# EDGAR Filing Document

**Accession Number:** 0000928465
**File Stem:** 0001558370-25-009300
**Filing Date:** 2025-7
**Character Count:** 119398
**Document Hash:** 6cee6d6e2210c13e116d577a04f6d9c2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-25-009300.hdr.sgml**: 20250718

**ACCESSION NUMBER**: 0001558370-25-009300

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 61

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250718

**DATE AS OF CHANGE**: 20250718

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMCON DISTRIBUTING CO
- **CENTRAL INDEX KEY:** 0000928465
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-GROCERIES & GENERAL LINE [5141]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 470702918
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15589
- **FILM NUMBER:** 251134743

**BUSINESS ADDRESS:**
- **STREET 1:** 7405 IRVINGTON ROAD
- **STREET 2:** POST OFFICE BOX 641940 (68164-7940)
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68122
- **BUSINESS PHONE:** 4023313727

**MAIL ADDRESS:**
- **STREET 1:** 7405 IRVINGTON ROAD
- **STREET 2:** POST OFFICE BOX 641940 (68164-7940)
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68122

?xml version='1.0' encoding='ASCII'? AMCON DISTRIBUTING CO_June 30, 2025

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

**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 June 30, 2025** |

---

**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 1-15589**

![Graphic](dit-20250630x10q002.jpg)

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **47-0702918** |
| (State or other jurisdiction | (I.R.S. Employer |
| of incorporation or organization) | Identification No.) |
| **7405 Irvington Road, Omaha NE** | **68122** |
| (Address of principal executive offices) | (Zip code) |

---

**Registrant's telephone number, including area code: (402) 331-3727**

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

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 Par Value | DIT | NYSE American |

---

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 ⌧ <br> 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 Exchange Act) Yes ◻ No ⌧

The Registrant had 645,462 shares of its $.01 par value common stock outstanding as of July 17, 2025.

------

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

**Form 10-Q**

**3rd Quarter**

**INDEX**

---

| | |
|:---|:---|
| **June 30, 2025** | **PAGE** |
| [**PART I — FINANCIAL INFORMATION**](#PARTIFINANCIALINFORMATION_448482) |  |
| [Item 1. Financial Statements:](#Item1FinancialStatements_252311) |  |
| &nbsp;&nbsp;&nbsp;[Condensed consolidated balance sheets at June 30, 2025 (unaudited) and September 30, 2024](#BalanceSheets_548085) | 3 |
| &nbsp;&nbsp;&nbsp;[Condensed consolidated unaudited statements of operations for the three and nine months ended June 30, 2025 and 2024](#StatementsofOperations_702739) | 4 |
| &nbsp;&nbsp;&nbsp;[Condensed consolidated unaudited statements of shareholders' equity for the three and nine months ended June 30, 2025 and 2024](#StatementsofShareholdersEquity) | 5 |
| &nbsp;&nbsp;&nbsp;[Condensed consolidated unaudited statements of cash flows for the nine months ended June 30, 2025 and 2024](#StatementsofCashFlows_567954) | 6 |
| &nbsp;&nbsp;&nbsp;[Notes to condensed consolidated unaudited financial statements](#NotestoCondensedConsolidatedUnauditedFin) | 7 |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item2ManagementsDiscussionandAnalysisofF) | 16 |
| [Item 3. Quantitative and Qualitative Disclosures About Market Risk](#Item3QuantitativeandQualitativeDisclosur) | 24 |
| [Item 4. Controls and Procedures](#Item4ControlsandProcedures_902823) | 25 |
| [**PART II — OTHER INFORMATION**](#PARTIIOTHERINFORMATION_881065) |  |
| [Item 1. Legal Proceedings](#Item1LegalProceedings_797168) | 26 |
| [Item 1A. Risk Factors](#Item1ARiskFactors_544235) | 26 |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#Item2UnregisteredSalesofEquitySecurities) | 26 |
| [Item 3. Defaults Upon Senior Securities](#Item3DefaultsUponSeniorSecurities_928068) | 26 |
| [Item 4. Mine Safety Disclosures](#Item4MineSafetyDisclosures_76890) | 26 |
| [Item 5. Other Information](#Item5OtherInformation_804863) | 26 |
| [Item 6. Exhibits](#Item6Exhibits_539551) | 27 |

---

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

**PART I — FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements** 

**AMCON Distributing Company and Subsidiaries**

**Condensed Consolidated Balance Sheets**

**June 30, 2025 and September 30, 2024**

---

| | | |
|:---|:---|:---|
|  | **June**<br>**2025** | **September**<br>**2024** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | $826322 | $672788 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for credit losses of $2.6 million at June 2025 and $2.3 million at September 2024 | 78848333 | 70653907 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 149285570 | 144254843 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable  |  | 718645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 14765040 | 12765088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 243725265 | 229065271 |
| Property and equipment, net | 109484968 | 106049061 |
| Operating lease right-of-use assets, net | 27362564 | 25514731 |
| Goodwill | 5778325 | 5778325 |
| Other intangible assets, net | 4356284 | 4747234 |
| Other assets | 3208119 | 2952688 |
| Total assets | $393915525 | $374107310 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $45854446 | $54498225 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 16521858 | 15802727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued wages, salaries and bonuses | 6566389 | 8989355 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 231485 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 7471962 | 7036751 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 5379331 | 5202443 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current mandatorily redeemable non-controlling interest | 6913508 | 1703604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 88938979 | 93233105 |
| Credit facilities | 154590771 | 121272004 |
| Deferred income tax liability, net | 3324618 | 4374316 |
| Long-term operating lease liabilities | 20107981 | 18770001 |
| Long-term debt, less current maturities | 12447360 | 16562908 |
| Mandatorily redeemable non-controlling interest, less current portion |  | 6507896 |
| Other long-term liabilities | 1314719 | 1657295 |
| Shareholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value, 1,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value, 3,000,000 shares authorized, 645,462 shares outstanding at June 2025 and 630,362 shares outstanding at September 2024 | 9799 | 9648 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 36353169 | 34439735 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 108100292 | 108552565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock at cost | (31272163) | (31272163) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 113191097 | 111729785 |
| Total liabilities and shareholders' equity | $393915525 | $374107310 |

---

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

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

**AMCON Distributing Company and Subsidiaries**

**Condensed Consolidated Unaudited Statements of Operations**

**for the three and nine months ended June 30, 2025 and 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June** | **For the three months ended June** | **For the nine months ended June** | **For the nine months ended June** |
|  | **2025** | **2024** | **2025** | **2024** |
| Sales (including excise taxes of $141.7 and $150.2 million, and $411.2 and $415.7 million, respectively) | $739615416 | $717852293 | $2070391760 | $1964688673 |
| Cost of sales | 690000517 | 669893539 | 1930855424 | 1831118129 |
| Gross profit | 49614899 | 47958754 | 139536336 | 133570544 |
| Selling, general and administrative expenses | 42529118 | 39920976 | 123224702 | 113857467 |
| Depreciation and amortization | 2222243 | 2415158 | 7315871 | 6923716 |
|  | 44751361 | 42336134 | 130540573 | 120781183 |
| Operating income | 4863538 | 5622620 | 8995763 | 12789361 |
| Other expense (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense  | 2671004 | 2903925 | 7784032 | 7463175 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of mandatorily redeemable non-controlling interest | 195750 | 393324 | 663418 | 727457 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other (income), net | (111763) | (78903) | (279693) | (833050) |
|  | 2754991 | 3218346 | 8167757 | 7357582 |
| Income from operations before income taxes | 2108547 | 2404274 | 828006 | 5431779 |
| Income tax expense | 790000 | 914875 | 751000 | 2331875 |
| Net income available to common shareholders | $1318547 | $1489399 | $77006 | $3099904 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share available to common shareholders | $2.14 | $2.48 | $0.13 | $5.18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share available to common shareholders | $2.13 | $2.46 | $0.12 | $5.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic weighted average shares outstanding | 615261 | 600161 | 613933 | 598637 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted weighted average shares outstanding | 617723 | 606252 | 616281 | 606151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid per common share  | $0.18 | $0.18 | $0.82 | $0.82 |

---

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

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

**AMCON Distributing Company and Subsidiaries**

**Condensed Consolidated Unaudited Statements of Shareholders' Equity**

**for the three and nine months ended June 30, 2025 and 2024**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | <br>**Total** |
| **THREE MONTHS ENDED JUNE 2024** |  |  |  |  |  |  |  |
| Balance, April 1, 2024 | 964945 | $9648 | (334583) | $(31272163) | $33160639 | $106053510 | $107951634 |
| Dividends on common stock, $0.18 per share |  |  |  |  |  | (113464) | (113464) |
| Compensation expense related to equity-based awards |  |  |  |  | 639548 |  | 639548 |
| Net income available to common shareholders |  |  |  |  |  | 1489399 | 1489399 |
| Balance, June 30, 2024 | 964945 | $9648 | (334583) | $(31272163) | $33800187 | $107429445 | $109967117 |
| **THREE MONTHS ENDED JUNE 2025** |  |  |  |  |  |  |  |
| Balance, April 1, 2025 | 980045 | $9799 | (334583) | $(31272163) | $35715308 | $106897928 | $111350872 |
| Dividends on common stock, $0.18 per share |  |  |  |  |  | (116183) | (116183) |
| Compensation expense related to equity-based awards |  |  |  |  | 637861 |  | 637861 |
| Net income available to common shareholders |  |  |  |  |  | 1318547 | 1318547 |
| Balance, June 30, 2025 | 980045 | $9799 | (334583) | $(31272163) | $36353169 | $108100292 | $113191097 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Treasury Stock** | **Treasury Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | <br>**Total** |
| **NINE MONTHS ENDED JUNE 2024** |  |  |  |  |  |  |  |
| Balance, October 1, 2023 | 943272 | $9431 | (334583) | $(31272163) | $30585388 | $104846438 | $104169094 |
| Dividends on common stock, $0.82 per share |  |  |  |  |  | (516897) | (516897) |
| Compensation expense and issuance of stock in connection with equity-based awards | 21673 | 217 |  |  | 3214799 |  | 3215016 |
| Net income available to common shareholders |  |  |  |  |  | 3099904 | 3099904 |
| Balance, June 30, 2024 | 964945 | $9648 | (334583) | $(31272163) | $33800187 | $107429445 | $109967117 |
| **NINE MONTHS ENDED JUNE 2025** |  |  |  |  |  |  |  |
| Balance, October 1, 2024 | 964945 | $9648 | (334583) | $(31272163) | $34439735 | $108552565 | $111729785 |
| Dividends on common stock, $0.82 per share |  |  |  |  |  | (529279) | (529279) |
| Compensation expense and issuance of stock in connection with equity-based awards | 15100 | 151 |  |  | 1913434 |  | 1913585 |
| Net income available to common shareholders |  |  |  |  |  | 77006 | 77006 |
| Balance, June 30, 2025 | 980045 | $9799 | (334583) | $(31272163) | $36353169 | $108100292 | $113191097 |

