | (180) |
| **Total**  | $**(202)** | $**(415)** | $**(647)** | $**(613)** |

---

**11.** **BUSINESS SEGMENT INFORMATION**

As referenced above in Note 1, the Company operates in three reportable segments: Logistics, Life Sciences and Manufacturing.

The Company's Chief Executive Officer, who is the Chief Operating Decision Maker ("CODM"), regularly reviews financial information at the reporting segment level in order to make decisions about resources to be allocated to the segments and to assess their performance.

The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2026:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the three months ended March 31, 2026** | **Consolidated** | **Logistics** | **Life Sciences** | **Manufacturing** | **Corporate** |
| Revenues  | $57444 | $51484 | $3401 | $2559 | $— |
| Forwarding expenses and cost of revenues  | 38876 | 37105 | 622 | 1149 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| Gross profit  | 18568 | 14379 | 2779 | 1410 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| Selling, general and administrative  | 16194 | 10913 | 2306 | 841 | 2134 |
| Amortization of intangible assets  | 829 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | 829 |
| Income (loss) from operations  | 1545 | 3466 | 473 | 569 | (2963) |
| Interest expense  | 410 | 272 | 66 | 66 | 6 |
| Identifiable assets  | 154188 | 68433 | 11736 | 7398 | 66621 |
| Capital expenditures, net of disposals  | 123 | &nbsp;&nbsp;&nbsp;&nbsp;— | 123 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months ended March 31, 2026** | **Consolidated** | **Logistics** | **Life Sciences** | **Manufacturing** | **Corporate** |
| Revenues  | $113483 | $102313 | $6805 | $4365 | $— |
| Forwarding expenses and cost of revenues  | 76798 | 73534 | 1202 | 2062 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| Gross profit  | 36685 | 28779 | 5603 | 2303 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| Selling, general and administrative  | 32504 | 21891 | 4792 | 1773 | 4048 |
| Amortization of intangible assets  | 1658 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | 1658 |
| Income (loss) from operations  | 2523 | 6888 | 811 | 530 | (5706) |
| Interest expense  | 715 | 372 | 192 | 145 | 6 |
| Identifiable assets  | 154188 | 68433 | 11736 | 7398 | 66621 |
| Capital expenditures, net of disposals  | 164 | 9 | 151 | 4 | &nbsp;&nbsp;&nbsp;&nbsp;— |

---

The Manufacturing segment includes results from Rubicon starting on the acquisition date of October 14, 2025. Rubicon's corporate expenses are included in Janel's Corporate expenses segment.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: | The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: | The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: | The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: | The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: | The following tables present selected financial information about the Company's reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three and six months ended March 31, 2025: |
| **For the three months ended March 31, 2025** | **Consolidated** | **Logistics** | **Life Sciences** | **Manufacturing** | **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $50731 | $44044 | $4166 | $2521 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwarding expenses and cost of revenues  | 34160 | 32188 | 796 | 1176 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 16571 | 11856 | 3370 | 1345 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative  | 13759 | 9524 | 1918 | 802 | 1515 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets  | 642 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | 642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from operations  | 2170 | 2332 | 1452 | 543 | (2157) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | 560 | 395 | 90 | 75 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identifiable assets  | 114314 | 44603 | 12629 | 4794 | 52288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures, net of disposals  | 284 | 14 | 255 | 15 | &nbsp;&nbsp;&nbsp;&nbsp;— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months ended March 31, 2025** | **Consolidated** | **Logistics** | **Life Sciences** | **Manufacturing** | **Corporate** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $102085 | $90130 | $7149 | $4806 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwarding expenses and cost of revenues  | 70372 | 66896 | 1246 | 2230 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 31713 | 23234 | 5903 | 2576 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative  | 27051 | 18892 | 3917 | 1743 | 2499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets  | 1283 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;— | 1283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from operations  | 3379 | 4342 | 1986 | 833 | (3782) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | 1226 | 879 | 207 | 140 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identifiable assets  | 114314 | 44603 | 12629 | 4794 | 52288 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures, net of disposals  | 375 | 25 | 333 | 17 | &nbsp;&nbsp;&nbsp;&nbsp;— |

---

**12.** **FAIR VALUE MEASUREMENTS**

&nbsp;&nbsp;&nbsp;&nbsp; ASC Topic 820 established a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy under ASC Topic 820 are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inputs to the valuation methodology are quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Level 3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

&nbsp;&nbsp;&nbsp;&nbsp; This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

***Recurring Fair Value Measurements***

The following table presents the Company's assets that are measured at fair value on a recurring basis based on the three-level valuation hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Investment in marketable securities at fair value | $263 | $- | $- | $263 |
| Restricted investments | 250 | - | - | 250 |
| **Total Assets** | $**513** | $- | $- | $**513** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **September 30, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Investment in Rubicon at fair value | $4631 | $- | $- | $4631 |
| Investment in marketable securities at fair value | 33 | &nbsp;&nbsp;&nbsp;&nbsp;- |  | 33 |
| Restricted investments | 250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 250 |
| **Total Assets** | $**4914** | $- | $- | $**4914** |

---

The following table sets forth a summary of the changes in the investment in marketable securities and restricted investments during the three and six months ended March 31, 2026 and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 30,** | **Six Months Ended<br>March 30,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Balance, beginning of period | $392 | $2163 | $4914 | $1824 |
| Acquisition of controlling financial interest of Rubicon | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | (4631) | &nbsp;&nbsp;&nbsp;&nbsp;- |
| Unrealized gain (loss) | (13) | 570 | 35 | 873 |
| Purchase of securities (net of sales) | 134 | 27 | 195 | 63 |
| **Balance, end of period** | $**513** | $**2760** | $**513** | $**2760** |

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

On August 19, 2022, the Company acquired 1,108,000 shares of Rubicon common stock at a price per share of $20.00, in a cash tender offer. As of September 30, 2025, the Company held 46.6% of the total issued and outstanding shares of Rubicon and reported its investment under the fair value method pursuant to ASC Topic 320, *Investments - Debt Securities*. Management determined that it was appropriate to carry its investment in Rubicon at fair value because the investment was traded on the NASDAQ stock exchange through January 2, 2023, began trading on the OTCQB Capital Market on January 3, 2023 and had daily trading activity, the combination of which provides a better indicator of value. The investment in Rubicon was re-measured at the end of each quarter based on the trading price, and any change in the value was reported in the condensed statement of operations as an unrealized gain or loss on marketable securities in Other (expense) income, net.

On October 14, 2025, the Company acquired an additional 7,000,000 shares of Rubicon Common Stock and obtained a controlling financial interest in Rubicon through its ownership of 86.5% of outstanding equity resulting in consolidation of Rubicon from the acquisition date. Immediately prior to the business combination, the investment was measured at fair value. In connection with the closing of the Contribution, the Company commenced a tender offer to purchase 426,000 shares of Rubicon common stock at $4.75 per share in cash, which expired on November 12, 2025. The shares of Rubicon common stock were transferred to Janel Corporation on November 17, 2025. After the tender offer, Janel Corporation owns approximately 91.0% of Rubicon's common stock outstanding. See Note 2 – Acquisitions and Investments.

The following table sets forth a summary of the changes in the fair value of the Company's investment in Rubicon, which was measured at fair value on a recurring basis prior to October 14, 2025, utilizing Level 1 assumptions in its valuation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Balance, beginning of period | $- | $1828 | $4631 | $1518 |
| Fair value adjustment to Rubicon investment | &nbsp;&nbsp;&nbsp;&nbsp;- | 587 | (4631) | 897 |
| **Balance, end of period** | $&nbsp;&nbsp;&nbsp;&nbsp;- | $**2415** | $- | $**2415** |

---

There were no level 2 or 3 assets as of March 31, 2026 and September 30, 2025. There were no transfers between investment levels as of March 31, 2026 and September 30, 2025.

The following table presents the Company's liabilities that are measured at fair value on a recurring basis based on the three-level valuation hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Contingent earnout | $64 | $- | $30 | $94 |
| Mandatorily redeemable noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 2706 | 2706 |
| **Total Liabilities** | $**64** | $**-** | $**2736** | $**2800** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **September 30, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Contingent earnout | $1143 | $- | $1504 | $2647 |
| Mandatorily redeemable noncontrolling interest | &nbsp;&nbsp;&nbsp;&nbsp;- | &nbsp;&nbsp;&nbsp;&nbsp;- | 4161 | 4161 |
| **Total Liabilities** | $**1143** | $**-** | $**5665** | $**6808** |

---

These liabilities relate to the estimated fair value of earnout and mandatorily redeemable noncontrolling interest payments due to former business owners at previously acquired companies. The level 1 contingent earnout is fixed. The Company determined the fair value of the Level 3 liabilities using forecasted results through the expected earnout periods. The principal inputs to the approach include expectations of the specific business's revenues in fiscal years 2025 through 2026 using an appropriate discount rate. Given the use of significant inputs that are not observable in the market, the contingent earnout liability and mandatorily redeemable noncontrolling interests are classified within Level 3 of the fair value hierarchy.

The current and non-current portions of the fair value of the contingent earnout liabilities as of March 31, 2026 were $39 and $55, respectively. The current and non-current portions of the fair value of the contingent earnout liabilities as of September 30, 2025 were $2,592 and $55, respectively.

The following table sets forth a summary of the changes in the fair value of the Company's contingent earnout liabilities for the three and six months ended March 31, 2026 and 2025, which are measured at fair value on a recurring basis utilizing Level 1 and Level 3 assumptions in their valuation:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Balance, beginning of period | $1422 | $2380 | $2647 | $2350 |
| Fair value of contingent consideration recorded in connection with business combinations |  | 30 |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnout payment  | (1328) | (1078) | (2553) | (1078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance, end of period  | $**94** | $**1332** | $**94** | $**1332** |

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**13.** **LEASES**

The Company determines if an arrangement is a lease at inception. Assets and obligations related to operating leases are included in operating lease right-of-use ("ROU") assets; current portion of operating lease liability; and operating lease liability, net of current portion in the consolidated balance sheets. Assets and obligations related to finance leases are included in property and equipment, net; current portion of finance lease liability; and finance lease liability, net of current portion in the condensed consolidated balance sheets.

ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the incremental borrowing rate based on the information available at commencement date is used in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

&nbsp;&nbsp;&nbsp;&nbsp; The Company's agreements with lease and non-lease components are all accounted for as a single lease component.

&nbsp;&nbsp;&nbsp;&nbsp; For leases with an initial term of twelve months or less, the Company elected the exemption from recording right of use assets and lease liabilities for all leases that qualify and records rent expense on a straight-line basis over the lease term.

The Company has operating leases for office and warehouse space in all districts where it conducts business. As of March 31, 2026, the remaining terms of the Company's operating leases were between one month and 95 months and certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts include the minimum lease payments that the Company is obligated to make under the non-cancelable initial terms of the leases as the renewal terms are at the Company's option and the Company is not reasonably certain to exercise those renewal options at lease commencement.

The components of lease expense for the three- and six-month periods ended March 31, 2026 and 2025 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** <br> **March 31,** | **Three Months Ended** <br> **March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease cost  | $641 | $646 | $1294 | $1301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term lease cost  | 69 | 97 | 141 | 149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total lease cost**  | $**710** | $**743** | $**1435** | $**1450** |

---

Operating lease right of use assets, current portion of operating lease liabilities and long-term portion of operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of March 31, 2026 were $6,582, $2,054 and $5,173, respectively.

Operating lease right of use assets, current portion of operating lease liabilities and long-term portion of operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of September 30, 2025 were $7,760, $2,114 and $6,310, respectively.

&nbsp;&nbsp;&nbsp;&nbsp; During the six months ended March 31, 2026, the Company did not modify or enter into any new operating leases.

As of March 31, 2026 and September 30, 2025, the weighted-average remaining lease term and the weighted-average discount rate related to the Company's operating leases were 4.2 years and 7.20% and 4.5 years and 6.13%, respectively.

For the three and six months ended March 31, 2026 and 2025, cash paid for amounts included in the measurement of operating lease obligations was $655 and $665, and $1,313 and $1,021, respectively.

Future minimum lease payments under non-cancelable operating leases as of March 31, 2026 are as follows for each of the fiscal years ending September 30 of :

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal year 2026 (remaining)  | $1215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal year 2027  | 2395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal year 2028  | 2307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal year 2029  | 932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fiscal year 2030  | 488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thereafter  | 867 |
| **Total undiscounted lease payments**  | **8204** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Imputed interest  | (977) |
| **Total lease liabilities**  | $**7227** |

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**14.** **SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp; On April 7, 2026, the Company and its subsidiaries entered into the First Amendment to the Credit Agreement dated as of December 29, 2025 which allowed for the acquisition of the antibody product line from BioPorto A/S described below. The First Amendment also updated certain definitions.

On April 8, 2026, the Company acquired an antibody product line from BioPorto A/S for $9,000 in cash funded from the RCF and $1,500 in potential future earnouts. Acquired inventory and future sales will be included in the Company's Life Sciences segment.

On May 5, 2026, the Company's board authorized the purchase of up to 50,000 additional shares in Rubicon in the public market or through privately negotiated transactions. The size and timing of any purchases will be based on a number of factors, including price and business and market conditions.

**ITEM 2.**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis should be read in conjunction with our unaudited interim condensed consolidated financial statements and related notes thereto as of and for the three and six months ended March 31, 2026, which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Amounts presented in this section are in thousands, except share and per share data.*

&nbsp;&nbsp;&nbsp;&nbsp; As used throughout this Report, "we," "us", "our," "Janel," "the Company," "Registrant" and similar words refer to Janel Corporation and its subsidiaries.

**<u>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp; This Quarterly Report on Form 10-Q ("the Report") contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward – looking statements may generally be identified using the words "may," "will," "intends," "plans," projects," "believes," "should," "expects," "predicts," "anticipates," "estimates," and similar expressions or the negative of these terms or other comparable terminology. These statements are necessarily estimates reflecting management's best judgment based upon current information and involve several risks, uncertainties and assumptions. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and readers are advised that various factors, including, but not limited to, those set forth elsewhere in this Report, could affect our financial performance and could cause our actual results for future periods to differ materially from those anticipated or projected. While it is impossible to identify all such factors, such factors include, but are not limited to, our strategy of expanding our business through acquisitions of other businesses; we may be required to record a significant change to earnings related to the impairment of acquired assets; we may fail to realize the expected benefits or strategic objectives of any acquisition, or we may spend resources exploring acquisitions that are not consummated; risks associated with litigation and indemnification claims and other unforeseen claims and liabilities that may arise from an acquisition; changes in tax rates, laws or regulations and our ability to utilize anticipated tax benefits; the impact of volatile or changing interest rates on our investments, business and operations; conflicts of interest with the minority shareholders of our business; we may not have sufficient working capital to continue operations; we may lose customers who are not obligated to long-term contracts to transact with us; changes or developments in U.S. laws or policies, including the potential imposition of tariffs; competition from companies with greater financial resources and from companies that operate in areas in which we plan to expand; our dependence on technically skilled employees; impacts from climate change, including the increased focus by third-parties on sustainability issues and our ability to comply therewith; competition from parties who sell their businesses to us and from professionals who cease working for us; terrorist attacks and other acts of violence or war; security breaches or cybersecurity attacks; the impact of catastrophic events, such as health crises, natural disasters and armed conflict; the level of our insurance coverage, including related to product and other liability risks; our compliance with applicable privacy, security and data laws; risks related to the diverse platforms and geographies that host our management information and financial reporting systems; our dependence on the availability of cargo space from third parties; the impact of claims arising from transportation of freight by the carriers with which we contract, including an increase in premium costs; the impact of higher carrier prices; risks related to the classification of owner-operators in the transportation industry; recessions, economic developments and other events affecting the volume of international trade and international operations; risks arising from our ability to comply with governmental permit and licensing requirements or statutory and regulatory requirements; the impact of seasonal trends and other factors beyond our control on our Logistics business; changes in governmental regulations applicable to our Life Sciences business; the ability of our Life Sciences business to continually produce products that meet high-quality standards such as purity, reproducibility and/or absence of cross-reactivity; the ability of our Life Sciences business to maintain, determine the scope of and defend its and its competitors' intellectual property rights; the impact of pressures in the life sciences industry to increase the predictability of or reduce healthcare costs; any decrease in the availability, or increase in the cost or supply shortages, of raw materials used by Indco; risks arising from the environmental, health and safety regulations applicable to Indco; the reliance of our Indco business on a single location to manufacture their products; the controlling influence exerted by a small number of our stockholders; the unlikelihood that we will issue dividends in the foreseeable future; and risks related to ownership of our common stock, including share price volatility, the lack of a guaranteed continued public trading market for our common stock, our ability to issue shares of preferred stock with greater rights than our common stock and costs related to maintaining our status as a public company; and such other factors that may be identified from time to time in our Securities and Exchange Commission ("SEC") filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those projected. You should not place undue reliance on any of our forward-looking statements which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of these factors, see our periodic reports filed with the SEC, including our most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**OVERVIEW**

&nbsp;&nbsp;&nbsp;&nbsp; Janel Corporation ("Janel," the "Company," or the "Registrant") is a holding company with subsidiaries in three business segments: Logistics, Life Sciences and Manufacturing. The Company strives to create shareholder value primarily through three strategic priorities: supporting its businesses' efforts to make investments and to build long-term profits; allocating Janel's capital at high risk-adjusted rates of return; and attracting and retaining exceptional talent.

&nbsp;&nbsp;&nbsp;&nbsp; Management at the Janel holding company focuses on significant capital allocation decisions, corporate governance and supporting Janel's subsidiaries where appropriate. Janel expects to grow through its subsidiaries' organic growth and by completing acquisitions. We plan to either acquire businesses within our existing segments or expand our portfolio into new strategic segments. Our acquisition strategy focuses on reasonably priced companies with strong and capable management teams, attractive existing business economics and stable and predictable earnings power.

**Our Business Segments**

*Logistics*

&nbsp;&nbsp;&nbsp;&nbsp; The Company's Logistics segment is majority-owned and comprised of several subsidiaries. The Logistics segment is a non-asset based, full-service provider of cargo transportation logistics management services, including freight forwarding via air, ocean and land-based carriers; customs brokerage services; warehousing and distribution services; trucking and other value-added logistics services. In addition to these revenue streams, the Company earns accessorial revenues in connection with its core services. Accessorial revenues include, but are not limited to, fuel service charges, wait time fees, hazardous cargo fees, labor charges, handling, cartage, bonding and additional labor charges.

On August 1, 2025, the Company acquired a customer list and other intangible assets and hired the employees of a customs broker and freight forwarder, which we include in our Logistics segment.

On September 2, 2025, the Company completed a business combination whereby it acquired a majority ownership position in Interlog USA, Inc., a non-asset-based freight forwarder and domestic truck broker, which we include in our Logistics segment. On that date, the Company purchased 80% of the outstanding stock of Interlog. The Company also agreed to purchase the remaining 20% of Interlog stock two years from the closing date, subject to certain closing conditions.

*Life Sciences*

&nbsp;&nbsp;&nbsp;&nbsp; The Company's Life Sciences segment is comprised of several wholly-owned subsidiaries. The Company's Life Sciences segment manufactures and distributes high-quality monoclonal and polyclonal antibodies, diagnostic reagents and other immunoreagents for biomedical research and provides antibody manufacturing for academic and industry research scientists. Our Life Sciences segment also produces products for other life sciences companies on an original equipment manufacturer basis.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

&nbsp;&nbsp;&nbsp;&nbsp; On June 4, 2025, the Company completed a business combination in which it acquired 80% of the outstanding stock of Biosensis, a biotech company in Australia focused on accelerating the development of new drugs for brain diseases, which we include in our Life Sciences segment. On March 10, 2026, the Company entered into an agreement to repurchase the remaining 20% of the outstanding common stock of Biosensis.

*Manufacturing*

&nbsp;&nbsp;&nbsp;&nbsp; The Company's Manufacturing segment is comprised of Indco, Inc. ("Indco") and Rubicon Technology, Inc. ("Rubicon").

&nbsp;&nbsp;&nbsp;&nbsp; Indco is a wholly owned subsidiary of the Company that manufactures and distributes mixing equipment and apparatus for specific applications within various industries. Indco's customer base is comprised of small- to mid-sized businesses as well as other larger customers for which Indco fulfills repetitive production orders.

&nbsp;&nbsp;&nbsp;&nbsp; Rubicon, a majority-owned subsidiary of the Company, is a U.S.-based distributor of monocrystalline sapphire for applications in optical and industrial systems. Rubicon sells its products on a global basis to customers in North America, Europe and Asia and maintains its operating facility in the Chicago metropolitan area.

**<u>CRITICAL ACCOUNTING POLICIES AND ESTIMATES</u>**

&nbsp;&nbsp;&nbsp;&nbsp; Our condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP). These generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net sales and expenses during the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp; Our senior management has reviewed the critical accounting policies and estimates with the Audit Committee of our board of directors. For a description of the Company's critical accounting policies and estimates, refer to "Part II—Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates" in our Annual Report on Form 10-K filed with the SEC on December 5, 2025. Critical accounting policies are those that are most important to the portrayal of our financial condition, results of operations and cash flows and require management's most difficult, subjective and complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. If actual results were to differ significantly from estimates made, the reported results could be materially affected. There were no significant changes to our critical accounting policies during the three and six months ended March 31, 2026.

**<u>NON-GAAP FINANCIAL MEASURES</u>**

&nbsp;&nbsp;&nbsp;&nbsp; While we prepare our financial statements in accordance with U.S. GAAP, we also utilize and present certain financial measures, in particular adjusted operating income, which is not based on or included in U.S. GAAP (we refer to these as "non-GAAP financial measures").

**Organic Revenue and Organic Revenue Growth**

&nbsp;&nbsp;&nbsp;&nbsp; Our non-GAAP financial measure of organic revenue represents revenues excluding revenues from acquisitions within the preceding 12 months. Organic revenue growth represents revenue growth excluding revenues from acquisitions within the preceding 12 months. Management believes that the presentation of organic revenue growth provides a useful period-to-period comparison of revenues as it excludes revenues from acquisitions that would not be included in the comparable prior period.

**Organic Gross Profit and Organic Gross Profit Growth**

&nbsp;&nbsp;&nbsp;&nbsp; Our non-GAAP financial measure of organic gross profit represents gross profit excluding gross profit from acquisitions within the preceding 12 months. Organic gross profit growth represents gross profit growth excluding gross profit from acquisitions within the preceding 12 months. Management believes that the presentation of organic gross profit growth provides a useful period-to-period comparison of gross profit as it excludes gross profit from acquisitions that would not be included in the comparable prior period.

**Adjusted Operating Income**

&nbsp;&nbsp;&nbsp;&nbsp; As a result of our acquisition strategy, our net income includes material non-cash charges relating to the amortization of customer-related intangible assets in the ordinary course of business as well as other intangible assets acquired in our acquisitions. Although these charges may increase as we complete more acquisitions, we believe we will be growing the value of our intangible assets such as customer relationships. Because these charges are not indicative of our operations, we believe that adjusted operating income is a useful financial measure for investors because it eliminates the effect of these non-cash costs and provides an important metric for our business that is more representative of the actual results of our operations.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income (which excludes the non-cash impact of amortization of intangible assets, stock-based compensation and cost recognized on the sale of acquired inventory valuation) is used by management as a supplemental performance measure to assess our business's ability to generate cash and economic returns.

&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income is a non-GAAP measure of income and does not include the effects of preferred stock dividends, interest and taxes.

&nbsp;&nbsp;&nbsp;&nbsp; We believe that organic revenue, organic revenue growth, organic gross profit, organic gross profit growth and adjusted operating income provide useful information in understanding and evaluating our operating results. However, organic revenue, organic revenue growth, organic gross profit, organic gross profit growth and adjusted operating income are not financial measures calculated in accordance with U.S. GAAP and should not be considered as a substitute for total revenues, gross profit, operating income or any other operating performance measures calculated in accordance with U.S. GAAP. Using these non-GAAP financial measures to analyze our business has material limitations because the calculations are based on a subjective determination by management regarding the nature and classification of events and circumstances that users of the financial statements may find significant.

&nbsp;&nbsp;&nbsp;&nbsp; In addition, although other companies in our industries may report measures titled organic revenue, organic revenue growth, organic gross profit, organic gross profit growth, adjusted operating income or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate our non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, you should consider organic revenue, organic revenue growth, organic gross profit, organic gross profit growth and adjusted operating income alongside other financial performance measures, including total revenues, gross profit, operating income and our other financial results presented in accordance with U.S. GAAP.

**<u>Results of Operations – Janel Corporation – Three and Six Months Ended March 31, 2026 and 2025 (unaudited)</u>**

&nbsp;&nbsp;&nbsp;&nbsp; Our results of operations and period-over-period changes are discussed in the following section. The tables and discussion should be read in conjunction with the accompanying condensed consolidated financial statements and the notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp; Our consolidated results of operations are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br>March 31,** | **Three Months Ended <br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $57444 | $50731 | $113483 | $102085 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwarding expenses and cost of revenues  | 38876 | 34160 | 76798 | 70372 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 18568 | 16571 | 36685 | 31713 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses  | 17023 | 14401 | 34162 | 28334 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations  | 1545 | 2170 | 2523 | 3379 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to Janel Corporation  | 717 | 1440 | 1136 | 2099 |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income  | $2593 | $3014 | $4621 | $5055 |

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&nbsp;&nbsp;&nbsp;&nbsp; Consolidated revenues for the three months ended March 31, 2026 were $57,444, which was $6,713, or 13.2%, higher than the prior year period. Consolidated revenues for the six months ended March 31, 2026 were $113,483, which was $11,398, or 11.2%, higher than the prior year period. The increase in revenues for both the three and six months ended March 31, 2026 was primarily due to the inclusion of revenue from acquired businesses.

&nbsp;&nbsp;&nbsp;&nbsp; Income from operations for the three months ended March 31, 2026 was $1,545 compared with $2,170 in the prior year period. Income from operations for the six months ended March 31, 2026 was $2,523 compared with $3,379 in the prior year period. The decrease in income from operations for both the three and six months ended March 31, 2026 resulted from lower income from operations at the Life Sciences and Manufacturing segments excluding Rubicon and higher acquisition-related expenses in the Corporate segment, partially offset by higher income from operations at the Logistics segment.

Net income attributable to Janel Corporation for the three months ended March 31, 2026 totaled $717 compared to $1,440 for the three months ended March 31, 2025. Net income attributable to Janel Corporation for the six months ended March 31, 2026 totaled $1,136 compared to $2,099 for the six months ended March 31, 2025. The decrease in net income attributable to Janel Corporation for both the three and six months ended March 31, 2026 was largely due to lower income from operations at the Life Sciences and Manufacturing segments excluding Rubicon as described above, higher acquisition-related expenses in the Corporate segment, and the inclusion of the Rubicon non-controlling interest as discussed in Footnote 2 - *Acquisitions and Investments*, partially offset by higher income from operations at the Logistics segment.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income for the three months ended March 31, 2026 decreased to $2,593 from $3,014 in the prior year period. Adjusted operating income for the six months ended March 31, 2026 decreased to $4,621 from $5,055 in the prior year period. The decrease in adjusted operating income for both the three and six months ended March 31, 2026 resulted primarily from lower income from operations at the Life Sciences and Manufacturing segments excluding Rubicon as described above and higher acquisition-related expenses in the Corporate segment, partially offset by higher income from operations at the Logistics segment.

