UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

 For the fiscal year ended June 30, 2025

 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
 001-14757

 EVI Industries, Inc.

 (Exact name of registrant as specified in its charter)

 Delaware

 11-2014231

 (State or other jurisdiction of
 incorporation or organization)

 (I.R.S. Employer
 Identification No.)

 4500 Biscayne Blvd., Suite 340, Miami, Florida

 33137

 (Address of principal executive offices)

 (Zip Code)

 Registrant's telephone number, including area code 305 - 402-9300

 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, $0.025 par value

 EVI

 NYSE American

 Securities registered pursuant to Section 12(g) of the Act: None

 Indicate by
check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 Indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

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.

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).

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

 Large accelerated filer
 Accelerated filer

 Non-accelerated filer
 Smaller
reporting company

 Emerging growth company

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

the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm
that prepared or issued its audit report.

 If securities are registered
pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements.

any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of
the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

the registrant is a shell company (as defined in Rule 12b-2 of the Act).

 The aggregate market value
as of December 31, 2024 of the registrant's common stock, the only class of voting or non-voting common equity of the registrant,
held by non-affiliates of the registrant was approximately $ 95,922,785, based on the closing price of the registrant's common stock
on the NYSE American on that date.

 The number of outstanding shares
of the registrant's common stock as of September 5, 2025 was 12,761,993.

 DOCUMENTS INCORPORATED BY REFERENCE

 Portions of the registrant's
Proxy Statement relating to its 2025 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.

 Page

 Item 1
 Business

 Item 1A
 Risk Factors

 Item 1B
 Unresolved Staff Comments

 Item 1C
 Cybersecurity

 Item 2
 Properties

 Item 3
 Legal Proceedings

 Item 4
 Mine Safety Disclosures

 Item 5
 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6
 [Reserved]

 Item 7
 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A
 Quantitative and Qualitative Disclosures About Market Risk

 Item 8
 Financial Statements and Supplementary Data

 Item 9
 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

 Item 9A
 Controls and Procedures

 Item 9B
 Other Information

 Item 9C
 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10
 Directors, Executive Officers and Corporate Governance

 Item 11
 Executi ve Compensation

 Item 12
 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13
 Certain Relationships and Related Transactions, and Director Independence

 - i -

 (continued)

 Page

 Item 14
 Principal Accountant Fees and Services

 Item 15
 Exhibits and Financial Statement Schedules

 Item 16
 Form 10-K Summary

 SIGNATURES

 - ii -

 TERMS USED IN THIS REPORT

 Unless the context otherwise requires,
references to the "Company" or "EVI" in this Annual Report on Form 10-K (this "Report") refer to EVI
Industries, Inc., collectively with its subsidiaries. References in this Report to "fiscal 2025" or any period thereof refer
to the Company's fiscal year ended June 30, 2025 or the applicable period thereof, as the case may be. References in this Report
to "fiscal 2024" or any period thereof refer to the Company's fiscal year ended June 30, 2024 or the applicable period
thereof, as the case may be.

 CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

 Certain statements in this Report
are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in
this Report, words such as "may," "should," "could," "seek," "believe," "expect,"
"anticipate," "estimate," "project," "intend," "strategy" and similar expressions
are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions
and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of
the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results,
trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends,
performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others,
those associated with: general economic and business conditions in the United States and other countries where the Company operates or
where the Company's customers and suppliers are located; economic uncertainty, including as it relates to governmental measures
such as the imposition of tariffs and their effect on global trading markets, the availability and pricing of products, credit markets,
industry conditions, economic conditions generally or otherwise on the Company and its business and results; the potential of a recession;
industry conditions and trends; credit market volatility; risks related to supply chain delays and disruptions and their impact on the
Company's business and results, including the Company's ability to deliver products and services to its customers on a timely
basis; risks relating to inflation, including the current inflationary trend, and other price increases (including due to the imposition
of tariffs), and their impact on the Company's costs and results (including that, if desired, the Company may not be able to successfully
increase the price of its products and services to offset such costs, in whole or in part, and that price increases may result in reduced
demand for the Company's products and services); risks related to labor shortages and increases in the costs of labor, and the impact
thereof on the Company, including its ability to deliver products, provide services or otherwise meet customers' expectations; risks
related to interest rate increases, including the impact thereof on the cost of the Company's indebtedness and the Company's
ability to raise capital if deemed necessary or advisable; risks associated with international relations and international hostilities,
and the impact thereof on economic conditions, including supply chain constraints and inflationary trends; the Company's ability
to implement its business and growth strategies and plans, including changes thereto; risks and uncertainties associated with the Company's
"buy-and-build" growth strategy, including, without limitation, that the Company may not be successful in identifying or consummating
acquisitions or other strategic transactions, integration risks, risks related to indebtedness incurred by the Company in connection with
the financing of acquisitions and other strategic transactions, dilution experienced by the Company's existing stockholders as a
result of the issuance of shares of the Company's common stock in connection with acquisitions or other strategic transactions (or
for other purposes), risks related to the business, operations and prospects of acquired businesses, risks that suppliers of the acquired
business may not consent to the transaction or otherwise continue its relationship with the acquired business following the transaction
and the impact that the loss of any such supplier may have on the results of the Company and the acquired business, risks that the Company's
goals or expectations with respect to acquisitions and other strategic transactions may not be met, and risks related to the accounting
for acquisitions; risks relating to the impact of pricing concessions and other measures which the Company may take from time to time
in

 connection with its expansion efforts and pursuit of market share growth, including that they may not be successful and may adversely
impact the Company's gross margin and other financial results; technology changes; competition, including the Company's ability
to compete effectively and the impact that competition may have on the Company and its results, including the prices which the Company
may charge for its products and services and on the Company's profit margins, and competition for qualified employees; to the extent
applicable, risks relating to the Company's ability to enter into and compete effectively in new industries, as well as risks and
trends related to those industries; risks relating to the Company's relationships with its principal suppliers and customers, including
the impact of the loss of any such relationship; risks that equipment sales may not result in the ancillary benefits anticipated, including
that they may not lead to increases in customers (or a stronger relationship with customers) or higher gross margin sales of parts, accessories,
supplies, and technical services related to the equipment, and the risk that the benefit of lower gross margin equipment sales under longer-term
contracts will not outweigh the possible short-term impact to gross margin; risks related to the Company's indebtedness; the availability,
terms and deployment of debt and equity capital if needed for expansion or otherwise; risks of cybersecurity threats or incidents, including
the potential misappropriation or use of assets or confidential information, corruption of data or operational disruptions; changes in,
or the failure to comply with, government regulation, including environmental regulations; litigation risks, including the costs of defending
litigation and the impact of any adverse ruling; the availability and cost of inventory purchased by the Company, and the risk that inventory
management initiatives may not be successful; the relative value of the United States dollar to currencies in the countries in which the
Company's customers, suppliers and competitors are located; risks relating to the recognition of revenue, including the amount and
timing thereof (including potential delays resulting from, among other circumstances, delays in installation (including due to delays
in construction or the preparation of the customer's facilities) or in receiving required supplies) and that orders in the Company's
backlog may not be fulfilled as or when expected; risks related to the adoption of new accounting standards and the impact it may have
on the Company's financial statements and results; risks that the Company's decentralized operating model, and that product,
end-user and geographic diversity, may not result in the benefits anticipated and may change over time; risks related to organic growth
initiatives and market share and other growth strategies, including that they may not result in the benefits anticipated; risks that investments,
initiatives and expenses, including, without limitation, investments in acquired businesses and modernization initiatives, expenses associated
with the Company's implementation of its enterprise resource planning system, and other investments, initiatives and expenses, may
not result in the benefits anticipated; risks related to the soundness of financial institutions and the Company's exposure with
respect to its cash balances in depositary accounts in excess of the $250,000 in maximum Federal Deposit Insurance Corporation ("FDIC")
insurance coverage; dividends may not be paid in the future; and other economic, competitive, governmental, technological and other risks
and factors discussed elsewhere in this Report, including, without limitation, in the "Risk Factors" section hereof, and in
the Company's other filings with the Securities and Exchange Commission (the "SEC"). Many of these risks and factors
are beyond the Company's control. Further, past performance and perceived trends may not be indicative of future results. The Company
cautions that the foregoing factors are not exclusive. The reader should not place undue reliance on any forward looking statement, which
speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement
any forward looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except
as may be required by law.

 Item 1. Business.

 General

 The Company was incorporated under
the laws of the State of Delaware on June 13, 1963.

 The Company, through its wholly-owned
subsidiaries, is a value-added distributor, and provides advisory and technical services. Through its vast sales organization, the Company
provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells
and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating,
power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories.
Additionally, through the Company's robust network of commercial laundry technicians, the Company provides its customers with installation,
maintenance, and repair services.

 The Company's customers
include government, institutional, industrial, commercial and retail customers. Product purchases made by customers range from parts and
accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services
described above.

 The Company's growth strategy
includes the pursuit of organic growth initiatives and a "buy-and-build" growth strategy. The Company's "buy-and-build"
growth strategy includes (i) the consideration and pursuit of acquisitions and other strategic transactions which management believes
may complement the Company's existing business or otherwise offer growth opportunities for, or benefit, the Company and (ii) the
implementation of a growth culture at acquired businesses based on the exchange of ideas and business concepts among the management teams
of the Company and the acquired businesses as well as through certain additional initiatives, which may include investments in additional
sales and service personnel, new product lines, enhanced service operations and capabilities, new and improved facilities, and advanced
technologies. See "Buy-and-Build Growth Strategy" below for additional information regarding the Company's "buy-and-build"
growth strategy.

 The Company seeks to maintain
a culture designed to reward performance through a variety of performance-based pay, commission programs, cash incentives, and stock-based
equity programs. Stock-based plans include a voluntary employee stock purchase plan and an equity compensation plan under which restricted
stock and other equity awards may be granted. The Company's equity compensation plan is designed to promote long-term performance,
as well as to create long-term employee retention and continuity of leadership, and align the interests of management and employees with
the long-term success of the Company. The Company believes that its restricted stock program promotes this culture and long-term performance
because restricted stock grants generally provide for long-term vesting, including in certain cases entirely at the end of the recipient's
career (age 62 or later).

 The Company reports its results
of operations through a single operating and reportable segment.

 Available Information

 The Company files Annual Reports
on Form 10-K and Quarterly Reports on Form 10-Q, files or furnishes Current Reports on Form 8-K, files or furnishes amendments to those
reports, and files proxy and information statements with the SEC. These reports and statements, as well as beneficial ownership reports

 filed by the Company's officers
and directors and beneficial owners of 10% or more of the Company's common stock, may be accessed free of charge on the SEC's
website at  and, as soon as reasonably practicable after such materials are electronically filed with, or furnished
to, the SEC, on the Company's website at  The information contained on or connected to the Company's
website is not incorporated by reference into, or otherwise a part of, this Report. Further, references to the website URL of the Company
in this Report are intended to be inactive textual references only.

 Products and Services

 The Company sells and/or leases
its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation,
and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally,
through the Company's robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance,
and repair services.

 The commercial and industrial
laundry equipment distributed by the Company includes washroom, finishing, material handling, and mechanical equipment such as washers
and dryers, tunnel systems and vended machines, many of which are designed to reduce utility and water consumption. Finishing equipment
distributed by the Company includes sheet feeders, flatwork ironers, automatic sheet folders, and stackers. Material handling equipment
distributed by the Company includes conveyor and rail systems. Mechanical equipment distributed by the Company includes boilers, hot water/steam
systems, power generation products, water purification, reuse and recycling systems and air compressors. Boiler products distributed by
the Company include high efficiency, low emission steam boilers, steam systems and hot water systems that are used in the laundry and
dry cleaning industry for temperature control, heating, pressing and de-wrinkling, and in the healthcare industry, food and beverage industry,
and other industrial markets, for sterilization, product sealing and other purposes. The Company also sells replacement parts and accessories
for the products it distributes.

 The Company seeks to position
and price its products to appeal to customers in each of the high-end, mid-range and value-priced markets, as the products are generally
offered in a wide range of price points to address the needs of a diverse customer base. The Company believes that its portfolio of products
affords the Company's customers a "one-stop shop" for commercial, industrial and vended laundry and dry cleaning machines,
boilers and accessories and that, as a result, the Company is able to attract and support potential customers who can choose from the
Company's broad product line.

 In addition to its distribution
of products, the Company also provides installation, maintenance and repair services to its customers. The Company believes its services
are competitively priced.

 Buy-and-Build Growth Strategy

 As
described above, in addition to its pursuit of organic growth initiatives, the Company's growth strategy includes a "buy-and-build"
growth strategy. The "buy" component of the strategy includes the consideration and pursuit of acquisitions and other strategic
transactions which management believes would complement the Company's existing business or otherwise offer growth opportunities
for, or benefit, the Company. The Company is disciplined and conservative in its consideration of acquisitions and generally seeks to
identify opportunities that fit certain financial and strategic criteria. The "build" component of the

 strategy involves implementing
a growth culture at acquired businesses based on the exchange of ideas and business concepts among the management teams of the Company
and the acquired businesses as well as through certain initiatives, which may include investments in additional sales and service personnel,
new product lines, enhanced service operations and capabilities, new and improved facilities, and advanced technologies. Depending on
the size of the acquisition and other factors, including market conditions at the time, the Company purchases the acquired businesses
using cash and/or stock consideration consisting of shares of the Company's common stock. The Company believes the issuance of stock
consideration in transactions aligns the interests of the sellers of the acquired businesses with the interests of the Company's
other stockholders. The sellers as well as other key individuals at the acquired businesses may also be provided with the opportunity
to own shares of the Company's common stock through equity-based plans of the Company.