---

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

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

**AMCON Distributing Company and Subsidiaries**

**Condensed Consolidated Unaudited Statements of Cash Flows**

**for the nine months ended June 30, 2025 and 2024**

---

| | | |
|:---|:---|:---|
|  | **June**<br>**2025** | **June**<br>**2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |
| Net income available to common shareholders | $77006 | $3099904 |
| Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 6924921 | 6520440 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization | 390950 | 403276 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sales of property and equipment | (83186) | (141522) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-based compensation | 1913585 | 1850233 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1049698) | (323119) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 289549 | 131132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory allowance | (108194) | 175706 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | (1453452) | 45362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of mandatorily redeemable non-controlling interest | 663418 | 727457 |
| Changes in assets and liabilities, net of effects of business combinations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (8471600) | (4110926) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | (1924234) | 12365936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | (1998163) | (999319) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (255431) | (39767) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (7669560) | 4082394 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and accrued wages, salaries and bonuses | (1068207) | 1112351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | 400606 | 446831 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable and receivable | 950130 | 1524314 |
| Net cash flows from (used in) operating activities | (12471560) | 26870683 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (8238960) | (16793486) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of property and equipment | 106163 | 306748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Arrowrock Supply (See Note 2) | (6131527) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Burklund |  | (15464397) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Richmond Master |  | (6631039) |
| Net cash flows from (used in) investing activities | (14264324) | (38582174) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings under revolving credit facilities | 1929823754 | 1845255576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments under revolving credit facilities | (1896504987) | (1828751621) |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long-term debt | (3938660) | (2277999) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends on common stock | (529279) | (516897) |
| &nbsp;&nbsp;&nbsp;&nbsp;Redemption and distributions to non-controlling interest | (1961410) | (2069157) |
| Net cash flows from (used in) financing activities | 26889418 | 11639902 |
| Net change in cash | 153534 | (71589) |
| Cash, beginning of period | 672788 | 790931 |
| Cash, end of period | $826322 | $719342 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for interest, net of amounts capitalized | $7756278 | $6976501 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for income taxes, net of refunds | 831068 | 1066105 |
| Supplemental disclosure of non-cash information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment acquisitions classified in accounts payable | $42729 | $83180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of property financed with promissory note |  | 8000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portion of Burklund acquisition financed with promissory note |  | 3900000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portion of Burklund acquisition financed with contingent consideration |  | 1578444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock in connection with the vesting of<br>equity-based awards |  | 1296372 |

---

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

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

**AMCON Distributing Company and Subsidiaries**

**Notes to Condensed Consolidated Unaudited Financial Statements**

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

AMCON Distributing Company and Subsidiaries ("AMCON" or the "Company") serves customers in 34 states through two business segments:

● Our wholesale distribution segment (the "Wholesale Segment"), which includes our Team Sledd, LLC ("Team Sledd") and Henry's Foods, Inc. ("Henry's") subsidiaries, distributes consumer products and provides a full range of programs and services to our customers that are focused on helping them manage their business and increase their profitability. We serve customers primarily in the Central, Rocky Mountain, Great Lakes, Mid-South and Mid-Atlantic regions of the United States.

● Our retail health food segment (the "Retail Segment") operates 15 health food retail stores located throughout the Midwest and Florida.

**WHOLESALE SEGMENT**

Our Wholesale Segment is one of the largest wholesale distributors in the United States, serving approximately 7,900 retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops. We currently distribute over 20,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery products, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products and institutional foodservice products. We have licenses, and operate, in 34 states, and are the third (3rd) largest convenience store distributor by geographic territory served.

Our Wholesale Segment offers retailers the ability to take advantage of manufacturer- and Company-sponsored sales and marketing programs, merchandising and product category management services, and the use of information systems and data services that are focused on minimizing retailers' investment in inventory, while seeking to maximize their sales and profits. In addition, our wholesale distribution capabilities provide valuable services to both manufacturers of consumer products and convenience retailers. Manufacturers benefit from our broad retail coverage, inventory management, efficiency in processing small orders, and frequency of deliveries. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, inventory optimization and merchandising expertise, information systems, and accessing trade credit.

Our Wholesale Segment operates 14 distribution centers located in Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. These distribution centers, combined with cross-dock facilities, include approximately 1.7 million square feet of permanent floor space. Our principal suppliers include Altria, RJ Reynolds, ITG Brands, Hershey, Kellanova, Kraft Heinz, and Mars Wrigley. We also market private label lines of water, candy products, batteries, and other products. We do not maintain any long-term purchase contracts with our suppliers.

**RETAIL SEGMENT**

Our Retail Segment, through our *Healthy Edge Retail Group* subsidiary, is a specialty retailer of natural/organic groceries and operates 15 retail health food stores under the Chamberlin's Natural Foods, Akin's Natural Foods, and Earth Origins

Market banners. We operate within the natural products retail industry, which is a subset of the United States grocery industry. This industry includes conventional, natural, gourmet and specialty food markets, mass and discount retailers, warehouse clubs, health food stores, dietary supplement retailers, drug stores, farmers markets, mail order and online retailers, and multi-level marketers. These stores carry over 32,000 different nationally and regionally branded and private label products including high-quality natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise.

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

**FINANCIAL STATEMENTS**

The Company's fiscal year ends on September 30<sup>th</sup>. The results for the interim period included with this Quarterly Report may not be indicative of the results which could be expected for the entire fiscal year. All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted. In the opinion of management, the accompanying condensed consolidated unaudited financial statements ("financial statements") contain all adjustments necessary to fairly present the financial information included herein. The Company believes that although the disclosures contained herein are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the Company's annual audited consolidated financial statements for the fiscal year ended September 30, 2024, as filed with the Securities and Exchange Commission on Form 10-K. For purposes of this report, unless the context indicates otherwise, all references to "we", "us", "our", the "Company", and "AMCON" shall mean AMCON Distributing Company and its consolidated subsidiaries. Additionally, the three-month fiscal periods ended June 30, 2025 and June 30, 2024 have been referred to throughout this Quarterly Report as Q3 2025 and Q3 2024, respectively. The fiscal balance sheet dates as of June 30, 2025 and September 30, 2024 have been referred to as June 2025 and September 2024, respectively.

**ACCOUNTING PRONOUNCEMENTS**

***Recent Accounting Pronouncements***

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures", which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU also expands disclosure requirements to enable users of financial statements to better understand an entity's measurement and assessment of segment performance and resource allocation. This guidance is effective for fiscal years beginning after December 15, 2023 (fiscal 2025 for the Company), and interim periods within fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company), with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740) – Improvements to Income Tax Disclosures", which enhances the transparency, effectiveness and comparability of income tax disclosures by requiring consistent categories and greater disaggregation of information related to income tax rate reconciliations and the jurisdictions in which income taxes are paid. This guidance is effective for annual periods beginning after December 15, 2024 (fiscal 2026 for the Company), with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures", which improves disclosure requirements and provides more detailed information about an entity's expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization, and selling expenses, along with qualitative descriptions of certain other types of expenses. This guidance is effective for fiscal years beginning after December 15, 2026 (fiscal 2028 for the Company), and interim periods within fiscal years beginning after December 15, 2027 (fiscal 2029 for the Company), with early adoption permitted. The Company is currently reviewing this ASU and its potential impact on our consolidated financial statements.

**2. ACQUISITION**

On January 17, 2025, the Company acquired substantially all of the operating assets of Davis-Jones, Inc. d/b/a Arrowrock Supply ("Arrowrock"), for approximately $6.1 million in cash. Costs to effectuate the acquisition were not significant and were expensed as incurred. The transaction was funded with borrowings from the Company's existing bank group. The acquisition of Arrowrock provides access to new markets and improved service capability for accounts in our existing service area.

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The Company paid cash consideration for the acquired assets and their related values as of the acquisition date, measured in accordance with FASB Accounting Standards Codification 805 – *Business Combinations* ("ASC 805"). No value was assigned to any identifiable intangible assets or goodwill in conjunction with the acquisition. Arrowrock is reported as part of the Company's Wholesale Segment.

Identifiable assets acquired are as follows:

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| | |
|:---|:---|
| Accounts receivable | $12375 |
| Inventories | 2998299 |
| Prepaid and other assets | 1789 |
| Property and equipment - Land | 597700 |
| Property and equipment - Building | 2466364 |
| Property and equipment - Vehicles | 55000 |
| Total identifiable net assets | $6131527 |
| Total identifiable net assets | $6131527 |
| Goodwill |  |
| Total consideration | $6131527 |

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Accounts receivable was recorded at its fair value representing the amount we expect to collect, which also approximated the gross contractual value of such receivables at the acquisition date.

The following table sets forth the unaudited supplemental financial data for Arrowrock from the acquisition date through June 2025, which is included in the Company's consolidated results for the three and nine months ended June 2025.

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| | | |
|:---|:---|:---|
|  | **For the three months ended June 2025** | **For the nine months ended June 2025** |
| Revenue | $8764796 | $14363517 |
| Net loss available to common shareholders | $(28691) | $(92654) |

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The following table presents unaudited supplemental pro forma information assuming the Company acquired Arrowrock, Burklund Distributors, Inc. and Richmond Master Distributors, Inc. on October 1, 2023, in addition to holding a 92% interest in Team Sledd on October 1, 2023. These pro forma amounts do not purport to be indicative of the actual results that would have been obtained had the acquisitions occurred at that time.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June 2025** | **For the three months ended June 2024** | **For the nine months ended June 2025** | **For the nine months ended June 2024** |
| Revenue | $739615416 | $749722373 | $2079090001 | $2126107060 |
| Net income available to common shareholders | $1318547 | $1768629 | $280234 | $3356163 |

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**3. INVENTORIES**

Inventories in our Wholesale Segment consisted of finished goods and are stated at the lower of cost or net realizable value, utilizing FIFO and average cost methods. Inventories in our Retail Segment consisted of finished goods and are stated at the lower of cost or market using the retail method. The wholesale distribution and retail health food segment inventories consist of finished products purchased in bulk quantities to be redistributed to the Company's customers or sold at retail. Finished goods included total reserves of approximately $1.1 million at June 2025 and $1.2 million at September 2024. These reserves include the Company's obsolescence allowance, which reflects estimated unsalable or non-refundable inventory based upon an evaluation of slow-moving and discontinued products.