&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth a reconciliation of income from operations, the most directly comparable GAAP measure, to adjusted operating income:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations  | $1545 | $2170 | $2523 | $3379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add: Amortization of intangible assets  | 829 | 642 | 1658 | 1283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add: Stock-based compensation  | 63 | 123 | 125 | 245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Add: Cost recognized on sale of acquired inventory  | 156 | 79 | 315 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted operating income  | $2593 | $3014 | $4621 | $5055 |

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**<u>Results of Operations – Logistics – Three and Six Months Ended March 31, 2026 and 2025 (unaudited)</u>**

&nbsp;&nbsp;&nbsp;&nbsp; Our Logistics segment helps its clients move and manage freight efficiently to reduce inventories and to increase supply chain speed and reliability. Key services include freight forwarding via air, ocean and land-based carriers; customs brokerage services; warehousing and distribution services; trucking and other value-added logistics services. In addition to these revenue streams, the Logistics segment earns accessorial revenues in connection with its core services. Accessorial revenues include, but are not limited to, fuel service charges, wait time fees, hazardous cargo fees, labor charges, handling, cartage, bonding and additional labor charges.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months EndedMarch 31,** | **Three Months EndedMarch 31,** | **Six Months EndedMarch 31,** | **Six Months EndedMarch 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $51484 | $44044 | $102313 | $90130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forwarding expenses  | 37105 | 32188 | 73534 | 66896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 14379 | 11856 | 28779 | 23234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit margin  | 27.9% | 26.9% | 28.1% | 25.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses  | 10913 | 9524 | 21891 | 18892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations  | $3466 | $2332 | $6888 | $4342 |

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***Revenues***

&nbsp;&nbsp;&nbsp;&nbsp; Total revenues for the three months ended March 31, 2026 were $51,484 as compared to $44,044 for the three months ended March 31, 2025, an increase of $7,440, or 16.9%. Total revenues for the six months ended March 31, 2026 were $102,313 as compared to $90,130 for the six months ended March 31, 2025, an increase of $12,183, or 13.5%. Revenues in both periods increased due to the inclusion of revenue from acquired business, higher freight rate and higher demand as customers navigate tariff policy changes.

***Gross Profit***

&nbsp;&nbsp;&nbsp;&nbsp; Gross profit for the three months ended March 31, 2026 was $14,379, an increase of $2,523, or 21.3%, as compared to $11,856 for the three months ended March 31, 2025. Acquisitions added $1,311 to gross profit for the three months ended March 31, 2026 compared to the prior year period. Excluding the acquisitions, organic growth in gross profit increased 10.2% in the three months ended March 31, 2026 versus the prior year period. Gross profit margin as a percentage of revenues increased to 27.9% for the three months ended March 31, 2026, compared to 26.9% for the prior year period.

Gross profit for the six months ended March 31, 2026 was $28,779, an increase of $5,545, or 23.9%, as compared to $23,234 for the six months ended March 31, 2025. Acquisitions added $2,848 to gross profit for the six months ended March 31, 2026 compared to the prior year period. Excluding the acquisitions, organic growth in gross profit increased 11.6% in the six months ended March 31, 2026 compared to the prior year period. Gross profit margin increased to 28.1% compared to 25.8% in the prior year period, primarily due to improved net revenue per shipment, favorable service mix, and customer pricing increases that exceeded corresponding increases in forwarding and carrier expenses.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

***Selling, General and Administrative Expenses***

&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses for the three months ended March 31, 2026 were $10,913, as compared to $9,524 for the three months ended March 31, 2025. This increase of $1,389, or 14.6%, was mainly due to the Interlog and RW Smith acquisitions. Selling, general and administrative expenses as a percentage of revenue were 21.2% and 21.6% for the three months ended March 31, 2026 and 2025, respectively. The decrease in selling, general and administrative expenses as a percentage of revenue was due to a reduction in various expenses, including personnel costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses for the six months ended March 31, 2026 were $21,891, as compared to $18,892 for the six months ended March 31, 2025. This increase of $2,999, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15.9%, was mainly due to the Interlog and RW Smith acquisitions, partially offset by a reduction in various expenses, including personnel costs. Selling, general and administrative expenses as a percentage of revenues were 21.4% and 21.0% of revenues for the six months ended March 31, 2026 and 2025, respectively. The increase in selling, general and administrative expenses as a percentage of revenues for the six-month period was mainly due to the inclusion of personnel expenses at acquired businesses as well as increases in various operating expenses.

***Income from Operations***

&nbsp;&nbsp;&nbsp;&nbsp; Income from operations increased to $3,466 for the three months ended March 31, 2026, as compared to income from operations of $2,332 for the three months ended March 31, 2025, an increase of $1,134, or 48.6%. Operating margin as a percentage of gross profit for the three months ended March 31, 2026 was 24.1% compared to 19.7% in the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp; Income from operations increased to $6,888 for the six months ended March 31, 2026, as compared to $4,342 for the six months ended March 31, 2025, an increase of $2,546, or 58.6%. Operating margin as a percentage of gross profit for the six months ended March 31, 2026 was 23.9% compared to 18.7% in the prior year period. The increase in operating margin for the three- and six-month periods was the result of an increase in gross profit due to increased demand and a reduction in various expenses, including personnel costs.

**<u>Results of Operations – Life Sciences – Three and Six Months Ended March 31, 2026 and 2025 (unaudited)</u>**

&nbsp;&nbsp;&nbsp;&nbsp; The Company's Life Sciences segment is comprised of several wholly-owned subsidiaries. The Company's Life Sciences segment manufactures and distributes antibodies, as well as research and diagnostic reagents for, and provides custom services to academic, non-profit and commercial customers.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $3401 | $4166 | $6805 | $7149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales  | 466 | 717 | 887 | 1098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost recognized upon sale of acquired inventory  | 156 | 79 | 315 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 2779 | 3370 | 5603 | 5903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit margin  | 81.7% | 80.9% | 82.3% | 82.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses  | 2306 | 1918 | 4792 | 3917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations  | $473 | $1452 | $811 | $1986 |

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***Revenues***

&nbsp;&nbsp;&nbsp;&nbsp; Total revenues were $3,401 and $4,166 for the three months ended March 31, 2026 and 2025, respectively, reflecting a decrease of $765, or 18.4%, primarily due to decreased market driven demand and timing of orders from commercial customers.

&nbsp;&nbsp;&nbsp;&nbsp; Total revenues were $6,805 and $7,149 for the six months ended March 31, 2026 and 2025, respectively, reflecting a decrease of $344, or 4.8%, primarily due to timing of orders from commercial customers.

***Gross Profit***

&nbsp;&nbsp;&nbsp;&nbsp; Gross profit was $2,779 and $3,370 for the three months ended March 31, 2026 and 2025, respectively, a decrease of $591, or 17.5%. During the three months ended March 31, 2026 and 2025, gross profit margin was 81.7% and 80.9%, respectively, primarily due to favorable product mix.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

&nbsp;&nbsp;&nbsp;&nbsp; Gross profit was $5,603 and $5,903 for the six months ended March 31, 2026 and 2025, respectively, a decrease of $300, or 5.1%. During the six months ended March 31, 2026 and 2025, gross profit margin was 82.3% and 82.6%, respectively. Gross profit margin decreased slightly as favorable product mix changes was offset by higher input costs.

***Selling, General and Administrative Expenses***

&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses for the Life Sciences segment were $2,306 and $1,918 for the three months ended March 31, 2026 and 2025, respectively. Selling, general and administrative expenses were $4,792 and $3,917 for the six months ended March 31, 2026 and 2025, respectively. The year-over-year increases for both periods were largely due to additional expenses from acquired businesses and higher supply costs.

***Income from Operations***

&nbsp;&nbsp;&nbsp;&nbsp; Income from operations for the three months ended March 31, 2026 and 2025 was $473 and $1,452, respectively, a decrease of $979, or 67.4%. Income from operations for the six months ended March 31, 2026 and 2025 was $811 and $1,986, respectively, a decrease of $1,175, or 59.2%. Both periods were negatively impacted by decreases in sales volume and increased operating expenses.

**<u>Results of Operations - Manufacturing – Three and Six Months Ended March 31, 2026 and 2025</u>**

&nbsp;&nbsp;&nbsp;&nbsp; The Company's Manufacturing segment consists of Indco and Rubicon. Indco produces and distributes specialized mixing equipment to a diverse customer base across various industries. Rubicon is a U.S.-based distributor of monocrystalline sapphire for applications in optical and industrial systems. Rubicon sells its products on a global basis to customers in North America, Europe and Asia.

&nbsp;&nbsp;&nbsp;&nbsp; The six months ended March 31, 2025 include only Indco operations, while the six months ended March 31, 2026 amounts include Rubicon balances from October 14, 2025 (the date of majority ownership) through March 31, 2026. See Note 2, Acquisitions and Investments, to our condensed consolidated financial statements.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues  | $2559 | $2521 | $4365 | $4806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales  | 1149 | 1176 | 2062 | 2230 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit  | 1410 | 1345 | 2303 | 2576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit margin  | 55.1% | 53.4% | 52.8% | 53.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses  | 841 | 802 | 1773 | 1743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from operations  | $569 | $543 | $530 | $833 |

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***Revenues***

&nbsp;&nbsp;&nbsp;&nbsp; Total revenues were $2,559 and $2,521 for the three months ended March 31, 2026 and 2025, respectively, an increase of $38, or 1.5%. Total revenues were $4,365 and $4,806 for the six months ended March 31, 2026 and 2025, respectively, a decrease of $441, or 9.2%. The increase in total revenues for the three months ended March 31, 2026 was primarily a result of the inclusion of Rubicon in the Manufacturing segment. The decrease in total revenues for the six months ended March 31, 2026 was largely reflective of the lower sales volume recorded in the first three months at Indco.

***Gross Profit***

&nbsp;&nbsp;&nbsp;&nbsp; Gross profit was $1,410 and $1,345 for the three months ended March 31, 2026 and 2025, respectively, an increase of $65, or 4.8%, primarily due to increased manufactured product sales from Indco. Gross profit margin for the three months ended March 31, 2026 and 2025 was 55.1% and 53.4%, respectively. Gross profit was $2,303 and $2,576 for the six months ended March 31, 2026 and 2025, respectively, a decrease of $273, or 10.6%, predominantly as a result of a negative product mix variance and a decrease in sales volume. Gross profit margin for the six months ended March 31, 2026 and 2025 was 52.8% and 53.6%, respectively.

***Selling, General and Administrative Expenses***

Selling, general and administrative expenses were $841 and $802 for the three months ended March 31, 2026 and 2025, respectively, an increase of $39, or 4.9%. Selling, general and administrative expenses were $1,773 and $1,743 for the six months ended March 31, 2026 and 2025, respectively, an increase of $30, or 1.7%. The increase in selling, general, and administrative expenses for both periods was driven by the inclusion of Rubicon in the Manufacturing segment.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

***Income from Operations***

Income from operations was $569 for the three months ended March 31, 2026 compared to $543 for the three months ended March 31, 2025, representing a 4.8% increase, primarily due to inclusion of Rubicon Worldwide revenue. Income from operations was $530 for the six months ended March 31, 2026 compared to $833 for the six months ended March 31, 2025, representing a 36.4% decrease from the prior year period, primarily due to increased selling, general, and administrative expenses and decreased revenues.

**<u>Results of Operations – Corporate and Other – Three and Six Months Ended March 31, 2026 and 2025 (unaudited)</u>**

&nbsp;&nbsp;&nbsp;&nbsp; Below is a reconciliation of income from operating segments to net income available to common stockholders.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| **Total income from operating segments**  | $4508 | $4327 | $8229 | $7161 |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate expenses  | (2071) | (1393) | (3923) | (2254) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets  | (829) | (642) | (1658) | (1283) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation - Corporate  | (63) | (122) | (125) | (245) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total corporate expenses  | (2963) | (2157) | (5706) | (3782) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense  | (410) | (560) | (715) | (1226) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on consolidation of acquisition  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 849 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other (expense) income, net  | 66 | 245 | (311) | 559 |
| **Net income before taxes**  | **1201** | **1855** | **2346** | **2712** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax expense  | (202) | (415) | (647) | (613) |
| **Net income**  | $**999** | $**1440** | $**1699** | $**2099** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income attributable to noncontrolling interests  | (282) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (563) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
| **Net income attributable to Janel Corporation stockholders**  | $**717** | $**1440** | $**1136** | $**2099** |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends  | (112) | (108) | (212) | (194) |
| &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest dividends  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (243) |
| **Net income available to common stockholders**  | $**605** | $**1332** | $**924** | $**1662** |

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***Total Corporate Expenses***

Total Corporate expenses, which include amortization of intangible assets, stock-based compensation - Corporate and merger and acquisition expenses, increased by $806, or 37.4%, to $2,963 for the three months ended March 31, 2026 as compared to $2,157 for the three months ended March 31, 2025. Total Corporate expenses increased by $1,924, or 50.9%, to $5,706 for the six months ended March 31, 2026 as compared to $3,782 for the six months ended March 31, 2025. The increase in total corporate expenses in both periods was primarily due to higher acquisition-related operating expenses and amortization of intangible assets. We incur merger and acquisition deal-related expenses and intangible amortization at the Corporate level rather than at the segment level.

***Interest Expense***

&nbsp;&nbsp;&nbsp;&nbsp; Interest expense for the consolidated company decreased $150, or 26.8%, to $410 for the three months ended March 31, 2026 from $560 for the three months ended March 31, 2025. Interest expense for the consolidated company decreased by $511, or 41.7%, to $715 for the six months ended March 31, 2026 from $1,226 for the six months ended March 31, 2025. The decrease was primarily due to lower average revolving debt balances and lower interest rates.

***Gain on Consolidation of Acquisition***

For the six months ended March 31, 2026, we recognized a gain of $849 in connection with the acquisition of Rubicon on October 14, 2025. See Note 2, Acquisitions and Investments, to our condensed consolidated financial statements.

***Other (Expense) Income, Net***

&nbsp;&nbsp;&nbsp;&nbsp; Other (expense) income, net decreased $179, or 73.1%, to $66 for the three months ended March 31, 2026 due to the absence of the prior-year unrealized gain on marketable securities from Rubicon, as Rubicon was consolidated in October of 2026 following its acquisition. Other (expense) income, net decreased $870, or 155.6%, to $(311) for the six months ended March 31, 2026 due to the write-off of unamortized loan fees of $445 as a result of debt that resulted in an extinguishment and the absence of the prior-year unrealized gain on marketable securities from Rubicon.

***Income Tax Expense***

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

&nbsp;&nbsp;&nbsp;&nbsp; On a consolidated basis, the Company recorded an income tax expense of $202 for the three months ended March 31, 2026, as compared to an income tax expense of $415 for the three months ended March 31, 2025. The decrease in expense was primarily due to a decrease in net income before taxes. On a consolidated basis, the Company recorded an income tax expense of $647 for the six months ended March 31, 2026, as compared to an income tax expense of $613 for the six months ended March 31, 2025. The increase in expense was primarily due to changes in the composition of the tax provision.

***Consolidated Net Income***

&nbsp;&nbsp;&nbsp;&nbsp; Consolidated net income was $999, or $0.83 per diluted share, for the three months ended March 31, 2026 compared to consolidated net income of $1,440, or $1.19 per diluted share, for the three months ended March 31, 2025. Consolidated net income was $1,699, or $1.40 per diluted share, for the six months ended March 31, 2026 compared to consolidated net income of $2,099, or $1.74 per diluted share, for the six months ended March 31, 2025. The decrease in Consolidated net income for the three and six months ended March 31, 2026 was largely due to lower income from operations at the Life Sciences and Manufacturing segments excluding Rubicon and higher professional service expenses in the Corporate segment, partially offset by higher income from operations at the Logistics segment.

***Preferred Stock Dividends***

&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock dividends include any dividends accrued on the Company's Series C Cumulative Preferred Stock (the "Series C Preferred Stock"). For the three months ended March 31, 2026 and 2025, preferred stock dividends were $112 and $108, respectively. For the six months ended March 31, 2026 and 2025, preferred stock dividends were $212 and $194, respectively.

***Net Income Available to Common Stockholders***

Net income available to holders of Common Stock was $605, or $0.50 per diluted share, for the three months ended March 31, 2026 compared to net income available to holders of Common Stock of $1,332, or $1.10 per diluted share, for the three months ended March 31, 2025. Net income available to holders of Common Stock was $924, or $0.76 per diluted share, for the six months ended March 31, 2026 compared to net income available to holders of Common Stock of $1,662, or $1.38 per diluted share, for the six months ended March 31, 2025. The decrease in net income available to holders of Common Stock for the three and six months ended March 31, 2026 was largely due to the inclusion of the Rubicon non-controlling interest as discussed in Footnote 2 - *Acquisitions and Investments*, lower income from operations at the Life Sciences and Manufacturing segments excluding Rubicon and higher professional service expenses in the Corporate segment, partially offset by higher income from operations at the Logistics segment.

**LIQUIDITY AND CAPITAL RESOURCES**

**<u>General</u>**

&nbsp;&nbsp;&nbsp;&nbsp; Our ability to satisfy liquidity requirements—including meeting debt obligations and funding working capital, day-to-day operating expenses, and capital expenditures—depends upon future performance, which is subject to general economic conditions, competition and other factors, some of which are beyond our control. Our Logistics segment depends on commercial credit facilities to fund day-to-day operations as there is a difference between the timing of collection cycles and the timing of payments to vendors.

&nbsp;&nbsp;&nbsp;&nbsp; As a customs broker, our Logistics segment makes significant cash advances for a select group of our credit-worthy customers. These cash advances are for customer obligations such as the payment of duties and taxes to customs authorities primarily in the United States. Increases in duty rates could result in increases in the amounts we advance on behalf of our customers. Cash advances are a "pass through" and are not recorded as a component of revenues and expenses. The billings of such advances to customers are accounted for as a direct increase in accounts receivable from the customer and a corresponding increase in accounts payable to governmental customs authorities. These "pass through" billings may influence our traditional credit collection metrics.

&nbsp;&nbsp;&nbsp;&nbsp; For customers that meet certain criteria, we have agreed to extend payment terms beyond our customary terms. Management believes their systematic criteria used to evaluate which customers to provide extended payment terms to are appropriate and has historically experienced relatively insignificant collection problems. Generally, we do not make significant capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp; Our cash flow performance for second fiscal quarter of fiscal year 2026 is not necessarily indicative of future cash flow performance.

***Cash flows from operating activities***

Net cash provided by (used in) operating activities was $(9,696) for the six months ended March 31, 2026, versus $7,067 operating activities for the six months ended March 31, 2025. The decrease in cash provided by operations for the six months ended March 31, 2026 compared to the prior year period was primarily due to the changes in timing of duty collections and payments within our Logistics segment.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

***Cash flows from investing activities***

Net cash provided by (used in) investing activities totaled $(933) for the six months ended March 31, 2026, versus $(635) for the six months ended March 31, 2025. The change in net cash used in investing activities was primarily due to the purchase of the remaining 20% of the outstanding common stock of Biosensis.

***Cash flows from financing activities***

Net cash provided by (used in) financing activities was $7,374 for the six months ended March 31, 2026, versus $(5,159) for the six months ended March 31, 2025. The change in net cash used in financing activities was primarily due to proceeds from the lines of credit, the conversion and extinguishment of the acquisition loan into the term loan, dividends paid to preferred stockholders, earnout payments, and dividends paid to non-controlling interest.

**Off-Balance Sheet Arrangements**

&nbsp;&nbsp;&nbsp;&nbsp; As of March 31, 2026, we had no off-balance sheet arrangements or obligations.

**ITEM 3.**

**QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK**

&nbsp;&nbsp;&nbsp;&nbsp; We are exposed to market risks in the ordinary course of business. These risks are primarily related to interest rate risks on our Revolving Credit Facility. For every $1,000 outstanding on our Revolving Credit Facility, we will incur approximately $61 of interest expense. For every 1.0% increase in interest rates, our interest expense per $1,000 in borrowings will increase by approximately $10.

**ITEM 4.**

**CONTROLS AND PROCEDURES**

&nbsp;&nbsp;&nbsp;&nbsp; The Company maintains disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the specified time periods, and that such information is accumulated and communicated to management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

&nbsp;&nbsp;&nbsp;&nbsp; Our management, with the participation of our Principal Executive Officer and our Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of March 31, 2026, the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Principal Executive Officer and our Principal Financial Officer have concluded that as of March 31, 2026, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

&nbsp;&nbsp;&nbsp;&nbsp; There has been no change in the Company's overall internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**PART II - OTHER INFORMATION**

**ITEM 1.**

**LEGAL PROCEEDINGS**

&nbsp;&nbsp;&nbsp;&nbsp; Janel is occasionally subject to claims and lawsuits which typically arise in the normal course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on the Company's business, results of operations, financial condition or cash flows.

**ITEM 1A.**

**RISK FACTORS**

&nbsp;&nbsp;&nbsp;&nbsp; For a discussion of the Company's potential risks or uncertainties, please see "Part I—Item 1A—Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. There have been no material changes to the risk factors disclosed in Part I—Item 1A of the Company's 2025 Annual Report.

**ITEM 2.**

**UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

&nbsp;&nbsp;&nbsp;&nbsp; There were no unregistered sales of equity securities during the three and six months ended March 31, 2026. In addition, there were no shares of Common Stock purchased by us during the three and six months ended March 31, 2026.

**ITEM 6.**

**EXHIBIT INDEX**

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| | |
|:---|:---|
| [3.1](ef20070505_ex3-1.htm) | Certificate of Incorporation of Janel Corporation and Janel Corporation Charter (filed herewith). |
| [10.1](ef20070505_ex10-1.htm) | First Amendment to Credit Agreement, dated as of April 7, 2026, by and among Santander Bank, N.A. as lender, and Janel Corporation as a borrower (filed herewith). |
| [31.1](ef20070505_ex31-1.htm) | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer (filed herewith). |
| [31.2](ef20070505_ex31-2.htm) | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer (filed herewith). |
| [32.1](ef20070505_ex32-1.htm) | Section 1350 Certification of Principal Executive Officer (filed herewith). |
| [32.2](ef20070505_ex32-2.htm) | Section 1350 Certification of Chief Financial Officer (filed herewith). |
| 101 | Interactive data files providing financial information from the Company's Quarterly Report on Form 10-Q for the three and six months ended March 31, 2026 and 2025 in Inline XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Balance Sheets as of March 31, 2026 and September 30, 2025, (ii) Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2026 and 2025, (iii) Condensed Consolidated Statement of Changes in Stockholders' Equity for the three and six months March 31, 2026 and 2025, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2026 and 2025, and (v) Notes to Condensed Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibit 101) (filed herewith). |

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*[**Table of Contents**](#TABLE_OF_CONTENTS)*

**SIGNATURES**

&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dated: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; JANEL CORPORATION  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant)  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman, President and Chief Executive Officer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (*Principal Executive Officer)*  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dated: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer, Treasurer and Secretary<br>(*Principal Executive Officer)*<br>|

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## Exhibit 3.1

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**Exhibit 3.1**

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| | | | |
|:---|:---|:---|:---|
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img002_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img002_v1.jpg) | &nbsp;&nbsp;Business Number<br>&nbsp;&nbsp;**C23576-2000** |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img002_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img002_v1.jpg) | &nbsp;&nbsp;Filing Number<br>&nbsp;&nbsp;**20255214368** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**10/1/2025 10:50:00 AM** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**14** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |

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| |
|:---|
| **<u>Profit Corporation:</u>** |
| **Certificate of Amendment** (PURSUANT TO NRS 78.380 & 78.385/78.390) |
| **Certificate to Accompany Restated Articles or Amended and** |
| **Restated Articles** (PURSUANT TO NRS 78.403) |
| **Officer's Statement** (PURSUANT TO NRS 80.030)  |

---

**TYPE OR PRINT - USE DARK INK ONLY - DO NOT HIGHLIGHT** 

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| | | |
|:---|:---|:---|
| **1. Entity information:** | Name of entity as on file with the Nevada Secretary of State: | Name of entity as on file with the Nevada Secretary of State: |
|  | Janel Corporation | Janel Corporation |
|  | Entity or Nevada Business Identification Number (NVID): | NV20001405510 |

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| | |
|:---|:---|
| **2. Restated or** | ☐ Certificate to Accompany Restated Articles or Amended and Restated Articles |
| **Amended and<br> Restated Articles:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Restated Articles - No amendments; articles are restated only and are signed by an officer of the corporation who has been authorized to execute the certificate by resolution of the board of directors |
| (Select one) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adopted on: |
| (If <u>amending and</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certificate correctly sets forth the text of the articles or certificate as amended to the date of the certificate. |
| <u>restating only</u>, complete | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Amended and Restated Articles |
| section 1, 2, 3, 5 and 6) | \* Restated or Amended and Restated Articles must be included with this filing type. |

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| | |
|:---|:---|
| **3. Type of<br> Amendment Filing<br> Being Completed:**<br> (Select only one box)<br>(If amending, complete<br> section 1, 3, 5 and 6.) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐ Certificate of Amendment to Articles of Incorporation (Pursuant to NRS 78.380 - Before Issuance of Stock)<br>The undersigned declare that they constitute at least two-thirds of the following:<br> (Check only one box) ☐ incorporators ☐ board of directors<br>The undersigned affirmatively declare that to the date of this certificate, no stock of the corporation has been issued |

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| | |
|:---|:---|
|  ☒ Certificate of Amendment to Articles of Incorporation (Pursuant to NRS 78.385 and 78.390 - After Issuance of Stock) | ☒ Certificate of Amendment to Articles of Incorporation (Pursuant to NRS 78.385 and 78.390 - After Issuance of Stock) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The vote by which the stockholders holding shares in the corporation entitling them to exercise at least a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, or as may be required by the provisions of the articles of incorporation\* have voted in favor of the amendment is: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The vote by which the stockholders holding shares in the corporation entitling them to exercise at least a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, or as may be required by the provisions of the articles of incorporation\* have voted in favor of the amendment is: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;74.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Or ☐ No action by stockholders is required, name change only. |  |

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| | | |
|:---|:---|:---|
| ☐ Officer's Statement (foreign qualified entities only) - | ☐ Officer's Statement (foreign qualified entities only) - | ☐ Officer's Statement (foreign qualified entities only) - |
|  | Name in home state, if using a modified name in Nevada: | Name in home state, if using a modified name in Nevada: |
|  | Jurisdiction of formation: | |
|  | Changes to takes the following effect: | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The entity name has been amended. | ☐ Dissolution |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The purpose of the entity has been amended. | ☐ Merger |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The authorized shares have been amended. | ☐ Conversion |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Other: (specify changes) | |
| &nbsp;&nbsp;\* Officer's Statement must be submitted with either a certified copy of or a certificate evidencing the filing of any document, amendatory or otherwise, relating to the original articles in the place of the corporations creation. | &nbsp;&nbsp;\* Officer's Statement must be submitted with either a certified copy of or a certificate evidencing the filing of any document, amendatory or otherwise, relating to the original articles in the place of the corporations creation. | &nbsp;&nbsp;\* Officer's Statement must be submitted with either a certified copy of or a certificate evidencing the filing of any document, amendatory or otherwise, relating to the original articles in the place of the corporations creation. |