 Acquisitions are generally effected
by the Company through an existing or newly-formed subsidiary which acquires (whether by an asset purchase, stock purchase or merger)
and operates the acquired business following the transaction. The Company, indirectly through its subsidiary, also assumes certain of
the liabilities of the acquired business. The financial position, including assets and liabilities, and results of operations of the acquired
businesses following the respective closing dates of the acquisitions are included in the Company's consolidated financial statements.

 See "Management's
Discussion and Analysis of Financial Condition and Results of Operations" included as Part II, Item 7 of this Report and Note 3
to the Consolidated Financial Statements included in Item 8 of this Report for additional information about the acquisitions consummated
by the Company during fiscal 2024 and fiscal 2025, as well as an acquisition consummated by the Company subsequent to the fiscal 2025
year-end.

 Customers and Markets

 The Company's customer
base consists of approximately 55,000 customers located primarily in the United States, Canada, the Caribbean, and Latin America. No
single customer accounted for more than 10% of the Company's revenues for fiscal 2025 or fiscal 2024.

 The Company's commercial
and industrial laundry equipment and related products are sold or leased to a wide range of customers, including, but not limited to,
vended laundry facilities, industrial laundry facilities, government institutions, correctional facilities, hospitals, hospital combines,
nursing homes, veterinary clinics, professional sports franchises, educational institutions, hotels, motels, food and beverage establishments,
cruise lines, and specialized users.

 Historically, the Company
has not noted any significant seasonality.

 Sales, Marketing and Customer Support

 The Company employs sales personnel
to market its products in the United States, Canada, the Caribbean, and Latin America. The Company has exclusive and nonexclusive distribution
rights to market its products. Orders for equipment and replacement parts and accessories are generally obtained by telephone, and e-mail
inquiries originated by the customer or by the Company, from existing customer relationships and from newly formed customer relationships.
The Company supports its sales and leasing

 activities through its websites and by advertising online and in trade publications, participating
in trade shows and engaging in regional promotions and incentive programs.

 The Company seeks to establish
customer satisfaction by offering:

 an experienced sales and service organization;

 comprehensive product offerings;

 competitive pricing;

 maintenance of comprehensive and well-stocked inventories
of equipment, replacement parts and accessories, often with same day or overnight availability;

 design and layout services;

 installation, maintenance and repair services;

 on-site training performed by factory trained technicians;
and

 toll-free support lines and technical websites to address
customer service problems.

 The Company trains its employees
to provide service and customer support. The Company uses in-person classroom training, instructional videos and vendor sponsored seminars
to educate employees about product information. In addition, the Company's technical staff has prepared training manuals, written
in English and Spanish, relating to specific training procedures. The Company's technical personnel are retrained as the Company
believes to be necessary, including in connection with the development of new technology.

 Foreign Sales

 Foreign sales do not
represent a significant portion of the Company's business. The Company's revenues from foreign sales relate principally
to sales of commercial and industrial laundry and dry cleaning equipment and boilers to Canada, the Caribbean, and Latin America.
All of the Company's foreign sales require the customer to make payment in United States dollars. The Company's sales to
foreign buyers may be affected by the strength of the United States economy relative to the countries where its customers are
located. The Company had no foreign exchange contracts outstanding at June 30, 2025 or 2024. As discussed elsewhere in this Report,
including in "Item 1A. Risk Factors," foreign sales may also be impacted by governmental measures, including trade
policies, barriers and tariffs.

 Sources of Supply

 The Company purchases commercial and industrial laundry products, dry cleaning
machines, boilers and other products for distribution from a number of domestic and foreign manufacturers and suppliers. The major manufacturers
of the products sold by the Company are American Dryer Corporation, Chicago Dryer Company, Cleaver Brooks Inc., Girbau S.A., Dexter Laundry,
Inc., Fulton Thermal Corp., Kannegiesser ETECH, Maytag Corporation, Pellerin Milnor Corporation, Unipress Corporation, Softrol Systems,
Inc., Fagor Commercial, Inc., and Whirlpool Corporation. Purchases from four manufacturers accounted for a total of approximately 72%
and 73% of the Company's product purchases for fiscal 2025 and 2024, respectively. No other manufacturers accounted for more than
10% of product purchases during fiscal 2025 or fiscal 2024. The Company believes that it has good working relationships with its current
manufacturers and suppliers. The Company has contracts with several of the manufacturers and suppliers of the products which the Company
sells and has established, long-standing relationships with most of its

 manufacturers
and suppliers. The Company believes that such relationships provide the Company with certain competitive advantages, including
exclusivity for certain products in certain areas and, in certain cases, favorable pricing and other terms. While the Company has
generally not experienced difficulty in purchasing products it distributes, the effects of, and uncertainties surrounding,
international tariffs could result in disruption in fulfilling orders and increases in product costs.

 The Company purchases products
from a number of foreign suppliers. The Company's purchases from foreign suppliers may be affected by the strength of the United
States dollar relative to the currencies of the countries where its suppliers are located. Particularly, a weaker U.S. dollar would result
in increased costs, which in turn would negatively affect the Company's operating results. The Company has, at times in the past,
paid certain suppliers in Euros. The Company had no foreign exchange contracts outstanding at June 30, 2025 or 2024. As discussed elsewhere
in this Report, including in "Item 1A. Risk Factors," foreign purchases may also be impacted by governmental measures, including
trade policies, barriers and tariffs.

 In connection with certain business
acquisitions, the business relationship between the acquired business and its principal supplier ceased. As a result, the businesses distributed
other brands from one or more of the Company's other suppliers. The Company does not believe that any such brand switches have had
a material adverse impact on the Company as a whole. However, there is no assurance that the Company or any of its acquired businesses
will maintain its relationships with any of its suppliers, and the loss of certain of these relationships, including the loss of a relationship
with a principal supplier and any inability to successfully mitigate the effect of the loss of such supplier, could adversely affect the
Company's business and results. See also "The Company's business and results may be adversely affected if the Company
does not maintain its relationships with its significant suppliers or customers" under "Item 1A. Risk Factors" below.

 Due to special options and features
on most of the larger and more expensive equipment ordered by customers, in most instances, the Company purchases the equipment distributed
by it after its receipt of orders from its customers. However, from time to time, including in fiscal 2025 and fiscal 2024, the Company
purchased inventory in advance to take advantage of favorable pricing at the time or for other purposes, including to support the Company's
sales growth initiatives in new distribution territories and in support of growth initiatives related to the establishment of new manufacturer
and supplier distribution relationships. The Company also maintains an inventory of more standardized and smaller-sized equipment that
often requires more rapid delivery to meet customer needs.

 Competition

 The commercial and industrial
laundry and boiler distribution business is highly competitive and fragmented, with over 500 full-line or partial-line equipment distributors
in the United States. The Company's management believes that no one competitor has a major share of the market, substantially all
competitors are independently owned, and, with the exception of several regional distributors, distributors operate primarily in local
markets. In the United States, the Company's primary competition is from a number of independently owned distributors and certain
foreign manufacturers which own distribution businesses operating in North America. In foreign markets, the Company also competes with
several independently owned distributors and manufacturer-owned distribution businesses. Competition is based primarily on a distributor's
ability to effectively plan and design optimal commercial and industrial laundry facilities, competitive pricing, representation of reliable
and high-quality products, in-house installation, maintenance, and repair services, available and on-time delivery of equipment, parts,
and accessories, and the ability to provide continuous support services to the customer. The Company seeks to compete in these areas by
employing experienced and successful professionals, by offering a comprehensive product line,

 by employing a robust network of qualified
installation and service technicians, by maintaining optimized inventories of equipment, parts, and accessories at well-located facilities
and on service vehicles, by investing in advanced technologies designed to improve the customer experience, and by expansion of its suite
of value-added services.

 Research and Development

 The Company's research and
development efforts and expenses are generally immaterial as most of the Company's products are distributed for manufacturers that
perform their own research and development.

 Service Marks and Tradenames

 The Company is the owner of certain
service marks in the United States. The Company intends to use and protect its service marks, tradenames and other intellectual property,
as necessary.

 Compliance with Environmental and Other Government Laws and Regulations

 Over the past several decades,
federal, state, local and foreign governments have enacted environmental protection laws in response to public concerns about the environment.
A number of industries, including the commercial and industrial dry cleaning and laundry equipment industries, are subject to these evolving
laws and implementing regulations. As a supplier to the industry, the Company serves customers who are primarily responsible for compliance
with environmental regulations. Among the United States federal laws that the Company believes are applicable to the industry are the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, which provides for the investigation and remediation of
hazardous waste sites, the Resource Conservation and Recovery Act of 1976, as amended, which regulates the generation and transportation
of hazardous waste as well as its treatment, storage and disposal, and the Occupational Safety and Health Act of 1970, which regulates
exposure to toxic substances and other health and safety hazards in the workplace. In addition, most states and a number of local jurisdictions
have environmental protections which are at least as stringent as the federal laws. The Company is also subject to rules and regulations
with respect to its contracts and dealings with government facilities.

 Human Capital Resources

 As of August 1, 2025, the Company
had 850 full and part-time employees. All of the Company's employees are based in the United States. None of the Company's
employees are subject to a collective bargaining agreement. The Company believes that its relations with its employees are satisfactory.

 The Company believes that, in
order to compete and succeed in the highly competitive and fragmented commercial and industrial laundry industry, it is crucial to continue
to attract and retain experienced employees. The Company strives to create a workplace that is diverse, innovative, and safe for its
employees. The Company seeks to attract highly qualified and diverse talent and to provide its employees with growth opportunities, competitive
compensation and benefits, and a variety of training and development programs.

 As described above, the Company
seeks to maintain a culture designed to reward performance through a variety of performance-based pay, commission programs, cash incentives,
and stock-based equity

 programs. Stock-based plans include
a voluntary employee stock purchase plan and an equity compensation plan under which restricted stock and other equity awards may be
granted. The Company's equity compensation plan is designed to promote long-term performance, as well as to create long-term employee
retention and continuity of leadership, and align the interests of management and employees with the long-term success of the Company.
The Company believes that its restricted stock program promotes this culture and long-term performance because restricted stock grants
generally provide for long-term vesting, including in certain cases entirely at the end of the recipient's career (age 62 or later).

 In addition, as previously described,
the Company uses in-person classroom training, instructional videos and vendor sponsored seminars to educate and train its sales personnel
about product information. In addition, the Company's technical staff has prepared training manuals, written in English and Spanish,
relating to specific training procedures. The Company's technical personnel are retrained as the Company believes to be necessary,
including in connection with the development of new technology.

 Item 1A. Risk Factors.

 The Company is subject to various
risks and uncertainties, including those described below, which could adversely affect the Company's business, financial condition,
results of operations and cash flows, and the value of the Company's common stock. The risks described below are not the only risks
faced by the Company. Additional risks not presently known to the Company or other factors that the Company does not presently perceive
to present significant risks to the Company may also impair the Company's business, financial condition, results of operations or
cash flows, or the value of the Company's common stock. The risks discussed below also include forward looking statements, and actual
results and events may differ substantially from those expressed in, or implied by, the forward looking statements. See "Cautionary
Note Regarding Forward Looking Statements" preceding Part I, Item 1 of this Report.

 Risks Related to the Company's Business
and Operations

 Acquisitions and the Company's pursuit of
acquisitions and other strategic transactions subject the Company to a number of risks.

 Acquisitions are an important
element of the Company's growth strategy. Acquisitions and the Company's efforts with respect thereto involve a number of
risks, including, but not limited to:

 the ability to identify and consummate transactions with acquisition
targets;

 the successful operation and integration of acquired companies;

 diversion of management's attention from other business
functions and operations;

 strain on managerial and operational resources as management
tries to oversee larger operations;

 difficulty implementing and maintaining effective internal
control over financial reporting at the acquired businesses;

 possible loss of key employees and/or customer or supplier
relationships of the acquired business (See "The Company's business and results may be adversely impacted if the Company
does not maintain its relationships with its significant suppliers or customers" below); and

 exposure to liabilities of the acquired businesses.

 As a result of these or other
problems and risks, acquired businesses may not produce the revenues, earnings, cash flows or business synergies anticipated, and the
acquired businesses may not perform as expected. Accordingly, the Company may, among other things, incur higher costs and realize lower
revenues and earnings than anticipated. The Company may not be able to successfully address these problems, integrate any acquired businesses
or generate sufficient revenue to offset the associated costs or other negative effects on its business.

 In addition, acquisitions may
result in dilutive issuances of the Company's equity securities and the incurrence of debt. See "Risks Related to the Company's
Indebtedness - The Company's indebtedness may impact its financial condition and results of operations, and the terms of the Company's
indebtedness may place restrictions on the Company" below. Acquisitions may also result in contingent liabilities, or amortization
expenses, or impairment of goodwill and/or purchased long-lived assets, and restructuring charges, any of which could adversely impact
the Company's financial condition or results. Further, there are risks related to the accounting for acquisitions, including that
preliminary valuations are subject to change and any such change may impact the Company's results.