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**4. GOODWILL AND OTHER INTANGIBLE ASSETS**

Goodwill at June 2025 and September 2024 was as follows:

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| | | |
|:---|:---|:---|
|  | **June**<br>**2025** | **September**<br>**2024** |
| Wholesale Segment | $5778325 | $5778325 |

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Other intangible assets at June 2025 and September 2024 consisted of the following:

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| | | |
|:---|:---|:---|
|  | **June**<br>**2025** | **September**<br>**2024** |
| Customer lists (Wholesale Segment) (less accumulated amortization of $0.6 million at June 2025 and $0.5 million at September 2024) | $2823749 | $2996348 |
| Non-competition agreements (Wholesale Segment) (less accumulated amortization of $0.3 million at June 2025 and $0.2 million at September 2024) | 49083 | 106505 |
| Tradename (Wholesale Segment) (less accumulated amortization of $0.5 million at June 2025 and $0.4 million at September 2024) | 983452 | 1144381 |
| Trademarks and tradenames (Retail Segment) | 500000 | 500000 |
|  | $4356284 | $4747234 |

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Goodwill and Retail Segment trademarks and tradenames are considered to have indefinite useful lives and therefore no amortization has been taken on these assets. Goodwill recorded on the Company's consolidated balance sheets represent amounts allocated to its wholesale reporting unit which totaled approximately $5.8 million at both June 2025 and September 2024. The Company performs its annual impairment testing during the fourth fiscal quarter of each year or as circumstances change or necessitate. There have been no material changes to the Company's impairment assessments since its fiscal year ended September 2024.

At June 2025, identifiable intangible assets considered to have finite lives were represented by customer lists which are being amortized over 15 years, a non-competition agreement which is being amortized over five years, and a tradename in our Wholesale Segment that is being amortized over seven years. These intangible assets are evaluated for accelerated attrition or amortization adjustments if warranted. Amortization expense related to these assets was approximately $0.1 million and $0.4 million for the three- and nine-month periods ended June 2025, respectively, and approximately $0.1 million and $0.4 million for the three- and nine-month periods ended June 2024, respectively.

Estimated future amortization expense related to identifiable intangible assets with finite lives was as follows at June 2025:

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| | |
|:---|:---|
|  | **June**<br>**2025** |
| Fiscal 2025 (1) | $115926 |
| Fiscal 2026 | 463703 |
| Fiscal 2027 | 463703 |
| Fiscal 2028 | 451037 |
| Fiscal 2029 | 444703 |
| Fiscal 2030 and thereafter | 1917212 |
|  | $3856284 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents amortization for the remaining three months of Fiscal 2025.

**5. DIVIDENDS**

The Company paid cash dividends on its common stock totaling $0.1 million and $0.5 million for the three- and nine-month periods ended June 2025, respectively, and $0.1 million and $0.5 million for the three- and nine-month periods ended June 2024, respectively.

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**6. EARNINGS PER SHARE**

Basic earnings per share available to common shareholders is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding for each period. Diluted earnings per share available to common shareholders is calculated by dividing net income available to common shareholders by the sum of the weighted average number of common shares outstanding and the weighted average dilutive equity awards.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended June** | **For the three months ended June** | **For the three months ended June** | **For the three months ended June** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Basic** | **Diluted** | **Basic** | **Diluted** |
| Weighted average number of common shares outstanding | 615261 | 615261 | 600161 | 600161 |
| Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) |  | 2462 |  | 6091 |
| Weighted average number of shares outstanding | 615261 | 617723 | 600161 | 606252 |
| Net income available to common shareholders | $1318547 | $1318547 | $1489399 | $1489399 |
| Net earnings per share available to common shareholders | $2.14 | $2.13 | $2.48 | $2.46 |

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(1) Diluted earnings per share calculation includes all equity-based awards deemed to be dilutive.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months ended June** | **For the nine months ended June** | **For the nine months ended June** | **For the nine months ended June** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Basic** | **Diluted** | **Basic** | **Diluted** |
| Weighted average number of common shares outstanding | 613933 | 613933 | 598637 | 598637 |
| Weighted average net additional shares outstanding assuming dilutive options exercised and proceeds used to purchase treasury stock (1) |  | 2348 |  | 7514 |
| Weighted average number of shares outstanding | 613933 | 616281 | 598637 | 606151 |
| Net income available to common shareholders | $77006 | $77006 | $3099904 | $3099904 |
| Net earnings per share available to common shareholders | $0.13 | $0.12 | $5.18 | $5.11 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Diluted earnings per share calculation includes all equity-based awards deemed to be dilutive.

**7. DEBT**

The Company primarily finances its operations through three credit facility agreements (a) a facility that is an obligation of AMCON Distributing Company (the "AMCON Facility"), (b) a facility that is an obligation of Team Sledd (the "Team Sledd Facility") and (c) a facility that is an obligation of Henry's (the "Henry's Facility" and, collectively, the "Facilities") and long-term debt agreements with banks. The Team Sledd Facility and the Henry's Facility are non-recourse to AMCON Distributing Company, are not guaranteed by AMCON Distributing Company and have no cross default provisions applicable to AMCON Distributing Company.

At June 2025, the Facilities had a total combined borrowing capacity of $305.0 million, which includes provisions for up to $30.0 million in credit advances for certain inventory purchases, which are limited by accounts receivable and inventory qualifications, and the value of certain real estate collateral. The AMCON Facility matures in June 2027, the Henry's Facility matures in February 2028, and the Team Sledd Facility matures in March 2028, each without a penalty for prepayment. Obligations under the Facilities are collateralized by substantially all of the Company's respective equipment, intangibles, inventories, accounts receivable, and certain real estate. The Facilities each feature an unused commitment fee and springing financial covenants. Borrowings under the Facilities bear interest at the Secured Overnight Financing Rate ("SOFR"), plus any applicable spreads.

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The amount available for use from the Facilities at any given time is subject to a number of factors, including eligible accounts receivable and inventory balances that fluctuate day-to-day, as well as the value of certain real estate collateral. Based on the collateral and loan limits as defined in the Facility agreements, the credit limit of the combined Facilities at June 2025 was $241.0 million, of which $154.6 million was outstanding, leaving $86.4 million available.

The average interest rate of the Facilities was 5.77% at June 2025. For the nine months ended June 2025, the peak borrowings under the Facilities was $197.1 million, and the average borrowings and average availability under the Facilities was $161.8 million and $74.7 million, respectively.

**Cross Default and Co-Terminus Provisions**

The Team Sledd Facility and Team Sledd's two notes payable contain cross default provisions. The Henry's Facility and the Henry's note payable also contain cross default provisions. There were no such cross defaults for either Team Sledd or Henry's at June 2025. Additionally, the Team Sledd Facility and the Henry's Facility are non-recourse to AMCON Distributing Company, are not guaranteed by AMCON Distributing Company and have no cross default provisions applicable to AMCON Distributing Company. The Company and its subsidiaries, including Team Sledd and Henry's, were in compliance with all of the financial covenants under the respective Facilities at June 2025.

**Other**

The Company has issued letters of credit totaling $3.1 million to its workers' compensation insurance carriers as part of its self-insured loss control program.

**8. INCOME TAXES**

The change in the Company's effective income tax rate for the three- and nine-month periods ended June 2025 as compared to the respective prior year periods, was primarily related to non-deductible compensation expense in relation to the amount of income (loss) from operations before income tax expense (benefit) and variances in the average effective state income tax rates between the comparative periods.

**9. FAIR VALUE DISCLOSURES**

*Mandatorily Redeemable Non-Controlling Interest*

Mandatorily redeemable non-controlling interest ("MRNCI") recorded on the Company's condensed consolidated balance sheets represents the fair value of the non-controlling interest in the Company's strategic investment in Team Sledd. During April 2025, Team Sledd redeemed certain membership interests from its non-controlling interest, which increased the Company's ownership interest to approximately 92% at June 2025. The Company owned approximately 76% of Team Sledd at September 2024. The Company has elected to present the MRNCI liability at fair value under FASB Accounting Standards Codification 825 – *Financial Instruments* as it believes this best represents the potential future liability and cash flows. As such, the MRNCI balance at June 2025 represents the fair value of the remaining future membership interest redemptions and other amounts due to noncontrolling interest holders through April 2026. The Company calculates the estimated fair value of the MRNCI based on a discounted cash flow valuation technique using the best information available at the reporting date, and records changes in the fair value of the MRNCI as a component of other expense (income) in the condensed consolidated statements of operations. The MRNCI is classified as Level 3 because of the Company's reliance on unobservable assumptions. The Company estimates the probability and timing of future redemptions and earnings of Team Sledd based on management's knowledge and assumptions of certain events as of each reporting date, including the timing of any future redemptions and an appropriate discount rate, which was 13.2% at June 2025. At June 2025 and September 2024, the difference between the contractual amount due under the MRNCI and the fair value was approximately $0.4 million and $0.7 million, respectively.

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A summary of the MRNCI activity is as follows:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended June 30,** | **For the Three Months Ended June 30,** |
|  | **2025** | **2024** |
| Fair value, beginning of period | $8679168 | $9824964 |
| Redemption of non-controlling interests | (1812558) | (1812558) |
| Distributions to non-controlling interest | (148852) | (256599) |
| Change in fair value | 195750 | 393324 |
| Fair value, end of period  | $6913508 | $8149131 |

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| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended June 30,** | **For the Nine Months Ended June 30,** |
|  | **2025** | **2024** |
| Fair value, beginning of period | $8211500 | $9490831 |
| Redemption of non-controlling interests | (1812558) | (1812558) |
| Distributions to non-controlling interest | (148852) | (256599) |
| Change in fair value | 663418 | 727457 |
| Fair value, end of period  | $6913508 | $8149131 |

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*Contingent Consideration*

On April 5, 2024, the Company acquired substantially all of the net operating assets of Burklund Distributors, Inc. ("Burklund"). A portion of the consideration exchanged in the acquisition of Burklund was in the form of contingent consideration of up to $3.0 million in cash payable in two installments on the one-year and two-year anniversaries of the acquisition date based on the achievement of certain sales thresholds. In accordance with ASC 805, the Company recorded this contingent consideration at fair value as of the acquisition date and re-measures the liability at each reporting period. The Company calculates the estimated fair value of the contingent consideration based on a discounted cash flow valuation technique using the best information available at the reporting date, and records changes in the fair value of the contingent consideration in selling, general and administrative expenses in the condensed consolidated statements of operations. The short-term and long-term portions of any contingent consideration payable are recorded in accrued expenses and other long-term liabilities, respectively, in the Company's condensed consolidated balance sheets. The contingent consideration liability is classified as Level 3 because of the Company's reliance on unobservable assumptions.