---

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| | |
|:---|:---|
| This form must be accompanied by appropriate fees. | **Page 1 of 2** |
|  | **Revised: 9/1/2023** |

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------

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| | |
|:---|:---|
| ![](img001_v1.jpg) | &nbsp;&nbsp;&nbsp;**FRANCISCO V. AGUILAR<br> Secretary of State<br> 401 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |

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| |
|:---|
| **Profit Corporation:** |
| **Certificate of Amendment** (PURSUANT TO NRS 78.380 & 78.385/78.390) |
| **Certificate to Accompany Restated Articles or Amended and** |
| **Restated Articles** (PURSUANT TO NRS 78.403) |
| **Officer's Statement** (PURSUANT TO NRS 80.030) |

---

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| | | |
|:---|:---|:---|
| **4. Effective Date and Time:**<br> (Optional) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time: |
| | (must not be later than 90 days after the certificate is filed) | (must not be later than 90 days after the certificate is filed) |

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| | |
|:---|:---|
| **5. Information Being Changed:**<br> (Domestic corporations only) | Changes to takes the following effect: |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The entity name has been amended. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The registered agent has been changed. (attach Certificate of Acceptance from new registered agent) |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The purpose of the entity has been amended. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The authorized shares have been amended. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ The directors, managers or general partners have been amended. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ IRS tax language has been added. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ Articles have been added. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Articles have been deleted. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Other. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The articles have been amended as follows: (provide article numbers, if available) |
| **5. Information Being Changed:**<br> (Domestic corporations only) | Adding Article 12 attached hereto. |
| **5. Information Being Changed:**<br> (Domestic corporations only) | (attach additional page(s) if necessary) |

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| | | | | |
|:---|:---|:---|:---|:---|
| **6. Signature:**<br> (Required) |  |  | ![](img003_v1.jpg) |  |
|  | &nbsp;&nbsp;**X** | /s/ | ![](img003_v1.jpg) | Chief Executive Officer |
|  |  | Signature of Officer or Authorized Signer | Signature of Officer or Authorized Signer | Title |
|  |  |  | ![](img004_v1.jpg) |  |
|  | &nbsp;&nbsp;**X** | /s/ | ![](img004_v1.jpg) | Chief Financial Officer |
|  |  | Signature of Officer or Authorized Signer | Signature of Officer or Authorized Signer | Title |
|  | &nbsp;&nbsp;\*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless to limitations or restrictions on the voting power thereof. | &nbsp;&nbsp;\*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless to limitations or restrictions on the voting power thereof. | &nbsp;&nbsp;\*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless to limitations or restrictions on the voting power thereof. | &nbsp;&nbsp;\*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless to limitations or restrictions on the voting power thereof. |

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| |
|:---|
| **Please include any required or optional information in space below:** |
| (attach additional page(s) if necessary) |

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| | |
|:---|:---|
| This form must be accompanied by appropriate fees. | **Page 2 of 2<br> Revised: 9/1/2023** |

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ARTICLE 12: <u>PROTECTION OF TAX BENEFITS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following capitalized terms have the following meanings when used in this Article 12 with initial capital letters (and any references to any portions of Treas. Reg. § 1.382-2T shall include any successor provisions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Agent" has the meaning set forth in Article 12(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Affiliate" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Associate" means, when used to indicate a relationship with any Person, (a) any corporation or organization of which such Person is a director, officer, member or partner or is, directly or indirectly, the owner of 20% or more of any class of voting stock or other voting interest; (b) any trust or other estate in which such Person has at least a 20% beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity; and (c) any relative or spouse of such Person, or any relative of such spouse, who has the same principal residence as such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Code" means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Derivatives Contract" means a contract between two parties (the "Receiving Party" and the "Counterparty") that is designed to produce economic benefits and risks to the Receiving Party that correspond substantially to the ownership by the Receiving Party of a number of units of Stock specified or referenced in such contract (the number corresponding to such economic benefits and risks, the "Notional Units"), regardless of whether obligations under such contract are required or permitted to be settled through the delivery of cash, Stock or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance of doubt, interests in broad-based index options, broad-based index futures and broad-based publicly traded market baskets of stocks approved for trading by the appropriate federal governmental authority shall not be deemed "Derivatives Contracts."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "Effective Date" means the date the certificate of amendment seeking to add this Article 12 to the Corporation's Amended and Restated Articles of Incorporation is filed with the Nevada Secretary of State, pursuant to NRS 78.385 and 78.390.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "Equity Instrument" means each of (A) any Stock of the Corporation and (B) any warrant, right, or option (including, but not limited to, any option within the meaning Treas. Reg. § 1.382-2T(h)(4)(v) or Treas. Reg. § 1.382-4(d)(9)) to purchase Stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "Excess Security" means any Equity Instrument that, in whole or in part and/or together with one or more other Equity Instruments, gives rise to or is otherwise the subject of (or, but for the application of this Article 12, would give rise to or otherwise would be the subject of) a Prohibited Transfer. If an Equity Instrument becomes an Excess Security, in whole or in part, as a result of a Person's Percentage Subsidiary Ownership in a Subsidiary, such Equity Instrument shall remain and continue to be treated as an Excess Security, without regard to any concurrent or subsequent reduction in such Person's Percentage Subsidiary Ownership of the Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "Expiration Date" means the earliest of (A) the start of business on December 31, 2028, (B) the repeal of Section 382 of the Code or any successor statute if the Board of Directors determines that this Article 12 is no longer necessary or desirable for the preservation of any Tax Benefits, (C) the close of business on the first day of a taxable year of the Corporation as to which the Board of Directors determines that no Tax Benefits may be carried forward or (D) such date as the Board of Directors shall fix in accordance with Article 12(m).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Grandfathered Owner" means any Person, together with all of its Affiliates and Associates, whose Percentage Ownership, as of the Effective Date, equals or exceeds the applicable Ownership Limit due to the application of the proviso in Article 12(a)(xxv). A Person shall cease to be a "Grandfathered Owner" if and when (1) such Person's Percentage Ownership falls below the Ownership Limit; or (2) such Person increases or decreases its Percentage Ownership. For the avoidance of doubt, a Person shall not be a Grandfathered Owner if such Person's Percentage Ownership, as determined solely by the direct, indirect and constructive ownership provisions of Section 382 of the Code and the Treasury Regulations thereunder, equals or exceeds the applicable Ownership Limit as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) "Grandfathered Subsidiary Owner" means any Person, together with all of its Affiliates and Associates, whose Percentage Subsidiary Ownership, as of the Effective Date, equals or exceeds the applicable Ownership Limit due to the application of the proviso in Article 12(a)(xxv). A Person shall cease to be a "Grandfathered Subsidiary Owner" if and when (1) such Person's Percentage Subsidiary Ownership falls below the Ownership Limit; or (2) such Person increases or decreases its Percentage Subsidiary Ownership. For the avoidance of doubt, a Person shall not be a Grandfathered Subsidiary Owner if such Person's Percentage Subsidiary Ownership, as determined solely by the direct, indirect and constructive ownership provisions of Section 382 of the Code and the Treasury Regulations thereunder, equals or exceeds the applicable Ownership Limit as of the Effective Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) "NRS" means the Nevada Revised Statutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) "Ownership Limit" means, as determined with respect to a Person from time to time, (A) in the case of a Subsidiary, 5% of all interests that are treated as a direct or indirect ownership interest pursuant to Treas. Regs. § 1.382-2T(f)(8) or (15) and (B) in the case of the Corporation, 5%, or, if and for so long as such Person has any Percentage Subsidiary Ownership (as determined from time to time) in any Subsidiary, such lesser percentage such that, after taking into account such Person's Percentage Subsidiary Ownership of any Subsidiary, such Person would not be a Prohibited Subsidiary Owner with respect to any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) "Percentage Ownership" means, as determined with respect to the Corporation from time to time, the Stock Ownership of any Person in the Corporation, as determined to yield the maximum percentage under Section 382 of the Code and Treasury Regulations issued thereunder (including, but not limited to, Treas. Regs. § 1.382-2T(g), (h), (j) and (k) and Treas. Reg. § 1.382-4) and any other applicable administrative or judicial authority, all as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) "Percentage Subsidiary Ownership" means, as determined with respect to any Subsidiary from time to time, the Stock Ownership of any Person in the Subsidiary, as determined to yield the maximum percentage under Section 382 of the Code and Treasury Regulations issued thereunder (including, but not limited to, Treas. Regs. § 1.382-2T(g), (h), (j) and (k) and Treas. Reg. § 1.382-4) and any other applicable administrative or judicial authority, all as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) "Person" means any individual, partnership, joint venture, limited liability company, firm, corporation, unincorporated association or organization, trust or any group of any of the foregoing having a formal or informal understanding among themselves to make a "coordinated acquisition" of Equity Instruments, Stock of a Subsidiary or Stock of the Corporation within the meaning of Treas. Reg. § 1.382-3(a)(1) or who are otherwise treated as an "entity" within the meaning of Treas. Reg. § 1.382-3(a)(1) and any successor (by merger or otherwise) of any such entity or group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) "Prohibited Distributions" means any and all distributions paid by the Corporation with respect to any Excess Securities received by a Purported Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) "Prohibited Owner" means, in the case of the Corporation, a Person whose Percentage Ownership, as a result of any Transfer, equals or exceeds or, but for the application of this Article 12, would equal or exceed the Ownership Limit applicable to the Corporation in the case of such Person, but shall not include any Grandfathered Owner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) "Prohibited Subsidiary Owner" means, in the case of any Subsidiary, a Person whose Percentage Subsidiary Ownership, as a result of any Transfer, equals or exceeds or, but for the application of this Article 12, would equal or exceed the Ownership Limit applicable to the Subsidiary in the case of such Person, but shall not include any Grandfathered Subsidiary Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "Prohibited Transfer" means any Transfer or purported Transfer of Equity Instruments to the extent that such Transfer is or would be prohibited and/or void under this Article 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) "Public Group" has the meaning set forth in Treas. Reg. § 1.382-2T(f)(13).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) "Purported Transferee" has the meaning set forth in Article 12(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) "Remedial Holder" has the meaning set forth in Article 12(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) "Stock" means (A) in the case of any Subsidiary, any interest that would be treated as "stock" of a Subsidiary pursuant to Treas. Reg. § 1.382-2T(f)(18) and any interest that would be treated as a direct or indirect ownership interest pursuant to Treas. Regs. § 1.382-2T(f)(8) or (15) and (B) in the case of the Corporation, any Equity Instrument or other interest in the Corporation that would be treated as "stock" of the Corporation pursuant to Treas. Reg. § 1.382-2T(f)(18) and any interest that would be treated as a direct or indirect ownership interest pursuant to Treas. Regs. § 1.382-2T(f)(8) or (15) had such Equity Instrument or other interest been originally issued by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) "Stock Ownership" means any direct or indirect ownership of Stock of the Corporation or of any Subsidiary, including any ownership by virtue of application of constructive ownership rules, with such direct, indirect and constructive ownership determined under the provisions of Section 382 of the Code and the Treasury Regulations thereunder, including, for the avoidance of doubt, any ownership whereby a Person owns Stock pursuant to a "coordinated acquisition" treated as a single "entity" as defined in Treas. Reg. § 1.382-3(a)(1), or such Stock is otherwise aggregated with Stock owned by such Person pursuant to the provisions of Section 382 of the Code and the Treasury Regulations thereunder, provided that in the event that such Person, or any Associate or Affiliate of such Person, is a Receiving Party to any Derivatives Contract with respect to Stock (without regard to any short or similar position under the same or any other Derivatives Contract), such Person shall be treated as owning an amount of Stock equal to the number of Notional Units with respect to such Derivatives Contract.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi) "Subsidiary" means, as determined from time to time, a corporation or other entity taxable as a corporation for U.S. federal income tax purposes in which the Corporation has any Stock Ownership, regardless of whether such corporation or other entity has Tax Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) "Tax Benefits" means, as may be determined with respect to any Subsidiary from time to time, the net operating loss carryforwards, Section 163(j) of the Code interest limitation carryforwards, capital loss carryforwards, general business credit carryforwards, alternative minimum tax credit carryforwards and foreign tax credit carryforwards, as well as any loss or deduction attributable to a "net unrealized built-in loss" of such Subsidiary, as well as any loss or deduction attributable to a "recognized unrealized built-in loss", each within the meaning of Section 382 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) "Transfer" means (A) whether direct or indirect, any transfer, sale, assignment, issuance, redemption, gift, bequest, pledge, lien, mortgage or other encumbrance or disposition (irrespective of whether any of the foregoing is effected voluntarily, by operation of law or otherwise, or whether inter vivos or upon death) of an Equity Instrument (including, but not limited to, Stock that is an Excess Security), or (B) any other event, occurrence, action or circumstance taken or caused by a Person (other than the Corporation or a Subsidiary) that alters the Percentage Ownership or Percentage Subsidiary Ownership of any Person. A Transfer also shall include (1) entering into a Derivatives Contract or (2) the creation or grant of an option (including an option within the meaning of Treas. Reg. § 1.382-4(d)). For the avoidance of doubt, a Transfer shall not include the creation or grant of an option by the Corporation, nor shall a Transfer include the issuance of Equity Instruments by the Corporation (unless such creation or grant of an option by the Corporation is treated as the issuance of Stock pursuant to Treas. Reg. § 1.382-4(d)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) "Transferee" means any transferee in a Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "Treasury Regulations" or "Treas. Reg." means the regulations, including temporary regulations or any successor regulations, promulgated under the Code, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after the Effective Date of this Article 12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Transfer or attempted Transfer with respect to an Equity Instrument prior to the Expiration Date and any Transfer or attempted Transfer with respect to an Equity Instrument pursuant to an agreement entered into prior to the Expiration Date shall be prohibited and shall be void ab initio if and to the extent that, as a result of such Transfer or attempted Transfer (or any series of related Transfers or attempted Transfers): (A) any Person would become a Prohibited Owner or Prohibited Subsidiary Owner; (B) the Percentage Ownership (as determined immediately prior to any such Transfer or attempted Transfer (or to the start of any series of related Transfers or attempted Transfers)) of any Grandfathered Owner would be increased or decreased; or (C) the Percentage Subsidiary Ownership (as determined immediately prior to any such Transfer or attempted Transfer (or to the start of any series of related Transfers or attempted Transfers)) of any Grandfathered Subsidiary Owner would be increased or decreased. The prior sentence is not intended to prevent Equity Instruments from being DTC-eligible and shall not preclude the settlement of any transaction in Equity Instruments entered into through the facilities of a national securities exchange; provided, however, that the Equity Instruments and parties involved in such transaction shall remain subject to the provisions of this Article 12 in respect of such transaction. For the avoidance of doubt, "DTC" means the Depository Trust Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any Derivatives Contract entered into prior to the Expiration Date that constitutes a Transfer or attempted Transfer shall be terminated within three (3) Business Days if and to the extent that, as a result of such Transfer or attempted Transfer (or any series of related Transfers or attempted Transfers): (A) any Person would become a Prohibited Owner or Prohibited Subsidiary Owner; (B) the Percentage Ownership (as determined immediately prior to any such Transfer or attempted Transfer (or to the start of any series of related Transfers or attempted Transfers)) of any Grandfathered Owner would be increased or decreased; or (C) the Percentage Subsidiary Ownership (as determined immediately prior to any such Transfer or attempted Transfer (or to the start of any series of related Transfers or attempted Transfers)) of any Grandfathered Subsidiary Owner would be increased or decreased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein, the restrictions set forth in Article 12(b) shall not apply to an attempted Transfer that would otherwise be a Prohibited Transfer if the transferor or the Transferee obtains the written approval of the Board of Directors or a duly authorized committee thereof.

As a condition to granting its approval pursuant to this Article 12(c), the Board of Directors may, in its discretion, require (at the expense of the transferor and/or Transferee) an opinion of counsel selected by the Board of Directors that the Transfer shall not result in a limitation on the use of any Tax Benefits as a result of the application of Section 382 of the Code; provided that the Board of Directors may grant such approval notwithstanding the effect of such approval on such Tax Benefits if it determines that the approval is in the best interests of the Corporation. The Board of Directors may grant its approval in whole or in part with respect to such Transfer and may impose any conditions that it deems reasonable and appropriate in connection with such approval, including, without limitation, restrictions on the ability of any Transferee to Transfer Equity Instruments acquired through a Transfer. Approvals of the Board of Directors hereunder may be given prospectively or retroactively. The Board of Directors, to the fullest extent permitted by law, may exercise the authority granted by this Article 12 through the Corporation's duly authorized officers or agents. Nothing in this Article 12(c) shall be construed to limit or restrict the Board of Directors in the exercise of its fiduciary duties under applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No employee or agent of the Corporation shall record any Prohibited Transfer, and the purported transferee of such a Prohibited Transfer (the "Purported Transferee") shall not be recognized for any purpose as the owner of any Excess Security or as a stockholder of the Corporation for any purpose in respect of any Excess Security. The Purported Transferee shall not be entitled, with respect to any Excess Security, to any rights of a stockholder of the Corporation, whether liquidating or otherwise, in respect thereof, if any, and ownership of the Excess Security shall be deemed to remain with the transferor unless and until the Excess Security is transferred to the Agent pursuant to Article 12(e) or until an approval is obtained under Article 12(c). After an Equity Instrument that is an Excess Security shall have been acquired in a Transfer that is not a Prohibited Transfer, the Equity Instrument shall cease to be an Excess Security. For this purpose, any Transfer of an Excess Security not in accordance with the provisions of this Article 12(d) or Article 12(e) shall also be a Prohibited Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If the Board of Directors determines that a transaction involving any Equity Instrument constitutes a Prohibited Transfer (or would, but for the application of this Article 12, constitute a Prohibited Transfer), then, upon written demand by the Corporation, the Purported Transferee shall transfer or cause to be transferred any certificate or other evidence of ownership of any and all Excess Securities within the Purported Transferee's possession or control, together with any Prohibited Distributions, to an agent designated by the Board of Directors (the "Agent"). The Agent shall thereupon sell to a buyer or buyers, which may include the Corporation, the Excess Securities transferred to it in one or more arm's-length transactions (on the public securities market on which such Excess Securities are traded, if possible, or otherwise privately); provided, however, that any such sale must not constitute a Prohibited Transfer and provided, further, that the Agent shall effect such sale or sales in an orderly fashion and shall not be required to effect any such sale within any specific time frame if, in the Agent's discretion, such sale or sales would disrupt the market for the Equity Instruments or otherwise would adversely affect the value of the Equity Instruments. If a Purported Transferee has resold any Excess Security before receiving the Corporation's demand to surrender the Excess Security to the Agent, the Purported Transferee shall be deemed to have sold the Excess Security for the Agent, and shall be required to transfer to the Agent any Prohibited Distributions and proceeds of such sale, except to the extent that the Corporation grants written permission to the Purported Transferee to retain a portion of such sale proceeds not exceeding the amount that the Purported Transferee would have received from the Agent pursuant to Article 12(f) if the Agent rather than the Purported Transferee had resold the Excess Security. Any Equity Instrument purchased by the Corporation pursuant to this Article 12(e) shall no longer constitute issued and outstanding Stock of the Corporation unless and until such Equity Instrument is reissued by the Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agent shall apply any proceeds of a sale by it of Excess Securities and, if the Purported Transferee has previously resold the Excess Securities, any amounts received by it from a Purported Transferee, together, in either case, with any Prohibited Distributions, as follows: (i) first, such amounts shall be paid to the Agent to the extent necessary to cover its costs and expenses incurred in connection with its duties hereunder; (ii) second, any remaining amounts shall be paid to the Purported Transferee, up to the amount paid by the Purported Transferee for the Excess Securities (or the fair market value at the time of the Transfer, in the event the purported Transfer of the Excess Securities was, in whole or in part, a gift, inheritance or similar Transfer) which amount (or fair market value) shall be determined at the discretion of the Board of Directors; and (iii) third, any remaining amounts shall be paid to one or more organizations selected by the Board of Directors which is described under Section 501(c)(3) of the Code (or any comparable successor provision) and contributions to which are eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code. The Purported Transferee of Excess Securities shall have no claim, cause of action or any other recourse whatsoever against any transferor of Excess Securities. The Purported Transferee's sole right with respect to such Excess Securities shall be limited to the amount payable to the Purported Transferee pursuant to this Article 12(f). In no event shall the proceeds of any sale of Excess Securities pursuant to this Article 12(f) inure to the benefit of the Corporation or the Agent, except to the extent used to cover costs and expenses incurred by Agent in performing its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event of any Transfer that does not involve a Transfer of an Equity Instrument within the meaning of Nevada law but that would cause a Person to violate this Article 12 (including, but not limited to, the acquisition of Stock of any Subsidiary or any other transaction that increases the Percentage Ownership or Percentage Subsidiary Ownership of any Person), the application of Article 12(e) and Article 12(f) shall be modified as described in this Article 12(g). In such case, such Person (such Person, together with any other Person whose Stock Ownership is attributed to such Person, a "Remedial Holder") shall be deemed to have disposed (simultaneously with the Transfer giving rise to the application of this Article 12(g)) of and shall be required to dispose of sufficient Equity Instruments (which Equity Instruments shall be disposed of in the inverse order in which they were acquired) to cause such Person, following such disposition, not to be in violation of this Article 12 and such Equity Instruments shall be treated as Excess Securities. Any Equity Instrument treated as an Excess Security under this Article 12(g) shall be disposed of through the Agent as provided in Article 12(e) and Article 12(f), except that the maximum aggregate amount payable to a Remedial Holder in connection with such sale shall be the fair market value of such Excess Securities at the time of the purported Transfer. A Remedial Holder shall not be entitled, with respect to any such Excess Security, to any rights of a stockholder of the Corporation, including, without limitation, the right to vote such Excess Security, whether liquidating or otherwise, in respect thereof, if any, following the time of the purported Transfer. All expenses incurred by the Agent in disposing of such Excess Security shall be paid out of any amounts due such Person or such other Person. The purpose of this Article 12(g) is to extend the restrictions in Article 12(b) and Article 12(e) to situations in which a Prohibited Transaction would have otherwise occurred if there had been a direct Transfer of Equity Instruments, and this Article 12(g), along with the other provisions of this Article 12, shall be interpreted to produce the same results, with differences as the context requires, as a direct Transfer of Equity Instruments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If the Purported Transferee fails to surrender the Excess Securities or the proceeds of a sale thereof to the Agent within thirty (30) days from the date on which the Corporation makes a written demand pursuant to Article 12(e), then the Corporation may take such actions as it deems appropriate to enforce the provisions hereof, including the institution of legal proceedings to compel the surrender. Nothing in this Article 12(h) shall (i) be deemed inconsistent with any Transfer of the Excess Securities provided in this Article 12 being void ab initio, (ii) preclude the Corporation in its discretion from immediately bringing legal proceedings without a prior demand or (iii) cause any failure of the Corporation to act to constitute a waiver or loss of any right of the Corporation under this Article 12. The Board of Directors may authorize such additional actions as it deems advisable to give effect to the provisions of this Article 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the fullest extent permitted by law, any stockholder of the Corporation subject to the provisions of this Article 12 who knowingly violates the provisions of this Article 12 and any Persons controlling, controlled by or under common control with such stockholder shall be jointly and severally liable to the Corporation for, and shall indemnify and hold the Corporation harmless against, any and all damages suffered as a result of such violation, including but not limited to damages resulting from a reduction in, or elimination of, a Subsidiary's ability to utilize its Tax Benefits, and attorneys' and auditors' fees incurred in connection with such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) In addition to any other condition that may be imposed under these Amended and Restated Articles of Incorporation with respect to the validity, effectiveness, registration and/or recognition of the ownership of or a Transfer (other than a Prohibited Transfer) with respect to any Equity Instrument or Derivatives Contract (including, but not limited to, the right to exercise any voting or other right under or receive distributions with respect to any Equity Instrument), the Corporation may require each stockholder of the Corporation, any proposed Transferee of an Equity Instrument or Derivatives Contract, any Person who is a beneficial, legal or record holder of an Equity Instrument or Derivatives Contract and any Person controlling, controlled by or under common control with any of the foregoing, to provide information relating to the direct or indirect ownership interest of any Equity Instrument or Derivatives Contract, compliance with this Article 12 and/or the status of the Tax Benefits of any Subsidiary. The Corporation may make such arrangements or issue such instructions to its transfer agent as may be determined by the Board of Directors to be necessary or advisable to implement this Article 12, including, without limitation, authorizing such transfer agent to require an affidavit from a proposed Transferee of an Equity Instrument or Derivatives Contract regarding such Person's actual and constructive ownership of Equity Instruments or Derivatives Contracts and other evidence that a Transfer will not be prohibited by this Article 12 as a condition to registering any transfer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each certificate or book-entry, and any notice of issuance provided to stockholders of the Corporation, representing shares of Stock issued by the Corporation shall, pursuant to NRS 78.242(3) and NRS 104.8204, conspicuously include a legend substantially in the following form:

"THE AMENDED AND RESTATED ARTICLES OF INCORPORATION, AS AMENDED (THE "CHARTER"), OF JANEL CORPORATION (THE "CORPORATION") CONTAINS RESTRICTIONS PROHIBITING THE TRANSFER (AS DEFINED IN THE CHARTER) OF STOCK (AS DEFINED IN THE CHARTER) IN THE CORPORATION WITHOUT THE PRIOR AUTHORIZATION OF THE BOARD OF DIRECTORS (THE "BOARD OF DIRECTORS") OF THE CORPORATION IF SUCH TRANSFER AFFECTS THE PERCENTAGE OWNERSHIP OF STOCK (WITHIN THE MEANING OF SECTION 382 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") AND THE TREASURY REGULATIONS PROMULGATED THEREUNDER) OF THE CORPORATION OR A SUBSIDIARY (AS DEFINED IN THE CHARTER), OR RESULTS IN A TRANSFER RELATING TO A DERIVATIVES CONTRACT (AS DEFINED IN THE CHARTER) THAT IS TREATED AS OWNED BY A PROHIBITED OWNER (AS DEFINED IN THE CHARTER) OR PROHIBITED SUBSIDIARY OWNER (AS DEFINED IN THE CHARTER). IF THE TRANSFER RESTRICTIONS ARE VIOLATED, THEN THE TRANSFER WILL BE VOID AB INITIO AND THE PURPORTED TRANSFEREE OF THE STOCK WILL BE REQUIRED TO TRANSFER EXCESS SECURITIES (AS DEFINED IN THE CHARTER) TO THE CORPORATION'S AGENT OR OTHERWISE TERMINATE THE DERIVATIVES CONTRACT WITHIN THREE (3) BUSINESS DAYS. IN THE EVENT OF A TRANSFER WHICH DOES NOT INVOLVE STOCK OF THE CORPORATION BUT WHICH WOULD VIOLATE THE TRANSFER RESTRICTIONS, THE PURPORTED TRANSFEREE (OR THE RECORD OWNER) OF THE STOCK THAT VIOLATES THE TRANSFER RESTRICTIONS WILL BE REQUIRED TO TRANSFER SUFFICIENT STOCK PURSUANT TO THE TERMS PROVIDED FOR IN THE CHARTER TO CAUSE THE PROHIBITED OWNER OR PROHIBITED SUBSIDIARY OWNER TO NO LONGER BE IN VIOLATION OF THE TRANSFER RESTRICTIONS. THE CORPORATION WILL FURNISH WITHOUT CHARGE TO THE HOLDER OF RECORD OF THIS CERTIFICATE A COPY OF THE CHARTER CONTAINING THE ABOVE-REFERENCED TRANSFER RESTRICTIONS UPON WRITTEN REQUEST TO THE CORPORATION AT ITS PRINCIPAL PLACE OF BUSINESS."