 Growth of the Company's
business through acquisitions or otherwise may place significant demands on management, as well as on the Company's accounting,
financial, information and other systems and on the Company's business. Further, management may not be able to manage the
Company's growth effectively or successfully, and the Company's financial, accounting, information and other systems may not
be able to successfully accommodate the Company's growth. In addition, the Company's accounting expenses and other professional
expenses associated with being a public company have increased as a result of the Company's growth, and such expenses may continue
to increase in the future.

 Further, the Company may not be
successful in consummating acquisitions or other strategic transactions. Expenses related to the Company's pursuit of acquisitions
and other strategic transactions may be significant and will be incurred by the Company regardless of whether the underlying acquisition
or other strategic transaction is ultimately consummated.

 Conditions beyond the Company's control can
interrupt the Company's supplies, increase its product costs and impair its ability to deliver products and services to its customers.

 The Company obtains its products
from third-party suppliers. Although purchasing volume can provide benefits when dealing with suppliers, suppliers may not be able to
provide the products and supplies that the Company needs in the quantities and at the prices requested, including due to conditions outside
of the supplier's control. The Company is also subject to delays caused by interruptions in production and increases in product
costs based on conditions outside of the Company's control. These conditions include shortages of qualified labor for suppliers,
governmental regulations and measures, including the imposition of tariffs and effects thereof, work slowdowns, work interruptions, strikes
or other job actions by employees of suppliers, weather conditions, transportation interruptions, unavailability of fuel or increases
in fuel costs, product recalls, competitive demands, civil insurrection or social unrest, terrorist attacks, natural disasters, epidemics,
pandemics or other disease outbreaks or catastrophic events. Many of these conditions are outside of the Company's control and could
also impair the Company's ability to provide its products and services to its customers or increase the cost of doing so. In recent
years, customer demand has outpaced available supply, which has resulted in, and may continue to result in, delays in delivering products
or services to the Company's customers, as well as increases in product costs. The inability to obtain adequate supplies of products
and/or to timely provide products and services and fulfill the Company's other obligations to its customers, whether as a result
of any of the foregoing factors or otherwise, could have an adverse effect on the Company's business, results of operations and
financial condition, including, without limitation, if the Company's customers turn to other distributors.

 In addition to the foregoing,
delays in construction of customers' facilities, whether due to supply or labor shortages or any other factors, have resulted, and
may continue to result in, delays in the Company's fulfillment of orders to such facilities, which may adversely impact the Company's
operating results and financial condition.

 Labor shortages and increases in labor costs may
have a material adverse impact on the Company's business and results of operations.

 The market for qualified employees
is highly competitive, particularly in light of recent labor shortages. The Company may be unable to continue to attract and retain qualified
personnel. In addition, increases in labor costs have resulted in, and may continue to result in, increases in the Company's operating
expenses. If labor market disruptions and/or labor cost increases continue, the Company's sales or service team could be short staffed
and would be more costly to retain, and the Company's ability to meet its customers' demands or expectations could be adversely
impacted, any of which could materially adversely affect the Company's business and results of operations.

 The Company's business and results may be
adversely affected if the Company does not maintain its relationships with its significant suppliers or customers.

 While the Company purchases
the products it distributes from a number of manufacturers and suppliers, purchases from four manufacturers accounted for a total of
approximately 72% and 73% of the Company's product purchases for fiscal 2025 and 2024, respectively. The Company believes it has good
working relationships with the manufacturers or suppliers from which the Company purchases its products. However, if such
relationships deteriorate or the Company is unable to maintain such relationships, including with any of its or its acquired
businesses' principal manufacturers or suppliers, the Company's business and results could be materially and adversely
impacted. In addition, efforts of the Company and its acquired businesses to mitigate any loss, including brand shifts, may not be
successful. Further, the Company does not have contracts with all of its manufacturers, and certain contracts the Company does have
are short term agreements and can be terminated on short notice. In addition, suppliers may not comply with the terms of any
agreements or may choose to terminate such agreements, allow such agreements to expire without renewal, or seek to revise the
agreements on terms which are less favorable to the Company than the prevailing terms, any of which could materially and adversely
impact the Company's business and results.

 In addition, while the Company
distributes its products to various users, including, but not limited to, vended laundry facilities, industrial laundry facilities, government
institutions, correctional facilities, hospitals, hospital combines, nursing homes, veterinary clinics, professional sports franchises,
educational institutions, hotels, motels, food and beverage establishments, cruise lines, and specialized users, the Company's operating
results and financial condition could be materially adversely impacted if the Company loses a significant customer or fails to meet its
customers' expectations.

 The products the Company distributes could fail
to perform according to specifications or prove to be unreliable, which could damage the Company's customer relationships and industry
reputation and result in lawsuits and loss of sales.

 The Company's customers
require demanding specifications for product performance and reliability. Product defects or other failures to perform to specifications
or as expected could result in higher service costs and may damage the Company's customer relationships and industry reputation
and/or otherwise negatively impact the Company's business, operations and results. Further, the Company may be subject to lawsuits
if, among other things, any of the products it distributes fails to operate properly or causes property or other physical damage.

 The Company faces substantial competition.

 The commercial and industrial
laundry distribution and service business is highly competitive and fragmented, with over 500 full-line or partial-line equipment distributors
and service providers in the United States. The Company's management believes that no single competitor of the Company has a major
share of the market, substantially all competitors are independently owned, and, with the exception of several regional distributors,
distributors operate primarily in local markets. In the United States, the Company's primary competition is from a number of independently
owned distributors and certain manufacturers which own distribution businesses operating in North America. In foreign markets, the Company
also competes with independently owned distributors and manufacturer-owned distribution businesses. Certain of the Company's competitors
may have greater financial and other resources than the Company. In addition, some of the Company's competitors may have less indebtedness
than the Company, and therefore may have more cash and working capital available for business purposes other than debt service. The Company's
results and financial condition would be materially and adversely impacted if the Company is unable to compete effectively. Further, the
Company may not be able to adjust efficiently or effectively or otherwise operate profitably if the competitive environment changes.

 The Company also competes for
qualified employees and, in light of labor market disruptions, such competition has been more intense and led to increases in the costs
of labor. See "Labor shortages and increases in labor costs may have a material adverse impact on the Company's business and
results of operations" above.

 The Company faces risks associated with environmental
and other regulation.

 The Company's business and
operations are subject to federal, state, local and foreign environmental and other laws and regulations, including environmental laws
governing the discharge of pollutants, the handling, generation, storage and disposal of hazardous materials, substances, and wastes and
the cleanup of contaminated sites. As a public company, the Company will also be subject to any rules and regulations of the SEC and any
applicable securities exchange concerning environmental and other social issues, which may result in increased costs and compliance efforts.
The Company is also subject to rules and regulations with respect to its contracts and dealings with government facilities. The Company
may not remain in compliance with all applicable laws and regulations and could be required to incur significant costs as a result of
violations of, liabilities under, or efforts to comply with, applicable laws and regulations. In addition, violations may have other adverse
implications for the Company, including negative public relations and potential litigation. Further, the Company may incur significant
compliance costs in the event of changes to applicable laws and regulations.

 The Company's business and results may be
impacted by international trade policies, including the imposition of tariffs.

 During the first half of 2025,
the U.S. government announced numerous changes to its trade policy, including changes to existing trade agreements and the use of tariffs
to enforce trade policy. The tariffs impact various jurisdictions from where the Company sources its products. While the tariffs
have not to date had a significant impact on the Company's results, the trade policies are subject to change with limited or no
advance notice and it is uncertain what, if any, impact tariffs or other trade policies may have on the Company in the future, including
on its ability to purchase products sourced internationally or the prices

 thereof. The tariffs could significantly increase the cost of
the Company's products and/or limit the availability of those products. The Company plans to address the risk through supplier negotiations
and increasing selling prices. However, there is no assurance that any such efforts will be successful. If the Company's efforts
are unsuccessful, its gross profit and other results could be negatively impacted. Without limiting the generality of the foregoing, there
is no assurance that the Company will be able to successfully increase its sales prices in order to offset any increase in the prices
of the products it purchases, and price increases may result in reduced customer demand. The actual impact of tariffs is subject to a
number of factors, including the duration of such tariffs, changes to the countries included in the scope of tariffs, changes to amounts,
potential retaliatory tariffs imposed by other countries, and other variables, as well as the success of any actions taken by the Company
in connection therewith.

 Unexpected events, such as public health issues,
natural disasters, geopolitical conflicts, civil unrest, severe weather and terrorist activities, may disrupt the Company's operations
and increase its costs.

 The outbreak of a pandemic or
public health crisis may adversely impact the Company. In addition, the occurrence of other unexpected events, including natural
disasters, civil unrest, geopolitical conflicts (including the current conflict between Ukraine and Russia as well as the conflict in
the Middle East) and/or terrorist activities could adversely affect the Company's operations and financial performance, including
that the escalation of any conflicts or the expansion of any conflicts to impact additional regions could heighten many of the other risk
factors included in this Item 1A.

 The Company faces risks related to its foreign
purchases and sales.

 The Company's revenues
from foreign sales relate principally to the Company's sales of commercial and industrial laundry and dry cleaning equipment
and boilers to Canada, the Caribbean, and Latin America. All of the Company's foreign sales require the customer to make
payment in United States dollars. The Company also purchases products from a number of foreign suppliers. The Company's
purchases from foreign suppliers and sales to foreign buyers may be affected by the strength of the United States economy and dollar
relative to the economies and currencies of the countries where its customers and suppliers are located. Particularly, a weaker U.S.
dollar would result in increased costs, which in turn would negatively affect the Company's operating results. Foreign sales
and purchases may also be affected by governmental measures, including trade policies, barriers and tariffs (as discussed under
"The Company's business and results may be impacted by international trade policies, including the imposition of
tariffs" above).

 Further, conducting an international
business inherently involves a number of other difficulties, risks and uncertainties, such as:

 export and trade restrictions;

 inconsistent and changing regulatory requirements;

 cultural issues;

 problems in collecting accounts receivable;

 political instability and international hostilities;

 local economic downturns; and

 potentially adverse tax consequences.

 Any of the above factors may materially
and adversely affect the Company's business, prospects, operating results or financial condition.

 Damages to, or disruptions at, the Company's
facilities or the facilities of a supplier or customer could adversely impact the Company's business, operating results and financial
condition.

 Although the Company has certain
limited protection afforded by insurance, the Company's business, earnings and financial condition could be materially adversely
affected if it suffers damages to, or disruptions at, its facilities. Without limiting the generality of the foregoing, the Company's
facilities, including those located in Florida, Georgia, North Carolina, Texas and the Northeast United States, are subject to hurricane
casualty and flood risk, and facilities in California are subject to earthquake and wildfire casualty risk. In addition, damages to the
facility of a supplier, whether due to, fire, natural disaster or other events, would adversely impact the Company's ability to
obtain products from that supplier when expected or at all and, accordingly, may result in delays in the delivery of the Company's
products or the provision of its services. Further, damages to the facility of a customer may adversely impact the business of the customer
and its need for products or services from the Company or result in delays in the delivery of products or provision of services to the
customer. Any of these events may materially and adversely impact the Company's business, operating results and financial condition.

 The Company's assets may suffer uninsured
losses.

 The Company attempts to ensure
that its assets, including the equipment and parts that it sells, are adequately insured to cover property and casualty losses as well
as any other liabilities to which the Company is reasonably expected to be subject. However, insurance may be expensive or difficult to
obtain, and there are certain types of losses, generally catastrophic in nature, such as losses due to wars, acts of terrorism, floods,
hurricanes, earthquakes, pollution, fire or environmental disasters or other matters, which are uninsurable or not economically insurable,
or may be insured subject to limitations, such as large deductibles or co-payments. In addition, there may in certain cases be questions
as to when the risk of loss related to products sold is transferred to the customer. If the equipment suffers a loss and risk of loss
is deemed not to have transferred to the customer, the Company may be liable for the loss, which may not be insured. If the Company's
insurance coverage is not adequate, or the Company otherwise incurs uninsured losses, the Company's operating results and financial
condition would be adversely impacted.

 The Company may also be subject
to insured losses relating to breaches of its information technology systems. See also "The Company could be negatively affected
by cyber or other security threats or other disruptions or failures to maintain the integrity of internal or customer, employee or vendor
data" below.

 The Company's ability
to manage its business and monitor results is highly dependent upon information and communication systems, and a failure of these systems
or the Company's ERP implementation could disrupt its business.

 The
Company is dependent upon a variety of internal computer and telecommunication systems to operate its business, including its
enterprise resource planning ("ERP") systems. Any disruptions, delays or deficiencies in the design and/or
implementation of the ERP system, or in the performance of legacy systems, particularly any disruptions, delays or deficiencies that
impact the Company's operations, could adversely affect the Company's ability
to effectively run and manage its information systems. Further, as

 the Company is dependent upon its ability to gather and promptly transmit
accurate information to key decision makers, the Company's business, results of operations and financial condition may be adversely
affected if the Company's information systems do not allow the Company to transmit accurate information, even for a short period
of time. Failure to properly or adequately address these issues could impact the Company's ability to perform necessary business
operations, which could adversely affect the Company's reputation, competitive position, business, results of operations and financial
condition.