At each reporting date, the Company reviews certain inputs, including sales thresholds and an appropriate discount rate, based on management's knowledge and assumptions of certain events. In Q1 2025, the Company determined that due to current sales trends including customer turnover, the achievement of the sales thresholds required to meet the minimum payout of any contingent consideration was not probable. As such, the Company adjusted the fair value of its contingent consideration liability and recognized operating income of approximately $1.5 million in Q1 2025, which was recorded as a reduction of selling, general and administrative expenses in the condensed consolidated statements of operations. At June 2025, the Company reaffirmed that the achievement of the sales thresholds required to meet the minimum payout of any contingent consideration was not probable.

At September 2024, the difference between the estimated amount due under the contingent consideration arrangement and the fair value was approximately $0.2 million.

The following table presents changes in the fair value of the contingent consideration since September 2024:

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| | |
|:---|:---|
| Current portion of contingent consideration at fair value as of September 2024 | $710270 |
| Long-term portion of contingent consideration at fair value as of September 2024 | 743182 |
| Fair value of contingent consideration as of September 2024 | $1453452 |
| Change in fair value | (1453452) |
| Fair value of contingent consideration as of June 2025 | $— |

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**10. BUSINESS SEGMENTS** 

The Company has two reportable business segments: the wholesale distribution of consumer products (the Wholesale Segment), and the retail sale of health and natural food products (the Retail Segment). The aggregation of the Company's business operations into these business segments was based on a range of considerations, including but not limited to the characteristics of each business, similarities in the nature and type of products sold, customer classes, methods used to sell the products and economic profiles. Included in the "Other" column are intercompany eliminations and assets held and charges incurred and income earned by our holding company. The segments are evaluated on revenues, gross margins, operating income (loss), and income (loss) from operations before taxes.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Wholesale**<br>**Segment** | **Retail**<br>**Segment** | <br>**Other** | <br>**Consolidated** |
| **THREE MONTHS ENDED JUNE 2025** |  |  |  |  |
| External revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cigarettes | $446795327 | $— | $— | $446795327 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tobacco  | 142823422 |  |  | 142823422 |
| &nbsp;&nbsp;&nbsp;&nbsp;Confectionery | 51876960 |  |  | 51876960 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health food |  | 11330519 |  | 11330519 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foodservice & other | 86789188 |  |  | 86789188 |
| Total external revenue | 728284897 | 11330519 |  | 739615416 |
| Depreciation | 1857491 | 242654 |  | 2100145 |
| Amortization | 122098 |  |  | 122098 |
| Operating income (loss) | 7341098 | 107482 | (2585042) | 4863538 |
| Interest expense |  |  | 2671004 | 2671004 |
| Income (loss) from operations before taxes | 7235357 | 129237 | (5256047) | 2108547 |
| Total assets | 375881609 | 16873406 | 1160510 | 393915525 |
| Capital expenditures | 829566 | 159332 |  | 988898 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Wholesale**<br>**Segment** | **Retail**<br>**Segment** | <br>**Other** | <br>**Consolidated** |
| **THREE MONTHS ENDED JUNE 2024** |  |  |  |  |
| External revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cigarettes | $440843958 | $— | $— | $440843958 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tobacco | 130898477 |  |  | 130898477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Confectionery | 48595576 |  |  | 48595576 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health food |  | 10195162 |  | 10195162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foodservice & other | 87319120 |  |  | 87319120 |
| Total external revenue | 707657131 | 10195162 |  | 717852293 |
| Depreciation | 2041507 | 239226 |  | 2280733 |
| Amortization | 134425 |  |  | 134425 |
| Operating income (loss) | 9333724 | (65363) | (3645741) | 5622620 |
| Interest expense |  |  | 2903925 | 2903925 |
| Income (loss) from operations before taxes | 8994641 | (40702) | (6549665) | 2404274 |
| Total assets | 382254911 | 17098132 | 1250912 | 400603955 |
| Capital expenditures | 4959809 | 664555 |  | 5624364 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Wholesale**<br>**Segment** | **Retail**<br>**Segment** | <br>**Other** | <br>**Consolidated** |
| **NINE MONTHS ENDED JUNE 2025** |  |  |  |  |
| External revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cigarettes | $1259158450 | $— | $— | $1259158450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tobacco  | 400560151 |  |  | 400560151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Confectionery | 135675489 |  |  | 135675489 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health food |  | 33758378 |  | 33758378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foodservice & other | 241239292 |  |  | 241239292 |
| Total external revenue | 2036633382 | 33758378 |  | 2070391760 |
| Depreciation | 6150669 | 774252 |  | 6924921 |
| Amortization | 390950 |  |  | 390950 |
| Operating income (loss) | 16714246 | 207506 | (7925989) | 8995763 |
| Interest expense |  |  | 7784032 | 7784032 |
| Income (loss) from operations before taxes | 16262891 | 275136 | (15710021) | 828006 |
| Total assets | 375881609 | 16873406 | 1160510 | 393915525 |
| Capital expenditures | 6798565 | 466176 |  | 7264741 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Wholesale**<br>**Segment** | **Retail**<br>**Segment** | <br>**Other** | <br>**Consolidated** |
| **NINE MONTHS ENDED JUNE 2024** |  |  |  |  |
| External revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cigarettes | $1204391205 | $— | $— | $1204391205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tobacco | 367082329 |  |  | 367082329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Confectionery | 126501145 |  |  | 126501145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health food |  | 32108920 |  | 32108920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foodservice & other | 234605074 |  |  | 234605074 |
| Total external revenue | 1932579753 | 32108920 |  | 1964688673 |
| Depreciation | 5838096 | 682344 |  | 6520440 |
| Amortization | 403276 |  |  | 403276 |
| Operating income (loss) | 22117203 | 374883 | (9702725) | 12789361 |
| Interest expense |  |  | 7463175 | 7463175 |
| Income (loss) from operations before taxes | 21612902 | 984776 | (17165899) | 5431779 |
| Total assets | 382254911 | 17098132 | 1250912 | 400603955 |
| Capital expenditures (1) | 22170916 | 1690218 |  | 23861134 |

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(1) Includes $10.0 million purchase of a distribution facility in Colorado City, Colorado.

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**Item 2.&nbsp;&nbsp;&nbsp;&nbsp; Management's Discussion and Analysis of Financial Condition and Results of Operations**

**BUSINESS UPDATE**

Similar to other retail formats, the convenience retailing sector we service continues to operate in a challenging operating environment, impacted in part by weaker consumer spending. At the same time, the cost structures for wholesale distributors such as our Company have been impacted by the cumulative impact of inflation over a multi-year period. These inflationary pressures have increased operating costs in all areas of our business such as product costs, labor and employee benefits, equipment, and insurance.

We continue to monitor the impact that changes in tariff rates may have on our operations. Additionally, we remain focused on proposals from regulatory bodies, including the United States Food and Drug Administration ("FDA"), which is evaluating potential limitations and/or prohibitions on the sale of certain products sold by our Company such as cigarettes (including menthol cigarettes), e-cigarettes, tobacco, and vaping products.

In response to this operating environment, the Company has made a number of strategic investments to enhance its competitive position over time. These strategic investments include expanding the depth of our foodservice programs and facilities, expansion of our geographic coverage footprint to enhance services for growth-oriented customers, and continued investments in proprietary technology solutions.

Our new Colorado City distribution facility, which opened in mid-July 2025, will provide the Company with valuable access to the inter-mountain and western regions of the United States. Our Company has made a number of forward-looking, targeted investments in recent years (acquisitions, the opening of new distribution centers, etc.) and now ranks as the third largest Convenience Distributor in the United States as measured by territory covered. We believe this geographic footprint will provide an attractive platform for growth in the coming years.

**FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q, including the Management's Discussion and Analysis of Financial Condition and Results of Operations and other sections, contains forward-looking statements that are subject to risks and uncertainties and reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. Forward-looking statements include information concerning the possible or assumed future results of operations of the Company and those statements preceded by, followed by or that include the words "future," "position," "anticipate(s)," "expect(s)," "believe(s)," "see," "plan," "further improve," "outlook," "should" or similar expressions. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance or results. They involve risks, uncertainties and assumptions.