The Board of Directors may also require that any certificates issued by the Corporation evidencing ownership of Equity Instruments that are subject to conditions imposed by the Board of Directors under Article 12(c) also bear a conspicuous legend referencing the applicable restrictions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Board of Directors shall have the power to determine all matters necessary for assessing compliance with this Article 12, including, without limitation, (i) the identification of Prohibited Owners and Prohibited Subsidiary Owners, (ii) whether a Transfer is or would constitute a Prohibited Transfer, (iii) the Percentage Ownership or Percentage Subsidiary Ownership, (iv) whether an instrument constitutes an Equity Instrument or a Derivatives Contract, (v) the amount (or fair market value) due to a Purported Transferee pursuant to Article 12(f), (vi) any other matters which the Board of Directors determines to be relevant and (vii) the determination of the Ownership Limit of a Person or group of Persons; and the good faith determination of the Board of Directors on such matters shall be conclusive and binding for all the purposes of this Article 12. In addition, the Board of Directors may, to the extent permitted by law, from time to time amend, modify or supplement these Amended and Restated Articles of Incorporation in a manner not inconsistent with the provisions of this Article 12 for purposes of determining whether any Transfer of Equity Instruments or Derivatives Contracts would jeopardize or endanger a Subsidiary's ability to preserve and use any Tax Benefits and for the orderly application, administration and implementation of this Article 12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Nothing contained in this Article 12 shall limit the authority of the Board of Directors to take such other action to the extent permitted by law as it deems necessary or advisable to enable a Subsidiary, the Corporation and the stockholders of the Corporation to preserve any Tax Benefits. Without limiting the generality of the foregoing, in the event of a change in law making one or more of the following actions necessary or desirable, the Board of Directors may, by adopting a written resolution, (i) accelerate the Expiration Date, (ii) modify the Ownership Limit or any Person covered by this Article 12, (iii) modify the definitions of any terms set forth in this Article 12 or (iv) modify the terms of this Article 12 as appropriate, in each case, in order to prevent an ownership change with respect to the Corporation or any other Subsidiary for purposes of Section 382 of the Code as a result of any changes in applicable Treasury Regulations or otherwise; provided, however, that the Board of Directors shall not cause there to be such acceleration or modification unless it determines, by adopting a written resolution, that such action is reasonably necessary or advisable to preserve the Tax Benefits or that the continuation of these restrictions is no longer reasonably necessary for the preservation of the Tax Benefits. Stockholders of the Corporation shall be notified of such determination through a filing with the Securities and Exchange Commission or such other method of notice as the Board of Directors shall deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) In the case of an ambiguity in the application of any of the provisions of this Article 12, including any definition used herein, the Board of Directors shall have the power to determine the application of such provisions with respect to any situation based on its reasonable belief, understanding or knowledge of the circumstances. In the event this Article 12 requires an action by the Board of Directors but fails to provide specific guidance with respect to such action, the Board of Directors shall have the power to determine the action to be taken so long as such action is not contrary to the provisions of this Article 12. All such actions, calculations, interpretations and determinations which are done or made by the Board of Directors in good faith shall be conclusive and binding on the Corporation, the Agent and all other parties for all other purposes of this Article 12. The Board of Directors may delegate all or any portion of its duties and powers under this Article 12 to a committee of the Board of Directors as it deems necessary or advisable and, to the fullest extent permitted by law, may exercise the authority granted by this Article 12 through the Corporation's duly authorized officers or agents. Nothing in this Article 12 shall be construed to limit or restrict the Board of Directors in its exercise of its fiduciary duties under applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) To the fullest extent permitted by law, the Corporation and the members of the Board of Directors shall be fully protected in relying in good faith upon the information, opinions, reports or statements of the officers or agents of the Corporation and the Corporation's legal counsel, independent auditors, transfer agent, investment bankers or other employees and agents in making the determinations and findings contemplated by this Article 12. The members of the Board of Directors shall not be responsible for any good faith errors made in connection therewith. For purposes of determining the existence and identity of, and the amount of any Equity Instruments owned by, any stockholder of the Corporation, the Corporation is entitled to rely on the existence and absence of filings of Schedule 13D or 13G under the Securities and Exchange Act of 1934, as amended (or similar filings), as of any date, subject to its actual knowledge of the ownership of Equity Instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Nothing in this Article 12 shall be construed to give to any Person other than the Corporation or the Agent any legal or equitable right, remedy or claim under this Article 12. This Article 12 shall be for the sole and exclusive benefit of the Corporation and the Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) This Article 12 is imposed under authority granted by NRS 78.242(2). No restriction imposed by this Article 12 is binding upon any stockholder of the Corporation with respect to Stock of the Corporation owned by such stockholder at the time the restriction is adopted, regardless of any later effective time of such restrictions, unless such stockholder voted in favor of the restriction.

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| | | | |
|:---|:---|:---|:---|
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number<br>&nbsp;&nbsp;**C23576-2000** |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number<br>&nbsp;&nbsp;**20222269866** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**4/1/2022 10:00:00 AM** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**2** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |

---

&nbsp;&nbsp; **<u>Certificate, Amendment or Withdrawal of Designation</u>**<br> **NRS 78.1955, 78.1955(6)**<br> **☐ Certificate of Designation<br> ☐ Certificate of Amendment to Designation - Before Issuance of Class or Series<br> ☐ Certificate of Amendment to Designation - After Issuance of Class or Series<br> ☒ Certificate of Withdrawal of Certificate of Designation** <br>

**TYPE OR PRINT - USE DARK INK ONLY - DO NOT HIGHLIGHT**

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| | | |
|:---|:---|:---|
| **1. Entity information:** | Name of entity: | Name of entity: |
|  | Janel Corporation | Janel Corporation |
|  | Entity or Nevada Business Identification Number (NVID): | C23576-2000<br>|

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **2. Effective date and time:** | For Certificate of Designation or Amendment to Designation Only | Date: | | Time: |
|  | (Optional): |  | (must not be later than 90 days after the certificate is filed) | (must not be later than 90 days after the certificate is filed) |

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| | |
|:---|:---|
| **3. Class or series of** | The class or series of stock being designated within this filing: |
| **stock:** (Certificate of |  |
| Designation only) | |

---

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| | |
|:---|:---|
| **4. Information for amendment**<br>| The original class or series of stock being amended within this filing: |
| **of class or series of stock:**<br>|  |

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| | |
|:---|:---|
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☐ Certificate of Amendment to Designation- Before Issuance of Class or Series<br> As of the date of this certificate no shares of the class or series of stock have been issued. |
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☒ Certificate of Amendment to Designation- After Issuance of Class or Series<br> The amendment has been approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation.  |

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| | |
|:---|:---|
| **6. Resolution:**<br>Certificate of Designation <br> and Amendment to Designation only) | By resolution of the board of directors pursuant to a provision in the articles of incorporation this certificate establishes OR amends the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.\*  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **7. Withdrawal:** | Designation being Withdrawn: | Series B Convertible Preferred Stock | Date of<br> Designation: | 10/17/2007 |
|  | No shares of the class or series of stock being withdrawn are outstanding.  | No shares of the class or series of stock being withdrawn are outstanding.  | No shares of the class or series of stock being withdrawn are outstanding.  | No shares of the class or series of stock being withdrawn are outstanding.  |
|  | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* |
|  |  | See attached Exhibit A. |  |  |

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| | | | |
|:---|:---|:---|:---|
| **8. Signature:** (Required) | **X** ![](img006_v1.jpg)<br>| Date: | **3/30/22** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature of Officer | | |

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| | |
|:---|:---|
| \* Attach additional page(s) if necessary | **Page 1 of 1** |
| This form must be accompanied by appropriate fees. | **Revised: 1/1/2019** |

---

------

EXHIBIT A

WHEREAS, the Company has a previously filed a Certificate of Designation establishing the Company's Series B Convertible Preferred Stock (the "<u>Series B Preferred Stock</u>"); and

WHEREAS, all outstanding shares of Series B Preferred Stock have been converted into shares of the Company's Common Stock pursuant to the terms of the Series B Preferred Stock and no shares of Series B Preferred Stock remain outstanding; and

WHEREAS, the Company desires to withdraw the Certificate of Designation with respect to the Series B Preferred Stock from the Company's Articles of Incorporation (the "<u>Series B Withdrawal</u>").

NOW, THEREFORE, BE IT

RESOLVED, that the Board hereby approves and the Company is hereby authorized to effect the Series B Withdrawal.

RESOLVED FURTHER, that the President or Secretary of the Company is authorized, empowered and directed to execute and file a Certificate, Amendment or Withdrawal of Designation and/or such other documents or instruments as may be required pursuant to Nevada Revised Statutes ("NRS") 78.1955 to effect the Series B Withdrawal.

RESOLVED FURTHER, that the President of the Company is hereby authorized, empowered and directed to execute, acknowledge and deliver on behalf of the Company the documents, filings and such other ancillary documents, agreements, certificates and instruments relating to the Series B Withdrawal as may be required and which are presented to the President and to make such changes to the documents and such other ancillary documents, agreements, certificates and instruments as the President deems necessary or advisable, such approval evidenced by the President's signature on each such document, agreement, certificate and/or instruments.

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| | | | |
|:---|:---|:---|:---|
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number<br>&nbsp;&nbsp;**C23576-2000** |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number<br>&nbsp;&nbsp;**20222269877** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**4/1/2022 10:00:00 AM** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**2** |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp;**BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov** |  |  |

---

&nbsp;&nbsp; **<u>Certificate, Amendment or Withdrawal of Designation</u>**<br> **NRS 78.1955, 78.1955(6)**<br> **☐ Certificate of Designation<br> ☐ Certificate of Amendment to Designation - Before Issuance of Class or Series<br> ☒ Certificate of Amendment to Designation - After Issuance of Class or Series<br> ☐ Certificate of Withdrawal of Certificate of Designation** <br>

**TYPE OR PRINT - USE DARK INK ONLY - DO NOT HIGHLIGHT**

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| | | |
|:---|:---|:---|
| **1. Entity information:** | Name of entity: | Name of entity: |
|  | Janel Corporation | Janel Corporation |
|  | Entity or Nevada Business Identification Number (NVID): | C23576-2000<br>|

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **2. Effective date and time:** | For Certificate of Designation or Amendment to Designation Only | Date: | | Time: |
|  | (Optional): |  | (must not be later than 90 days after the certificate is filed) | (must not be later than 90 days after the certificate is filed) |

---

---

| | |
|:---|:---|
| **3. Class or series of** | The class or series of stock being designated within this filing: |
| **stock:** (Certificate of |  |
| Designation only) | |

---

---

| | | |
|:---|:---|:---|
| **4. Information for**<br>| The original class or series of stock being amended within this filing: | The original class or series of stock being amended within this filing: |
| **amendment of class**<br>|  | |
| **or series of stock:**<br>| | Series C Cumulative Preferred Stock |

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| | |
|:---|:---|
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☐ Certificate of Amendment to Designation- Before Issuance of Class or Series<br> As of the date of this certificate no shares of the class or series of stock have been issued. |
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☒ Certificate of Amendment to Designation- After Issuance of Class or Series<br> The amendment has been approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation.  |

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| | |
|:---|:---|
| **6. Resolution:**<br>Certificate of Designation <br> and Amendment to Designation only) | By resolution of the board of directors pursuant to a provision in the articles of incorporation this certificate establishes OR amends the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.\*  |
|  | Paragraph 4 of the Certificate of Designation filed on March 22, 2016 is amended and restated in its entity as set forth of Exhibit A hereto. |

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| | | |
|:---|:---|:---|
| **7. Withdrawal:** | Designation being Withdrawn: | Date of<br> Designation: |
|  | No shares of the class or series of stock being withdrawn are outstanding.  | No shares of the class or series of stock being withdrawn are outstanding.  |
|  | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* |

---

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| | | | |
|:---|:---|:---|:---|
| **8. Signature:** (Required) | **X** <br>| Date: | **3/30/22** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature of Officer | | |

---

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| | |
|:---|:---|
| \* Attach additional page(s) if necessary | **Page 1 of 1** |
| This form must be accompanied by appropriate fees. | **Revised: 1/1/2019** |

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------

EXHIBIT A

WHEREAS, the Board has determined that it is in the best interests of the Company and its shareholders to reduce the dividend rate payable on the shares of Series C Cumulative Preferred Stock (the "<u>Series C Preferred Stock</u>") ; and

WHEREAS, the holders of the outstanding shares of Series C Preferred Stock have unanimously approved such reduction in dividend rate.

NOW THEREFORE BEIT,

RESOLVED, that the Board hereby approves a decrease in the dividend rate payable on the Series C Preferred Stock as follows (such action, the "<u>Series C Amendment</u>"):

<u>Dividends</u>. The holders of the Series C Cumulative Preferred Stock shall be entitled to receive, out of funds legally available therefor, annual dividends when, as and if declared by the Board, at the rates heretofore set forth from time to time in the Certificate of Designation for the Series C Cumulative Preferred Stock, and commencing on the date of the filing of this Amendment, at the annual rate of five percent (5.0%) with a one percent (1%) increase on each January 1<sup>st</sup> beginning January 1, 2024 and on each January 1 thereafter for four years, such that: (a) as of January 1, 2024 the annual dividend shall be at the rate of six percent (6.0%), (b) as of January 1, 2025 the annual dividend shall be at the rate of seven percent (7.0%), (c) as of January 1, 2026 the annual dividend shall be at the rate of eight percent (8.0%) and (d) as of January 1, 2027, and for every year thereafter, the annual dividend shall be at the rate of nine percent (9.0%). Such dividends are (i) prior and in preference to any declaration or payment of any dividend or other distribution on Common Stock (other than a dividend payable in shares of Common Stock) or on any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends, (ii) *pari passu* with any other shares of Preferred Stock entitled to participate *pari passu* with the Series C Cumulative Preferred Stock with respect to dividends and (iii) subject to the rights of any series of Preferred Stock that ranks, with respect to dividends, senior to the Series C Cumulative Preferred Stock. Such dividends shall accrue on each share of Series C Cumulative Preferred Stock on a daily basis from the Original Issuance Date whether or not earned or declared and whether or not there shall be net assets or profits of the Corporation legally available for the payment of such dividends. Such dividends shall be cumulative, so that if such dividends with respect to any previous or current dividend period at the rate provided for herein have not been paid on all shares of Series C Cumulative Preferred Stock at the time outstanding, the deficiency shall be fully paid on such shares before any distribution shall be paid on, or declared and set apart for, Common Stock or any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends.

RESOLVED FURTHER, that the President or Secretary of the Company is authorized, empowered and directed to execute and file a Certificate, Amendment or Withdrawal of Designation and/or such other documents or instruments as may be required pursuant to Nevada Revised Statutes ("NRS") 78.1955 to effect the Series C Amendment.

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| | | | |
|:---|:---|:---|:---|
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number<br>&nbsp;&nbsp;**C23576-2000** |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | |
| |  | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number<br>&nbsp;&nbsp;**20211797964** |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**10/4/2021 08:26:27 AM** |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** | &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**1** |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** |  |  |
| ![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State<br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708<br> Website: www.nvsos.gov**<br> **www.nvsilverflume.gov** |  |  |

---

&nbsp;&nbsp; **<u>Certificate, Amendment or Withdrawal of Designation</u>**<br> **NRS 78.1955, 78.1955(6)**<br> **☑ Certificate of Designation<br> ☐ Certificate of Amendment to Designation - Before Issuance of Class or Series<br> ☐ Certificate of Amendment to Designation - After Issuance of Class or Series<br> ☐ Certificate of Withdrawal of Certificate of Designation** <br>

**TYPE OR PRINT - USE DARK INK ONLY - DO NOT HIGHLIGHT**

---

| | | |
|:---|:---|:---|
| **1. Entity information:** | Name of entity: | Name of entity: |
|  | **Janel Corporation** | **Janel Corporation** |
|  | Entity or Nevada Business Identification Number (NVID): | **NV20001405510**<br>|

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| | | | | |
|:---|:---|:---|:---|:---|
| **2. Effective date and time:** | For Certificate of Designation or Amendment to Designation Only | Date: | | Time: |
|  | (Optional): |  | (must not be later than 90 days after the certificate is filed) | (must not be later than 90 days after the certificate is filed) |

---

---

| | |
|:---|:---|
| **3. Class or series of** | The class or series of stock being designated within this filing: |
| **stock:** (Certificate of Designation only) | **The number of authorized shares constituting the Series C Cumulative Preferred Stock shall be increased from 20,000 shares to 30,000 shares.** |

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| | |
|:---|:---|
| **4. Information for**<br>| The original class or series of stock being amended within this filing: |
| **amendment of class**<br>|  |
| **or series of stock:**<br>|  |

---

---

| | |
|:---|:---|
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☐ Certificate of Amendment to Designation- Before Issuance of Class or Series<br> As of the date of this certificate no shares of the class or series of stock have been issued. |
| **5. Amendment of**<br> **class or series of**<br> **stock:** | &nbsp;&nbsp;&nbsp;&nbsp; ☐ Certificate of Amendment to Designation- After Issuance of Class or Series<br> The amendment has been approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation.  |

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| | |
|:---|:---|
| **6. Resolution:**<br>Certificate of Designation <br> and Amendment to Designation only) | By resolution of the board of directors pursuant to a provision in the articles of incorporation this certificate establishes OR amends the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.\* |

---

---

| | | |
|:---|:---|:---|
| **7. Withdrawal:** | Designation being Withdrawn: | Date of<br> Designation: |
|  | No shares of the class or series of stock being withdrawn are outstanding.  | No shares of the class or series of stock being withdrawn are outstanding.  |
|  | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* | The resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock: \* |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **8. Signature:** (Required) | **X** | **Vincent Verde** | Date: | **10/04/2021** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature of Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature of Officer | | |

---

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| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Page 1 of 1** |
|  | **Revised: 1/1/2019** |

---

------

![ii](img008a_v1.jpg)

---

| | |
|:---|:---|
| &nbsp;&nbsp;![](img001_v1.jpg) | &nbsp;&nbsp; **BARBARA K. CEGAVSKE**<br> **Secretary of State** <br> **202 North Carson Street**<br> **Carson City, Nevada 89701-4201**<br> **(775) 684-5708**<br> **Website: www.nvsos.gov** |

---

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| | | |
|:---|:---|:---|
| **Amendment to**<br> **Certificate of Designation**<br> **After Issuance of Class or Series**<br> (PURSUANT TO NRS 78.1955) | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) <br>Secretary of State <br> State Of Nevada | &nbsp;&nbsp; Business Number <br> **C23576-2000**  |
| **Amendment to**<br> **Certificate of Designation**<br> **After Issuance of Class or Series**<br> (PURSUANT TO NRS 78.1955) | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) <br>Secretary of State <br> State Of Nevada | &nbsp;&nbsp; Filing Number <br> **20170439476-03**  |
| **Amendment to**<br> **Certificate of Designation**<br> **After Issuance of Class or Series**<br> (PURSUANT TO NRS 78.1955) | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) <br>Secretary of State <br> State Of Nevada | &nbsp;&nbsp; Filed On <br> **10/17/2017**  |
| **Amendment to**<br> **Certificate of Designation**<br> **After Issuance of Class or Series**<br> (PURSUANT TO NRS 78.1955) | &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) <br>Secretary of State <br> State Of Nevada | &nbsp;&nbsp;Number of Pages<br> **2** |

---

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| | |
|:---|:---|
| &nbsp;&nbsp;**USE BLACK INK ONLY - DO NOT HIGHLIGHT** | &nbsp;&nbsp;**ABOVE SPACE IS FOR OFFICE USE ONLY** |

---

**<u>Certificate of Amendment to Certificate of Designation</u>**

**<u>For Nevada Profit Corporations</u>**

**(Pursuant to NRS 78.1955 - After Issuance of Class or Series)**

1. Name of corporation:

Janel Corporation

2. Stockholder approval pursuant to statute has been obtained.

3. The class or series of stock being amended:

Series C Cumulative Preferred Stock, $0.001 par value per share

4. By a resolution adopted by the board of directors, the certificate of designation is being amended as follows or the new class or series is:

Paragraph 4 of the Certificate of Designation for Series C Cumulative Preferred Stock filed on March 22, 2016 is amended and restated in its entirety as set forth on Exhibit A attached hereto.

5. Effective date of filing: (optional)

(must not be later than 90 days after the certificate is filed)

6. Signature: (required)

![](img008_v1.jpg)

______________________________________________

**Signature of Officer** 

**Filing Fee: $175.00** 

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

---

| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State NRS Amend Designation - After** |
|  | **Revised: 1-5-15** |

---

------

<u>Exhibit A</u> to <br> Certificate of Designation of <br> Janel World Trade, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Dividends</u>. The holders of the Series C Cumulative Preferred Stock shall be entitled to receive. out of funds legally available therefor, annual dividends when, as and if declared by the Board, at the rates heretofore set forth from time to time in the Certificate of Designation for the Series C Cumulative Preferred Stock, and commencing on the date of the filing of this Amendment, at the annual rate of five percent (5.0%) with a one percent (1%) increase on each January 1<sup>st</sup> beginning January 1, 2019 and on each January 1 thereafter for four years, such that: (a) as of January 1, 2019 the annual dividend shall be at the rate of six percent (6.0%), (b) as of January 1, 2020 the annual dividend shall be at the rate of seven percent (7.0%), (c) as of January I, 2021 the annual dividend shall be at the rate of eight percent (8.0%) and (d) as of January 1, 2022, and for every year thereafter, the annual dividend shall be at the rate of nine percent (9.0%). Such dividends arc (i) prior and in preference to any declaration or payment of any dividend or other distribution on Common Stock (other than a dividend payable in shares of Common Stock) or on any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends, (ii) *pari passu* with any other shares of Preferred Stock entitled to participate *pari passu* with the Series C Cumulative Preferred Stock with respect to dividends and (iii) subject to the rights of any series of Preferred Stock that ranks, with respect to dividends, senior to the Series C Cumulative Preferred Stock. Such dividends shall accrue on each share of Series C Cumulative Preferred Stock on a daily basis from the Original Issuance Date whether or not earned or declared and whether or not there shall be net assets or profits of the Corporation legally available for the payment of such dividends. Such dividends shall be cumulative, so that if such dividends with respect to any previous or current dividend period at the rate provided for herein have not been paid on all shares of Series C Cumulative Preferred Stock at the time outstanding, the deficiency shall be fully paid on such shares before any distribution shall be paid on, or declared and set apart for, Common Stock or any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends.

------

![](img009_v1.jpg)

---

| | |
|:---|:---|
| ![](img001_v1.jpg) | **BARBARA K. CEGAVSKE <br> Secretary of State <br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708 <br> Website: www.nvsos.gov** |

---

&nbsp;&nbsp;&nbsp; **Amendment to<br> Certificate of Designation <br> After Issuance of Class or Series**<br> (PURSUANT TO NRS 78.1955)<br>

---

| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**20170209552-63** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**05/12/2017** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**2** |

---

---

| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

---

**<u>Certificate of Amendment to Certificate of Designation <br> For Nevada Profit Corporations</u>**

**(Pursuant to NRS 78.1955 - After Issuance of Class or Series)**

1. Name of corporation:

Janel Corporation

2. Stockholder approval pursuant to statute has been obtained.

3. The class or series of stock being amended:

Series C Cumulative Preferred Stock, $0.001 par value per share

4. By a resolution adopted by the board of directors, the certificate of designation is being amended as follows or the new class or series is:

Paragraph 7 of the Certificate of Designation for Series C Cumulative Preferred Stock filed on August 25, 2014, as amended March 22, 2016, is hereby amended and restated in its entirety as set forth on Exhibit A attached hereto.

5. Effective date of filing: (optional)

(must not be later than 90 days after the certificate is filed)

6. Signature: (required)

**X** ![](img008_v1.jpg)

**Signature of Officer**

**Filing Fee: $175.00**

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

---

| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State NRS Amend Designation - After<br> Revised: 1-5-15** |

---

------

<u>Exhibit A</u> to

Certificate of Amendment of

Certificate of Designation of

Janel Corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *By the Corporation*. The Corporation may, by written notice to the holders of Series C Cumulative Preferred Stock, redeem all or any portion of the Series C Cumulative Preferred Stock at any time, or from time to time (each, a **"Mandatory Redemption"**), for an amount equal to the Original Series C Issuance Price, plus an amount equal to all accumulated but unpaid dividends thereon to and including the date full payment is tendered to the holders of Series C Cumulative Preferred Stock (the **"Series C Redemption Price"**); provided, however, that any partial redemption of Series C Cumulative Preferred Stock shall be redeemed from holders of Series C Cumulative Preferred Stock, *pro rata*, in proportion to their respective ownership of shares of Series C Cumulative Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Redemption Mechanics*. The Corporation shall give the holders of the Series C Cumulative Preferred Stock written notice of a Mandatory Redemption including the number of shares of Series C Cumulative Preferred Stock being redeemed, which notice will include written instructions to the holders of the shares of Series C Cumulative Preferred Stock being redeemed (the **"Redeeming Shares"**) regarding surrender of certificates representing Redeeming Shares (the **"Redemption Instructions"**). The holders of the Redeeming Shares shall surrender the certificate(s) evidencing the Redeeming Shares. As soon as practicable after receipt by the Corporation of the certificate(s) evidencing the shares of Redeeming Shares, the Corporation shall be obligated to, and shall promptly pay, the Redemption Price to the holders from whom surrendered Redeeming Shares were received.

------

![](img010_v1.jpg)

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **BARBARA K. CEGAVSKE <br> Secretary of State <br> 202 North Carson Street<br> Carson City, Nevada 89701-4201<br> (775) 684-5708 <br> Website: www.nvsos.gov** |

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&nbsp;&nbsp;&nbsp; **Certificate of Amendment**<br> (PURSUANT TO NRS 78.385 AND 73.390)<br>

---

| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**20150170828-24** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**04/15/2015** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**1** |

---

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

---

**<u>Certificate of Amendment to Articles of Incorporation</u>**

**<u>For Nevada Profit Corporations</u>**

**(Pursuant to NRS 78.385 and 78.390 - After Issuance of Stock)**

1. Name of corporation:

Janel World Trade, Ltd.