 In addition,
the information systems of acquired businesses may not be sufficient to meet the Company's standards or the Company may not be able
to successfully convert them to provide acceptable information on a timely and cost-effective basis. Furthermore, the Company must attract
and retain qualified personnel to operate its systems, expand and improve them, integrate new programs effectively with its existing programs,
and convert to new systems efficiently when required. Any disruption to the Company's business due to such issues, or an increase
in costs to cover these issues that is greater than anticipated, could have an adverse effect on the Company's financial results
and operations.

 The Company could be negatively affected by cyber
or other security threats or other disruptions or failures to maintain the integrity of internal or customer, employee or vendor data.

 In the ordinary course of its
business, the Company processes, transmits and stores sensitive Company information as well as sensitive information, including personal
information, about its customers, employees and vendors. The Company's customers, employees and vendors have a high expectation
that their personal information will be adequately protected and, accordingly, the integrity and protection of such information is critical
to the Company.

 The processing, transmission and
storage of customer, employee and vendor information requires the appropriate and secure utilization of such information and subjects
the Company to risks relating thereto, including risks relating to increased focus regarding the Company's data security compliance. Cyber-attacks,
including ransomware, malware and phishing, designed to gain access to sensitive information by breaching systems are constantly evolving.
Furthermore, there has been heightened legislative and regulatory focus on data security in the U.S. and abroad, including requirements
for varying levels of customer notification in the event of a data breach. These laws are changing rapidly and vary among jurisdictions.
Requirements imposed on the Company by the payment card industry surrounding information, security and privacy are also increasingly demanding.
The Company will continue its efforts to meet applicable privacy and data security obligations; however, it is possible that certain new
obligations may be difficult to meet and could increase the Company's costs. In addition, the Company's systems may be unable to
satisfy changing requirements and employee and customer expectations, or may require significant additional investments or time in order
to do so. Further, as the risk of cyber-attacks increases, related insurance premiums and the cost of defensive measures may also increase.
In addition, the costs to remediate security incidents or breaches that may occur could be material.

 Despite the security measures
and processes the Company has in place, efforts to protect sensitive Company, customer, employee and vendor information may not be successful
in preventing a breach in the Company's systems or detecting and responding to a breach on a timely basis. The Company has experienced
threats to, and incidents involving, its systems and information, and while none have been material to date, cyber-attacks are generally
becoming more frequent, intense, and sophisticated. As a result of a security incident or breach in the Company's systems, the Company's
systems could be interrupted or

 damaged, and/or sensitive information could be accessed by third parties. The Company's systems may also
be disrupted or damaged, and/or sensitive information could be released, due to other system failures, viruses, operator error
or inadvertent releases of data. In the event of a data or security breach, the Company's customers, employees or vendors could
lose confidence in the Company's ability to protect their information, which could result in the loss of key customers, employees or vendors,
or the Company's reputation could otherwise be negatively impacted, any of which may have a material adverse impact on the Company's business
or results. In addition, as the regulatory environment relating to the protection of sensitive data becomes stricter, a failure to comply
with applicable regulations could potentially subject the Company to fines, penalties, other regulatory sanctions, or lawsuits with the
possibility of substantial damages.

 In addition, damage or disruption
to the Company's systems could adversely impact the Company's ability to manage or operate its business. Further, conversions
to new information technology systems require effective change management processes and may result in cost overruns, delays or business
interruptions. If the Company's information technology systems are disrupted, become obsolete or do not adequately support the Company's
strategic, operational or compliance needs, the Company's business, financial position, results of operations or cash flows may
be adversely affected.

 The Company could also make faulty
decisions if the data it maintains regarding its customers, employees or vendors is inaccurate or incomplete.

 Climate change, or legal, regulatory or market
measures to address climate change, could have an adverse impact on the Company's business and results of operations.

 There is growing concern that
carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns, and the
frequency and severity of extreme weather and natural disasters. If such climate change has a negative impact on the economy, the Company's
business and results may be adversely impacted, including due to a potential decrease in the availability of, or less favorable pricing
for, water or other materials which may adversely impact the supply chain. In addition, natural disasters and extreme weather, including
those caused by climate change, could cause disruptions in the Company's operations and supply chains. Furthermore, the increasing
concern over climate change may also result in greater local, state, federal, and foreign legal requirements, including requirements to
limit greenhouse gas emissions or conserve resources, which may result in cost increases or adverse impacts to the supply chain.

 Risks Related to the Company's Indebtedness

 The Company's indebtedness may impact its
financial condition and results of operations, and the terms of the Company's indebtedness may place restrictions on the Company.

 The Company's level of indebtedness
may have several important effects on the Company's operations, including, without limitation, that the Company uses cash to satisfy
its debt service requirements, that outstanding indebtedness and the Company's leverage position will increase the impact on the
Company of negative changes in general economic and industry conditions, as well as competitive pressures, and that the Company's
ability to obtain additional financing for acquisitions, working capital or other corporate purposes may be impacted.

 The Company is party, as borrower,
to a syndicated credit agreement (the "Credit Agreement") in the maximum aggregate principal amount of up to $150 million,
with an accordion feature to increase the revolving credit facility by up to $50 million for a total of $200 million. A portion of the
revolving credit facility is available for swingline loans of up to a sublimit of $7.5 million and for the issuance of standby letters
of credit of up to a sublimit of $15 million. The maturity date of the Credit Agreement is March 26, 2030. The Company had $53.0 million
outstanding borrowings under the Credit Agreement as of June 30, 2025.

 Borrowings (other than swingline
loans) under the Credit Agreement bear interest, at a rate, at the Company's election at the time of borrowing, equal to (a) the
Secured Overnight Financing Rate ("SOFR") plus 0.11% to 0.43%, plus an additional adjustment margin that ranges between 1.25%
and 1.75% depending on the Company's consolidated leverage ratio, which is a ratio of consolidated funded indebtedness to consolidated
earnings before interest, taxes, depreciation and amortization (EBITDA) (the "Consolidated Leverage Ratio") or (b) the highest
of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) SOFR plus 100 basis points (such highest rate, the "Base
Rate"), plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated Leverage Ratio. Swingline loans generally
bear interest at the Base Rate plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated Leverage Ratio.

 The Credit Agreement contains
covenants applicable to the Company, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum
interest coverage ratios, as well as other covenants which may place restrictions on, among other things, liens, investments, indebtedness,
fundamental changes, acquisitions, dispositions of property, making specified restricted payments (including cash dividends and stock
repurchases that would result in the Company exceeding an agreed to Consolidated Leverage Ratio), and transactions with affiliates.

 The Company may incur additional
debt financing as determined to be appropriate by management, including in connection with the financing of acquisitions or other strategic
transactions or otherwise, which would increase the Company's vulnerability to the risk factors described above related to its level
of indebtedness and may place restrictions on the Company similar or in addition to those contained in the Credit Agreement. There is
no assurance that the Company will receive any financing which the Company may seek to obtain in the future on acceptable terms or at
all, including in the event additional funds are necessary to consummate an acquisition or other strategic transaction or support the
Company's business operations.

 Risks Related to Ownership of the Company's
Common Stock

 The Company's management may be deemed to
control the Company.

 The Company's management,
including Henry M. Nahmad, the Company's Chairman, Chief Executive Officer and President, and the Company's Board of Directors
through stockholders agreement granting it the right to direct the voting of certain shares issued as consideration in acquisitions, may
be deemed to control the Company as a result of their collective voting power over shares representing approximately 57.4% of the issued
and outstanding shares of the Company's common stock as of June 30, 2025. Under the Company's Bylaws, directors are elected
by a plurality vote and all other matters put to a vote of the Company's stockholders require the affirmative vote of a majority
of the shares of the

 Company's common stock represented at a meeting, in person or by proxy, and entitled to vote on the matter
unless a greater percentage is required by applicable law. Consequently, other than in very limited circumstances where a greater vote
is required by applicable law, Mr. Nahmad and the other members of the Company's management, without the consent or vote of any
other stockholders of the Company, have the voting power to elect directors and approve other actions that require stockholder approval.
The interests of the Company's management may conflict with the interests of the Company's other stockholders and also could
have the effect of delaying or preventing a change in control of the Company or its management and/or adversely impact the market price
of the Company's common stock or the ability of the Company's other stockholders to receive a premium for their shares in
connection with any sale of the Company.

 Further, as a result of management's
controlling voting position with respect to the Company's common stock, the Company is a "controlled company" within
the meaning of the listing standards of the NYSE American, on which the Company's common stock is listed. As a "controlled
company," the Company is not required under the listing standards of the NYSE American to comply with certain corporate governance
requirements set forth therein, including:

 the requirement that a majority of the Company's Board
of Directors consists of independent directors;

 the requirement that directors be recommended for nomination
by, and other nominating and corporate governance matters be decided solely by, a nominating/corporate governance committee consisting
of independent directors; and

 the requirement that executive compensation matters be decided
by a compensation committee consisting of independent directors.

 While executive compensation matters
are determined by a compensation committee comprised solely of independent directors and the Company's Board of Directors is currently
comprised of, and has historically generally been comprised of, a majority of independent directors, the Company does not have a standing
nominating/corporate governance committee and the Company has in the past from time to time maintained a Board of Directors not comprised
of a majority of independent directors. In addition, in the discretion of the Company's Board of Directors, the Company may choose
to utilize or continue to utilize any or all of the exceptions in the future. As a result, the Company's stockholders may not have
certain of the same protections as a stockholder of other publicly-traded companies which are not "controlled companies" and
the market price of the Company's common stock may be adversely affected.

 The concentration of ownership
with respect to the Company's common stock also results in there being a limited trading volume, which may make it more difficult
for stockholders to sell their shares and increase the price volatility of the Company's common stock.

 As a "smaller reporting company," the
Company may avail itself of reduced disclosure requirements, which may make the Company's common stock less attractive to investors.

 Under applicable SEC rules and
regulations, the Company is a "smaller reporting company" and will continue to be a "smaller reporting company"
for so long as the market value of the Company's common stock held by non-affiliates as of the end of its most recently completed
second fiscal quarter is less than $250 million. As a "smaller reporting company," the Company has relied on exemptions from

 certain disclosure requirements that are applicable to other public companies. The Company may continue to rely on such exemptions for
so long as the Company remains a "smaller reporting company." These exemptions include reduced financial disclosure and reduced
disclosure obligations regarding executive compensation. The Company's reliance on these exemptions may result in the public finding
the Company's common stock to be less attractive and adversely impact the market price of, or trading market for, the Company's
common stock.

 The issuance of preferred stock and common stock,
and the authority of the Company's Board of Directors to approve issuances of preferred stock and common stock, could adversely
affect the rights of the Company's stockholders and have an anti-takeover effect.

 As permitted by Delaware law,
the Company's Board of Directors is authorized under the Company's Certificate of Incorporation, as amended (the "Certificate
of Incorporation"), to approve the issuance by the Company of up to 200,000 shares of preferred stock, and to designate the relative
rights, preferences and limitations of any preferred stock so issued, in each case, without any action on the part of the Company's
stockholders. Currently, no shares of preferred stock are outstanding. In the event that the Company issues preferred stock in the future
that has preference over the Company's common stock with respect to the payment of dividends or upon liquidation, dissolution or
winding up of the Company, the rights of holders of shares of the Company's common stock may be adversely affected. In addition,
the Company is authorized under its Certificate of Incorporation to issue up to 20,000,000 shares of common stock. Inclusive of unvested
restricted stock awards, there are currently approximately 14.2 million shares of common stock outstanding. Subject to applicable law
and the rules and regulations of the NYSE American, the Company's Board of Directors (or a committee thereof, in the case of shares
issued under the Company's equity-based compensation plan) has the power to approve the issuance of any authorized but unissued
shares of the Company's common stock, and any such issuances, including, without limitation, those under the Company's equity-based
compensation plan or pursuant to any acquisitions or other strategic transactions consummated by the Company or in connection with the
financing thereof, would result in dilution to the Company's stockholders. These provisions of the Certificate of Incorporation
could also delay or prevent a change in control of the Company or its management, and could limit the price that investors are willing
to pay in the future for shares of the Company's common stock.

 General Risks

 The Company is subject to risks relating to evaluations
of internal control over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002

 The Company has incurred, and
expects to continue to incur, a substantial amount of management time and resources to comply with the requirements of Section 404 of
the Sarbanes-Oxley Act of 2002. In this Report, the Company's management has provided an assessment as to the effectiveness of the
Company's internal control over financial reporting. In addition, pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002,
management's assessment of the effectiveness of the Company's internal control over financial reporting is subject to attestation
by the Company's independent registered public accounting firm. This Report includes such attestation. However, there is no assurance
that the Company will continue to timely comply with such requirements nor can there be assurance that significant deficiencies and/or
material weaknesses will not be identified by management or the Company's independent registered public accounting firm (or, if
identified, remedied in a timely fashion or at all), any

 of which may adversely affect the market price of the Company's common
stock. In addition, the Company's compliance efforts will continue to require significant expenditures and devotion of management
time, and may divert management's attention from the Company's operations.

 In addition, while businesses
acquired during the fiscal year covered by the applicable Annual Report on Form 10-K are permitted to be excluded from the scope of management's
report on internal control over financial reporting and the related auditor attestation for such Annual Report on Form 10-K (as is the
case with the exclusion of the businesses acquired by the Company in fiscal 2025 from the scope of management's report on internal
control over financial reporting and the related auditor attestation for this Report), the Company will face challenges and be required
to incur expenses in connection with, and devote significant management time to, the internal control over financial reporting of acquired
businesses. There is no assurance that any issues, deficiencies, significant deficiencies or material weaknesses in internal controls
identified at acquired businesses will be remedied in a timely or cost-efficient manner or at all.