It should be understood that the following important factors, in addition to those discussed elsewhere in this document, could affect the future results of the Company and could cause those results to differ materially from those expressed in our forward-looking statements:

&nbsp;&nbsp;&nbsp;&nbsp;● the potential impact that ongoing or proposed increases or fluctuations in trade tariffs and/or changes to trade policies may have on raw materials or finished goods sourced from abroad which could result in higher prices for the products we sell while also decreasing consumer disposable income and demand,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with new tariffs or other macroeconomic factors as it relates to inflation, operating costs, and overall business risk, particularly product and equipment costs, wages, fuel, interest, food ingredient and commodity prices, and customer credit risk, and limits on our ability to pass on higher operating costs,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with continued weakness in retail level demand within the convenience store industry including declining demand for cigarette products,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with workforce availability and/or wage pressures which may be impacted by economic conditions, changes in governmental policies, or other changes in the operating environment which may impact our labor force,

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&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with all forms of insurance renewals and the risk that the Company may not be able to renew various insurance with adequate levels of coverage, at favorable rates, or obtain insurance at all based upon market conditions within the insurance industry and/or because of the industry in which the Company operates,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with unrest in certain global regions which could further disrupt world supply chains, manufacturing centers, and shipping routes, impacting commodity/product availability and/or cost, as well as consumer demand trends,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with higher interest rates or prolonged periods of higher interest rates and the related impact on demand, customer credit risk, profitability and cash flows for both the Company and its customer base, particularly as it relates to variable interest rate borrowings, as well as the risk that such borrowings may not be renewed in the future on favorable terms or at all,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with any systemic pressures in the banking system, particularly as they relate to customer credit risk and any resulting impact on our cash flow and our ability to collect on our receivables,

&nbsp;&nbsp;&nbsp;&nbsp;● regulations, potential bans, limitations and/or litigation related to the manufacturing, distribution, and sale of certain cigarette, e-cigarette, tobacco, and vaping products imposed by the FDA, state or local governmental agencies, or other parties, including proposed and pending regulations and/or product approvals/authorizations related to the manufacturing, distribution, and sale of certain menthol, vaping, and flavored tobacco products, including proposed rules which would limit nicotine levels in certain cigarette and tobacco products,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with the threat or occurrence of epidemics or pandemics (such as COVID-19 or its variants) or other public health issues, including the continued health of our employees and management, the reduced demand for our goods and services or increased credit risk from customer credit defaults resulting from an economic downturn,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with the imposition of governmental orders restricting our operations and the operations of our suppliers and customers, in particular, disruptions to our supply chain or our ability to procure products or fulfill orders due to labor shortages in our warehouse operations,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with macroeconomic, black swan, or other similar events (e.g., stock market crashes, global unrest, supply chain disruptions, pandemics, etc.) that may impact the Company's sales volumes and/or cost structure and for which the Company has limited ability within its business model to offset the related financial impact,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with the acquisition of businesses or assets, capital asset expenditure projects by either of our business segments such as the development of new facilities/locations or upgrades to distribution centers or retail stores, including, but not limited to, risks associated with consummating such transactions on expected terms or timing, purchase price and business valuation and recording risks, customer turnover and retention risks, and risks related to the assumption of certain liabilities or obligations,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with the integration of new businesses or equity investments by either of our business segments including, but not limited to, risks associated with vendor and customer turnover and retention, technology integration, and the potential loss of any key management personnel or employees,

&nbsp;&nbsp;&nbsp;&nbsp;● increasing competition and market conditions in our wholesale and retail health food businesses and any associated impact on the carrying value and any potential impairment of assets (including intangible assets) within those businesses,

&nbsp;&nbsp;&nbsp;&nbsp;● risk that our repositioning strategy for our retail business will not be successful,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with opening new, or closing unprofitable, retail stores,

&nbsp;&nbsp;&nbsp;&nbsp;● risks to our brick and mortar retail business and potentially to our wholesale distribution business if online shopping formats such as Amazon™ continue to grow in popularity and further disrupt traditional sales channels,

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&nbsp;&nbsp;&nbsp;&nbsp;● increasing product and operational costs resulting from ongoing supply chain disruptions, an intensely competitive labor market with a limited pool of qualified workers, and higher incremental costs associated with the handling and transportation of certain product categories such as foodservice,

&nbsp;&nbsp;&nbsp;&nbsp;● increases in state and federal excise taxes on cigarette and tobacco products and the potential impact on demand, particularly as it relates to current legislation under consideration which could significantly increase such taxes,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with disruptions to our technology systems or those of third parties upon which we rely, including security breaches, cyber and ransomware attacks, malware, or other methods by which such information systems could or may have been compromised or impacted,

&nbsp;&nbsp;&nbsp;&nbsp;● increases in inventory carrying costs and customer credit risks,

&nbsp;&nbsp;&nbsp;&nbsp;● changes in pricing strategies and/or promotional/incentive programs offered by cigarette and tobacco manufacturers,

&nbsp;&nbsp;&nbsp;&nbsp;● changing demand for the Company's products, particularly cigarette, tobacco and vaping products,

&nbsp;&nbsp;&nbsp;&nbsp;● risks that product manufacturers may begin selling directly to convenience stores and bypass wholesale distributors,

&nbsp;&nbsp;&nbsp;&nbsp;● changes in laws and regulations and ongoing compliance related to health care and associated insurance,

&nbsp;&nbsp;&nbsp;&nbsp;● increasing health care costs for both the Company and consumers and its potential impact on discretionary consumer spending,

&nbsp;&nbsp;&nbsp;&nbsp;● decreased availability of capital resources,

&nbsp;&nbsp;&nbsp;&nbsp;● domestic regulatory and legislative risks,

&nbsp;&nbsp;&nbsp;&nbsp;● adverse weather including the impact of climate change and/or other sudden and unanticipated changes in weather conditions that may materially impact our operations temporarily (e.g., wildfires, floods, wind storms, tornadoes, extreme temperature changes, ice storms, blizzards, or other violent storms),

&nbsp;&nbsp;&nbsp;&nbsp;● consolidation trends within the convenience store, wholesale distribution, and retail health food industries,

&nbsp;&nbsp;&nbsp;&nbsp;● risks associated with labor disputes (strikes), natural disasters, domestic/political unrest and incidents of violence, or any restrictions, regulations, or security measures implemented by governmental bodies in response to these items, and

&nbsp;&nbsp;&nbsp;&nbsp;● other risks over which the Company has little or no control, and any other factors not identified herein.

Changes in these factors could result in significantly different results. Consequently, future results may differ from management's expectations. Moreover, past financial performance should not be considered a reliable indicator of future performance. Any forward-looking statement contained herein is made as of the date of this document. Except as required by law, the Company undertakes no obligation to publicly update or correct any of these forward-looking statements in the future to reflect changed assumptions, the occurrence of material events or changes in future operating results, financial conditions or business over time.

**CRITICAL ACCOUNTING ESTIMATES**

Certain accounting estimates used in the preparation of the Company's condensed consolidated unaudited financial statements ("financial statements") require us to make judgments and estimates and the financial results we report may vary depending on how we make these judgments and estimates. Our critical accounting estimates are set forth in our annual report on Form 10-K for the fiscal year ended September 30, 2024, as filed with the Securities and Exchange Commission. There have been no significant changes with respect to these estimates and related policies during the nine months ended June 2025.

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**THIRD FISCAL QUARTER 2025 (Q3 2025)**

The following discussion and analysis includes the Company's results of operations for the three and nine months ended June 2025 and June 2024:

**Wholesale Segment**

Our Wholesale Segment is one of the largest wholesale distributors in the United States, serving approximately 7,900 retail outlets including convenience stores, grocery stores, liquor stores, drug stores, and tobacco shops. We currently distribute over 20,000 different consumer products, including cigarettes and tobacco products, candy and other confectionery products, beverages, groceries, paper products, health and beauty care products, frozen and refrigerated products and institutional foodservice products. We have licenses, and operate, in 34 states, and are the third (3rd) largest convenience store distributor by geographic territory served.

Our Wholesale Segment offers retailers the ability to take advantage of manufacturer- and Company-sponsored sales and marketing programs, merchandising and product category management services, and the use of information systems and data services that are focused on minimizing retailers' investment in inventory, while seeking to maximize their sales and profits. In addition, our wholesale distribution capabilities provide valuable services to both manufacturers of consumer products and convenience retailers. Manufacturers benefit from our broad retail coverage, inventory management, efficiency in processing small orders, and frequency of deliveries. Convenience retailers benefit from our distribution capabilities by gaining access to a broad product line, inventory optimization and merchandising expertise, information systems, and accessing trade credit.

Our Wholesale Segment operates 14 distribution centers located in Colorado, Idaho, Illinois, Indiana, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. These distribution centers, combined with cross-dock facilities, include approximately 1.7 million square feet of permanent floor space. Our principal suppliers include Altria, RJ Reynolds, ITG Brands, Hershey, Kellanova, Kraft Heinz, and Mars Wrigley. We also market private label lines of water, candy products, batteries, and other products. We do not maintain any long-term purchase contracts with our suppliers.

**Retail Segment**

Our Retail Segment, through our *Healthy Edge Retail Group* subsidiary, is a specialty retailer of natural/organic groceries and operates 15 retail health food stores under the Chamberlin's Natural Foods, Akin's Natural Foods, and Earth Origins Market banners. We operate within the natural products retail industry, which is a subset of the United States grocery industry. This industry includes conventional, natural, gourmet and specialty food markets, mass and discount retailers, warehouse clubs, health food stores, dietary supplement retailers, drug stores, farmers markets, mail order and online retailers, and multi-level marketers. These stores carry over 32,000 different nationally and regionally branded and private label products including high-quality natural, organic, and specialty foods consisting of produce, baked goods, frozen foods, nutritional supplements, personal care items, and general merchandise.

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**RESULTS OF OPERATIONS – THREE MONTHS ENDED JUNE:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **Incr (Decr)** | **% Change** |
| CONSOLIDATED: |  |  |  |  |
| Sales (1) | $739615416 | $717852293 | $21763123 | 3.0  |
| Cost of sales | 690000517 | 669893539 | 20106978 | 3.0  |
| Gross profit | 49614899 | 47958754 | 1656145 | 3.5  |
| Gross profit percentage | 6.7% | 6.7% |  |  |
| Operating expense | $44751361 | $42336134 | $2415227 | 5.7  |
| Operating income | 4863538 | 5622620 | (759082) | (13.5) |
| Interest expense | 2671004 | 2903925 | (232921) | (8.0) |
| Change in fair value of mandatorily redeemable non-controlling interest | 195750 | 393324 | (197574) | (50.2) |
| Income tax expense | 790000 | 914875 | (124875) | (13.6) |
| Net income available to common shareholders | 1318547 | 1489399 | (170852) | (11.5) |
| BUSINESS SEGMENTS: |  |  |  |  |
| Wholesale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $728284897 | $707657131 | $20627766 | 2.9  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 45457986 | 44269742 | 1188244 | 2.7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit percentage | 6.2% | 6.3% |  |  |
| Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $11330519 | $10195162 | $1135357 | 11.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 4156913 | 3689012 | 467901 | 12.7  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit percentage | 36.7% | 36.2% |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Sales are reported net of costs associated with incentives provided to retailers. These incentives totaled $13.0 million in Q3 2025 and $9.8 million in Q3 2024.

**SALES**

Changes in sales are primarily driven by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) changes to selling prices, which are largely controlled by our product suppliers, and excise taxes imposed on cigarettes and tobacco products by various states;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) changes in the volume and mix of products sold to our customers, either due to a change in purchasing patterns resulting from shifting consumer preferences or the fluctuation in the comparable number of business days in our reporting period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) acquisitions.