2. The articles have been amended as follows: (provide article numbers, if available)

Article 1 is hereby amended to read in its entirety as follows:

"ARTICLE 1: The name of the Corporation is Janel Corporation."

3. The vote by which the stockholders holding shares in the corporation entitling them to exercise at least a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, or as may be required by the provisions of the articles of incorporation\* have voted in favor of the amendment is:

59.9%

4. Effective date and time of filing: (optional) Date: April 21, 2015 Time: 6:00am

(must not be later than 90 days after the certificate is filed)

5. Signature: (required)

**X** ![](img011_v1.jpg)

Signature of Officer

"If any proposed amendment would alter of change any preference or any relative or offer right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected the amendment regardless to limitations or restrictions on the voting power thereof.

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

---

| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State NRS Amend Profit-After<br> Revised: 1-5-15** |

---

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![](img012_v1.jpg)

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 89701-4520<br> (775) 684-5708 <br> Website: www.nvsos.gov** |

---

&nbsp;&nbsp;&nbsp; **Certificate of Change Pursuant to NRS 78.209**<br>

---

| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img005_v1.jpg) | &nbsp;&nbsp;**20150170829-35** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**04/15/2015** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**1** |

---

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

---

**<u>Certificate of Change filed Pursuant to NRS 78.209</u>**

**<u>For Nevada Profit Corporations</u>**

1. Name of corporation:

JANEL WORLD TRADE, LTD.

2. The board of directors have adopted a resolution pursuant to NRS 78.209 and have obtained any required approval of the stockholders.

3. The current number of authorized shares and the par value, if any, of each class or series. if any, of shares before the change:

Common S0.001 225,000,000 shares

Preferred S0.005 5.000,000 shares

4. The number of authorized shares and the par value, if any, of each class or series, if any, of shares after the change:

Common: $0.001 4,500,000 shares

Preferred $0.001 100,000 shares

5. The number of shares of each affected class or series, if any, to be issued after the change in exchange for each issued share of the same class or series:

Ratio of fifty (50) Old Shares of Common or Preferred Stock for one (1) New Share of Common or Preferred Stock. as the case may be.

6. The provisions. if any, for the issuance of fractional shares, of for the payment of money or the issuance of scrip to stockholders otherwise entitled to a fraction of a share and the percentage of outstanding shares affected thereby:

No fractional shares will be issued.

7. Effective date and time of filing: (optional) Date: April 21, 2015 Time: 6:00am

(must not be later than 90 days after the certificate is filed)

8. Signature: (required)

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| | | |
|:---|:---|:---|
| **X** | ![](img011_v1.jpg) | ![](img011a_v1.jpg) |

---

Signature of Officer Title

**IMPORTANT**: Failure to include any of the above information and summit with the proper fees may cause this filing to be rejected.

---

| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State Stock Split<br> Revised: 3-31-11** |

---

------

![](img013_v1.jpg)

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 89701-4520<br> (775) 684-5708 <br> Website: www.nvsos.gov** |

---

&nbsp;&nbsp;&nbsp; **Certificate of Designation**<br> (PURSUANT TO NRS 78.1955) <br>

---

| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**20140607700-47** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**08/25/2014** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**5** |

---

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

---

**<u>Certificate of Designation For<br> Nevada Profit Corporations</u> <br> (Pursuant to NRS 78.1955)**

1. Name of corporation:

Janel World Trade, Ltd.

2. By resolution of the board of directors pursuant to a provision in the articles of incorporation this certificate establishes the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.

1. Designation. The Corporation hereby designates a series of Preferred Stock, the designation of which shall be "Series C Cumulative Preferred Stock," $0.001 par value per share (hereinafter called the "Series C Cumulative Preferred Stock"), and the number of authorized shares constituting the Series C Cumulative Preferred Stock shall be three hundred fifty thousand (350,000) shares.

(Continued on Exhibit A)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Effective date of filing: (optional)

(must not be later than 90 days after the certificate is filed)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Signature: (required)

**X** ![](img015_v1.jpg)

Signature of Officer

**Filing Fee: $175.00**

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

---

| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State Stock Designation<br> Revised: 3-6-09** |

---

------

<u>Exhibit A</u> to <br> Certificate of Designation of <br> Janel World Trade, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Certain Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Board**" shall mean the Board of Directors of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Common Stock**" shall mean the Common Stock, $0,001 par value, of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Corporation**" shall mean Janel World Trade, Ltd., a Nevada corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Original Issuance Date**" for any share of the Series C Cumulative Preferred Stock shall mean the date on which such share of the Series C Cumulative Preferred Stock was originally issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Original Series C Issuance Price**" shall mean Ten Dollars ($10.00) per share of Series C Cumulative Preferred Stock, as adjusted to reflect any stock splits, stock dividends or other recapitalizations involving the Series C Cumulative Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Preferred Stock**" shall mean any series of preferred stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Voting</u>. The Series C Cumulative Preferred Stock shall have no right to vote on any actions to be taken by the stockholders of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Dividends</u>. The holders of the Series C Cumulative Preferred Stock shall be entitled to receive, out of funds legally available therefor, annual dividends when, as and if declared by the Board, at the rate of eight and one-quarter percent (8.25%) per annum of the Original Series C Issuance Price from the Original Issuance Date. Commencing on the third anniversary of the Original Issue Date, the rate of such dividends shall increase by two percent (2%) each year, however, not to exceed an aggregate rate increase of six percent (6%) or a total dividend rate of fourteen and one-quarter percent (14.25%). Such dividends are (i) prior and in preference to any declaration or payment of any dividend or other distribution on Common Stock (other than a dividend payable in shares of Common Stock) or on any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends, (ii) *pari passu* with any other shares of Preferred Stock entitled to participate *pari passu* with the Series C Cumulative Preferred Stock with respect to dividends and (iii) subject to the rights of any series of Preferred Stock that ranks, with respect to dividends, senior to the Series C Cumulative Preferred Stock. Such dividends shall accrue on each share of Series C Cumulative Preferred Stock on a daily basis from the Original Issuance Date whether or not earned or declared and whether or not there shall be net assets or profits of the Corporation legally available for the payment of such dividends. Such dividends shall be cumulative, so that if such dividends with respect to any previous or current dividend period at the rate provided for herein have not been paid on all shares of Series C Cumulative Preferred Stock at the time outstanding, the deficiency shall be fully paid on such shares before any distribution shall be paid on, or declared and set apart for, Common Stock or any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends.

------

<u>Exhibit A</u> to

Certificate of Designation of<br> Janel World Trade, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Liquidation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of any liquidation, dissolution or winding up of the Corporation, either voluntary or involuntary, after payment or provision for payment of the debts and other liabilities and obligations of the Corporation, the holders of Series C Cumulative Preferred Stock shall be entitled to receive for each share of Series C Cumulative Preferred Stock, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of Common Stock, and subject to the rights of any series of Preferred Stock that ranks, on liquidation, senior to the Series C Cumulative Preferred Stock ("**Senior Securities**"), but *pari passu* with any other shares of Preferred Stock under the terms of which holders thereof shall be entitled to participate *pari passu* with the Series C Cumulative Preferred Stock upon liquidation, an amount equal to the Original Series C Issuance Price, plus an amount equal to all accumulated but unpaid dividends thereon to and including the date full payment is tendered to the holders of Series C Cumulative Preferred Stock (collectively the "**Series C Preference Amount**"). If upon the occurrence of such event the assets and funds thus distributed among the holders of Series C Cumulative Preferred Stock and any other shares of Preferred Stock entitled to participate *pari passu* with the Series C Cumulative Preferred Stock upon liquidation are insufficient to permit the payment to such holders of their full preferential amount described herein, then the entire assets and funds of the Corporation legally available for distribution, after satisfaction of the rights of any Senior Securities, shall be distributed ratably among the holders of the then outstanding Series C Cumulative Preferred Stock and any other shares of Preferred Stock entitled to participate *pari passu* with the Series C Cumulative Preferred Stock, upon liquidation, in proportion to the preferential amount that each such holder is otherwise entitled to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this <u>Section 5</u>, a liquidation, dissolution or winding up of the Corporation shall include the Corporation's sale of all or substantially all of its assets. The Corporation shall not consummate any transaction deemed to constitute a liquidation, dissolution or winding up of the affairs of the Corporation under this <u>subsection (b)</u> until the provisions of this <u>Section 5</u> have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Protective Provisions</u>. So long as any shares of Series C Cumulative Preferred Stock remain outstanding, the Corporation shall not, without the vote or written consent of the holders of at least a majority of the then outstanding shares of Series C Cumulative Preferred Stock, voting as a single class:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend the Amended and Restated Articles of Incorporation or the bylaws of the Corporation in any manner that would alter, change or repeal any of the designations, powers, preferences and relative, participating, optional or other special rights, and the qualifications, limitations and restrictions thereof, of the Series C Cumulative Preferred Stock, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) effect any liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, including the sale of all or substantially all of its assets.

------

<u>Exhibit A</u> to <br> Certificate of Designation of <br> Janel World Trade, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Redemptions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *By the Corporation*. The Corporation may, by written notice to the holders of Series C Cumulative Preferred Stock, redeem all or any portion of the Series C Cumulative Preferred Stock at any time, or from time to time (each, a "**Mandatory Redemption**"), for an amount equal to the Original Series C Issuance Price, plus an amount equal to all accumulated but unpaid dividends thereon to and including the date full payment is tendered to the holders of Series C Cumulative Preferred Stock (the "**Series C Redemption Price**"); provided, however, that any partial redemption of Series C Cumulative Preferred Stock shall be redeemed from holders of Series C Cumulative Preferred Stock, *pro rata*, in proportion to their respective ownership of shares of Series C Cumulative Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *By the Holder*. Commencing on the fourth anniversary of the Original Issue Date and at any time thereafter, any holder of Series C Cumulative Preferred Stock may elect, by written notice to Corporation, to redeem all or any portion of such holder's Series C Cumulative Preferred Stock (each, an "**Optional Redemption**") for an amount equal to the Series C Redemption Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Redemption Mechanics*. In the case of a redemption pursuant to <u>Section 7(a)</u> above, the Corporation shall give the holders of the Series C Cumulative Preferred Stock written notice of a Mandatory Redemption including the number of shares of Series C Cumulative Preferred Stock being redeemed. As soon as practicable after (A) the occurrence of a Mandatory Redemption, or (B) after the Corporation receives written notice of an Optional Redemption, the Corporation shall send written instructions to the holders of the shares of Series C Cumulative Preferred Stock being redeemed (the "**Redeeming Shares**") regarding surrender of certificates representing Redeeming Shares (the "**Redemption Instructions**"), and the holders of the Redeeming Shares shall surrender the certificate(s) evidencing the Redeeming Shares. As soon as practicable after receipt by the Corporation of the certificate(s) evidencing the shares of Redeeming Shares, the Corporation shall be obligated to, and shall promptly pay the Redemption Price to the holders from whom surrendered Redeeming Shares were received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reissue of Shares</u>. Shares of Series C Cumulative Preferred Stock acquired by the Corporation by reason of redemption, purchase, conversion or otherwise shall not be cancelled, retired or eliminated from the shares which the Corporation is authorized to issue, and may be reissued as shares of Series C Cumulative Preferred Stock or redesignated as part of another series of preferred stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Notices</u>. Unless otherwise specified, any notice required by the provisions of these designations shall be deemed given upon the earlier of the following events: (a) personal delivery to the party to be notified, (b) facsimile transmission to the party to be notified (with written or facsimile confirmation of receipt), (c) delivery by an overnight express courier service to the party to be notified (delivery, postage or freight charges prepaid), or (d) on the third business day following deposit in the United States Post Office (if sent by registered or certified mail, return receipt requested, with delivery, postage or freight charges prepaid), addressed in the case of notice to the holders of record of Series C Cumulative Preferred Stock to each holder at such holder's address appearing on the books of the Corporation and in the case of notice to the Corporation to the President at the principal executive offices of the Corporation, which as of the date of this Certificate is: c/o Oaxaca Group L.L.C., 68 Bank Street, New York, New York, 10014.

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<u>Exhibit A</u> to<br> Certificate of Designation of<br> Janel World Trade, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Exclusion of Other Rights</u>. Except as may otherwise be required by law, the shares of Series C Cumulative Preferred Stock shall not have any voting powers, preferences and relative, participating, optional or other special rights, other than those specifically set forth in this designation (as such designation may be amended from time to time) and in the Amended and Restated Articles of Incorporation of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Headings of Subdivisions</u>. The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Severability of Provisions</u>. If any voting powers, preferences and relative, participating, optional and other special rights of the Series C Cumulative Preferred Stock and qualifications, limitations and restrictions thereof set forth in this designation (as such designation may be amended from time to time) is held invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other voting powers, preferences and relative, participating, optional and other special rights of Series C Cumulative Preferred Stock and qualifications, limitations and restrictions thereof set forth in this designation (as so amended) that can be given effect without the invalid, unlawful or unenforceable voting powers, preferences and relative, participating, optional and other special rights of Series C Cumulative Preferred Stock and qualifications, limitations and restrictions thereof shall, nevertheless, remain in full force and effect, and no voting powers, preferences and relative, participating, optional or other special rights of Series C Cumulative Preferred Stock and qualifications, limitations and restrictions thereof herein set forth shall be deemed dependent upon any other such voting powers, preferences and relative, participating, optional, or other special rights of Series C Cumulative Preferred Stock and qualifications, limitations and restrictions thereof unless so expressed herein.

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| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 89701-4520<br> (775) 684-5708 <br> Website: www.nvsos.gov** |

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&nbsp;&nbsp;&nbsp; **Certificate of Designation**<br> (PURSUANT TO NRS 78.1955)<br>

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|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**20070709781-21** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**10/17/2007** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**7** |

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|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

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**<u>Certificate of Designation</u>**

**<u>For Nevada Profit Corporations</u>**

**(Pursuant to NRS 78.1955)**

1. Name of corporation:

Janel World Trade LTD.

2. By resolution of the board of directors pursuant to a provision in the articles of incorporation. this certificate establishes the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.

&nbsp;&nbsp; RESOLVED, that the Board of Directors, pursuant to authority expressly vested in it by the provisions of the Certificate of Incorporation of the Corporation, hereby authorizes the issuance of Two Hundred Eighty Five Thousand (285000) shares of Series B Convertible Preferred Stock, per value $0.001 per shares (the "Preferred Share(s)"), of the Corporation, and hereby fixes the designation, preferences, rights and the qualifications, limitations and restrictions thereof, in addition those set forth in the Certificate of Incorporation of the Corporation, as follows:<br>(1) No Voting Rights. Except as otherwies provided herein, in the Certificate of Incorporation or as required by law, the holders of the Preferred Shares (each a "Holder," and collectively the "Holders") shall have no voting rights or powers to vote upon the Certificate of Designation or upon any other matter, except that such holders that have the right to notice of meetings and voting sights and powers to vote upon any matter regarding the Section B Convertible Preferred rights and preferences.<br>(this document is continued on the additional attached sheets) <br>

3. Effective date of filing (optional): <br> (must not be later than 90 days after the certificate is filed)

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|:---|:---|:---|
| 4. Officer Signature (Required): | **X** | ![](img016_v1.jpg) |

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**Filling Fees: $175.00**

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

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|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State NRS 78.1955 Designation Split<br> Revised: 3-31-11** |

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**<u>Set forth below is the continuation of the<br> Janel World Trade, Ltd.<br> Certificate for Designation for Nevada Profit Corporations<br> (Pursuant to NRS 78.1995)</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>**Stated Value**</u>. Subject to <u>**Section 6**</u>, each Preferred Share shall have a "<u>**Stated Value**</u>" equal to fifty ($.50) cents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **<u>Conversion of Preferred Shares</u>**. Each of the Preferred Shares shall be convertible into <u>**Ten (10)**</u> shares of the Company's common stock, par value $0.001 per share (the "<u>Common Stock</u>') at any time or times on or after the expiration of two (2) years after the first date of issuance of any Preferred Share (the "<u>**Original Issuance Date**</u>"). Any Holder shall be entitled to convert all or a portion of such Holder's Preferred Shares into fully paid and non-assessable shares of Common Stock (each, a "<u>**Conversion**</u>"), in accordance with this <u>**Section 3(a)**</u>, **<u>Section 3(b)</u>**, and <u>**Section 3(c)**</u>. The Company shall not issue any fraction of a share of Common Stock upon any conversion. All shares of Common Stock (including fractions thereof) issuable upon conversion of more than one Preferred Share by a Holder thereof shall be aggregated for purposes of determining whether the conversion would result in the issuance of a fraction of a share of Common Stock, If, after the aforementioned aggregation, the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall, in lieu of issuing such fractional share, pay to the Holder the fair value thereof in cash. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of Preferred Shares, unless such taxes result from the issuance of Common Stock upon conversion to a person other than the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion Price</u>. Subject to anti-dilution adjustment as provided in <u>**Section 3(d)**</u>, upon a Conversion pursuant to <u>**Section 3(a)**</u> herein, the conversion price (the "<u>**Optional Conversion Price**</u>") of each Preferred Share shall equal $50. Each Preferred Share will convert into that number of shares of Common Stock determined by dividing the Stated Value of the Preferred Share by the Optional Conversion Price, as adjusted at the time of conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mechanics of Conversion</u>. To convert Preferred Shares into Conversion Shares, pursuant to <u>**Section 3(a)**</u> on any date (a "<u>**Conversion Date**</u>"), the Holder thereof shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m. Eastern Time on such date, a copy of an executed notice of conversion in the form attached hereto as <u>**Exhibit I**</u> (the "<u>**Conversion Notice**</u>") to the Company, and (ii) surrender to a common carrier for delivery to the Company within three (3) business days of such date the original certificates representing the Preferred Shares being converted (or an indemnification undertaking with respect to such shares in the case of their loss, theft or destruction) (the "<u>**Preferred Stock Certificates**</u>"). On or before the fifth (5<sup>th</sup>) Business Day following the date of receipt of a Conversion Notice (the "<u>**Share Delivery Date**</u>"), the Company shall (x) issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, or (y) provided that the Common Stock is then publicly traded (or quoted), the Company has a transfer agent (the "<u>**Transfer Agent**</u>"), and the Transfer Agent is participating in The Depository Trust Company ("<u>**DTC**</u>") Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system, If the number of Preferred Shares represented by the Preferred Stock Certificate(s) submitted for conversion pursuant to this <u>**Section 3(c)**</u> is greater than the number of Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later than five (5) business days after receipt of the Preferred Stock Certificate(s) (the "<u>**Preferred Stock Delivery Date**</u>") and at its own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred Shares not converted. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Anti-Dilution Provisions</u>. The Conversion Price in effect at any time and the number and kind of securities issuable upon conversion of the Preferred Shares shall be subject to adjustment from time to time upon the happening of certain events as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment for Stock Splits and Combinations</u>. If the Company at any time or from time to time on or after the Original Issuance Date effects a subdivision of the outstanding Common Stock, the Conversion Price then in effect immediately before that subdivision shall be proportionately decreased, and conversely, if the Company at any time or from time to time on or after the Original Issuance Date combines the outstanding shares of Common Stock into a smaller number of shares, the Optional Conversion Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this <u>**Section 3(d)(i)**</u> shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Adjustment for Certain Dividends and Distributions</u>. If the Company at any time or from time to time on or after the Original Issuance Date makes or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Conversion Price then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Conversion Price then in effect by a fraction (1) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date and (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; <u>provided</u>, <u>however</u>, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Price shall be adjusted pursuant to this **<u>Section 3(d)(ii)</u>** as of the time of actual payment of such dividends or distributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Adjustments for Other Dividends and Distributions</u>. In the event the Company at any time or from time to time on or after the Original Issuance Date makes, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company other than shares of Common Stock, then and in each such event provision shall be made so that the Holders of Preferred Shares shall receive upon conversion thereof, in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of the Company which they would have received had their Preferred Shares been converted into Common Stock on the date of such event and had they thereafter, during the period from the date of such event to and including the conversion date, retained such securities receivable by them as aforesaid during such period, subject to all other adjustments called for during such period under this **<u>Section 3(f)</u>** with respect to the rights of the Holders of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Adjustment for Reclassification, Exchange and Substitution</u>. In the event that at any time or from time to time on or after the Original Issuance Date, the Common Stock issuable upon the conversion of the Preferred Shares is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this **<u>Section 3(d)</u>**), then and in any such event each Holder of Preferred Shares shall have the right thereafter to convert such stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change, by holders of the maximum number of shares of Common Stock into which such Preferred Shares could have been converted immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Reorganizations, Mergers, Consolidations or Sales of Assets</u>. If at any time or from time to time on or after the Original Issuance Date there is a capital reorganization of the Common Stock (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this **<u>Section 3(d)</u>**) or a merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all of the Company's properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holders of the Preferred Shares shall thereafter be entitled to receive upon conversion of the Preferred Shares the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this **<u>Section 3(d)</u>** with respect to the rights of the Holders of the Preferred Shares after the reorganization, merger, consolidation or sale to the end that the provisions of this **<u>Section 3(d)</u>** (including adjustment of the Conversion Price then in effect and the number of shares purchasable upon conversion of the Preferred Shares) shall be applicable after that event and be as nearly equivalent as is practicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Impairment</u>. The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this <u>Section 3</u> and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Holders of the Preferred Shares against impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this <u>Section 3</u>, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of Preferred Shares a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of any Holder of Preferred Shares, furnish or cause to be furnished to such Holder a like certificate setting forth (I) such adjustments and readjustments, (ii) Conversion Price at the time in effect, and (iii) the number of shares of Common Stock and the amount, if any, of other property which at the time would be received upon the conversion of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Status of Converted Stock</u>. In the event any Preferred Shares shall be converted pursuant to **<u>Section 3</u>** hereof, the Preferred Shares so converted shall be canceled and shall not be reissued as Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Stock Purchase Rights</u>. If at any time or from time to time, the Company grants or issues to the record holders of the Common Stock any options, warrants or rights (collectively, "**<u>Stock Purchase Rights</u>**") entitling any holder of Common Stock to purchase Common Stock or any security convertible into or exchangeable for Common Stock or to purchase any other stock or securities of the Company, the Holders of Preferred Shares shall be entitled to acquire, upon the terms applicable to such Stock Purchase Rights, the aggregate Stock Purchase Rights which such Holders of Preferred Shares could have acquired if they had been the record holder of the maximum number of shares of Common Stock issuable upon conversion of their Preferred Shares on both (x) the record date for such grant or issuance of such Stock Purchase Rights, and (y) the date of the grant or issuance of such Stock Purchase Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Assumption and Provision Upon Organic Change. Prior to the consummation of any Organic Change (as defined below), the Company shall make appropriate provision to ensure that each of the Holders of the Preferred Shares will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of such Holder's Preferred Shares such shares of stock, securities or assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion of such Holder's Preferred Shares into Common Stock immediately prior to such Organic Change. The following shall constitute an "**<u>Organic Change:</u>**" any recapitalization, reorganization, reclassification, consolidation or merger, sale of all or substantially all of the Company's assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) **Reservation of Authorized Shares**. The Company shall, so long as any of the Preferred Shares are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, 100% of such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of all of the Preferred Shares then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) **Liquidation, Dissolution, Winding-Up**. In the event of any Liquidation (as defined below) of the Company, the Holders of the Preferred Shares shall be entitled to receive out of the assets of the Company legally available for distribution therefrom (the "<u>**Liguidation Funds**</u>"), Parri Passu with the holders of the Common Stock of the Company only after full satisfaction of the liquidation rights of the holders of the Company's <u>**Series A Convertible Preferred Stock**</u>.

"<u>**Liquidation**</u>" means any of the following: (i) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, (ii) filing for bankruptcy pursuant to applicable federal and/or state laws, (iii) any actions that directly and/or indirectly may be reasonably construed as steps in taking the Company private, including, but not limited to, failure to file SEC Reports required by applicable SEC rules and regulations in a timely fashion, the Company, any affiliate of the Company and/or any person at the direct and/or indirect request of the Company buying shares of issued and outstanding Company Stock (with the exception of such a transaction between the Company and James N. Jannello, which is not in excess of fifty percent (50%) of his holdings of Common Stock, in the event of the Company listing its securities on the London Stock Exchange Alternative Investment Market ("**AIM**"), the filing of a Form 15, the Common Stock no longer is eligible for quotation on the NASD Bulletin Board, the Company's Board of Directors and/or shareholders meeting and/or through resolutions, adopts or calls a meeting authorizing the Company to undertake any of the above such actions ("<u>**Going Private Actions**</u>"), or (iv) any Change of Control, provided, however, that transactions authorized by the Company's Board of Directors or shareholders with respect to causing the Company's issued and outstanding Common Stock, and the shares of Common Stock underlying the Preferred Shares, to be listed on the AM, which result in the filing of a Form 15, cessation of the filing of SEC Reports and cessation of eligibility for quotation the NASD Bulletin Board, will not be construed to constitute Going Private Actions, Liquidation or a Change of Control as defined herein.

"<u>**Change of Control**</u>" means (i) a change in the voting control of the Company such that any one person, entity or "group" (as contemplated by Rule 13d-5(b)(l) under the Securities Exchange Act of 1934, as amended) acquires from the Company in one or more, including a series of, transactions the right to cast greater than 50% of votes eligible to be cast by all holders of capital stock of the Company in the election of directors of the Company, provided that such transaction is approved by the Board or (ii) any merger or consolidation of the Company with or into another entity or any sale of all or substantially all of the assets of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>**Preferred Ranks**</u>. For so long as any Preferred Shares remain outstanding, the Company shall not, without the express written consent of Holders owning no less than a majority of the aggregate Stated Value of the then issued and outstanding Preferred Shares create or authorize any other class or series of capital stock, ranking *pari passu* and/or senior in any respect to the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>**Dividends: Participation**</u>. The Preferred Shares do not carry any dividend rights, except as otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>**Vote to Issue, or Change the Terms of Preferred Shares**</u>. The affirmative vote of the Holders owning not less than a majority of the aggregate Stated Value of the then issued and outstanding Preferred Shares at a meeting duly called for such purpose, or by the written consent without a meeting of the Holders of not less than a majority of the then outstanding Preferred Shares, shall be required for any direct and/or indirect (i) Going Private Actions, (ii) Liquidation, and/or (iii) any amendment to this Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock ("<u>**Certificate of Designation**</u>"), the Company's Certificate of Incorporation or Bylaws which would directly and/or indirectly amend, alter, change, repeal or otherwise adversely affect any of the powers, designations, preferences and rights of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>**Lost or Stolen Certificates**</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Preferred Stock Certificates representing the Preferred Shares, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of the Preferred Stock Certificate(s), the Company shall execute and deliver now preferred stock certificate(s) of like tenor and date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>**Notices**</u>. Whenever notice is required to be given under this Certificate of Designation, unless otherwise provided herein, such notice shall be given in writing and will be mailed by certified mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a) if to the Company, at the Company's executive offices or (b) if to a Holder, at the address set forth on Company's books and records.