 Internal control over financial
reporting may not prevent or detect misstatements due to inherent limitations in internal control systems. An internal control system,
no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system
are met, and the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must
be considered relative to their costs. See Item 9A ("Controls and Procedures") of this Report for related discussion.

 The Company's success depends on key personnel,
the loss of whom could harm the Company's business, operating results and financial condition.

 The Company's business is
dependent on the active participation of its executive officers, including Henry M. Nahmad and Tom Marks. The loss of the services of
any of these individuals could adversely affect the Company's business and prospects. In addition, the Company's success is
dependent on its ability to retain and attract additional qualified management and other personnel. Competition for such talent is intense,
and the Company may not be successful in attracting and retaining such personnel.

 Litigation and legal and regulatory proceedings,
the costs of defending the same and the impact of any finding of liability or damages could adversely impact the Company and its financial
condition and operating results.

 The Company may from time to time
become subject to litigation and other legal and regulatory proceedings. Litigation and other legal and regulatory proceedings may require
the Company to incur significant expenses, including those relating to legal and other professional fees. In addition, litigation and
other legal and regulatory proceedings are inherently uncertain, and adverse outcomes in litigation or other legal proceedings could adversely
affect the Company's financial condition and operating results.

 Item 1B. Unresolved Staff Comments.

 None.

 Item 1C. Cybersecurity.

 The Company has established security
practices and safeguards designed to help identify and protect against intentional and unintentional misappropriation or corruption of
its information technology systems, data, and operational continuity. The Company conducts risk assessments to identify potential cybersecurity
threats, which include evaluating the likelihood and potential impact of these threats, identifying system and network vulnerabilities,
and assessing the effectiveness of the Company's existing controls. Upon identification and assessment of risks, the Company develops
and implements what management believes to be appropriate measures in order to manage these risks, which may involve enhancing security
controls, implementing new technologies, training employees, or changing business processes. The Company maintains change management processes,
monitoring practices, and data protection measures designed to mitigate cybersecurity risks and regularly test its systems for potential
threats. Such processes and practices to assess, identify, and manage cybersecurity incidents are integrated into the Company's
overall enterprise risk assessment process.

 The Company's information
security team, which is led by the Company's Director of Information Technology and also includes the Company's Chief Financial
Officer and other members of the Company's internal audit and finance departments, is responsible for assessing and managing the
Company's cybersecurity risks and data protection practices. The Company's Director of Information Technology has over 10
years of experience in managing cybersecurity risks and advising on cybersecurity matters.

 The Company's Board of Directors
is responsible for the oversight of management's efforts to address cybersecurity risks. The Board of Directors has designated the
Audit Committee with the responsibility of overseeing and reporting to the Board on management's handling of cybersecurity risk management
and on the adequacy and effectiveness of the Company's cybersecurity risk management strategy. Management also updates the Audit
Committee and the Board on an on-going basis concerning any significant cybersecurity incidents or risk exposures that have come to management's
attention during the conduct of their assessments, the steps management has taken to mitigate such exposures, and any changes to the processes
of identifying, assessing, and monitoring cybersecurity threats.

 During the fiscal year ended June
30, 2025, the Company did not identify any cybersecurity incidents that have materially affected or are reasonably likely to materially
affect the Company, including its business strategy, results of operations or financial condition.

 Item 2. Properties.

 The Company's principal
executive offices are located in Miami, Florida. The Company's principal properties include warehousing and distribution facilities
and administrative office space, all of which are leased (generally for terms of three to ten years).

 At June 30, 2025, the Company
had a total of 36 warehousing and distribution facilities and administrative facilities located across 22 U.S. states. Senior management
and support staff are located at the Company's principal executive offices and other administrative offices mostly adjacent to
the Company's warehousing and distribution facilities. The facilities have an aggregate of approximately 547,000 square feet of
space. The Company believes that its facilities are sufficient to meet the Company's present operating needs.

 Item 3. Legal Proceedings.

 In the ordinary course of business,
the Company may from time to time be involved in, or subject to, legal and regulatory claims, proceedings, demands or actions. Litigation
and other proceedings are

 inherently
uncertain and the outcome thereof cannot be predicted or determined in advance. In addition, the Company's costs of defending against
litigation and other proceedings, demands and actions could be material and would generally be payable by the Company regardless of the
merits of the claim. As of the date of filing of this Report, the Company is not aware of any pending legal proceedings to which the
Company, including any of its subsidiaries, is a party which is expected to be material to the Company.

 Item 4. M ine
Safety Disclosures.

 Not applicable.

 Item 5. Market for Registrant's
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 The Company's common stock
is traded on the NYSE American under the symbol "EVI."

 As of September 5, 2025, there
were approximately 144 holders of record of the Company's common stock.

 The declaration and payment of
cash dividends with respect to the Company's common stock is determined by the Company's Board of Directors based on the Company's
financial condition and liquidity needs and other factors deemed relevant by the Company's Board of Directors, and may be subject
to restrictions contained in the Company's debt instruments. As described elsewhere in this Report, including under "Liquidity
and Capital Resources" in Item 7 of this Report, the Company's Credit Agreement contains certain covenants which may, among
other things, restrict the Company's ability to pay dividends, and any future facilities may contain similar or more stringent requirements.
The Company's management does not believe that the covenants contained in the Credit Agreement currently materially limit the Company's
ability to pay dividends or are reasonably likely to materially limit the Company's ability to pay dividends in the future.

 On October 4, 2023, the Company's
Board of Directors declared a special cash dividend on the Company's common stock of $0.28 per share (totaling approximately $4.1
million in the aggregate), which was paid on October 26, 2023 to stockholders of record at the close of business on October 16, 2023.

 On September 11, 2024, the Company's
Board of Directors declared a special cash dividend on the Company's common stock of $0.31 per share (totaling approximately $4.6
million in the aggregate), which was paid on October 7, 2024 to stockholders of record at the close of business on September 26, 2024.

 On September 11, 2025, the Company's Board of Directors declared a special cash dividend on the Company's
common stock of $0.33 per share to be paid on October 6, 2025 to shareholders of record at the close of business on September 25, 2025.

 As described above, future dividends
will be considered in light of the Company's financial position and liquidity needs, and other factors deemed relevant by the Company's
Board of Directors.

 See Part III, Item 12 of this
Report for information regarding securities authorized for issuance under the Company's equity-based compensation plans.

 The Company does not have in
place any formal share repurchase plans or programs. Upon request by a recipient of awards granted under the Company's equity
incentive plan, the Company may issue shares upon vesting of restricted stock awards or units or upon the issuance of stock awards, in each case,
net of

 the
statutory withholding requirements that the Company pays on behalf of its employees. For financial statement purposes, the shares withheld
are treated as being repurchased by the Company and are reflected as repurchases in the Company's consolidated statements of cash
flows and shareholders' equity as they reduce the number of shares that would have been issued upon vesting.

 During the quarter ended June
30, 2025, the Company did not repurchase any shares of its common stock other than 1,499 shares treated as repurchased upon the vesting
of restricted stock units, as described above.

 Item 6. [Reserved].

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

 General

 The following discussion should
be read in conjunction with the Company's Consolidated Financial Statements and notes thereto contained in Item 8 of this Report.
See also "Cautionary Note Regarding Forward Looking Statements" preceding Part I, Item 1 of this Report.

 Overview

 The Company, through its wholly-owned
subsidiaries, is a value-added distributor, and provides advisory and technical services. Through its vast sales organization, the Company
provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells
and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating,
power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories.
Additionally, through the Company's robust network of commercial laundry technicians, the Company provides its customers with installation,
maintenance, and repair services.

 The Company's customers
include government, institutional, industrial, commercial and retail customers. Product purchases made by customers range from parts and
accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services
described above.

 The Company's growth strategy
includes the pursuit of organic growth initiatives and a "buy-and-build" growth strategy. The Company's "buy-and-build"
growth strategy includes (i) the consideration and pursuit of acquisitions and other strategic transactions which management believes
may complement the Company's existing business or otherwise offer growth opportunities for, or benefit, the Company and (ii) the
implementation of a growth culture at acquired businesses based on the exchange of ideas and business concepts among the management teams
of the Company and the acquired businesses as well as through certain additional initiatives, which may include investments in additional
sales and service personnel, new product lines, enhanced service operations and capabilities, new and improved facilities, and advanced
technologies. See "Buy-and-Build Growth Strategy" below for information regarding business acquisitions consummated during
the fiscal year ended June 30, 2024 ("fiscal 2024") and the fiscal year ended June 30, 2025 ("fiscal 2025"), as
well as an acquisition consummated subsequent to fiscal 2025 year-end.

 The Company reports its results
of operations through a single operating and reportable segment.

 Total revenues for fiscal 2025
increased by 10% compared to fiscal 2024. The increase was attributable to revenues generated by businesses acquired by the Company during
fiscal 2025 as well as price increases established throughout the Company's product lines and service offerings aimed at maintaining
or increasing margins to cover incremental product and operating cost increases.

 Net income for fiscal 2025 increased
by 33% from fiscal 2024. The increase in net income was primarily attributable to increases in revenue (as described above) and gross
margin, partially offset by increases in selling, general, and administrative expenses.

 The Company's operating
expenses consist primarily of (a) selling, general and administrative expenses, primarily salaries, and commissions and marketing expenses
that are variable and correlate to changes in sales, (b) expenses related to the operation of warehouse facilities, including a fleet
of installation and service vehicles, and facility rent, which are payable mostly under non-cancelable operating leases, and (c) operating
expenses at the parent company, including compensation expenses, fees for professional services, expenses associated with being a public
company and investments and other expenses in furtherance of the Company's "buy-and-build" growth strategy and other
growth and optimization initiatives.

 Buy-and Build Growth Strategy

 The Company's acquisitions
under its "buy-and-build" growth strategy described above during fiscal 2024 and fiscal 2025 were as follows:

 During fiscal 2024, the Company
acquired Pennsylvania-based ALVF, Inc. (d/b/a ALCO Washer Center) and Texas-based Signature Services Corporation (d/b/a Ed Brown Distributors).
The total consideration for these transactions consisted of $2.0 million in cash and the issuance of 8,621 shares of the Company's
common stock.

 During fiscal 2025, the Company
acquired Florida-based Laundry Pro of Florida, Inc., Indiana-based O'Dell Equipment & Supply, Inc., Illinois-based Haiges Machinery,
Inc., and Wisconsin-based Girbau North America, Inc. The total consideration for these transactions was $51.0 million, consisting of $50.6
million in cash, net of cash acquired, $4.2 million in amounts payable to a seller as of June 30, 2025 related to post-closing working
capital adjustments, and the settlement of acquirer receivables of $3.8 million.

 The acquired companies generally
distribute commercial, industrial, and vended laundry products and provide installation and maintenance services to the new and replacement
segments of the commercial, industrial and vended laundry industry. Acquisitions are generally effected by the Company through an existing
or newly-formed subsidiary which acquires (whether by an asset purchase, stock purchase or merger) and operates the acquired business
following the transaction. The Company, indirectly through its subsidiary, also assumes certain of the liabilities of the acquired business.
The financial position, including assets and liabilities, and results of operations of the acquired businesses following the respective
closing dates of the acquisitions are included in the Company's consolidated financial statements.

 In addition to the foregoing,
on August 1, 2025, the Company acquired New York-based ASN Laundry Group for total consideration of $0.6 million in cash. The financial
position, including assets and liabilities, and results of operations of ASN Laundry Group following the August 1, 2025 closing date of

 the acquisition will be included in the Company's consolidated financial statements commencing in the quarter ending September 30,
2025.

 See Note 3 to the Consolidated
Financial Statements included in Item 8 of this Report for additional information about the acquisitions described above.

 Consolidated Financial Condition

 The Company's total assets
increased from $230.7 million at June 30, 2024 to $307.0 million at June 30, 2025. The increase in total assets was primarily attributable
to the assets of the businesses acquired during fiscal 2025, including accounts receivable, inventory, intangible assets, and goodwill.
The Company's total liabilities increased from $94.1 million at June 30, 2024 to $163.6 million at June 30, 2025, primarily due
to increases in payables related to acquired businesses and long-term debt used to acquire such businesses.

 Liquidity and Capital Resources

 The Company had approximately
$8.9 million of cash at June 30, 2025 compared to $4.6 million of cash at June 30, 2024. The increase in cash was primarily due to cash
generated from operations and borrowings on the Company's credit facility, offset in part by cash consideration paid in connection
with the Company's business acquisitions during fiscal 2025 and capital expenditures, as well the timing of optional payments on
the Company's credit facility. The Company's primary sources of cash are sales of products and services, and borrowings under
its credit facility. The Company's primary uses of cash are purchases of the products sold by the Company, employee related costs,
and the cash consideration paid in connection with business acquisitions.

 The following table summarizes
the Company's Consolidated Statements of Cash Flows (in thousands):

 Fiscal Year Ended June 30,

 Net cash provided (used) by:

 2025

 2024

 Operating activities

 $
 21,265

 $
 32,652

 Investing activities

 $
 (51,786
)

 $
 (6,816
)

 Financing activities

 $
 34,815

 $
 (27,199
)

 For fiscal 2025, operating activities
provided cash of approximately $21.3 million compared to cash provided by operating activities of approximately $32.7 million in fiscal
2024. The $11.4 million decrease in cash provided by operating activities was primarily attributable to an increase in accounts receivable, offset in part by increases in accounts payable, accrued expenses, and net income.