**SALES – Q3 2025 vs. Q3 2024**

Sales in our Wholesale Segment increased $20.6 million during Q3 2025 as compared to Q3 2024. Significant items impacting sales during Q3 2025 included an increase of $8.8 million related to the Arrowrock acquisition in Q2 2025, an increase of $26.4 million related to the acquisition of Richmond Master during Q3 2024, a $31.1 million increase in sales related to price increases implemented by cigarette manufacturers, and a $6.0 million increase in sales related to the volume and mix of products in our tobacco, confectionery, foodservice, and other categories ("Other Products"), partially offset by a $51.7 million decrease in sales related to the volume and mix of cigarette cartons sold. Sales in our Retail Segment increased approximately $1.1 million during Q3 2025 as compared to Q3 2024, primarily due to higher sales volumes in our existing stores.

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**GROSS PROFIT – Q3 2025 vs. Q3 2024**

Our gross profit does not include fulfillment costs and costs related to the distribution network, which are included in selling, general and administrative costs, and may not be comparable to those of other entities. Some entities may classify such costs as a component of cost of sales. Cost of sales, a component used in determining gross profit, for the wholesale and retail segments includes the cost of products purchased from manufacturers, less incentives we receive which are netted against such costs.

Gross profit in our Wholesale Segment increased $1.2 million during Q3 2025 as compared to Q3 2024. Significant items impacting gross profit during Q3 2025 included an increase of $0.5 million related to the Arrowrock acquisition in Q2 2025, an increase of $1.5 million related to the acquisition of Richmond Master during Q3 2024, and a $1.0 million increase in gross profit related to the mix of volumes and promotions in our Other Products category, partially offset by a $1.4 million decrease in gross profit related to the volume and mix of cigarette cartons sold between the comparative periods and a $0.4 million decrease in gross profit due to the timing and related benefits of cigarette manufacturer price increases. Gross profit in our Retail Segment increased approximately $0.5 million during Q3 2025 as compared to Q3 2024, primarily due to an increase in gross profit related to same store sales.

**OPERATING EXPENSE – Q3 2025 vs. Q3 2024**

Operating expense includes selling, general and administrative expenses and depreciation and amortization. Selling, general, and administrative expenses primarily consist of costs related to our sales, warehouse, delivery and administrative departments, including purchasing and receiving costs, warehousing costs and costs of picking and loading customer orders. Our most significant expenses relate to costs associated with employees, facility and equipment leases, transportation, fuel, and insurance. Our Q3 2025 operating expenses increased $2.4 million as compared to Q3 2024. Significant items impacting operating expenses during Q3 2025 included an increase of $0.5 million related to the Arrowrock acquisition in Q2 2025, an increase of $1.1 million related to the acquisition of Richmond Master during Q3 2024, a $1.2 million increase in health and other insurance costs, and a $0.3 million increase in operating expense costs in our Retail Segment, partially offset by a $0.5 million decrease related to employee compensation and benefit costs and a $0.2 million decrease in other Wholesale Segment operating costs. The increase in our Retail Segment was primarily due to an increase in costs associated with our existing stores.

**INTEREST EXPENSE – Q3 2025 vs. Q3 2024**

Interest expense decreased $0.2 million in Q3 2025 as compared to Q3 2024, primarily due to lower interest rates in the current period, partially offset by higher outstanding debt balances in the current period related to the acquisitions of Arrowrock in Q2 2025 and Burklund and Richmond Master in Q3 2024.

**INCOME TAX EXPENSE – Q3 2025 vs. Q3 2024**

The change in the Q3 2025 income tax rate as compared to Q3 2024 was primarily related to non-deductible compensation expense in relation to the amount of income from operations before income tax expense and variances in the average effective state income tax rates between the comparative periods.

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**RESULTS OF OPERATIONS – NINE MONTHS ENDED JUNE:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **Incr (Decr)** | **% Change** |
| CONSOLIDATED: |  |  |  |  |
| Sales (1) | $2070391760  | $1964688673  | $105703087 | 5.4  |
| Cost of sales | 1930855424  | 1831118129  | 99737295 | 5.4  |
| Gross profit | 139536336  | 133570544  | 5965792 | 4.5  |
| Gross profit percentage | 6.7% | 6.8% |  |  |
| Operating expense | $130540573  | $120781183  | $9759390 | 8.1  |
| Operating income | 8995763  | 12789361  | (3793598) | (29.7) |
| Interest expense | 7784032  | 7463175  | 320857 | 4.3  |
| Change in fair value of mandatorily redeemable non-controlling interest | 663418  | 727457  | (64039) | (8.8) |
| Income tax expense | 751000  | 2331875  | (1580875) | (67.8) |
| Net income available to common shareholders | 77006  | 3099904  | (3022898) | (97.5) |
| BUSINESS SEGMENTS: |  |  |  |  |
| Wholesale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $2036633382 | $1932579753 | $104053629 | 5.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 127118264 | 121778810 | 5339454 | 4.4  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit percentage | 6.2% | 6.3% |  |  |
| Retail |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | $33758378 | $32108920 | $1649458 | 5.1  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 12418072 | 11791734 | 626338 | 5.3  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit percentage | 36.8% | 36.7% |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Sales are reported net of costs associated with incentives provided to retailers. These incentives totaled $32.2 million for the nine months ended June 2025 and $30.7 million for the nine months ended June 2024.

**SALES – Nine months ended June 2025**

Sales in our Wholesale Segment increased $104.1 million during the nine months ended June 2025 as compared to the same prior year period. Significant items impacting sales during the period included an increase of $14.4 million related to the Arrowrock acquisition in Q2 2025, an increase of $120.8 million related to the combined acquisitions of Burklund and Richmond Master during Q3 2024, an $85.7 million increase in sales related to price increases implemented by cigarette manufacturers and a $15.3 million increase in sales related to the volume and mix of products in our Other Products category, partially offset by a $132.1 million decrease in sales related to the volume and mix of cigarette cartons sold. Sales in our Retail Segment increased approximately $1.6 million during the nine months ended June 2025 as compared to the same prior year period. This increase was due to a $2.7 million increase related to higher sales volumes in our existing stores, partially offset by a $1.1 million decrease related to the closure of three stores between the comparative periods.

**GROSS PROFIT – Nine months ended June 2025**

Gross profit in our Wholesale Segment increased $5.3 million during the nine months ended June 2025 as compared to the same prior year period. Significant items impacting gross profit during the period included an increase of $0.8 million related to the Arrowrock acquisition in Q2 2025, an increase of $6.8 million related to the combined acquisitions of Burklund and Richmond Master during Q3 2024, and a $0.7 million increase in gross profit related to the mix of volumes and promotions in our Other Products category, partially offset by a $2.5 million decrease in gross profit related to the volume and mix of cigarette cartons sold between the comparative periods, and a $0.5 million decrease in gross profit due to the timing and related benefits of cigarette manufacturer price increases. Gross profit in our Retail Segment increased approximately $0.6 million during the nine months ended June 2025 as compared to the same prior year period. This change was primarily related to a $1.0 million increase in gross profit related to same store sales, partially offset by a $0.4 million decrease related to the closure of three stores between the comparative periods.

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**OPERATING EXPENSE – Nine months ended June 2025**

Operating expenses increased $9.8 million during the nine months ended June 2025 as compared to the same prior year period. Significant items impacting operating expenses during the period included an increase of $0.9 million related to the Arrowrock acquisition in Q2 2025, an increase of $6.5 million related to the combined acquisitions of Burklund and Richmond Master during Q3 2024, a $2.3 million increase in health and other insurance costs, a $1.3 million increase in other Wholesale Segment operating costs, and a $0.8 million increase in operating expense costs in our Retail Segment, partially offset by a $1.5 million decrease related to the fair value adjustment of a contingent consideration liability and a $0.5 million decrease related to employee compensation and benefit costs. The increase in our Retail Segment was primarily due to a $1.3 million increase in costs associated with our existing stores, partially offset by a $0.5 million decrease related to the closure of three stores between the comparative periods.

**INTEREST EXPENSE – Nine months ended June 2025**

Interest expense increased $0.3 million during the nine months ended June 2025 as compared to the same prior year period, primarily due to higher outstanding debt balances in the current period related to the acquisitions of Arrowrock in Q2 2025 and Burklund and Richmond Master in Q3 2024, partially offset by lower interest rates in the current period.

**OTHER INCOME – Nine months ended June 2025**

The change in other income between the comparative periods was primarily related to an insurance recovery in the prior year period.

**INCOME TAX EXPENSE – Nine months ended June 2025**

The change in the Company's effective tax rate during the nine month period ended June 2025 as compared to the respective prior year period was primarily related to non-deductible compensation expense in relation to the amount of income from operations before income tax expense and variances in the average effective state income tax rates between the comparative periods.

**LIQUIDITY AND CAPITAL RESOURCES**

**Overview**

The Company's variability in cash flows from operating activities is dependent on the timing of inventory purchases and seasonal fluctuations. For example, periodically we have inventory "buy-in" opportunities which offer more favorable pricing terms. As a result, we may have to hold inventory for a period longer than the payment terms. This generates a cash outflow from operating activities that we expect to reverse in later periods. Additionally, during our peak time of operations in the warm weather months, we generally carry higher amounts of inventory to ensure high fill rates and customer satisfaction.

The Company primarily finances its operations through three credit facility agreements (a) a facility that is an obligation of AMCON Distributing Company (the "AMCON Facility"), (b) a facility that is an obligation of Team Sledd, LLC ("Team Sledd" and, the "Team Sledd Facility") and (c) a facility that is the obligation of Henry's (the "Henry's Facility") (collectively, the "Facilities") and long-term debt agreements with banks. The Team Sledd Facility and the Henry's Facility are non-recourse to AMCON Distributing Company, are not guaranteed by AMCON Distributing Company and have no cross default provisions applicable to AMCON Distributing Company.

At June 2025, the Facilities had a total combined borrowing capacity of $305.0 million, which includes provisions for up to $30.0 million in credit advances for certain inventory purchases, which are limited by accounts receivable and inventory qualifications, and the value of certain real estate collateral. The AMCON Facility matures in June 2027, the Henry's Facility matures in February 2028, and the Team Sledd Facility matures in March 2028, each without a penalty for prepayment. Obligations under the Facilities are collateralized by substantially all of the Company's respective equipment, intangibles, inventories, accounts receivable, and certain real estate. The Facilities each feature an unused commitment fee

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and springing financial covenants. Borrowings under the Facilities bear interest at the Secured Overnight Financing Rate ("SOFR"), plus any applicable spreads.