**IN WITNESS WHEREOF**, Janel World Trade Ltd. has caused this Certificate to be signed by James N. Jannello, its Executive Vice President and Chief Executive Officer on this 12th day of October, 2007.

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| | |
|:---|:---|
| **JANEL WORLD TRADE LTD.** | **JANEL WORLD TRADE LTD.** |
| By: | ![](img016_v1.jpg) |
|  | Name: James N. Jannello |
|  | Title: Executive Vice President and Chief Executive Officer |

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 69701-4299<br> (775) 684-5708 <br> Website: secretaryofstate.blz** |

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&nbsp;&nbsp;&nbsp; **Certificate to Accompany Restated Articles**<br> (PURSUANT TO NRS)<br>

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| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**20070709509-29** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**10/17/2007** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**4** |

---

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

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**<u>This Form Is to Accompany Restated Articles of Incorporation</u>**

**(Pursuant to NRS 78.403, 82.371, 86.221, 88.355 or 88A.250)**

**(This form is also to be used to accompany Restated Articles for Limited-Liability Companies, Certificates of <br> Limited Partnership, Limited-Liability Limited Partnerships and Business Trusts)**

1. Name of Nevada entity as last recorded in this office:

JANEL WORLD TRADE, LTD.

2. The articles are being ☐ **Restated** or ☒ **Amended and Restated** (check only one). Please entitle your attached articles "**Restated**" or "**Amended and Restated,**" accordingly.

3. Indicate what changes have been made by checking the appropriate box.\*

☐ No amendments; articles are restated only and are signed by an officer of the corporation who has been authorized to execute the certificate by resolution of the board of directors adopted on <u>October 16, 2007</u> The certificate correctly sets forth the text of the articles or certificate as amended to the date of the certificate.

☐ The entity name has been amended.

☐ The resident agent has been changed, (attach Certificate of Acceptance from new resident agent)

☐ The purpose of the entity has been amended.

&nbsp;&nbsp;&nbsp;&nbsp;☒ The
 authorized shares have been amended.

☐ The directors, managers or general partners have been amended.

☐ IRS tax language has been added.

☐ Articles have been added.

☐ Articles have been deleted.

&nbsp;&nbsp;&nbsp;&nbsp;☒ Other.
 The articles or certificate have been amended as follows (provide article numbers, if available);

Articles 2, 3, 4, 5, 6, 7, 8, 9 and 10.

\* This form is to accompany Restated Articles which contain newly altered or amended articles. The Restated Articles must contain all of the requirements as set forth in the statutes for amending or altering the articles or certificates

**IMPORTANT:** Failure to include any of the above information and submit the proper fees may cause this fling to be rejected.

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| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State AM Restated 2007<br> Revised: 01/01/07** |

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**AMENDED AND RESTATED <br> ARTICLES OF INCORPORATION OF<br> JANEL WORLD TRADE, LTD.**

The Corporation was incorporated under the name "Wine Systems Design, Inc." by the filing of its original Articles of Incorporation with the Secretary of State of Nevada on August 31, 2000. The Articles of Incorporation were amended by the filing of a Certificate of Amendment of Articles of Incorporation with the Secretary of State of Nevada on July 3, 2002, which changed the name of the Corporation to "Janel World Trade, Ltd.," and set the total number of authorized shares of $.001 par value Common Stock at Two Hundred Twenty Five Million (225,000,000) shares.

This Amended and Restated Certificate of Incorporation has been duly adopted in accordance with the provisions of Sections 78,385 and 78.390 of the Nevada Revised Statutes. Holders of approximately 71% of the outstanding capital stock of the Corporation entitled to vote with respect to approval and adoption of an amended and restated certificate of incorporation have duly approved and adopted the Amended and Restated Certificate of Incorporation of the Corporation, as set forth herein.

ARTICLE 1: <u>NAME</u>. The name of the Corporation is:

**JANEL WORLD TRADE, LTD.**

ARTICLE 2: <u>ADDRESS</u>. The address of the resident agent of this Corporation in this State is do United Corporate Services, Inc., 202 South Minnesota Street, in the City of Carson City, County of Carson City, State of Nevada 89703 and the name of the resident agent at said address is United Corporate Services, Inc. This Corporation may maintain an office, or offices, in such other place or places within or without the State of Nevada as may be from time to time designated by the Board of Directors, or by the Bylaws of the Corporation

ARTICLE 3: <u>PURPOSE</u>. The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the corporation laws of the State of Nevada.

ARTICLE 4: <u>CAPITAL STOCK</u>. The Corporation shall be authorized to issue the following shares:

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| | | |
|:---|:---|:---|
| Class | Number of Shares | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par Value |
| COMMON | 225000000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$.001 |
| PREFERRED | 5000000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$.001 |

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The designations and the powers, preferences and rights, and the qualifications or restrictions thereof are as follows:

The Preferred shares shall be issued from time to time in one or more series, with such distinctive serial designations as shall be stated and expressed in the resolution or resolutions providing for the issuance of such shares as adopted by the Board of Directors; the Board of Directors is expressly authorized to fix the number of shares of each series, the annual rate or rates of dividends for the particular series, the dividend payment dates for the particular series and the date from which dividends on all shares of such series issued prior to the record date for the first dividend payment date shall be cumulative, the redemption price or prices for the particular series, the voting powers for the particular series, the rights, if any, of holders of the shares of the particular series to convert the same into shares of any other series or class or other securities of the Corporation, with any provisions for the subsequent adjustment of such conversion rights, the rights, if any, of the particular series to participate in distributions or payments upon liquidation, dissolution or winding up of the Corporation, and to classify or reclassify any unissued preferred shares by fixing or altering from time to time any of the foregoing rights, privileges and qualifications.

All the Preferred shares of any one series shall be identical with each other in all respects, except that shares of any one series issued at different times may differ as to the dates from which dividends thereon shall be cumulative; and all preferred shares shall be of equal rank, regardless of series, and shall be identical in all respects except as to the particulars fixed by the Board as hereinabove provided or as fixed herein.

The capital stock, after the amount of the subscription price, or par value, has been paid in, shall not be subject to assessment to pay the debts of the Corporation.

ARTICLE 5: <u>BOARD OF DIRECTORS</u>. The governing board of this Corporation is the Board of Directors, and the number of directors may from time to time be increased or decreased in such manner as shall be provided by the bylaws of this Corporation, providing that the number of directors shall nor be reduced to less than three (3).

ARTICLE 6: <u>DIRECTOR AND OFFICER LIABILITY</u>. The personal liability of the directors of the Corporation to the Corporation or to its shareholders is hereby eliminated to the fullest extent permitted by Section 78.037 of the NRS. A director and officer of the Corporation shall not be personally liable to the Corporation or its stockholders for damages for breach of fiduciary duty as a director or officer, except for liability (i) for acts or omissions that involve intentional misconduct, fraud or a knowing violation of law, or (ii) for authorizing any distribution in violation of Section 78.300 of the NRS. If the NRS is amended after approval by the stockholders of this Article to authorize corporate action further eliminating the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the NRS, as so amended. Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation shall not adversely affect any right or protection of a director or officer of the Corporation existing at the time of such repeal or modification. No amendment to the NRS that further limits the acts, omissions or transactions for which elimination or limitation of liability is permitted shall affect the liability of a director or officer for any act, omission or transaction which occurs prior to the effective date of such amendment.

------

ARTICLE 7: <u>INDEMNIFICATION</u>. The Corporation shall, to the fullest extent permitted by Section 78.751 of the NRS, as the same may be amended, supplemented or replaced from time to time, indemnify any and all persons whom it shall have power to indemnify under said section from and against any and all of the expenses, liabilities or other matters referred to in or covered by said section, and the indemnification provided for herein shall not be deemed exclusive of any other rights to which those indemnified may be entitled under any Bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office, and shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person. Pursuant to said Section 78.751 of the NRS, the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding must be paid by the Corporation as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the Corporation.

ARTICLE 8: <u>DURATION</u> The period of duration of the Corporation shall be perpetual.

ARTICLE 9: <u>BYLAWS</u>. In furtherance and not in limitation of the powers conferred by law, the Board of Directors is expressly authorized and empowered to adopt, amend and repeal the Bylaws of the Corporation at any regular or special meeting of the Board or Directors or by written consent, subject to the power of the stockholders of the Corporation to adopt, amend or repeal any Bylaws.

ARTICLE 10: <u>STOCKHOLDER MEETINGS</u>. Meetings of stockholders may be held within or without the State of Nevada, as the Bylaws may provide. The books of the Corporation may be kept (subject to any provision contained in the NRS) outside the State of Nevada at such place or places as may be designated from time to time by the Board of Directors or in the Bylaws of the Corporation.

ARTICLE 11: <u>AMENDMENTS</u>: The Corporation reserves the right to amend, alter, change or repeal any provision contained in these Articles of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

IN WITNESS WHEREOF, the undersigned Chief Executive Officer has executed these Amended and Restated Articles as of October 16, 2007.

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| |
|:---|
| **JANEL WORLD TRADE, LTD., a Nevada Corporation** |
| ![](img016_v1.jpg) |
| James N. Jannello, Executive Vice President and Chief Executive Officer |

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 89701-4299<br> (775) 684-5708 <br> Website: secretaryofstate.blz** |

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&nbsp;&nbsp;&nbsp; **Certificate of Correction**<br> (PURSUANT TO NRS 78, 78A, 80, 81, 82, 84, 86, 87, 88, 88A, 89 AND 92A)<br>

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| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**20070709512-73** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**10/17/2007** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**1** |

---

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

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**<u>Certificate of Correction</u>**

**(Pursuant to NRS 78, 78A, 80, 81, 82, 84, 86, 87, 88, 88A, 89 and 92A)**

1. The name of the **entity** for which correction is being made:

JANEL WORLD TRADE, LTD.

2. Description of the original document for which correction is being made;

Certificate of Designation of the preferences, rights, and the qualifications, limitations and restrictions of the Series A Preferred Stock of Janel World Trade, Ltd.

3. Filing date of the original document for which correction is being made: January 12, 2007

4. Description of the inaccuracy or defect.

The limitation of the number of shares of the Series A Preferred Stock of Janel World Trade, Ltd. was mistakenly omitted from the Certificate of Designation of the preferences, rights, and the qualifications, limitations and restrictions of the Series A Preferred Stock of Janel World Trade, Ltd. filed January 12, 2007.

5. Correction of the inaccuracy or defect.

By resolution of the Board of Directors of Janel World Trade, Ltd. pursuant to a provision in the Articles of Incorporation, the issue of a series of Preferred Shares of this Corporation designated as "Series A Convertible Preferred Stock" is limited to an issuance of not more than One Million (1000000) shares.

6. Signature

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| | | | |
|:---|:---|:---|:---|
|  | ![](img017_v1.jpg) | | |
| **X** | ![](img017_v1.jpg) | Chief Executive Officer | October 17, 2007 |
| **Authorized Signature** | **Authorized Signature** | **Title\*** | **Date** |

---

\* If entity is a Corporation, it must be signed by an Officer if stock has been issued, OR an Incorporator or Director if stock has not been issued; a Limited -Liability Company, by a manager or managing members; a Limited Partnership or Limited-Liability Limited Partnership, by a General Partner, a Limited-Liability Partnership, by a Managing Partner, a Business Trust, by a Trustee.

**IMPORTANT:** Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.

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| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State AM Correction 2007<br> Revised: 01/01/07** |

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| | |
|:---|:---|
| ![](img001_v1.jpg) | **ROSS MILLER <br> Secretary of State <br> 204 North Carson Street, Suite 1 <br> Carson City, Nevada 89701-4299<br> (775) 684-5708 <br> Website: secretaryofstate.blz** |

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&nbsp;&nbsp;&nbsp; **Certificate of Designation**<br> (PURSUANT TO NRS 78.1955)<br>

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| | |
|:---|:---|
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Business Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**C23576-2000** |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;Filing Number |
| &nbsp;&nbsp; Filed in the Office of<br> ![](img014_v1.jpg) | &nbsp;&nbsp;**20070024473-79** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Filed On |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**01/12/2007** |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;Number of Pages |
| &nbsp;&nbsp; Secretary of State<br> State Of Nevada | &nbsp;&nbsp;**14** |

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| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

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**<u>Certificate of Designation <br> For Nevada Profit Corporations</u>**

**(Pursuant to NRS 78.1955)**

1. Name of corporation:

JANEI. WORLD TRADE LTD.

2. By resolution of the board of directors pursuant to a provision in the articles of incorporation. this certificate establishes the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.

RESOLVED, that the Board of Directors, pursuant to authority expressly vested in it by the provisions of the Certificate of Incorporation of the Corporation, hereby authorizes the issuance of a series of Preferred Stock, par value $0.001 per share, of the Corporation, and hereby fixes the designation, preferences. rights and the qualifications, limitations and restrictions thereof, in addition to those set forth in the Certificate of Incorporation of the Corporation, as follows:<br> (1) Voting Rights. <br> (a) Series A Preferred Stock. Except as otherwise provided herein, in the Certificate of Incorporation or as required by law, the holders of the Preferred Shares (each a "Holder," and collectively the "Holders") and the holders of the Company's common stock, par value $0.001 per share (the "Common Stock") shall vote together as a single class with each Preferred Share having the number of votes equal to the largest whole number of shares of Common Stock into which such Preferred Share could be converted. at the record date for the determination of the stockholders entitled to vote on such matters or, if no : such record date is established, at the date such vote is taken.<br>(this document is continued on the additional attached sheets)<br>

3. Effective date of filing ((optional): <br> (must not be later than 90 days after the certificate is filed)

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| | | |
|:---|:---|:---|
| 4. Officer Signature **(Required)**: | **X** | ![](img017_v1.jpg) |

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**Filling Fee: $175.00**

**IMPORTANT:** Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.

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| | |
|:---|:---|
| *This form must be accompanied by appropriate fees.* | **Nevada Secretary of State AM Correction 2007<br> Revised: 01/01/07** |

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Set forth below is the continuation of the<br> Janel World Trade, Ltd.

Certificate for Designation for Nevada Profit Corporations<br> (Pursuant to NRS 78.19951)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Common Stock</u>. Each holder of shares of Common Stock shall be entitled to one vote for each share thereof held. Except as otherwise expressly provided herein or as required by law, the Holders of the Preferred Shares and the holders of Common Stock shall vote together and not as separate classes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) <u>Stated Value</u>.** Subject to **<u>Section 6,</u>** each Preferred Share shall have a **"<u>Stated Value</u>"** equal to fifty ($.50) cents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Conversion of Preferred Shares.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Preferred Shares shall be convertible into shares of Common Stock at any time or times on or after the first date of issuance of any Preferred Share (the **"<u>Original Issuance Date</u>**")**.** Any Holder shall be entitled to convert all or a portion of such Holder's Preferred Shares into fully paid and non-assessable shares of Common Stock (each, a **"<u>Conversion</u>**"), in accordance with this **<u>Section 3(a)</u>, <u>Section 3(b)</u>** and **<u>Section</u>** <u>**3(c)**</u>. The Company shall not issue any fraction of a share of Common Stock upon any conversion. All shares of Common Stock (including fractions thereof) issuable upon conversion of more than one Preferred Share by a Holder thereof shall be aggregated for purposes of determining whether the conversion would result in the issuance of a fraction of a share of Common Stock. If, after the aforementioned aggregation, the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall, in lieu of issuing such fractional share, pay to the Holder the fair value thereof in cash. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of Preferred Shares unless such taxes result from the issuance of Common Stock upon conversion to a person other than the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conversion Price</u>. Subject to anti-dilution adjustment as provided in **<u>Section 3(d)</u>,** upon a Conversion pursuant to **<u>Section 3(a)</u>** herein, the conversion price (the **"<u>Optional Conversion Price</u>**") of each Preferred Share shall equal $.50. Each Preferred Share will convert into that number of shares of Common Stock determined by dividing the Stated Value of the Preferred Share by the Optional Conversion Price, as adjusted at the time of conversion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics of Conversion</u>. To convert Preferred Shares into Conversion Shares, pursuant to **<u>Section 3(a)</u>** on any date (a **"<u>Conversion Date</u>"),** the Holder thereof shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m. Eastern Time on such date, a copy of an executed notice of conversion in the form attached hereto as **<u>Exhibit I</u>** (the **"<u>Conversion Notice</u>")** to the Company, and (ii) surrender to a common carrier for delivery to the Company within three (3) business days of such date the original certificates representing the Preferred Shares being converted (or an indemnification undertaking with respect to such shares in the case of their loss, theft or destruction) (the **"<u>Preferred Stock Certificates</u>").** On or before the third (3<sup>rd</sup>) Business Day following the date of receipt of a Conversion Notice (the **"<u>Share Delivery Date</u>"),** the Company shall (x) issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, or (y) provided that the Common Stock is then publicly traded (or quoted), the Company has a transfer agent (the "**<u>Transfer Agent</u>**"), and the Transfer Agent is participating in The Depository Trust Company ("**<u>DTC</u>**") Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system. If the number of Preferred Shares represented by the Preferred Stock Certificate(s) submitted for conversion pursuant to this **<u>Section 3(c)</u>** is greater than the number of Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later than three (3) business days after receipt of the Preferred Stock Certificate(s) (the "**<u>Preferred Stock Delivery Pate</u>**") and at its own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred Shares not converted. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Anti-Dilution Provisions</u>. The Conversion Price in effect at any time and the number and kind of securities issuable upon conversion of the Preferred Shares shall be subject to adjustment from time to time upon the happening of certain events as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment for Stock Splits and Combinations</u>. If the Company at any time or from time to time on or after the Original Issuance Date effects a subdivision of the outstanding Common Stock, the Conversion Price then in effect immediately before that subdivision shall be proportionately decreased, and conversely, if the Company at any time or from time to time on or after the Original Issuance Date combines the outstanding shares of Common Stock into a smaller number of shares, the Optional Conversion Price then in effect immediately before the combination shall be proportionately increased. Any adjustment under this **<u>Section 3(d)(i)</u>** shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Adjustment for Certain Dividends and Distributions</u>. If the Company at any time or from time to time on or after the Original Issuance Date makes or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Conversion Price then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Conversion Price then in effect by a fraction (1) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date and (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; <u>provided,</u> <u>however,</u> that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Price shall be adjusted pursuant to this **<u>Section 3(d)(ii)</u>** as of the time of actual payment of such dividends or distributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Adjustments for Other Dividends and Distributions</u>. In the event the Company at any time or from time to time on or after the Original Issuance Date makes, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company other than shares of Common Stock, then and in each such event provision shall be made so that the Holders of Preferred Shares shall receive upon conversion thereof, in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of the Company which they would have received had their Preferred Shares been converted into Common Stock on the date of such event and had they thereafter, during the period from the date of such event to and including the conversion date, retained such securities receivable by them as aforesaid during such period, subject to all other adjustments called for during such period under this **<u>Section 3(f</u>**<u>)</u> with respect to the rights of the Holders of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Adjustment for Reclassification, Exchange and Substitution</u>. In the event that at any time or from time to time on or after the Original Issuance Date, the Common Stock issuable upon the conversion of the Preferred Shares is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this **<u>Section 3(d)</u>**<u>),</u> then and in any such event each Holder of Preferred Shares shall have the right thereafter to convert such stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change, by holders of the maximum number of shares of Common Stock into which such Preferred Shares could have been converted immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Reorganizations, Mergers, Consolidations or Sales of Assets</u>. If at any time or from time to time on or after the Original Issuance Date there is a capital reorganization of the Common Stock (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this <u>**Section 3(d)**)</u> or a merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all of the Company's properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holders of the Preferred Shares shall thereafter be entitled to receive upon conversion of the Preferred Shares the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this **<u>Section 3(d)</u>** with respect to the rights of the Holders of the Preferred Shares after the reorganization, merger, consolidation or sale to the end that the provisions of this **<u>Section 3(d)</u>** (including adjustment of the Conversion Price then in effect and the number of shares purchasable upon conversion of the Preferred Shares) shall be applicable after that event and be as nearly equivalent as is practicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Impairment</u>. The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this **<u>Section 3</u>** and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Holders of the Preferred Shares against impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this **<u>Section 3</u>**. the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of Preferred Shares a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of any Holder of Preferred Shares, furnish or cause to be furnished to such Holder a like certificate setting forth (i) such adjustments and readjustments, (ii) Conversion Price at the time in effect, and (iii) the number of shares of Common Stock and the amount, if any, of other property which at the time would be received upon the conversion of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Status of Converted Stock</u>. In the event any Preferred Shares shall be converted pursuant to **<u>Section 3</u>** hereof, the Preferred Shares so converted shall be canceled and shall not be reissued as Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Stock Purchase Rights</u>. If at any time or from time to time, the Company grants or issues to the record holders of the Common Stock any options, warrants or rights (collectively, "**<u>Stock Purchase Rights</u>**") entitling any holder of Common Stock to purchase Common Stock or any security convertible into or exchangeable for Common Stock or to purchase any other stock or securities of the Company, the Holders of Preferred Shares shall be entitled to acquire, upon the terms applicable to such Stock Purchase Rights, the aggregate Stock Purchase Rights which such Holders of Preferred Shares could have acquired if they had been the record holder of the maximum number of shares of Common Stock issuable upon conversion of their Preferred Shares on both (x) the record date for such grant or issuance of such Stock Purchase Rights, and (y) the date of the grant or issuance of such Stock Purchase Rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) Assumption and Provision Upon Organic Change.** Prior to the consummation of any Organic Change (as defined below), the Company shall make appropriate provision to ensure that each of the Holders of the Preferred Shares will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of such Holder's Preferred Shares such shares of stock, securities or assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion of such Holder's Preferred Shares into Common Stock immediately prior to such Organic Change. The following shall constitute an "**<u>Organic Change</u>**:" any recapitalization, reorganization, reclassification, consolidation or merger, sale of all or substantially all of the Company's assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5) Reservation of Authorized Shares**. The Company shall, so long as any of the Preferred Shares are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, 100% of such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of all of the Preferred Shares then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6) Liquidation, Dissolution, Winding-Up.** In the event of any Liquidation (as defined below) of the Company, the Holders of the Preferred Shares shall be entitled to receive out of the assets of the Company legally available for distribution therefrom (the "**<u>Liquidation Funds</u>**"), before any amount shall be paid to the holders of any of the capital stock of the Company of any class junior in rank to the Preferred Shares in respect of the preferences as to the distributions and payments on a Liquidation of the Company, an amount per Preferred Share equal to the sum of (i) the Stated Value, (ii) four (4%) percent of the Stated Value, calculated from the Original Issuance Date through and including the date the Liquidation Funds are paid to the Holders of the Preferred Shares, plus (iii) all dividends, if any, which have accrued or are payable under **<u>Section 8</u>** hereof, but have not been paid and received by the Holders of the Preferred Shares, up to and including the date full payment is tendered to the Holder of such Preferred Share with respect to such Liquidation (collectively, the "**<u>Non Change of Control Liquidation Preference</u>**"); <u>provided,</u> <u>however</u>, that notwithstanding anything to the contrary provided herein or elsewhere, in the event that a Liquidation is caused as a result of a Change of Control (as defined below), each Holder of Preferred Shares shall be entitled to receive in addition to the Non Change of Control Liquidation Preference, such additional amounts that each such Holder would have received in the Liquidation, had it converted its Preferred Stock into Common Stock immediately prior to the Liquidation. If, upon any Liquidation, the Liquidation Funds are insufficient to pay, issue or deliver the full amount due to the Holders of Preferred Shares and holders of shares of other classes or series of preferred stock of the Company that are expressly provided for as of equal rank with the Preferred Shares as to payments of Liquidation Funds (the "**<u>Pari Passu Shares</u>**"), then each holder of Preferred Shares and Pari Passu Shares shall receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such holder as a liquidation preference, in accordance with their respective Certificate of Designation of Preferences Rights and Limitations, as a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and Pari Passu Shares. No Holder of Preferred Shares shall be entitled to receive any amounts with respect thereto upon any Liquidation other than the amounts provided for herein; provided that a Holder of Preferred Shares shall be entitled to all amounts previously accrued with respect to amounts owed hereunder. The form of consideration in which the Liquidation Preference is to be paid to the Holders of the Preferred Shares as provided in this **<u>Section (6)</u>** shall be the form of consideration received by the Company or the other holders of the Company's capital stock, as the case may be.

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**"<u>Liquidation</u>"** means any of the following: (i) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, (ii) filing for bankruptcy pursuant to applicable federal and/or state laws, (iii) any actions that directly and/or indirectly may be reasonably construed as steps in taking the Company private, including, but not limited to, failure to file SEC Reports required by applicable SEC rules and regulations in a timely fashion, the Company, any affiliate of the Company and/or any person at the direct and/or indirect request of the Company buying shares of issued and outstanding Company Stock (with the exception of such a transaction between the Company and James N. Jannello, which is not in excess of fifty percent (50%) of his holdings of Common Stock, in the event of the Company listing its securities on the London Stock Exchange Alternative Investment Market (**"AIM"**)), the filing of a Form 15, the Common Stock no longer is eligible for quotation on the NASD Bulletin Board, the Company's Board of Directors and/or shareholders meeting and/or through resolutions, adopts or calls a meeting authorizing the Company to undertake any of the above such actions (**"<u>Going Private Actions</u>"**), or (iv) any Change of Control, provided, however, that transactions authorized by the Company's Board of Directors or shareholders with respect to causing the Company's issued and outstanding Common Stock, and the shares of Common Stock underlying the Preferred Shares, to be listed on the AIM, which result in the filing of a Form 15, cessation of the filing of SEC Reports and cessation of eligibility for quotation the NASD Bulletin Board, will not be construed to constitute Going Private Actions, Liquidation or a Change of Control as defined herein.

"**<u>Change of Control</u>**" means (i) a change in the voting control of the Company such that any one person, entity or "group" (as contemplated by Rule 13d~5(b)(l) under the Securities Exchange Act of 1934, as amended) acquires from the Company in one or more, including a series of, transactions the right to cast greater than 50% of votes eligible to be cast by all holders of capital stock of the Company in the election of directors of the Company, provided that such transaction is approved by the Board or (ii) any merger or consolidation of the Company with or into another entity or any sale of all or substantially all of the assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(7) <u>Preferred Rank</u>**. All shares of Common Stock shall be of junior rank to all Preferred Shares in all respects as to the preferences as to distributions and payments upon the liquidation, dissolution and winding up of the Company. The rights of the shares of Common Stock shall be subject to the preferences and relative rights of the Preferred Shares. For so long as any Preferred Shares remain outstanding, the Company shall not, without the express written consent of Holders owning no less than a majority of the aggregate Stated Value of the then issued and outstanding Preferred Shares (a) create or authorize any other class or series of capital stock, ranking *pari passu* and/or senior in any respect to the Preferred Shares, or (b) issue any indebtedness ranking *pari passu* and/or senior in respect to the Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8) <u>Dividends; Participation.</u>** Each Preferred Share shall accrue and be paid a dividend at the rate of three (3%) percent per annum of the Stated Value, payable quarterly in arrears on January 1<sup>st</sup>, April 1<sup>st</sup>, July 1<sup>st</sup> and October 1<sup>st</sup> of each year and for such whole year (or portion thereof) that such Preferred Share is issued and outstanding. The dividend payments shall be made in either cash or at the option of the Company through the issuance of additional Preferred Shares.