 Investing activities used cash
of approximately $51.8 million during fiscal 2025 compared to approximately $6.8 million in fiscal 2024. The $45.0 million increase in
cash used by investing activities is due primarily to a greater amount of cash consideration paid in connection with business acquisitions
in fiscal 2025 as compared to fiscal 2024.

 Financing activities provided
cash of approximately $34.8 million in fiscal 2025 compared to cash used by financing activities of approximately $27.2 million in fiscal
2024. The $62.0 million increase in

 cash provided by financing activities
was attributable primarily to borrowings under the Company's credit facility to fund the Company's acquisitions in fiscal
2025.

 The Company is party, as borrower,
to a syndicated credit agreement (the "Credit Agreement"). Prior to the amendment described below, the agreement allowed for
borrowings in the maximum aggregate principal amount of up to $100 million, with an accordion feature to increase the revolving credit
facility by up to $40 million for a total of $140 million. On March 26, 2025, the Company amended the Credit Agreement to increase the
maximum aggregate principal amount from $100 million to $150 million and increase the accordion feature from $40 million to $50 million,
for a total of $200 million. A portion of the revolving credit facility is available for swingline loans and for the issuance of standby
letters of credit. The amendment increased the sublimit for swingline loans from $5 million to $7.5 million and the sublimit for standby
letters of credit from $10 million to $15 million. In addition, as part of the amendment, the maturity date of the Credit Agreement was
extended from May 6, 2027 to March 26, 2030. As of June 30, 2025, $56.1 million was available to borrow under the revolving credit facility.

 Pursuant to the terms of the Credit
Agreement, in connection with the discontinuation of the Bloomberg Short-Term Bank Yield Index rate (the "BSBY rate"), during
October 2024, the BSBY rate was replaced as the reference rate under the Credit Agreement by the Secured Overnight Financing Rate ("SOFR")
plus a SOFR adjustment ranging from a minimum of 0.11% to a maximum of 0.43%. As a result, borrowings (other than swingline loans) under
the Credit Agreement bear interest, at a rate, at the Company's election at the time of borrowing, equal to (a) SOFR plus 0.11%
to 0.43%, plus an additional adjustment margin that ranges between 1.25% and 1.75% depending on the Company's consolidated leverage
ratio, which is a ratio of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization
(EBITDA) (the "Consolidated Leverage Ratio") or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points,
and (iii) SOFR plus 100 basis points (such highest rate, the "Base Rate"), plus a margin that ranges between 0.25% and 0.75%
depending on the Consolidated Leverage Ratio. Swingline loans generally bear interest at the Base Rate plus a margin that ranges between
0.25% and 0.75% depending on the Consolidated Leverage Ratio.

 The Credit Agreement contains
certain covenants, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum interest coverage
ratios. The Credit Agreement also contains other provisions which may restrict the Company's ability to, among other things, dispose
of or acquire assets or businesses, incur additional indebtedness, make certain investments and capital expenditures, pay dividends, repurchase
shares and enter into transactions with affiliates. As of June 30, 2025, the Company was in compliance with its covenants under the Credit
Agreement.

 The obligations of the Company
under the Credit Agreement are collateralized by substantially all of the assets of the Company and certain of its subsidiaries, and are
guaranteed, jointly and severally, by certain of the Company's subsidiaries.

 The Company believes that its
existing cash, anticipated cash from operations and funds available under the Company's Credit Agreement will be sufficient to
fund its operations and anticipated capital expenditures for at least the next twelve months from the filing of this Report, and the
foreseeable future thereafter. The Company may also seek to raise funds through the issuance of equity and/or debt securities or the
incurrence of additional secured or unsecured indebtedness, including in connection with acquisitions or other transactions pursued by
the Company as part of its "buy-and-build" growth strategy.

 Off-Balance Sheet Financing

 As of June 30, 2025, the Company
had no off-balance sheet financing arrangements within the meaning of Item 303(a)(4) of Regulation S-K.

 Results of Operations

 Revenues

 Revenues for fiscal 2025 increased
by approximately $36.3 million (10%) from fiscal 2024. The increase was primarily attributable to revenues generated by businesses acquired
by the Company during fiscal 2025 as well as price increases established throughout the Company's product lines and service offerings
aimed at maintaining or increasing margins to cover incremental product and operating cost increases.

 Cost of Sales and Selling,
General and Administrative Expenses

 Fiscal Year Ended

 2025

 2024

 As a percentage of revenues:

 Cost of sales, net

 69.6
 %

 70.2
 %

 As a percentage of revenues:

 Selling, general and administrative expenses

 26.8
 %

 26.5
 %

 Cost of sales, expressed as a
percentage of revenues, decreased to 69.6% in fiscal 2025 from 70.2% in fiscal 2024, representing gross margins of 30.4% in fiscal 2025
and 29.8% in fiscal 2024. The decrease in cost of sales as a percentage of revenues and increase in gross margin were primarily attributable
to favorable changes in product and customer mix. The increase in gross margin is also attributable to the Company's efforts to
drive higher quality sales opportunities from promoting solution selling as a value-added distributor.

 Selling, general and administrative
expenses increased by approximately $11.0 million (12%) in fiscal 2025 compared to fiscal 2024, primarily due to (a) operating expenses
of acquired businesses, including additional operating expenses at the acquired businesses in pursuit of future growth and in connection
with the Company's optimization initiatives, (b) increases in salary, stock compensation, rent, technology costs, professional fees,
and insurance costs to support the Company's growth, and (c) depreciation and amortization. As a percentage of revenues, selling,
general and administrative expenses increased to 26.8% in fiscal 2025 from 26.5% in fiscal 2024.

 Interest Expense

 Interest expense, net remained
flat in fiscal 2025 compared to fiscal 2024 as increases in the average outstanding debt balances were offset by decreases in the effective
interest rate incurred on outstanding borrowings.

 Provision for Income Taxes

 The Company's effective
income tax rate was 32.0% for fiscal 2025 compared to 36.4% in fiscal 2024. The decrease in the effective income tax rate in fiscal 2025
is attributable to a decrease in the net impact of permanent book-tax differences resulting primarily from nondeductible compensation
and higher net income.

 Inflation

 Inflation did not have a significant
effect on the Company's results during fiscal 2025 or fiscal 2024. However, the Company faces risks relating to inflation, including
the current inflationary trend, and other price increases (including due to the imposition of tariffs), which may have an adverse impact
on the market for the Company's products and services, including that there is no assurance that the Company will be able to effectively
increase the price of its products and services to offset increased costs.

 Transactions with Related Parties

 Certain of the Company's
subsidiaries lease warehouse and office space from one or more of the principals (or former principals) of the Company or its subsidiaries.
These leases include the following:

 On October 10, 2016, the Company's
wholly-owned subsidiary, Western State Design, entered into a lease agreement pursuant to which it leases 17,600 square feet of warehouse
and office space from an affiliate of Dennis Mack, a director and employee of the Company, and Tom Marks, Executive Vice President, Business
Development and President of the West Region of the Company. The lease had an initial term of five years and provides for two successive
three-year renewal terms at the option of the Company. The Company exercised its option to renew the lease for the first three-year renewal
term, which commenced in October 2021, and the second three-year renewal term, which commenced in October 2024. Base rent for the first
renewal term was $19,000 per month. Base rent for the second renewal term is $21,000 per month. In addition to base rent, Western State
Design is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments
under this lease totaled approximately $244,000 and $252,000 during fiscal 2025 and fiscal 2024, respectively.

 On November 1, 2018, the Company's
wholly-owned subsidiary, AAdvantage Laundry Systems, entered into a lease agreement pursuant to which it leases warehouse and office space
from an affiliate of Mike Zuffinetti, former Chief Executive Officer of AAdvantage. Pursuant to the lease agreement, on January 1, 2019,
the lease expanded to cover additional warehouse space. The lease had an initial term of five years and provides for two successive three-year
renewal terms at the option of the Company. The Company exercised its option to renew the lease for the first three-year renewal term,
which commenced in November 2023. Base rent for the initial term was $36,000 per month. Base rent for the first renewal term is $40,000
per month. In addition to base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance,
repairs and insurance. Payments under this lease totaled approximately $480,000 and $464,000 during fiscal 2025 and fiscal 2024,
respectively.

 On November 3, 2020, the Company's
wholly-owned subsidiary, Yankee Equipment Systems, entered into a lease agreement pursuant to which it leases a total of 12,500 square
feet of warehouse and office space from an affiliate of Peter Limoncelli, President of Yankee Equipment Systems. The lease had an initial
term of three years and provides for three successive three-year renewal terms at the option of the Company. The Company exercised its
option to renew this lease for the first three-year renewal term, which commenced in November 2023. Base rent for the initial term was
$11,000 per month. Base rent for the first year of the renewal term was $12,500 per month. Base rent for the
second year of the renewal term is $12,750 per month. In addition to base rent, Yankee Equipment Systems is responsible under the lease
for

 costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments under this lease totaled approximately
$152,000 and $150,000 during fiscal 2025 and fiscal 2024, respectively.

 Critical Accounting Estimates

 Use of Estimates

 In
connection with the preparation of its financial statements in accordance with generally accepted accounting principles in the United
States of America ("GAAP"), the Company makes estimates and assumptions, including those that affect the reported amounts
of assets and liabilities, contingent assets and liabilities, and the reported amounts of revenues and expenses during the reported periods.
Estimates and assumptions made may not prove to be correct, and actual results may differ from the estimates. The accounting estimates
that the Company has identified as critical to its business operations and to an understanding of the Company's financial statements
are set forth below. The critical accounting estimates discussed below are not intended to be a comprehensive list of all of the Company's
accounting policies. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP, with no need
for management's judgment in their application. There are also areas in which management's judgment in selecting any available
alternative would not produce a materially different result.

 Revenue Recognition

 Performance Obligations and Revenue Over Time

 Revenue primarily consists of
revenues from the sale or leasing of commercial and industrial laundry and dry cleaning equipment and steam and hot water boilers manufactured
by others; the sale of related replacement parts and accessories; and the provision of installation and maintenance services. The Company
generates revenue primarily from the sale of equipment and parts to customers. Therefore, the majority of the Company's contracts
are short-term in nature and have a single performance obligation (to deliver products), and the Company's performance obligation
is satisfied when control of the product is transferred to the customer. Other contracts contain a combination of equipment sales and
services expected to be performed in the near-term, which services are distinct and accounted for as separate performance obligations.
Judgment may be required by management to identify the distinct performance obligations within each contract. Revenue is recognized on
these contracts when control transfers to the Company's customers via shipment of products or provision of services and the Company
has the right to receive consideration for these products and services. Additionally, from time to time, the Company enters into longer-termed
contracts which provide for the sale of equipment by the Company and the provision by the Company of related installation and construction
services. The installation on these types of contracts is usually completed within six to twelve months. The Company recognizes a portion
of its revenue over time using the cost-to-cost measure of progress, which measures a contract's progress toward completion based
on the ratio of actual contract costs incurred to date to the Company's estimated costs at completion adjusted for uninstalled materials,
as necessary. Significant judgment may be required by management in the cost estimation process for these contracts, which is based
on the knowledge and experience of the Company's project managers, subcontractors and financial professionals. Changes in job performance
and job conditions are factors that influence estimates of the total contract transaction price, total costs to complete those contracts
and the Company's revenue recognition. The determination of the total estimated cost
and progress toward completion requires management to make significant estimates and assumptions. Total estimated costs to complete projects
include various costs such as direct labor, material and subcontract

 costs. Changes in these estimates can have a significant impact on
the revenue recognized each period. From time to time, the Company also enters into maintenance and service contracts. These longer-term
contracts, maintenance and service contracts have a single performance obligation where revenue is recognized over time using the cost-to-cost
measure of progress, which best depicts the continuous transfer of control of goods or services to the customer.

 The Company measures revenue,
including shipping and handling fees charged to customers, as the amount of consideration it expects to be entitled to receive in exchange
for its products or services, net of any taxes collected from customers and subsequently remitted to governmental authorities. Costs associated
with shipping and handling activities performed after the customer obtains control are accounted for as fulfillment costs.

 Revenue from products transferred
to customers at a point in time is recognized when obligations under the terms of the contract with the Company's customer are satisfied,
which generally occurs with the transfer of control upon shipment.

 Revenues that are recognized over
time include (i) longer-termed contracts that include an equipment purchase with installation and construction services, (ii) maintenance
contracts, and (iii) service contracts.

 Contract Assets and Liabilities

 Contract assets and liabilities
are presented in the Company's consolidated balance sheets. Contract assets consist of unbilled amounts resulting from
sales under longer-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount
billed to the customer. As noted above, the cost estimation process for these contracts may require significant judgment by management.
The Company typically receives progress payments on sales under longer-term contracts as work progresses, although for some contracts
the Company may be entitled to receive an advance payment. Contract assets also include retainage. Retainage represents a portion of the
contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount (generally,
from 5% to 20% of contract billings) until final contract settlement. Retainage amounts are generally classified as current assets within
the Company's consolidated balance sheets. Retainage that has been billed, but is not due until completion of performance and acceptance
by customers, is generally expected to be collected within one year. Contract liabilities consist of advanced payments, billings in excess
of costs incurred and deferred revenue.