The amount available for use from the Facilities at any given time is subject to a number of factors, including eligible accounts receivable and inventory balances that fluctuate day-to-day, as well as the value of certain real estate collateral. Based on the collateral and loan limits as defined in the Facility agreements, the credit limit of the combined Facilities at June 2025 was $241.0 million, of which $154.6 million was outstanding, leaving $86.4 million available.

The average interest rate of the Facilities was 5.77% at June 2025. For the nine months ended June 2025, the peak borrowings under the Facilities was $197.1 million, and the average borrowings and average availability under the Facilities was $161.8 million and $74.7 million, respectively.

**Cross Default and Co-Terminus Provisions**

The Team Sledd Facility and Team Sledd's two notes payable contain cross default provisions. The Henry's Facility and the Henry's note payable also contain cross default provisions. There were no such cross defaults for either Team Sledd or Henry's at June 2025. Additionally, the Team Sledd Facility and the Henry's Facility are non-recourse to AMCON Distributing Company, are not guaranteed by AMCON Distributing Company and have no cross default provisions applicable to AMCON Distributing Company. The Company and its subsidiaries, including Team Sledd and Henry's, were in compliance with all of the financial covenants under the respective Facilities at June 2025.

**Dividend Payments**

The Company paid cash dividends on its common stock totaling $0.1 million and $0.5 million for the three- and nine-month periods ended June 2025, respectively, and $0.1 million and $0.5 million for the three- and nine-month periods ended June 2024, respectively.

**Other**

The Company has issued letters of credit totaling $3.1 million to its workers' compensation insurance carriers as part of its self-insured loss control program.

**Off-Balance Sheet Arrangements**

The Company does not have any off-balance sheet arrangements.

**Liquidity Risk**

The Company's liquidity position is significantly influenced by its ability to maintain sufficient levels of working capital. For our Company and our industry in general, customer credit risk and ongoing access to bank credit heavily influence liquidity positions.

The Company does not currently hedge its exposure to interest rate risk or fuel costs. Accordingly, significant price movements in these areas can and do impact the Company's profitability.

While the Company believes its liquidity position going forward will be adequate to sustain operations in both the short- and long-term, a precipitous change in operating environment could materially impact the Company's future revenue streams as well as its ability to collect on customer accounts receivable or secure bank credit.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Quantitative and Qualitative Disclosures About Market Risk**

Not applicable.

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**Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in company reports filed or submitted under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's ("SEC") rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

As required by Rules 13a-15(b) and 15d-15(b) under the Exchange Act, an evaluation of the effectiveness of our disclosure controls and procedures as of June 30, 2025 was made under the supervision and with the participation of our senior management, including our principal executive officer and principal financial officer. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

**Limitations on Effectiveness of Controls**

Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls and procedures will prevent all errors and fraud. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Further, the design of a control system must reflect the fact that there are resource constraints, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management's override of the control.

The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ended June 2025, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II — OTHER INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; Legal Proceedings**

None.

**Item 1A. Risk Factors**

There have been no material changes to the Company's risk factors as previously disclosed in Item 1A "Risk Factors" of the Company's annual report on Form 10-K for the fiscal year ended September 30, 2024.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp; Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Defaults Upon Senior Securities**

None.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Mine Safety Disclosures**

Not applicable.

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp; Other Information**

During the three months ended June 30, 2025, none of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement", as each term is defined in Item 408(a) of Regulation S-K.

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**Item 6.&nbsp;&nbsp;&nbsp;&nbsp; Exhibits**

(a) Exhibits

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| | |
|:---|:---|
| 10.1 | [Twelfth Amendment to Second Amended and Restated Loan and Security Agreement, dated April 4, 2025 between AMCON Distributing Company and Bank of America](dit-20250630xex10d1.htm) |
| 31.1 | [Certification by Christopher H. Atayan, Chief Executive Officer and Chairman, pursuant to section 302 of the Sarbanes-Oxley Act](dit-20250630xex31d1.htm) |
| 31.2 | [Certification by Charles J. Schmaderer, Vice President, Chief Financial Officer and Secretary, pursuant to section 302 of the Sarbanes-Oxley Act](dit-20250630xex31d2.htm) |
| 32.1 | [Certification by Christopher H. Atayan, Chief Executive Officer and Chairman, furnished pursuant to section 906 of the Sarbanes-Oxley Act](dit-20250630xex32d1.htm) |
| 32.2 | [Certification by Charles J. Schmaderer, Vice President, Chief Financial Officer and Secretary, furnished pursuant to section 906 of the Sarbanes-Oxley Act](dit-20250630xex32d2.htm) |
| 101 | Inline XBRL Interactive Data File (filed herewith electronically) |
| 104 | Cover Page Interactive Data File – formatted in Inline XBRL and included in Exhibit 101 |

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**SIGNATURES**

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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| | |
|:---|:---|
|  | AMCON DISTRIBUTING COMPANY |
|  | (registrant) |
| Date: July 18, 2025 | /s/ Christopher H. Atayan |
|  | Christopher H. Atayan, |
|  | Chief Executive Officer and Chairman |
| Date: July 18, 2025 | /s/ Charles J. Schmaderer |
|  | Charles J. Schmaderer, |
|  | Vice President, Chief Financial Officer and Secretary |
|  | (Principal Financial and Accounting Officer) |

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## Exhibit 10.1

**Exhibit 10.1**

<u>TWELFTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT</u>

THIS TWELFTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "<u>Amendment</u>") is dated as of April 7, 2025 among each of **AMCON DISTRIBUTING COMPANY**, a Delaware corporation, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**AMCON**"), **CHAMBERLIN NATURAL FOODS, INC.**, a Florida corporation, having its principal place of business at 3711 Oleander Way, Suite 1309, Casselberry, Florida 32707 ("**Chamberlin Natural**"), **HEALTH FOOD ASSOCIATES, INC.**, an Oklahoma corporation, having its principal place of business at 7807 East 51st Street, Tulsa, Oklahoma 74145 ("**Health Food**"), **AMCON ACQUISITION CORP.**, a Delaware corporation, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**AMCON Acquisition**"); **EOM ACQUISITION CORP.**, a Delaware corporation, having its principal place of business at 7807 East 51st Street, Tulsa, Oklahoma 74145 ("**EOM Acquisition**"); **CHARLES WAY LLC**, a Missouri limited liability company, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**Charles Way**"), **AMCON BISMARCK LAND CO.**, a Delaware corporation, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**AMCON Bismarck**"); **COLORADO CITY LAND COMPANY, LLC**, a Colorado limited liability company, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**Colorado City**"); **Peoria Land Company llc**, an Illinois limited liability company, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**Peoria Land**"); **BOISE LAND COMPANY, LLC**, an Idaho limited liability company, having its principal place of business at 7405 Irvington Road, Omaha, Nebraska 68122 ("**Boise Land**" and together with AMCON, Chamberlin Natural, Health Food, AMCON Acquisition, EOM Acquisition, Charles Way, AMCON Bismarck, Colorado City and Peoria Land, each a "**Borrower**" and, collectively, the "**Borrowers**"), **BANK OF AMERICA, N.A.**, a national banking association (in its individual capacity, "**BofA**"), as agent (in such capacity as agent, "**Agent**") for itself and all other lenders from time to time a party to the Loan Agreement (as defined below) ("**Lenders**"), with an office located at 110 North Wacker Drive, IL4-110-08-03, Chicago, Illinois 60606, and the Lenders party hereto.

<u>W I T N E S S E T H</u>:

WHEREAS, Borrowers, the Lenders and Agent have entered into that certain Second Amended and Restated Loan and Security Agreement dated as of April 18, 2011, as amended by that certain Consent and First Amendment to Second Amended and Restated Loan and Security Agreement dated as of May 27, 2011, that certain Second Amendment to Second Amended and Restated Loan and Security Agreement dated as of July 16, 2013, that certain Third Amendment to Second Amended and Restated Loan and Security Agreement dated as of November 6, 2017, that certain Fourth Amendment to Second Amended and Restated Loan and Security Agreement dated as of March 20, 2020, that certain Fifth Amendment to Second Amended and Restated Loan and Security Agreement dated as of December 22, 2020, that certain Sixth Amendment to Second Amended and Restated Loan and Security Agreement dated as of December 21, 2021, that certain Seventh Amendment to Second Amended and Restated Loan and Security Agreement dated as of June 30, 2022, that certain Eighth Amendment to Second Amended and Restated Loan and

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Security Agreement dated as of February 2, 2023, that certain Consent, Joinder and Ninth Amendment to Second Amended and Restated Loan and Security Agreement dated as of February 9, 2024, that certain Consent, Joinder and Tenth Amendment to Second Amended and Restated Loan and Security Agreement dated as of April 5, 2024 and that certain Consent, Joinder and Eleventh Amendment to Second Amended and Restated Loan and Security Agreement dated as of January 17, 2025 (as may be further amended, restated, supplemented or otherwise modified from time to time, the "**Loan Agreement**"), pursuant to which the Lenders agreed to provide certain credit facilities and other financial accommodations to the Borrowers;

WHEREAS, Borrowers have requested that Agent and the Lenders amend the Loan Agreement in accordance with the terms herein; and

WHEREAS, the Agent and the Lenders are willing to accommodate the Borrowers' requests on the terms and conditions set forth below.