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Set forth below is the continuation of the

Janel World Trade, Ltd.

Certificate for Designation for Nevada Profit Corporations<br> (Pursuant to NRS 78.1995)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Common Stock</u>. Each holder of shares of Common Stock shall be entitled to one vote for each share thereof held. Except as otherwise expressly provided herein or as required by law, the Holders of the Preferred Shares and the holders of Common Stock shall vote together and not as separate classes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) <u>Stated Value</u>**. Subject to **<u>Section 6</u>**, each Preferred Share shall have a "**<u>Stated Value</u>**" equal to fifty ($.50) cents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Conversion of Preferred Shares.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Preferred Shares shall be convertible into shares of Common Stock at any time or times on or after the first date of issuance of any Preferred Share (the "**<u>Original Issuance Date</u>**"). Any Holder shall be entitled to convert all or a portion of such Holder's Preferred Shares into fully paid and non-assessable shares of Common Stock (each, a "**<u>Conversion</u>**'), in accordance with this **<u>Section 3(a)</u>**, **<u>Section 3(b)</u>** and **<u>Section 3(c)</u>**. The Company shall not issue any fraction of a share of Common Stock upon any conversion. All shares of Common Stock (including fractions thereof) issuable upon conversion of more than one Preferred Share by a Holder thereof shall be aggregated for purposes of determining whether the conversion would result in the issuance of a fraction of a share of Common Stock. If, after the aforementioned aggregation, the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall, in lieu of issuing such fractional share, pay to the Holder the fair value thereof in cash. The Company shall pay any and all taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of Preferred Shares unless such taxes result from the issuance of Common Stock upon conversion to a person other than the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Conversion Price</u>. Subject to anti-dilution adjustment as provided in **<u>Section 3(d),</u>** upon a Conversion pursuant to **<u>Section 3(a)</u>** herein, the conversion price (the "**<u>Optional Conversion Price</u>**") of each Preferred Share shall equal $.50. Each Preferred Share will convert into that number of shares of Common Stock determined by dividing the Stated Value of the Preferred Share by the Optional Conversion Price, as adjusted at the time of conversion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Mechanics of Conversion</u>. To convert Preferred Shares into Conversion Shares, pursuant to **<u>Section 3(a)</u>** on any date (a "**<u>Conversion Date</u>**"), the Holder thereof shall (i) transmit by facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m. Eastern Time on such date, a copy of an executed notice of conversion in the form attached hereto as **<u>Exhibit I</u>** (the "**<u>Conversion Notice</u>**<u>"</u>) to the Company, and (ii) surrender to a common carrier for delivery to the Company within three (3) business days of such date the original certificates representing the Preferred Shares being converted (or an indemnification undertaking with respect to such shares in the case of their loss, theft or destruction) (the "**<u>Preferred Stock Certificates</u>**"). On or before the third (3<sup>rd</sup>) Business Day following the date of receipt of a Conversion Notice (the "**<u>Share Delivery Date</u>**"), the Company shall (x) issue and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, or (y) provided that the Common Stock is then publicly traded (or quoted), the Company has a transfer agent (the "**<u>Transfer Agent</u>**"), and the Transfer Agent is participating in The Depository Trust Company ("**<u>DTC</u>**") Fast Automated Securities Transfer Program, upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system. If the number of Preferred Shares represented by the Preferred Stock Certificate(s) submitted for conversion pursuant to this **<u>Section 3(c)</u>** is greater than the number of Preferred Shares being converted, then the Company shall, as soon as practicable and in no event later than three (3) business days after receipt of the Preferred Stock Certificate(s) (the "**<u>Preferred Stock Delivery Date</u>**") and at its own expense, issue and deliver to the Holder a new Preferred Stock Certificate representing the number of Preferred Shares not converted. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Anti-Dilution Provisions</u>. The Conversion Price in effect at any time and the number and kind of securities issuable upon conversion of the Preferred Shares shall be subject to adjustment from time to time upon the happening of certain events as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment for Stock Splits and Combinations</u>. If the Company at any time or from time to time on or after the Original Issuance Date effects a subdivision of the outstanding Common Stock, the Conversion Price then in effect immediately before that subdivision shall be proportionately decreased, and conversely, if the Company at any time or from time to time on or after the Original Issuance Date combines the outstanding shares of Common Stock into a smaller number of shares, the Optional Conversion Price then in effect immediately before the combination shall be proportionately increased, Any adjustment under this **<u>Section 3(d)(i)</u>** shall become effective at the close of business on the date the subdivision or combination becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Adjustment for Certain Dividends and Distributions</u>. If the Company at any time or from time to time on or after the Original Issuance Date makes or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Conversion Price then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Conversion Price then in effect by a fraction (1) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date and (2) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution: <u>provided</u>, <u>however</u>, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Conversion Price shall be adjusted pursuant to this **<u>Section 3(d)(ii)</u>** as of the time of actual payment of such dividends or distributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Adjustments for Other Dividends and Distributions</u>. In the event the Company at any time or from time to time on or after the Original Issuance Date makes, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Company other than shares of Common Stock, then and in each such event provision shall be made so that the Holders of Preferred Shares shall receive upon conversion thereof, in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of the Company which they would have received had their Preferred Shares been converted into Common Stock on the date of such event and had they thereafter, during the period from the date of such event to and including the conversion date, retained such securities receivable by them as aforesaid during such period, subject to all other adjustments called for during such period under this **<u>Section 3(f)</u>** with respect to the rights of the Holders of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Adjustment for Reclassification. Exchange and Substitution</u>. In the event that at any time or from time to time on or after the Original Issuance Date, the Common Stock issuable upon the conversion of the Preferred Shares is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this <u>**Section 3(d)**)</u>, then and in any such event each Holder of Preferred Shares shall have the right thereafter to convert such stock into the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change, by holders of the maximum number of shares of Common Stock into which such Preferred Shares could have been converted immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Reorganizations. Mergers. Consolidations or Sales of Assets</u>. If at any time or from time to time on or after the Original Issuance Date there is a capital reorganization of the Common Stock (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this <u>**Section 3(d)**)</u> or a merger or consolidation of the Company with or into another corporation, or the sale of all or substantially all of the Company's properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holders of the Preferred Shares shall thereafter be entitled to receive upon conversion of the Preferred Shares the number of shares of stock or other securities or property to which a holder of the number of shares of Common Stock deliverable upon conversion would have been entitled on such capital reorganization, merger, consolidation, or sale. In any such case, appropriate adjustment shall be made in the application of the provisions of this **<u>Section 3(d)</u>** with respect to the rights of the Holders of the Preferred Shares after the reorganization, merger, consolidation or sale to the end that the provisions of this **<u>Section 3(d)</u>** (including adjustment of the Conversion Price then in effect and the number of shares purchasable upon conversion of the Preferred Shares) shall be applicable after that event and be as nearly equivalent as is practicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Impairment</u>. The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company but will at all times in good faith assist in the carrying out of all the provisions of this **<u>Section 3</u>** and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of the Holders of the Preferred Shares against impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certificate as to Adjustments</u>. Upon the occurrence of each adjustment or readjustment of the Conversion Price pursuant to this **<u>Section 3</u>**, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of Preferred Shares a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of any Holder of Preferred Shares, furnish or cause to be furnished to such Holder a like certificate setting forth (i) such adjustments and readjustments, (ii) Conversion Price at the time in effect, and (iii) the number of shares of Common Stock and the amount, if any, of other property which at the time would be received upon the conversion of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Status of Converted Stock</u>. In the event any Preferred Shares shall be converted pursuant to **<u>Section 3</u>** hereof, the Preferred Shares so converted shall be canceled and shall not be reissued as Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Stock Purchase Rights</u>. If at any time or from time to time, the Company grants or issues to the record holders of the Common Stock any options, warrants or rights (collectively, "**<u>Stock Purchase Rights</u>**'') entitling any holder of Common Stock to purchase Common Stock or any security convertible into or exchangeable for Common Stock or to purchase any other stock or securities of the Company, the Holders of Preferred Shares shall be entitled to acquire, upon the terms applicable to such Stock Purchase Rights, the aggregate Stock Purchase Rights which such Holders of Preferred Shares could have acquired if they had been the record holder of the maximum number of shares of Common Stock issuable upon conversion of their Preferred Shares on both (x) the record date for such grant or issuance of such Stock Purchase Rights, and (y) the date of the grant or issuance of such Stock Purchase Rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) Assumption and Provision Upon Organic Change.** Prior to the consummation of any Organic Change (as defined below), the Company shall make appropriate provision to ensure that each of the Holders of the Preferred Shares will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable upon the conversion of such Holder's Preferred Shares such shares of stock, securities or assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable and receivable upon the conversion of such Holder's Preferred Shares into Common Stock immediately prior to such Organic Change. The following shall constitute an "**<u>Organic Change</u>**:" any recapitalization, reorganization, reclassification, consolidation or merger, sale of all or substantially all of the Company's assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5) Reservation of Authorized Shares.** The Company shall, so long as any of the Preferred Shares are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, 100% of such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of all of the Preferred Shares then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6) Liquidation, Dissolution, Winding-Up.** In the event of any Liquidation (as defined below) of the Company, the Holders of the Preferred Shares shall be entitled to receive out of the assets of the Company legally available for distribution therefrom (the **"<u>Liquidation Funds</u>"),** before any amount shall be paid to the holders of any of the capital stock of the Company of any class junior in rank to the Preferred Shares in respect of the preferences as to the distributions and payments on a Liquidation of the Company, an amount per Preferred Share equal to the sum of (i) the Stated Value, (ii) four (4%) percent of the Stated Value, calculated from the Original Issuance Date through and including the date the Liquidation Funds are paid to the Holders of the Preferred Shares, plus (iii) all dividends, if any, which have accrued or are payable under **<u>Section 8</u>** hereof, but have not been paid and received by the Holders of the Preferred Shares, up to and including the date full payment is tendered to the Holder of such Preferred Share with respect to such Liquidation (collectively, the **"<u>Non Change of Control Liquidation Preference</u>"**); <u>provided,</u> <u>however</u>, that notwithstanding anything to the contrary provided herein or elsewhere, in the event that a Liquidation is caused as a result of a Change of Control (as defined below), each Holder of Preferred Shares shall be entitled to receive in addition to the Non Change of Control Liquidation Preference, such additional amounts that each such Holder would have received in the Liquidation, had it converted its Preferred Stock into Common Stock immediately prior to the Liquidation. If, upon any Liquidation, the Liquidation Funds are insufficient to pay, issue or deliver the full amount due to the Holders of Preferred Shares and holders of shares of other classes or series of preferred stock of the Company that are expressly provided for as of equal rank with the Preferred Shares as to payments of Liquidation Funds (the **"<u>Pari Passu Shares</u>"**), then each holder of Preferred Shares and Pari Passu Shares shall receive a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such holder as a liquidation preference, in accordance with their respective Certificate of Designation of Preferences Rights and Limitations, as a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and Pari Passu Shares. No Holder of Preferred Shares shall be entitled to receive any amounts with respect thereto upon any Liquidation other than the amounts provided for herein; provided that a Holder of Preferred Shares shall be entitled to all amounts previously accrued with respect to amounts owed hereunder. The form of consideration in which the Liquidation Preference is to be paid to the Holders of the Preferred Shares as provided in this **<u>Section (6)</u>** shall be the form of consideration received by the Company or the other holders of the Company's capital stock, as the case may be.

------

"**<u>Liquidation</u>**" means any of the following: (i) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, (ii) filing for bankruptcy pursuant to applicable federal and/or slate laws, (iii) any actions that directly and/or indirectly may be reasonably construed as steps in taking the Company private, including, but not limited to, failure to file SEC Reports required by applicable SEC rules and regulations in a timely fashion, the Company, any affiliate of the Company and/or any person at the direct and/or indirect request of the Company buying shares of issued and outstanding Company Stock (with the exception of such a transaction between the Company and James N. Jannello, which is not in excess of fifty percent (50%) of his holdings of Common Stock, in the event of the Company listing its securities on the London Stock Exchange Alternative Investment Market ("**AIM**")), the filing of a Form 15, the Common Stock no longer is eligible for quotation on the NASD Bulletin Board, the Company's Board of Directors and/or shareholders meeting and/or through resolutions, adopts or calls a meeting authorizing the Company to undertake any of the above such actions ("**<u>Going Private Actions</u>**"), or (iv) any Change of Control, provided, however, that transactions authorized by the Company's Board of Directors or shareholders with respect to causing the Company's issued and outstanding Common Stock, and the shares of Common Stock underlying the Preferred Shares, to be listed on the AIM, which result in the filing of a Form 15, cessation of the filing of SEC Reports and cessation of eligibility for quotation the NASD Bulletin Board, will not be construed to constitute Going Private Actions, Liquidation or a Change of Control as defined herein.

"**<u>Change of Control</u>**" means (i) a change in the voting control of the Company such that any one person, entity or "group" (as contemplated by Rule 13d-5(b)(l) under the Securities Exchange Act of 1934, as amended) acquires from the Company in one or more, including a series of, transactions the right to cast greater than 50% of votes eligible to be cast by all holders of capital stock of the Company in the election of directors of the Company, provided that such transaction is approved by the Board or (ii) any merger or consolidation of the Company with or into another entity or any sale of all or substantially all of the assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(7) <u>Preferred Rank</u>**. All shares of Common Stock shall be of junior rank to all Preferred Shares in all respects as to the preferences as to distributions and payments upon the liquidation, dissolution and winding up of the Company. The rights of the shares of Common Stock shall be subject to the preferences and relative rights of the Preferred Shares. For so long as any Preferred Shares remain outstanding, the Company shall not, without the express written consent of Holders owning no less than a majority of the aggregate Stated Value of the then issued and outstanding Preferred Shares (a) create or authorize any other class or series of capital stock, ranking *pari passu* and/or senior in any respect to the Preferred Shares, or (b) issue any indebtedness ranking *pari passu* and/or senior in respect to the Preferred Stock.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8) <u>Dividends; Participation</u>**. Each Preferred Share shall accrue and be paid a dividend at the rate of three (3%) percent per annum of the Stated Value, payable quarterly in arrears on January 1<sup>st</sup>, April 1<sup>st</sup>, July 1<sup>st</sup> and October 1<sup>st</sup> of each year and for such whole year (or portion thereof) that such Preferred Share is issued and outstanding. The dividend payments shall be made in either cash or at the option of the Company through the issuance of additional Preferred Shares in such amount of Preferred Shares equal to the quotient of (i) the dividend amount payment then due, divided by (ii) the Stated Value of a share of Preferred Stock;. So long as any Preferred Shares shall be outstanding, no dividend, whether in cash, securities or property, shall be paid or declared, nor shall any other distribution be made, on the Common Stock or any other security junior to the Preferred Shares as to dividend rights, unless (A) all dividends, if any, payable with respect to the Preferred Shares shall have been declared and paid, and (B) the Company shall also declare and pay to the Preferred Shares, at the same time it declares and pays such dividend or distribution to the holders of Common Stock, the dividend or distribution that would have been declared and paid with respect to the Conversion Shares had all of the Preferred Shares been converted into Conversion Shares immediately prior to the record date for such dividend or distribution, or if no record date is fixed, the date as of which the Company pays to the record holders of Common Stock such dividend or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(9) <u>Vote to Issue, or Change the Terms of. Preferred Shares</u>**. The affirmative vote of the Holders owning not less than a majority of the aggregate Stated Value of the then issued and outstanding Preferred Shares at a meeting duly called for such purpose, or by the written consent without a meeting of the Holders of not less than a majority of the then outstanding Preferred Shares shall be required for any direct and/or indirect (i) Going Private Actions, (ii) Liquidation, and/or (iii) any amendment to this Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock ("**<u>Certificate of Designation</u>**"), the Company's Certificate of Incorporation or Bylaws which would directly and/or indirectly amend, alter, change, repeal or otherwise adversely affect any of the powers, designations, preferences and rights of the Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(10) <u>Lost or Stolen Certificates</u>.** Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Preferred Stock Certificates representing the Preferred Shares, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of the Preferred Stock Certificate(s), the Company shall execute and deliver new preferred stock certificate(s) of like tenor and date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(11) <u>Notices</u>.** Whenever notice is required to be given under this Certificate of Designation, unless otherwise provided herein, such notice shall be given in writing and will be mailed by certified mail, return receipt requested, or delivered against receipt to the party to whom it is to be given (a) if to the Company, at the Company's executive offices or (b) if to a Holder, at the address set forth on Company's books and records.

**IN WITNESS WHEREOF.** Janel World Trade Ltd. has caused this Certificate to be signed by James N. Jannello, its Executive Vice President and Chief Executive Officer on this 10th day of January, 2007.

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| | | |
|:---|:---|:---|
| **JANEL WORLD TRADE, LTD.** | **JANEL WORLD TRADE, LTD.** | **JANEL WORLD TRADE, LTD.** |
| By: | ![](img017_v1.jpg) | ![](img017_v1.jpg) |
|  | &nbsp;&nbsp;&nbsp;Name: | James N. Jannello |
|  | &nbsp;&nbsp;&nbsp;Title: | Executive Vice President and Chief Executive Officer |

---

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| | | |
|:---|:---|:---|
| Sep . 19. 2002 4:23PM | &nbsp;&nbsp;JANEL GROUP | &nbsp;&nbsp;TA# No.2944 p. 2 07/07 ($325) |

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| | |
|:---|:---|
| &nbsp;&nbsp;**ARTICLES OF MERGER<br> OF<br> JANEL WORLD TRANSPORT, LTD.<br> INTO <br> JANEL WORLD TRADE, LTD.** | **FILED** # <u>C23576-00</u><br>**SEP 19 2002**<br>IN THE OFFICE OF<br> ![](img018_v1.jpg)<br>DEAN HELLER, SECRETARY OF STATE<br>|

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Pursuant to Nevada Revised Statutes 92A.200, the undersigned corporations execute the following Articles of Merger.

**FIRST:** The name of each constituent corporation is JANEL WORLD TRANSPORT, LTD., a Nevada corporation (formerly "C and N CORP.", a Delaware corporation) and JANEL WORLD TRADE, LTD., A Nevada corporation (formerly "wine Systems Design, Inc.").

**SECOND:** The Plan and Agreement of Merger dated June 18, 2002 has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations and by the owners of each of the constituent corporations.

**THIRD:** The name of the surviving corporation is JANEL WORLD TRADE, LTD., a Nevada corporation.

**FOURTH:** The Certificate of Incorporation of the surviving corporation, as in effect at the effective time of the merger, shall be the certificate of incorporation of JANEL WORLD TRADE, LTD., Nevada corporation.

**FIFTH:** The merger is to become effective as of 12:01 A.M. on June 28, 2002.

**SIXTH:** The complete executed Plan and Agreement of Merger is on file at 150-14 132<sup>nd</sup> Avenue, Jamaica, New York 11434, the place of business of the surviving corporation.

**SEVENTH:** A copy of the Plan and Agreement of Merger will be furnished by the surviving corporation on request, without cost, to any stockholder of the constituent corporations.

**IN WITNESS** **WHEREOF**, the constituent corporations have signed by authorized officer, the 18<sup>th</sup> day of September, 2002.

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| | | |
|:---|:---|:---|
| JANEL WORLD TRANSPORT, LTD.<br> and<br> JANEL WORLD TRADE, LTD. | &nbsp;&nbsp;By: |  |
|  |  | &nbsp;&nbsp;Authorized Officer |
|  | &nbsp;&nbsp;Name: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James N. Jannello |
|  |  | &nbsp;&nbsp;Print of Type |
|  | &nbsp;&nbsp;Title: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President |

---

40907

TOTAL P.07

------

**<u>3671CD</u>**

**FILLED#** **<u>C23576</u>-00 <br> JUL 03 2002**

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| | | |
|:---|:---|:---|
| **<u>CERTIFICATE OF AMENDMENT</u>**<br>**<u>OF</u>**<br>**<u>ARTICLES OF INCORPORATION</u>**<br>**<u>OF</u>**<br>**<u>WINE SYSTEMS DESIGN, I</u>** **<u>NC.</u>** | Filed in the Office of<br>![](img019_v1.jpg) <br>Secretary of State<br> State Of Nevada | Business Number <br> **C23576-2000** |
| **<u>CERTIFICATE OF AMENDMENT</u>**<br>**<u>OF</u>**<br>**<u>ARTICLES OF INCORPORATION</u>**<br>**<u>OF</u>**<br>**<u>WINE SYSTEMS DESIGN, I</u>** **<u>NC.</u>** | Filed in the Office of<br>![](img019_v1.jpg) <br>Secretary of State<br> State Of Nevada | Filing Number <br> **20070709667-34** |
| **<u>CERTIFICATE OF AMENDMENT</u>**<br>**<u>OF</u>**<br>**<u>ARTICLES OF INCORPORATION</u>**<br>**<u>OF</u>**<br>**<u>WINE SYSTEMS DESIGN, I</u>** **<u>NC.</u>** | Filed in the Office of<br>![](img019_v1.jpg) <br>Secretary of State<br> State Of Nevada | Filed On <br> **07/03/2002** |
| **<u>CERTIFICATE OF AMENDMENT</u>**<br>**<u>OF</u>**<br>**<u>ARTICLES OF INCORPORATION</u>**<br>**<u>OF</u>**<br>**<u>WINE SYSTEMS DESIGN, I</u>** **<u>NC.</u>** | Filed in the Office of<br>![](img019_v1.jpg) <br>Secretary of State<br> State Of Nevada | Number of Pages <br> **2** |

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**The undersigned, STEPHEN J. NEMERGUT, does hereby certify as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. I am the President and Secretary of WINE SYSTEMS DESIGN, INC. a Nevada corporation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The original Articles of Incorporation of WINE SYSTEMS DESIGN, INC., were filed with the Secretary of State of Nevada on August 31, 2000.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. That the Board of Directors of said corporation via an Action By Unanimous Written Consent of Board of Directors effective as of June 21, 2002, adopted resolutions to amend the Articles of Incorporation of the corporation as follows:**

**ARTICLE FIRST is hereby amended to read as follows:**

**FIRST. The name of the corporation is:**

**JANEL WORLD TRADE, LTD.**

**ARTICLE FOURTH is hereby amended to read as follows:**

**FOURTH. That the total number of voting common stock authorized that may be issued by the corporation is TWO HUNDRED TWENTY FIVE MILLION (225,000,000) shares of stock with $0.001 par value, and no other class of stock shall be authorized. Said shares may be issued by the corporation from time to time for such considerations as may be fixed from time to time by the Board of Directors.**

**Page 1 of 2**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. The number of shares of the corporation outstanding and entitled to vote on an amendment to the Articles of Incorporation is 10,508,000; that said amendment has been consented to and approved by a majority vote of the stockholders holding at least a majority of each class of stock outstanding and entitled to vote thereon.**

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| | |
|:---|:---|
| **DATED: June <u>28</u>, 2002** | ![](img020_v1.jpg) |
|  | **STEPHEN J. NEMERGUT** |
|  | **President and Secretary** |

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**Page 2 of 2**

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| |
|:---|
| **<u>C23576-00</u>** |
| **AUG 31 2000** |

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| | |
|:---|:---|
| ![](img021_v1.jpg) | **ARTICLES OF INCORPORATION OF**<br>**WINE SYSTEMS DESIGN, INC.** |

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THE UNDERSIGNED PERSON, acting as Incorporator of a corporation under the provisions of the Nevada General Corporation Law, adopts the following Articles of Incorporation:

FIRST. The name of the corporation is:

**WINE SYSTEMS DESIGN, INC.**

SECOND. The street address of the corporation's resident agent and the principal or statutory address of this corporation in the State of Nevada shall be:

**CORPORATE SERVICE CENTER, INC.**

**1475 Terminal Way, Suite E**

**Reno, Washoe County, NV 89502**

This corporation may maintain an office, or offices, in such other place or places within or without the State of Nevada as may be from time to time designated by the Board of Directors, or by the bylaws of said corporation, and that this corporation may conduct all corporation business of every kind and nature, including the holding of all meetings of directors and stockholders, outside the State of Nevada as well as within the State of Nevada.

THIRD. The corporation shall have unlimited power to engage in and do any lawful act concerning any or all lawful business for which corporations may be organized under the Law and not limited by the Statutes of Nevada, or any other state in which it conducts its business.

FOURTH. That the total number of voting common stock authorized that may be issued by the corporation is **TWENTY FIVE MILLION (25,000,000)** shares of stock with **$0.001 par value**, and no other class of stock shall be authorized. Said shares may be issued by the corporation from time to time for such considerations as may be fixed from time to time by the Board of Directors.

FIFTH. The governing board of this corporation shall be known as directors, and the number of directors may from time to time be increased or decreased in such manner as shall be provided by the bylaws of this corporation, providing that the number of directors shall not be reduced to less than one (1). The name and post office address of the first Board of Directors, which shall be one (1) in number, shall be listed as follows:

**DEREK G. ROWLEY**

**1475 Terminal Way, Suite E**

**Reno, NV 89502.**

SIXTH. The capital stock, after the amount of the subscription price, or par value, has been paid in. shall not be subject to assessment to pay the debts of the corporation.

SEVENTH. The name and post office address of the Incorporator signing the Articles of Incorporation is as follows:

**DEREK G. ROWLEY**

**1475 Terminal Way, Suite E**

**Reno, NV 89502.**

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EIGHTH. The corporation is to have perpetual existence.

NINTH. Any corporate officer, director, or shareholder of this corporation shall not, in the absence of fraud, be prohibited from dealing with this corporation either as vendor, purchaser or otherwise. A pecuniary interest in any transaction by any such director, shareholder or officer shall not disqualify him in any way from acting in his corporate capacity. No director nor officer, nor any firm, association, or corporation of which he shall be a member, or in which he may be pecuniarily interested in any manner be disqualified from dealing with the corporation as a result of the association. No director nor officer, nor any firm, association, or corporation with which he is connected as aforesaid shall be liable to account to this corporation or its shareholders for any profit realized by him from or though any such transaction or contract. It being the express purpose and intent of the Article to permit this corporation to buy from, sell to, or otherwise deal with the partnerships. firms, or corporations of directors and officers of the corporation, or any one or more of them who may have pecuniary interest, and the contracts of this corporation, in the absence of fraud, shall not be void or voidable or affecting in any manner by reason of such position. Furthermore, directors of this corporation may be counted for a quorum of the Board of Directors of this corporation at a meeting even though they may be pecuniarily interested in matters considered at a meeting; any action taken at such a meeting with reference to such matters by a majority of the disinterested directors shall not be void or voidable by this corporation in the absence of fraud.

TENTH. No director or officer of the corporation shall be personally liable to the corporation or any of its stockholders for damages for breach of fiduciary duty as a director or officer or for any act or omission of any such director or officer, however, the foregoing provision shall not eliminate or limit the liability of a director or officer for (a) acts or omissions which involve intentional misconduct, fraud or a knowing violation of law or (b) the payment of dividends in violation of Section 78.300 of the Nevada Revised Statutes. Any repeal or modification of this Article by the stockholders of the corporation shall be prospective only and shall not adversely affect any limitation on the personal liability of a director or officer of the corporation for acts or omissions prior to such repeal or modification.