 The Company evaluates goodwill
for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not
be recoverable. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine
whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does
not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. If the fair value is determined
to be less than the carrying value, a second step is performed to measure the amount of impairment loss. This step compares the current
implied goodwill in the reporting unit to its carrying amount. If the carrying amount of the goodwill exceeds the implied goodwill, an
impairment is recorded for the excess. The identification and measurement of goodwill impairment

 involves the estimation of the fair value
of the reporting unit and involves uncertainty because management must use judgment in determining appropriate assumptions to be used
in the measurement of fair value. The Company performed its annual impairment test on April 1, 2025 and determined there was no impairment.

 Customer Relationships, Tradenames and Other Intangible Assets

 Customer relationships, tradenames,
non-competes, and other intangible assets are stated at cost less accumulated amortization. These assets with a finite-life are amortized
on a straight-line basis over the estimated future periods to be benefited (5-10 years). The estimates
of fair value of the Company's indefinite-lived intangibles are based on information available as of the date of the assessment
and take into account management's assumptions about expected future cash flows and other valuation techniques. The Company
reviews the recoverability of intangible assets that are amortized based primarily upon an analysis of undiscounted cash flows from the
intangible assets. In the event the expected future cash flows become less than the carrying amount of the assets, an impairment loss
would be recorded in the period the determination is made based on the fair value of the related assets.

 Business Combinations

 The
determination of the fair value of net assets acquired in a business combination requires estimates and judgments of future cash flow
expectations for the acquired business and the related identifiable tangible and intangible assets. Fair values of net assets acquired
are calculated using expected cash flows and industry-standard valuation techniques. Consideration paid generally consists of cash and,
from time to time, shares of the Company's common stock.

 Due
to the time required to gather and analyze the necessary data for each acquisition, GAAP provides a "measurement period" of
up to one year from the date of acquisition in which to finalize these fair value determinations. During the measurement period, preliminary
fair value estimates may be revised if new information is obtained about the facts and circumstances existing as of the date of the acquisition,
or based on the final net assets and working capital of the acquired business, as prescribed in the applicable purchase agreement. Such
adjustments may result in the recognition of, or an adjustment to the fair values of, acquisition-related assets and liabilities and/or
consideration paid, and are referred to as "measurement period" adjustments. Measurement period adjustments are recorded to
goodwill. Other revisions to fair value estimates, including those relating to facts and circumstances that occur subsequent to the date
of the acquisition, are reflected as income or expense, as appropriate.

 Significant
changes in the assumptions or estimates for a particular acquisition or in the underlying acquisition-related valuations, including the
expected profitability or cash flows of an acquired business or assumptions related to the existence or amount of the acquired assets
or assumed liabilities, could result in materially different estimates of the fair value of the net assets acquired in the acquisition,
which could positively or negatively affect the Company's financial results in future periods.

 Income Taxes

 The Company follows Financial
Accounting Standards Board ("FASB") ASC Topic 740, "Income Taxes" ("ASC 740"). Under the asset and
liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date. If it is determined that it is more likely than not that some portion
of a deferred tax asset will not be realized, a valuation allowance is recognized.

 Significant judgment is required
in developing the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation allowances that might
be required against the deferred tax assets. Management evaluates the Company's ability to realize its deferred tax assets on a
quarterly basis and adjusts its valuation allowance when it believes that it is more likely than not that the asset will not be realized.

 See Note 10 to the Consolidated
Financial Statements included in Item 8 of this Report for additional information regarding income taxes.

 Recently Issued Accounting Guidance

 See Note 2 to the Consolidated
Financial Statements included in Item 8 of this Report for a description of Recently Issued Accounting Guidance.

 Item 7A. Quantitative and Qualitative Disclosures
About Market Risk.

 Market risk is defined as the
risk of loss arising from adverse changes in market valuations resulting from interest rate risk, foreign currency exchange rate risk,
commodity price risk and equity price risk. The Company's primary market risk is interest rate risk.

 The Company's indebtedness
subjects the Company to interest rate risk. Interest rates are subject to the influence of economic conditions generally, both domestic
and foreign, and also to the monetary and fiscal policies of the United States and its agencies, particularly the Federal Reserve. The
nature and timing of any changes in such policies or general economic conditions and the effect they may have on the Company are unpredictable.
The Company's indebtedness may also have other important impacts on the Company, including that the Company will be required to
utilize cash flow to service its debt, indebtedness may make the Company more vulnerable to economic downturns, and the terms of the
Company's indebtedness include certain covenants, which may place restrictions on the Company's operations and activities,
including its ability to pay dividends and take certain other actions. Interest on borrowings under the Company's Credit Agreement
accrue at a rate, at the Company's election at the time of borrowing, equal to (a) SOFR plus 0.11% to 0.43%, plus an additional
adjustment margin that ranges between 1.25% and 1.75% depending on the Company's consolidated leverage ratio, which is a ratio
of consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the "Consolidated
Leverage Ratio") or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) SOFR plus 100 basis
points (such highest rate, the "Base Rate"), plus a margin that ranges between 0.25% and 0.75% depending on the Consolidated
Leverage Ratio. Swingline loans generally bear interest at the Base Rate plus a margin that ranges between 0.25% and 0.75% depending
on the Consolidated

 Leverage
Ratio. As of June 30, 2025, the Company had approximately $53.0 million of outstanding borrowings under the Credit Agreement, which accrued
interest at a weighted average rate of 5.68%. Based on the amounts outstanding at June 30, 2025, a hypothetical 1% increase in daily interest
rates would increase the Company's annual interest expense by approximately $530,000.

 The Company's revenues
from foreign sales relate principally to sales of commercial and industrial laundry and dry cleaning equipment and boilers to Canada,
the Caribbean, and Latin America. All of the Company's foreign sales require the customer to make payment in United States dollars.
The Company also purchases products from a number of foreign suppliers. The Company's purchases from foreign suppliers and sales
to foreign buyers may be affected by the strength of the United States dollar relative to the currencies of the countries where its customers
and suppliers are located. Particularly, a weaker U.S. dollar would result in increased costs, which in turn would negatively affect the
Company's operating results. The Company has, at times in the past, paid certain suppliers in Euros. The Company had no foreign
exchange contracts outstanding at June 30, 2025 or 2024. As discussed elsewhere in this Report, including in "Item 1A. Risk Factors,"
foreign sales and purchases may also be impacted by governmental measures, including trade policies, barriers and tariffs.

 The Company's cash is
maintained in bank accounts which bear interest at prevailing interest rates. While depositary accounts are covered by Federal
Deposit Insurance Corporation ("FDIC") insurance and the Company does not currently believe that it is exposed to
significant credit risk due to the financial position of the banks in which the Company's cash is held, and the Company
has exposure to the extent its cash balances exceed the current $250,000 in maximum FDIC coverage.

 Item 8. Financial Statements and Supplementary Data.

 EVI
Industries, Inc. and Subsidiaries

 Index to

 Page

 Report of Independent Registered Public Accounting Firm (BDO USA, P.C.; Miami, Florida; PCAOB ID # 243)

 Consolidated Balance Sheets at June 30, 2025 and 2024

 Consolidated Statements of Operations for the years ended June 30, 2025 and 2024

 Consolidated Statements of Shareholders' Equity for the years ended June 30, 2025 and 2024

 Consolidated Statements of Cash Flows for the years ended June 30, 2025 and 2024

 Notes to Consolidated Financial Statements

 Report of Independent Registered Public Accounting
Firm

 Shareholders and Board of Directors

 EVI Industries, Inc.

 Miami, Florida

 Opinion on the Consolidated Financial
Statements

 We have audited the accompanying
consolidated balance sheets of EVI Industries, Inc. (the "Company") as of June 30, 2025 and 2024, the related consolidated
statements of operations, shareholders' equity, and cash flows for each of the years then ended, and the related notes (collectively
referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly,
in all material respects, the financial position of the Company at June 30, 2025 and 2024, and the results of its operations and its
cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2025,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO) and our report dated September 11, 2025 expressed an unqualified opinion thereon.

 Basis for Opinion

 These consolidated financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated
financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards
of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud.

 Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

 Critical Audit Matter

 The critical audit matter communicated below is a matter arising from the current period audit of the consolidated
financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex
judgments. The communication of a critical audit matter does
not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

 Revenue Transactions

 As described in Note 2 to the consolidated financial
statements, the Company generates revenue primarily from contracts
for the sale of equipment and parts to customers, which may include installation services. Revenue is recognized on these contracts when
control transfers to the Company's customers via shipment of products or provision of services and the Company has the right to
receive consideration for these products and services.

 We identified revenue recognition attributable
to contracts for the sale of equipment and parts to customers, which may include installation, as a critical audit matter. Auditing whether
and when the sale of equipment and parts transferred to customers including installation was especially challenging due to the extent
of audit effort required to evaluate the large volume of transactions.

 The primary procedures we performed to address this
critical audit matter included:

 Testing the design and operating effectiveness of certain controls
over revenue recognition relating to whether and when control of equipment and parts sold, including installation were transferred to
customers.

 Testing revenue transactions
on a sample basis by evaluating whether and when control of the equipment and parts sold, including installation, were transferred to
customers by obtaining and inspecting: (i) contracts, (ii) invoices, and (iii) shipping documents or evidence of installation, where applicable.

 /s/ BDO USA, P.C.

 We have served as the Company's auditor since 2018.

 Miami, Florida

 Consolidated Balance Sheets

 (In thousands, except share
and per share data)

 ASSETS

 2025

 2024

 Current assets

 Cash

 $

 8,852

 $

 4,558

 Accounts receivable, net of allowance for expected credit losses

 60,494

 40,932

 Inventories, net

 66,059

 47,901

 Vendor deposits

 1,396

 1,657

 Contract assets

 1,222

 Other current assets

 8,346

 5,671

 Total current assets

 145,436

 101,941

 Equipment and improvements, net

 17,772

 13,950

 Operating lease assets

 10,751

 8,078

 Intangible assets, net

 30,875

 22,022

 91,667

 75,102

 10,527

 9,566

 Total assets

 $

 307,028

 $

 230,659

 The accompanying notes are an integral part of these

 Consolidated Balance Sheets

 (In thousands, except share and per share
data)

 LIABILITIES AND
 SHAREHOLDERS' EQUITY

 2025

 2024

 Current liabilities

 $
 50,963

 $
 30,904

 Accrued employee expenses

 15,398

 11,370

 24,316

 24,419

 Contract liabilities

 -

 Current portion of operating lease liabilities

 3,778

 3,110

 Total current liabilities

 94,863

 69,803

 Deferred income taxes, net

 7,691

 5,498

 Long-term operating lease liabilities

 7,997

 5,849

 Long-term debt, net

 53,000

 12,903

 Total liabilities

 163,551

 94,053

 Commitments and contingencies (Note 14)

 Shareholders' equity

 Preferred stock, $ 1.00 par value; authorized shares – 200,000; none issued and outstanding

 -

 -

 Common stock, $.025 par value; authorized shares – 20,000,000; 12,983,872 shares issued at June 30, 2025 and 12,868,709 shares issued at June 30, 2024, including shares held in treasury

 Additional paid-in capital

 111,219

 106,540

 Treasury stock, 221,879 shares, at cost, at June 30, 2025 and 184,672 shares, at cost, at June 30, 2024

 ( 5,155
)

 ( 4,439
)

 Retained earnings

 37,088

 34,183

 Total shareholders' equity

 143,477

 136,606

 Total liabilities and shareholders' equity

 $
 307,028

 $
 230,659

 The accompanying notes are an integral part of these

 Consolidated Statements of Operations

 (in thousands, except per share data)

 For the year
 ended

 2025

 2024

 Revenues

 $
 389,830

 $
 353,563

 Cost of sales

 271,482

 248,310

 Gross profit

 118,348

 105,253

 Selling, general and administrative expenses

 104,580

 93,625

 Operating income

 13,768

 11,628

 Interest expense, net

 2,743

 2,744

 Income before provision for income taxes

 11,025

 8,884

 Provision for income taxes

 3,527

 3,238

 $
 7,498

 $
 5,646

 Net earnings per share – basic

 $
 0.50

 $
 0.39

 Net earnings per share – diluted

 $
 0.49

 $
 0.37

 The accompanying notes are an integral part of these

 Consolidated Statements of Shareholders'
Equity

 (In thousands, except share data)

 Additional

 Common Stock

 Paid-in

 Treasury Stock

 Retained

 Shares

 Amount

 Capital

 Shares

 Cost

 Earnings

 Total

 Balance at June 30, 2023

 12,711,558

 $

 $
 101,225

 134,001

 $
 ( 3,195
)

 $
 32,608

 $
 130,956

 Share repurchases

 -

 -

 -

 50,671

 ( 1,244
)

 -

 ( 1,244
)

 Vesting of restricted shares

 142,814

 ( 4
)

 -

 -

 -

 -

 Issuances of shares under employee stock purchase plan

 5,716

 -

 -

 -

 -

 Issuances of shares in connection with acquisitions

 8,621

 -

 -

 -

 -

 Amount of dividends paid ($ 0.28 per share)

 -

 -

 -

 -

 -

 ( 4,071
)