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Defined Terms; Incorporation of the Loan Agreement</u>. All capitalized terms which are not defined hereunder shall have the same meanings as set forth in the Loan Agreement, and the Loan Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety. To the extent any terms and provisions of the Loan Agreement are inconsistent with the amendments set forth in Paragraph 4 below, such terms and provisions shall be deemed superseded hereby. Except as specifically set forth herein, the Loan Agreement shall remain in full force and effect and its provisions shall be binding on the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Amendments to the Loan Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The last paragraph contained in the definition of the term "Eligible Real Property" set forth in <u>Section 1.1</u> of the Loan Agreement is hereby amended and restated to read as follows:

Notwithstanding the foregoing, the following properties (collectively, the "**Amendment Date Eligible Real Properties**") shall be deemed Eligible Real Properties hereunder: (a) 607 Charles Way, Strafford, MO 65757; (b) 3125 E. Thayer Avenue, Bismarck, ND 58502; (c) 3205 East Thayer Avenue, Bismarck, ND 58502; (d) 2517 Ellington Road, Quincy, IL 62301; (e) 1511 Turbine Drive, Rapid City, SD 57703; (f) 2500 North Main Street, East Peoria, Illinois 61611; (g) 1600 North 89th Street, Fairview Heights, Illinois 62208; (h) each of 7681, 7733 and 7767 W. Lehmi Street, Boise, Idaho 83709; and (i) 4038 Dover Drive, Colorado City, CO 81004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Effective as of the date hereof, the current amortization of all outstanding Real Property Loans in accordance with <u>Section 2(b)(iii)</u> of the Loan Agreement is set forth on <u>Exhibit A</u> attached hereto

&nbsp;&nbsp;2<br>

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Schedules to the Loan Agreement are hereby supplemented with the Schedules attached hereto as <u>Exhibit B</u> to reflect the acquisition of the property located at 4038 Dover Drive, Colorado City, CO 81004.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Clause (b) contained in the definition of the term "Fixed Charges" set forth in <u>Section 1.1</u> of the Loan Agreement is hereby amended to read as follows: "unfinanced Capital Expenditures incurred after the Ninth Amendment Effective Date and prior to June 30, 2025, to improve the Colorado City Real Property in an aggregate amount not to exceed $9,500,000".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Representations and Warranties; Covenants; No Default</u>. Except for the representations and warranties of the Borrowers made as of a particular date, the representations and warranties and covenants set forth in <u>Sections 11</u>, <u>12</u> and <u>13</u> of the Loan Agreement shall be deemed remade as of the date hereof by the Borrowers; provided, however, that any and all references to the Loan Agreement in such representations and warranties and such covenants shall be deemed to include this Amendment. The Borrowers hereby represent, warrant and covenant that after giving effect to the amendments contained in this Amendment, no Default or Event of Default has occurred and is continuing. Each Borrower represents and warrants to Agent and the Lenders that the execution and delivery by such Borrower of this Amendment and the performance by it of the transactions herein contemplated (i) are and will be within its organizational powers, (ii) have been authorized by all necessary organizational action on its part, and (iii) are not and will not be in contravention of any order of any court or other agency of government, of law or any other indenture, agreement or undertaking to which such Borrower is a party or by which the property of such Borrower is bound, or be in conflict with, result in a breach of, or constitute (with due notice and/or lapse of time) a default under any such indenture, agreement or undertaking, which conflict could reasonably be expected to have a Material Adverse Effect or result in the imposition of any lien, charge or encumbrance of any nature on any of the properties of such Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Affirmation</u>. Except as specifically amended pursuant to the terms hereof, the Loan Agreement and the Other Agreements (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified and confirmed in all respects by the Borrowers. The Borrowers covenant and agree to comply with all of the terms, covenants and conditions of the Loan Agreement, as amended hereby, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Agent's or any Lender's part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions. The Borrowers hereby represent and warrant to Agent and Lenders that as of the date hereof, there are no claims, counterclaims, offsets or defenses arising out of or with respect to the Liabilities. Each Borrower hereby confirms its existing grant to Agent of a Lien on and security interest in the Collateral. Each Borrower hereby confirms that all Liens and security interests at any time granted by it to Agent continue in full force and effect and secure and shall continue to secure the Liabilities. Nothing herein contained is intended to in any manner impair or limit the validity, priority and extent of Agent's existing security interest in and Liens upon the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Fees and Expenses</u>. The Borrowers agree to pay on demand all costs and expenses incurred by Agent in connection with the drafting, negotiation, execution and implementation of

&nbsp;&nbsp;3<br>

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this Amendment including, but not limited to, the expenses and reasonable fees of counsel for Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Closing Documents</u>. This Amendment shall be deemed effective as of the date hereof provided that Borrowers shall deliver to Agent the following documents and/or complete the following requirements (collectively, the "<u>Closing Requirements</u>") upon execution hereof (in each case in form and substance satisfactory to Agent and the Lenders):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)this Amendment executed by the Borrowers, the Agent and the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the documents, instruments, agreements, certificates and opinions set forth on the Closing Checklist attached hereto as <u>Exhibit C</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)such other documents, instruments, agreements, opinions and certificates as required by Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Continuing Effect</u>. Except as otherwise specifically set forth herein, the provisions of the Loan Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Counterparts</u>. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Receipt of an executed signature page to this Amendment by facsimile or other electronic transmission shall constitute effective delivery thereof and shall be deemed an original signature hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Organizational Information</u>. The Borrowers hereby represent and warrant to the Agent that, except as otherwise provided in the Secretary's Certificates of the respective Borrowers delivered to the Agent in partial satisfaction of the Closing Requirements, (a) the formation and organizational documents of each Borrower attached to the Secretary's Certificate of each Borrower and previously delivered by each such Borrower to the Agent have not been modified or altered in any way (the "<u>Original Certificates</u>"), and no amendments or other alterations are contemplated or approved as of the date hereof (b) the officers, members or managers, as applicable, for each such Borrower set forth in the Original Certificates that are authorized to execute documents on behalf of each such Borrower remain duly authorized officers, members or managers of each such Borrower, and (c) the resolutions attached to each such Original Certificate remain in full force and effect and have not been modified, rescinded or altered in any way and are sufficient to authorize the execution and delivery of this Amendment and the other agreements, documents and instruments executed and delivered in connection herewith.

**[SIGNATURE PAGE FOLLOWS]**

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#### (Signature Page to Twelfth Amendment to <br> Second Amended and Restated Loan and Security Agreement)
IN WITNESS WHEREOF, the parties hereto have duly executed this Twelfth Amendment to Second Amended and Restated Loan and Security Agreement as of the date first above written.

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| | |
|:---|:---|
| **BORROWERS:** | &nbsp;&nbsp;&nbsp;&nbsp;**AMCON DISTRIBUTING COMPANY**, a Delaware corporation<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Vice President, Chief Financial Officer and Secretary<br>|
|  | &nbsp;&nbsp;&nbsp;&nbsp;**CHAMBERLIN NATURAL FOODS, INC.**, a Florida corporation<br>By: <u>/s/ Andrew C. Plummer</u> <br>Andrew C. Plummer<br>Secretary |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**HEALTH FOOD ASSOCIATES, INC.,** an Oklahoma corporation<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Secretary |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**AMCON ACQUISITION CORP.**, a Delaware corporation<br>By: <u>/s/ Andrew C. Plummer</u> <br>Andrew C. Plummer<br>President |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**EOM ACQUISITION CORP.**, a Delaware corporation<br>By: <u>/s/ Andrew C. Plummer</u> <br>Andrew C. Plummer<br>Secretary |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**CHARLES WAY LLC**, a Missouri limited liability company<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Secretary |

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| | |
|:---|:---|
| **BORROWERS**: | &nbsp;&nbsp;&nbsp;&nbsp;**AMCON BISMARCK LAND CO.**, a Delaware corporation<br>By: <u>/s/ Andrew C. Plummer</u> <br>Andrew C. Plummer<br>Secretary |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**COLORADO CITY LAND COMPANY, LLC**, a Colorado limited liability company<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Secretary |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**PEORIA LAND COMPANY LLC**, an Illinois limited liability company<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Manager |
|  | &nbsp;&nbsp;&nbsp;&nbsp;**BOISE LAND COMPANY, LLC**, an Idaho limited liability company<br>By: <u>/s/ Charles J. Schmaderer</u> <br>Charles J. Schmaderer<br>Manager |

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| | |
|:---|:---|
| **LENDERS:** | &nbsp;&nbsp;&nbsp;&nbsp;**BANK OF AMERICA, N.A.**, as Agent and a Lender<br>By: <u>/s/ Danniel Rubio</u> <br>Daniel Rubio<br>Vice President<br>Revolving Loan Commitment: $100,000,000.00 |

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| | |
|:---|:---|
| **LENDERS:** | &nbsp;&nbsp;&nbsp;&nbsp;**BMO Bank N.A.**, f/k/a BMO Harris Bank N.A., as a Lender<br>By: <u>/s/ Steve Teufel</u> <br>Title: <u>Director</u> <br>Revolving Loan Commitment: $50,000,000.00 |

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#### EXHIBIT A <br>REAL PROPERTY LOAN AMORTIZATION
(see attached)

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#### EXHIBIT B <br>SUPPLEMENTAL SCHEDULES TO LOAN AGREEMENT
<u>Business and Collateral Locations</u>:

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**EXHIBIT C**

**CLOSING CHECKLIST**

(see attached)

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Christopher H. Atayan, certify that:

1. I have reviewed this report on Form 10-Q of AMCON Distributing Company;

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 registrants' fiscal fourth 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 functions):

&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.

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| | |
|:---|:---|
| July<br>|  |
| Date: July 18, 2025 | /s/ Christopher H. Atayan |
|  | Christopher H. Atayan, |
|  | Chief Executive Officer and Chairman |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Charles J. Schmaderer, certify that:

1. I have reviewed this report on Form 10-Q of AMCON Distributing Company;

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 registrants' fiscal fourth 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 functions):

&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.

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| | |
|:---|:---|
| Date: July 18, 2025 | /s/ Charles J. Schmaderer |
|  | Charles J. Schmaderer,<br>Vice President, Chief Financial Officer and Secretary |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION**

**PURSUANT TO 18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the accompanying Quarterly Report on Form 10-Q (the "Report") of AMCON Distributing Company (the "Company") for the fiscal quarter ended June 30, 2025, I, Christopher H. Atayan, Chief Executive Officer and Principal Executive Officer of the Company, hereby certify that, to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | |
|:---|:---|
| Ju<br>|  |
| Date: July 18, 2025 | /s/ Christopher H. Atayan |
|  | Christopher H. Atayan |
|  | Title: Chief Executive Officer and Chairman |

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A signed original of this written statement required by Section 906 has been provided to AMCON Distributing Company and will be retained by AMCON Distributing Company and furnished to the Securities and Exchange Commission or its staff upon request.

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION**

**PURSUANT TO 18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the accompanying Quarterly Report on Form 10-Q (the "Report") of AMCON Distributing Company (the "Company") for the fiscal quarter ended June 30, 2025, I, Charles J. Schmaderer, Vice President, Chief Financial Officer and Secretary of the Company, hereby certify that, to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| | |
|:---|:---|
| Date: July 18, 2025 | /s/ Charles J. Schmaderer |
|  | Charles J. Schmaderer |
|  | Title: Vice President, Chief Financial Officer and Secretary |

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A signed original of this written statement required by Section 906 has been provided to AMCON Distributing Company and will be retained by AMCON Distributing Company and furnished to the Securities and Exchange Commission or its staff upon request.

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