ELEVENTH. This corporation reserves the right to amend, alter, change or repeal any provision contained in the Articles of Incorporation, in the manner now or hereafter prescribed by statute, or by the Articles of Incorporation, and all rights conferred upon stockholders herein are granted subject to this reservation.

I. THE UNDERSIGNED, being the Incorporator hereinbefore named for the purpose of forming a corporation pursuant to the General Corporation Laws of the State of Nevada, do make and file these Articles of Incorporation, hereby declaring and certifying that the facts herein stated are true, and accordingly have hereunto set my hand this Tuesday, August 29, 2000.

![](img022_v1.jpg)

DEREK G. ROWLEY

Incorporator

STATE OF NEVADA) ) SS: <br> WASHOE COUNTY)

On this Tuesday, August 29, 2000, in the City of Reno, before me, the undersigned, a Notary Public in and for Washoe County, State of Nevada, personally appeared DEREK G. ROWLEY, known to me to be the person whose name is subscribed to the foregoing document and acknowledged to me that he executed the same.

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| | |
|:---|:---|
| ![](img023_v1.jpg) | |
| Notary Public | **D.K. MELIUS<br> Notary Public, State of Nevada<br> Appointment No. 98-49031-2 <br> My Appt. Expires Dec. 16, 2002** |

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| | |
|:---|:---|
| **SECRETARY OF STATE<br> State of Nevada <br> Capitol Complex <br> Carson City, NV 89710** | **FILED # <u>C23576-00</u>**<br>**AUG 31 2000**<br>|

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**CERTIFICATE OF ACCEPTANCE OF <br> APPOINTMENT BY RESIDENT AGENT**

1. CORPORATE
 SERVICE CENTER, INC. hereby accepts the appointment as Resident Agent of WINE SYSTEMS DESIGN, INC..

2. The
 Resident Agent, CORPORATE SERVICE CENTER, INC., certifies that it is a domestic corporation whose business office is identical
 with the registered office.

3. CORPORATE
 SERVICE CENTER, INC. certifies that it knows and understands the duties of a Resident Agent as set forth in the General Corporation
 Law of Nevada.

DATED this Tuesday, August 29, 2000.

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| | |
|:---|:---|
| CORPORATE SERVICE CENTER, INC. | CORPORATE SERVICE CENTER, INC. |
| By: | ![](img025_v1.jpg) |
| DEREK G. ROWLEY | DEREK G. ROWLEY |
| Vice President | Vice President |

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## Exhibit 10.1

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#### Exhibit 10.1
***Execution Version***

<u>WAIVER AND CONSENT, JOINDER AND FIRST AMENDMENT TO</u> 

<u>&nbsp;&nbsp;&nbsp;&nbsp; CREDIT AGREEMENT</u> 

&nbsp;&nbsp;&nbsp;&nbsp; This WAIVER AND CONSENT, JOINDER, AND First Amendment to CREDIT Agreement (the "<u>First Amendment</u>") is made as of this 7th day of April, 2026, by and among Janel Group LLC, a New York limited liability company ("<u>Janel</u>"), each of the other Subsidiaries of Holdings listed on the signature pages hereto as Borrowers (together with Janel, each an "<u>Existing Borrower</u>" and collectively, "<u>Existing Borrowers</u>"), JANEL LIFE SCIENCES LLC, a Nevada limited liability company ("<u>New Borrower</u>" and together with Existing Borrowers, each a "<u>Borrower</u>" and collectively, "<u>Borrowers</u>"), JANEL CORPORATION, a Nevada corporation ("<u>Holdings</u>"), the Persons listed on the signature pages hereto as Guarantors, the Lenders party to the Credit Agreement (as hereinafter defined) and SANTANDER BANK, N.A., a national banking association, as administrative agent (in such capacity, "<u>Administrative Agent</u>"), in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

&nbsp;&nbsp;&nbsp;&nbsp; W I T N E S S E T H:

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, Janel, Existing Borrowers, the Persons from time to time party thereto as Guarantors (together with Borrowers, each a <u>"Loan Party</u>" and collectively, the "<u>Loan Parties</u>"), the Lenders from time to time party thereto, and Administrative Agent entered into that certain Credit Agreement, dated as of December 29, 2025 (together with any further modifications, amendments, and restatements thereof, the "<u>Credit Agreement</u>");

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, New Borrower intends acquire the monoclonal anti-bodies business line of BioPorto Diagnostics A/S (the "<u>BioPorto Acquisition</u>"), including the assets related thereto (the "<u>BioPorto Assets</u>"), some or all of which BioPorto Assets are located in the Kingdom of Denmark, pursuant to that certain Business Transfer Agreement, dated on or about April 7, 2026, by and among BioPorto Diagnostics A/S, BioPorto A/S, Holdings, and New Borrower (the "<u>BioPorto Business Transfer Agreement</u>");

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, the BioPorto Acquisition fails to meet all of the conditions of a Permitted Acquisition as set forth in the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, <u>Section 6.12</u> of the Credit Agreement requires the BioPorto Assets be subject to a perfected Lien in favor of Administrative Agent to secure the Secured Obligations;

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, the Loan Parties have requested that Agent (i) consent to the BioPorto Acquisition as a Permitted Acquisition and waive certain conditions of the definition of Permitted Acquisition solely with respect to the BioPorto Acquisition, (ii) waive the obligations under <u>Section 6.12</u> of the Credit Agreement requiring a perfected Lien on the BioPorto Assets, so long as such BioPorto Assets are located in the Kingdom of Denmark, and (iii) otherwise modify and amend certain terms and conditions of the Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, Administrative Agent and Lenders have agreed to so consent, waive, and modify and amend certain terms and conditions of the Credit Agreement, all as provided for herein.

&nbsp;&nbsp;&nbsp;&nbsp; NOW, THEREFORE, it is hereby agreed among the parties hereto as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.

<u>Capitalized Terms</u>. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.

<u>Amendments to Credit Agreement and Security Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.1 of the Credit Agreement (<u>Definitions</u>) is hereby amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Acquisition Loan Borrowing</u>" is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>Acquisition Loan Borrowing</u>" means a Borrowing consisting of Acquisition Loans of the same Type made, converted or continued on the same date and, in the case of SOFR Loans, having the same Interest Period, and provided that Acquisition Loan Borrowings consisting of SOFR Loans which are based on Daily Simple SOFR, shall only be permitted during the Acquisition Loan Draw Period."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clause (a)(iii) of the definition of "<u>Applicable Margin</u>" is hereby amended by deleing the words "SOFR Revolving Borrowings" and replacing it with "SOFR Borrowings".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Committed Loan Notice</u>" is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; "<u>Committed Loan Notice</u>" means a notice of a Borrowing (other than a Swingline Borrower), a conversion of Loans from one Type to the other, or a continuation of SOFR Loans based on Term SOFR pursuant to <u>Section 2.2(a)</u>, which, if in writing, shall be substantially in the form of <u>Exhibit C-1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iv.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Daily Simple SOFR</u>" is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; "<u>Daily Simple SOFR</u>" shall mean, for any day (a "SOFR Rate Day"), a rate per annum equal to the greater of (a) SOFR for the day (such day, a "SOFR Determination Day") that is two (2) Government Securities Business Days prior to (i) if such SOFR Rate Day is a Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a Government Securities Business Day, the Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website, and (b) the Floor. If by 5:00 p.m. (New York City time) on the second (2nd) Government Securities Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator's Website and a Benchmark Replacement Date with respect to the Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding Government Securities Business Day for which such SOFR was published on the SOFR Administrator's Website; provided that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; v.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following new definition of "<u>Hedge Bank</u>" is hereby inserted in the correct alphabetical order:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>Hedge Bank</u>" means, with respect to any counterparty to a Swap Agreement, Administrative Agent, a Lender, or any Affiliate of any of the foregoing, in each case, at the time the applicable Swap Agreement is entered into, irrespective of whether such Person ceases to be Administrative Agent, a Lender, or any Affiliate of any of the foregoing after entering into such Swap Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Interest Period</u>" is hereby restated in its entirety as follows:

""<u>Interest Period</u>" means, (i) as to Term SOFR, with respect to any applicable Loan or Borrowing, the period commencing on the date of such Loan or Borrowing and ending on the numerically corresponding day in the calendar month that is one month thereafter (in each case, subject to the availability thereof), as specified in the applicable Committed Loan Notice; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period, (iii) no Interest Period shall extend beyond the Maturity Date and (iv) no tenor that has been removed from this definition pursuant to <u>Section 3.8(d)</u> shall be available for specification in such Committed Loan Notice. For purposes hereof, the date of a Loan or Borrowing initially shall be the date on which such Loan or Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Loan or Borrowing. Interest shall accrue from and including the first day of an Interest Period to but excluding the last day of such Interest Period, and (ii) as to Daily Simple SOFR, with respect to any applicable Loan or Borrowing, one day."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Permitted Acquisition</u>" is hereby amended by restating the first sentence thereof in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>Permitted Acquisition</u>" means any Acquisition, which shall be funded with the proceeds of an Acquisition Loan or cash (or a combination of both; provided that such cash shall not be direct proceeds of a Revolving Loan), if, at the time of and immediately after giving effect thereto,"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; viii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Secured Swap Agreement Obligations</u>" is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>Secured Swap Agreement Obligations</u>" means all obligations of Loan Parties under each Swap Agreement to which any Loan Party or its Subsidiary is a party and that is with a counterparty that is a Hedge Bank; <u>provided</u> <u>that</u> Secured Swap Agreement Obligations shall not include, with respect to any Guarantor, Excluded CEA Swap Obligations of such Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>SOFR Loan</u>*"* is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>SOFR Loan</u>" means a Loan that bears interest at a rate based on either (i) Term SOFR, or (ii) Daily Simple SOFR, in each case, in accordance with the provisions of this Credit Agreement. For avoidance of doubt, Borrowers may only elect Daily Simple SOFR for (i) Revolving Loans, and (ii) Acquisitions Loans requested during the Acquisition Loan Draw Period."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; x.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "Swingline Sublimit" is hereby restated in its entirety as follows:

""<u>Swingline Sublimit</u>" means $10,000,000. The Swingline Sublimit is a sublimit of the Revolving Commitments."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; xi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "<u>Type</u>*"* is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp; ""<u>Type</u>", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to (i) Term SOFR, (ii) Daily Simple SOFR, or (iii) the Base Rate."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.2(a) of the Credit Agreement is hereby amended by inserting the following sentence at the end of such paragraph:

&nbsp;&nbsp;&nbsp;&nbsp; "For avoidance of doubt, any reference in this Credit Agreement to "continuation" of SOFR Loans, shall mean and refer only to SOFR Loans based on Term SOFR."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1(a) of the Credit Agreement (<u>Interest Rate Generally</u>) is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "(a)

<u>Interest Rates Generally</u>. All BR Loans (other than Swingline Loans, which shall bear interest in accordance with the second following sentence) shall bear interest at a rate per annum equal to the Base Rate as in effect from time to time plus the Applicable Margin. All SOFR Loans (i) based on Term SOFR shall bear interest at a rate per annum equal to Term SOFR for the Interest Period in effect for such Loans plus the Applicable Margin, and (ii) based on Daily Simple SOFR shall bear interest at a rate per annum equal to Daily Simple SOFR in effect for such Loans plus the Applicable Margin. Each Swingline Loan shall bear interest at a rate per annum equal to Base Rate as in effect from time to time plus the Applicable Margin."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.1(e) of the Credit Agreement (<u>Term SOFR Conforming Changes</u>) is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "(e)

<u>Term SOFR/ Daily Simple SOFR Conforming Changes</u>. In connection with the use or administration of Term SOFR and/or Daily Simple SOFR, Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Credit Agreement or any other Loan Document. Administrative Agent will promptly notify Borrower Representative and the Lenders of the effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR and/or Daily Simple SOFR."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.16 of the Credit Agreement (<u>Interest Rate Swap Agreements</u>) is hereby restated in its entirety as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Section 6.16

<u>Interest Rate Swap Agreements</u>. No later than sixty (60) days following the Closing Date, with respect to the Term Loan and the Mortgage Loan, Borrower Representative shall, and other Loan Parties may, enter into, and at all times thereafter maintain, one or more interest rate Swap Agreements with respect to each of (i) the Term Loan, and (ii) the Mortgage Loan, and having an initial term of not less than five (5) years with respect to a notional amount equal to not less than 50% of an amount equal to the Outstanding Amount of each of the (i) the Term Loan, and (ii) the Mortgage Loan, and in all other respects reasonably satisfactory to Administrative Agent. Contemporaneously with the Acquisition Loan Amortization Date, Borrower Representative shall, and other Loan Parties may, enter into, and at all times thereafter maintain, one or more interest rate Swap Agreements with respect to the Acquisition Loan, and having an initial term of not less than three (3) years with respect to a notional amount equal to not less than 50% of an amount equal to the Outstanding Amount of the Acquisition Loan, and in all other respects reasonably satisfactory to Administrative Agent."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All capitalized instances of the term "Obligations" shall hereby be replaced with the defined term "Secured Obligations", including, without limitation, in <u>Sections</u> <u>2.12</u>, <u>3.2(d)</u>, <u>8.1(s)</u>, <u>8.4</u> and <u>9.14(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; g.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain Schedules to the Credit Agreement are hereby amended and restated by the respective Schedule attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; h.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Schedule 3.4 to the Security Agreement is hereby amended and restated by the Schedule 3.4 attached hereto as <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.

<u>Consent to BioPorto Acquisition and Waiver of Certain Terms in Respect Thereof</u>. By entering into this First Amendment, including, without limitation, in reliance of the representations set forth herein, Administrative Agent and Lenders hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

<u>Consent</u>. Consent to the BioPorto Acquisition (the "<u>Consent</u>") so long as such BioPorto Acquisition is consummated subject to and in accordance with terms and conditions set forth in the BioPorto Business Transfer Agreement delivered to Administrative Agent pursuant to Section 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

<u>Permitted Acquisition Designation</u>. Notwithstanding that the BioPorto Acquisition fails to satisfy one or more of the conditions of the definition of "Permitted Acquisition" (such unmet conditions, the "<u>Unsatisfied PA Conditions")</u>, Administrative Agent and Lenders hereby agree, on a one-time basis, that the BioPorto Acquisition shall be deemed to be a Permitted Acquisition and hereby waive the Unsatisfied PA Conditions (collectively, the "<u>Acquisition Waiver</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

<u>BioPorto Assets Located in the Kingdom of Denmark</u>. Waive, on a one-time basis, the requirement set forth in <u>Section 6.12</u> of the Credit Agreement that the BioPorto Assets be subject to a perfected Lien in favor of Administrative Agent to secure the Secured Obligations (the "<u>Denmark Waiver</u>" and together with the Acquisition Waiver, collectively, the "<u>Waivers</u>") but only so long as such BioPorto Assets are located in the Kingdom of Denmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

<u>One Time Consent and Waiver</u>. The foregoing Consent and Waivers are one-time consent and waivers and relate solely to the BioPorto Acquisition and shall not be deemed to constitute an agreement by Administrative Agent or any Lender to consent to or waive any other provision of the Credit Agreement (i) in the future, or (ii) which do not relate to the BioPorto Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp; As a result of the BioPorto Acquisition, the Loan Parties acknowledge and agree that, as of the date hereof and for the 12-month period following the date hereof, the remaining available amount under clause (c) of the definition of "Permitted Acquisition" for additional Permitted Acquisitions is $0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.

<u>Project H Acquisition</u>. Reference is made to that certain Membership Interest Purchase Agreement to be entered into by and among, other Persons, New Borrower, as "<u>Buyer</u>" and an entity separately disclosed to the Administrative Agent and the Lenders (the "<u>Project H Target</u>") (the "<u>MIPA</u>"), pursuant to which, among other things, New Borrower shall purchase all of the membership interests of the Project H Target subject to, and in accordance with the terms and conditions of the MIPA (the "<u>Project H Acquisition</u>"). It was the intention of the Loan Parties that the completion of the Project H Acquisition occur *prior* to the completion of the BioPorto Acquisition, such that as a result thereof, the Project H Acquisition would constitute a Permitted Acquisition. The Loan Parties have represented to the Administrative Agent and Lenders that the Project H Acquisition shall occur *after* the completion of the BioPorto Acquisition, and as a result thereof, the Project H Acquisition would no longer constitute a Permitted Acquisition because of the violation of clause (c) in the definition of Permitted Acquisition. Notwithstanding the foregoing, the Administrative Agent and the Lenders confirm that the Project H Acquisition, if completed in accordance with the terms of the MIPA and the other provisions of the definition of Permitted Acquisition, shall constitute a Permitted Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.

<u>Joinder and Assumption of Obligations</u>. New Borrower hereby acknowledges it has received and reviewed a copy of the Credit Agreement and each of the other Loan Documents and joins the Credit Agreement and the other Loan Documents as a Borrower pursuant to and in accordance with the fully-executed Subsidiary Joinder Agreement attached hereto as <u>Exhibit C</u> and specifically incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.

<u>Additional Covenants</u>. In addition to the covenants set forth in <u>Article 6</u> of the Credit Agreement, each of the Loan Parties covenants and agrees with the Credit Parties that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within ninety (90) following the date hereof, or such greater period as the Administrative Agent may agree to in writing, all BioPorto Assets located outside of the United States shall be relocated to the United States, it being understood by the Loan Parties that failure to so relocate such BioPorto Assets within the allotted time period shall constitute and Event of Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Loan Parties will promptly, after the relocation of such BioPorto Assets described in clause (a) above, take such action or actions to create and perfect Liens on such BioPorto Assets to secure the Secured Obligations as Administrative Agent shall reasonably request (including the execution and delivery of any collateral document necessary or appropriate to create and perfect Liens with respect to any Loan Party's owned or leased real property or any Collateral Access Agreement or similar document).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within thirty (30) days following the date hereof, or such later date as Administrative Agent shall agree to in its sole discretion, Loan Parties shall deliver to Administrative Agent insurance materials as set forth in <u>Section 6.10</u> of the Credit Agreement with respect to New Borrower, including, without limitation, insurance certificates evidencing property insurance, liability insurance, and related lender's loss payable, additional insured, and notice of cancellation endorsements, which materials shall be in form and substance satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within five (5) Business Days following the date hereof, Loan Parties deliver to the Administrative Agent an opinion of Nevada counsel with respect to Nevada corporate matters with respect to the Nevada Loan Parties organized under the laws of the State of Nevada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.

<u>Ratification of Loan Documents/Waiver</u>. Except as provided for herein, all terms and conditions of the Credit Agreement and the other Loan Documents remain in full force and effect. Each Loan Party hereby ratifies, confirms, and reaffirms all representations, warranties, and covenants contained therein and acknowledges and agrees that the Secured Obligations, as amended hereby, are and continue to be secured by the Collateral. Each Loan Party acknowledges and agrees that such Loan Party does not have any offsets, defenses, or counterclaims against Administrative Agent or any Lender arising out of the Credit Agreement or the other Loan Documents, and to the extent that any such offsets, defenses, or counterclaims arising out of the Credit Agreement or the other Loan Documents may exist, such Loan Party hereby WAIVES and RELEASES Administrative Agent and each Lender therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.

<u>Conditions to Effectiveness</u>. This First Amendment shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; this First Amendment shall have been duly executed and delivered by the respective parties hereto and, shall be in full force and effect and shall be in form and substance satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative Agent shall have received a duly executed copy of that certain Subordination Agreement, dated as of the date hereof, by and among Administrative Agent and BioPorto Diagnostics A/S;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative Agent shall have received all materials required by <u>Section 6.12(a)</u> of the Credit Agreement with respect to New Borrower, in form and substance satisfactory to Administrative Agent, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; i.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a Perfection Certificate, duly execute by New Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a duly executed Closing Certificate of the President or Vice President and the Secretary of New Borrower, substantially in the form of <u>Exhibit F</u> to the Credit Agreement, and otherwise in form and substance satisfactory to Administrative Agent, together with all attachments thereto including certified charter documents, good standing certificates, operating agreement, and resolutions of the members and/or manager of New Borrower authorizing the transactions contemplated by this First Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iii.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a legal opinion as would have been required had New Borrower been a Borrower on the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; iv.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; updated schedules to the Credit Agreement and the Security Agreement, solely to the extent that the information on such schedules has become inaccurate or incomplete since the Closing Dante, including, without limitation, an updated <u>Schedule 3.4</u> to the Security Agreement showing the additional Pledged Collateral in respect of New Borrower and any of its direct or indirect Subsidiaries as required by <u>Section 3.4(d)(iii)</u> of the Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administrative Agent shall have received true, correct, and complete copies of the BioPorto Acquisition Agreement, and all other documents, instruments, certificates, and/or agreements executed in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the BioPorto Acquisition shall occur contemporaneously with the execution and delivery of this First Amendment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowers shall have paid to Administrative Agent all other fees and expenses then due and owing pursuant to the Credit Agreement and this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.

<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This First Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of **<u>Section 10.9</u>** (Governing Law; Jurisdiction; Consent to Service of Process) and **<u>10.10</u>** (Waiver of Jury Trial) are specifically incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This First Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any determination that any provision of this First Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; e.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowers shall pay on demand all costs and expenses of Administrative Agent, including, without limitation, reasonable attorneys' fees in connection with the preparation, negotiation, execution and delivery of this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; f.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Loan Party warrants and represents that such Person has consulted with independent legal counsel of such Person's selection in connection with this First Amendment and is not relying on any representations or warranties of Administrative Agent or its counsel in entering into this First Amendment.

&nbsp;&nbsp;&nbsp;&nbsp; [remainder of page left intentionally blank]

&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the parties have hereunto caused this First Amendment to be executed and their seals to be hereto affixed as of the date first above written.

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| |
|:---|
| <u>SECURED PARTIES</u>:  |
| **SANTANDER BANK, N.A.** as Administrative Agent**,** L/C Issuer, Swingline Lender and a Lender  |
| By:  |
| Name:  |
| Its:  |

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[Signature Page to First Amendment to Credit Agreement]

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| |
|:---|
| **FIRST MERCHANTS BANK**, as a Lender  |
| By:  |
| Name:  |
| Its:  |

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[Signature Page to First Amendment to Credit Agreement]

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| | |
|:---|:---|
| <u>BORROWERS</u>: | <u>BORROWERS</u>: |
| **JANEL GROUP LLC**, a New York limited liability company<br>**EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC**, a Texas limited liability company **EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC**, an Oklahoma limited liability company**<br>ELFS BROKERAGE LLC**, a Texas limited liability **AIRSCHOTT, INC.**, a Virginia corporation **INTERLOG USA, INC.**, a Minnesota corporation **COMMERCE EXPRESS, INC.**, a Minnesota corporation**<br>RUBICON TECHNOLOGY, INC.**, a Delaware corporation**<br>RUBICON WORLDWIDE LLC**, an Illinois limited liability company <br>**AVES LABS, INC.**, an Oregon corporation **PHOSPHOSOLUTIONS, LLC**, a Nevada limited liability company<br>**IMMUNOCHEMISTRY TECHNOLOGIES LLC**, a Minnesota limited liability company **IMMUNOBIOSCIENCE CORP.**, a Washington corporation | **JANEL GROUP LLC**, a New York limited liability company<br>**EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC**, a Texas limited liability company **EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC**, an Oklahoma limited liability company**<br>ELFS BROKERAGE LLC**, a Texas limited liability **AIRSCHOTT, INC.**, a Virginia corporation **INTERLOG USA, INC.**, a Minnesota corporation **COMMERCE EXPRESS, INC.**, a Minnesota corporation**<br>RUBICON TECHNOLOGY, INC.**, a Delaware corporation**<br>RUBICON WORLDWIDE LLC**, an Illinois limited liability company <br>**AVES LABS, INC.**, an Oregon corporation **PHOSPHOSOLUTIONS, LLC**, a Nevada limited liability company<br>**IMMUNOCHEMISTRY TECHNOLOGIES LLC**, a Minnesota limited liability company **IMMUNOBIOSCIENCE CORP.**, a Washington corporation |
| By: |  |
| Name: | Nathan Shandy |
| Title: | Vice President |
| **INDCO, INC.**, a Tennessee corporation | **INDCO, INC.**, a Tennessee corporation |
| By: |  |
| Name: | Kristina B. Wilberding |
| Title | Chief Financial Officer |
| **ANTIBODIES INC.**, a California corporation | **ANTIBODIES INC.**, a California corporation |
| By: |  |
| Name: | Nathan Shandy |
| Title | Secretary |

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[Signature Page to First Amendment to Credit Agreement]

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| | |
|:---|:---|
| **BIOSENSIS, LLC**, a California limited liability company  | **BIOSENSIS, LLC**, a California limited liability company  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:  |  |
| Name:  | Nathan Shandy  |
| Title  | Agent  |
| **JANEL LIFE SCIENCES LLC**, a Nevada limited liability company  | **JANEL LIFE SCIENCES LLC**, a Nevada limited liability company  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:  |  |
| Name:  | Nathan Shandy  |
| Title  | Agent  |
| <u>GUARANTOR</u>**:**  | <u>GUARANTOR</u>**:**  |
| **JANEL CORPORATION**, a Nevada corporation  | **JANEL CORPORATION**, a Nevada corporation  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:  |  |
| Name:  | Nathan Shandy  |
| Title  | Chief Financial Officer  |

---

[Signature Page to First Amendment to Credit Agreement]

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## Exhibit 31.1

------

**<u>Exhibit 31.1</u>**

CERTIFICATION

I, Darren Seirer, certify that:

* I have reviewed this Quarterly Report on Form 10-Q of Janel Corporation (the "Registrant");

* Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

* Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

* The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

* Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

* Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

* Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

* Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

* The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent function):

* All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

* Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman, President and Chief Executive Officer  |
|  | *(Principal Executive Officer)*  |

---

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## Exhibit 31.2

------

**<u>Exhibit 31.2</u>**

CERTIFICATION

I, Nathan C. Shandy, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Janel Corporation (the "Registrant");

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer, Treasurer and Secretary  |
|  | *(Principal Financial Officer)*  |

---

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## Exhibit 32.1

------

**<u>Exhibit 32.1</u>**

CERTIFICATION

PURSUANT TO 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

&nbsp;&nbsp;&nbsp;&nbsp; In connection with the report on Form 10-Q of Janel Corporation (the "Company") for the quarter ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Darren Seirer, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Darren C. Seirer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman, President and Chief Executive Officer  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (*Principal Executive Officer)*  |

---

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

------

## Exhibit 32.2

------

**<u>Exhibit 32.2</u>**

CERTIFICATION

PURSUANT TO 18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

&nbsp;&nbsp;&nbsp;&nbsp; In connection with the report on Form 10-Q of Janel Corporation (the "Company") for the quarter ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Nathan C. Shandy, Chief Financial Officer, Treasurer and Secretary of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: May 8, 2026  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nathan C. Shandy  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer, Treasurer and Secretary  |
|  | *(Principal Financial Officer)*  |

---

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

------