 ( 4,071
)

 Stock compensation

 -

 -

 4,974

 -

 -

 -

 4,974

 -

 -

 -

 -

 -

 5,646

 5,646

 Balance at June 30, 2024

 12,868,709

 106,540

 184,672

 ( 4,439
)

 34,183

 136,606

 Share repurchases

 -

 -

 -

 37,207

 ( 716
)

 -

 ( 716
)

 Vesting of restricted shares

 108,236

 ( 3
)

 -

 -

 -

 -

 Issuances of shares under employee stock purchase plan

 6,927

 -

 -

 -

 -

 Amount of dividends paid ($ 0.31 per share)

 -

 -

 -

 -

 -

 ( 4,593
)

 ( 4,593
)

 Stock compensation

 -

 -

 4,558

 -

 -

 -

 4,558

 -

 -

 -

 -

 -

 7,498

 7,498

 Balance at June 30, 2025

 12,983,872

 $

 $
 111,219

 221,879

 $
 ( 5,155
)

 $
 37,088

 $
 143,477

 The accompanying notes are an integral part of these

 Consolidated Statements of Cash Flows

 (In thousands)

 Years ended June 30,

 2025

 2024

 Operating activities:

 $
 7,498

 $
 5,646

 Adjustments to reconcile net income to net cash provided by operating activities:

 Depreciation and amortization

 6,692

 5,983

 Amortization of debt discount

 Provision for expected credit losses

 1,052

 Non-cash lease expense

 Stock compensation

 4,558

 4,974

 Inventory reserve

 (Benefit) provision for deferred income taxes

 ( 821
)

 Other

 ( 87
)

 (Increase) decrease in operating assets:

 Accounts receivable

 ( 11,058
)

 7,028

 11,901

 Vendor deposits

 Contract assets

 1,157

 ( 41
)

 ( 735
)

 2,476

 (Decrease) increase in operating liabilities:

 10,272

 ( 8,234
)

 Accrued employee expenses

 2,220

 ( 742
)

 1,017

 Contract liabilities

 ( 668
)

 Net cash provided by operating activities

 21,265

 32,652

 Investing activities:

 Capital expenditures

 ( 4,861
)

 ( 4,867
)

 Cash paid for acquisitions, net of cash acquired

 ( 46,925
)

 ( 1,949
)

 Net cash used by investing activities

 ( 51,786
)

 ( 6,816
)

 Financing activities:

 Dividends paid

 ( 4,593
)

 ( 4,071
)

 Proceeds from borrowings

 106,000

 62,500

 Debt repayments

 ( 66,000
)

 ( 84,500
)

 Repurchases of common stock in satisfaction of employee tax withholding obligations

 ( 716
)

 ( 1,244
)

 Issuances of common stock under employee stock purchase plan

 Net cash provided (used) by financing activities

 34,815

 ( 27,199
)

 Net increase (decrease) in cash

 4,294

 ( 1,363
)

 Cash at beginning of year

 4,558

 5,921

 Cash at end of year

 $
 8,852

 $
 4,558

 Supplemental information:

 Cash paid for interest

 $
 2,500

 $
 2,783

 Cash paid for income taxes

 $
 2,976

 $
 4,575

 Supplemental disclosure of non-cash financing activities

 Common stock issued for acquisitions

 $
 -

 $

 Supplemental disclosure of non-cash investing activities

 Amounts owed to sellers in connection with acquisitions

 $
 4,181

 $
 -

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

 Notes to Consolidated Financial Statements

 1. General

 Nature of Business

 EVI Industries, Inc., indirectly
 through its subsidiaries (EVI Industries, Inc. and its subsidiaries, collectively, the "Company"), is a value-added distributor,
 and provides advisory and technical services to customers located primarily in the United States, Canada, the Caribbean, and Latin America.
 Through its sales organization, the Company provides its customers with planning, designing, and consulting services related to their
 commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying,
 finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers,
 the Company sells related parts and accessories. Additionally, through the Company's network of commercial laundry technicians,
 the Company provides its customers with installation, maintenance, and repair services.

 The Company's customers
 include government, institutional, industrial, commercial and retail customers. Product purchases made by customers range from parts and
 accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services
 described above.

 The Company reports its results of operations
 through a single operating and reportable segment.

 "Buy-and-Build" Growth Strategy

 The Company's growth
 strategy includes the pursuit of organic growth initiatives and a "buy-and-build" growth strategy. The "buy" component
 of the strategy includes the consideration and pursuit of acquisitions and other strategic transactions which management believes would
 complement the Company's existing business or otherwise offer growth opportunities for, or benefit, the Company. The "build"
 component of the strategy involves implementing a growth culture at acquired businesses based on the exchange of ideas and business concepts
 among the management teams of the Company and the acquired businesses as well as through certain initiatives, which may include investments
 in additional sales and service personnel, new product lines, enhanced service operations and capabilities, new and improved facilities,
 and advanced technologies.

 The businesses acquired by the Company generally
 distribute commercial, industrial, and vended laundry products and provide installation and maintenance services to the new and replacement
 segments of the commercial, industrial and vended laundry industry. Acquisitions are generally effected by the Company through an existing
 or newly-formed subsidiary which acquires (whether by an asset purchase, stock purchase or merger) and operates the acquired business
 following the transaction. The Company, indirectly through its subsidiary, also assumes certain of the liabilities of the acquired business.
 The financial position, including assets and liabilities, and results of operations of the acquired businesses following the respective
 closing dates of the acquisitions are included in the Company's consolidated financial statements.

 See Note 3 for information about the acquisitions
consummated by the Company during the fiscal year ended June 30, 2025 ("fiscal 2025") and the fiscal year ended June 30,
2024 ("fiscal 2024"), as well as the acquisition consummated by the Company subsequent to the fiscal 2025 year-end.

 2. Summary
 of Significant Accounting Policies

 Principles of Consolidation

 The consolidated financial statements and accompanying
notes were prepared in accordance with accounting principles generally accepted in the United States ("GAAP").

The accompanying consolidated financial statements include the accounts of EVI Industries, Inc. and its subsidiaries, all of which
are wholly-owned. All significant intercompany transactions and balances have been eliminated in consolidation.

 Revenue Recognition

 The Company recognizes revenue, net of sales taxes, when a sales arrangement with a customer exists (sales contract, purchase or sales order, or other indication of an arrangement), the transaction price is fixed and determinable, and the Company has satisfied the performance obligation(s) per the sales arrangement.

 Performance Obligations and Revenue Over Time

 Revenue primarily consists
of revenues from the sale or leasing of commercial and industrial laundry and dry cleaning equipment and steam and hot water boilers
manufactured by others; the sale of related replacement parts and accessories; and the provision of installation and maintenance services.
The Company generates revenue primarily from the sale of equipment and parts to customers. Therefore, the majority of the Company's
contracts are short-term in nature and have a single performance obligation (to deliver products), which is satisfied when control of
the product is transferred to the customer. Other contracts contain a combination of equipment sales with a service such as connection
of the equipment, which is expected to be performed in the near-term. Such services are distinct and accounted for as separate performance
obligations. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price
out of the total consideration of the contract. Judgment may be required
by management to identify the distinct performance obligations within each contract. Revenue is recognized on these contracts when control
transfers to the Company's customers via shipment of products or provision of services and the Company has the right to receive
consideration for these products and services.

 Additionally, from time to
time, the Company enters into longer-termed contracts which provide for the sale of equipment by the Company and the provision by the
Company of related installation and construction services. The installation on these types of contracts is usually completed within six
to twelve months. The Company recognizes a portion of its revenue over time using the cost-to-cost measure of progress, which measures
a contract's progress toward completion based on the ratio of actual contract costs incurred to date to the Company's estimated
costs at completion adjusted for uninstalled materials, as necessary. Significant judgment may be required by management in the cost
estimation process for these contracts, which is based on the knowledge and experience of the Company's project managers, subcontractors
and financial professionals. Changes in job performance and job conditions are factors that influence estimates of the total contract
transaction price, total costs to complete those contracts and the Company's revenue recognition. The determination of the total
estimated cost and progress toward completion requires management to make significant estimates and assumptions. Total estimated costs
to complete projects include various costs such as direct labor, material and subcontract costs. Changes in these estimates can have
a significant impact on the revenue recognized each period. From time to time, the Company also enters into maintenance contracts and
ad hoc maintenance and installation service contracts. These longer-term contracts, and maintenance and service contracts have a single

 performance
obligation where revenue is recognized over time using the cost-to-cost measure of progress, which best depicts the continuous transfer
of control of goods or services to the customer.

 The Company measures revenue, including shipping and handling
fees charged to customers, as the amount of consideration it expects to be entitled to receive in exchange for its goods or
services, net of any taxes collected from customers and subsequently remitted to governmental authorities. Costs associated with
shipping and handling activities performed after the customer obtains control are accounted for as fulfillment costs and are not
promised services that have to be further evaluated under revenue recognition standards.

 Revenue from products transferred to customers at a point in time include commercial and vended laundry parts and equipment sales and accounted for approximately 87 % and 83 % of the Company's revenue for fiscal 2025 and fiscal 2024, respectively. Revenue from products transferred to customers at a point in time is recognized when obligations under the terms of the contract with the Company's customer are satisfied, which generally occurs with the transfer of control upon shipment.

 The Company's products are typically sold with a manufacturer's warranty. Accordingly, warranty expense and product returns have not been significant.

 Revenues that are recognized over time include (i) longer-termed contracts that include equipment purchased with installation and construction services, (ii) maintenance contracts, and (iii) service contracts. Revenue from products and services that are recognized over time accounted for approximately 13 % and 17 % of the Company's revenue for fiscal 2025 and fiscal 2024, respectively.

 Contract Assets and Liabilities

 Contract assets and liabilities are presented in the Company's consolidated balance sheets. Contract assets consist of unbilled amounts resulting from sales under longer-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. As noted above, the cost estimation process for these contracts may require significant judgment by management. The Company typically receives progress payments on sales under longer-term contracts as work progresses, although for certain contracts, the Company may be entitled to receive an advance payment. Contract assets also include retainage. Retainage represents a portion of the contract amount that has been billed, but for which the contract allows the customer to retain a portion of the billed amount (generally, from 5 % to 20 % of contract billings) until final contract settlement. Retainage amounts are generally classified as current assets within the Company's consolidated balance sheets. Retainage that has been billed, but is not due until completion of performance and acceptance by customers, is generally expected to be collected within one year. Contract liabilities consist of advanced payments, billings in excess of costs incurred and deferred revenue.

 Costs, estimated earnings and billings on longer-term contracts when the cost-to-cost method of revenue recognition is utilized as of June 30, 2025 and 2024 consisted of the following (in thousands):

 2025

 2024

 Costs incurred on uncompleted contracts

 $

 $
 1,795

 Estimated earnings

 Less: billings to date

 ( 647
)

 ( 1,190
)

 Retainage

 Ending balance

 $
 ( 119
)

 $
 1,222

 These amounts are included in the Company's consolidated balance sheets under the following captions (in thousands):

 2025

 2024

 Contract assets

 $

 $
 1,222

 Contract liabilities

 ( 408
)

 -

 Ending balance

 $
 ( 119
)

 $
 1,222

 Contract liabilities are generally associated with contracts
with durations of less than one year. Accordingly, such amounts are expected to be realized during the subsequent year.

 The Company does not account for significant financing components
if the period between the time when the transfer of the product or service to the customer occurs and when the customer pays for that
service or product will be one year or less. The Company does not disclose the value of remaining performance obligations for contracts
with an original expected period of one year or less or performance obligations for which the Company recognizes revenue at the amount
that it has the right to invoice for services performed.

 Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of net assets acquired in a business combination. The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of impairment loss. This step compares the current implied goodwill in the reporting unit to its carrying amount. If the carrying amount of the goodwill exceeds the implied goodwill, an impairment is recorded for the excess. The identification and measurement of goodwill impairment involves the estimation of the fair value of the reporting unit and involves uncertainty because management must use judgment in determining appropriate assumptions to be used in the measurement of fair value. The Company performed its annual impairment test on April 1, 2025 using the qualitative assessment to evaluate relevant events and circumstances such as macroeconomic conditions, cost factors, financial performance, and others. The Company has concluded that there was no impairment of goodwill in fiscal 2025 or fiscal 2024.

 Accounts Receivable

 Accounts receivable are customer obligations due under what management believes to be customary trade terms. Invoices are typically due upon receipt, however, the Company may grant extended payment terms, typically 30 days, for certain customers. The Company sells its products primarily to hospitals, nursing homes, government institutions, laundry plants, hotels, motels, vended laundry facilities and

 distributors and dry cleaning
stores and chains. The Company performs continuing credit evaluations of its customers' financial condition and depending
on the terms of credit, the amount of the credit granted and management's history with a customer, the Company may require the
customer to grant a security interest in the purchased equipment as collateral for the receivable. Management reviews accounts
receivable on a regular basis to determine whether it is probable that any amounts are impaired. The Company includes any balances that
are deemed probable to be impaired in its overall allowance for expected credit losses. The provision for expected credit losses is recorded
in selling, general and administrative expenses in the consolidated statements of operations. If customary attempts to collect a receivable
are not successful, the receivable is then written off against the allowance for expected credit losses. The Company's allowance
for expected credit losses was $ 3.1 million and $ 2.1 million at June 30, 2025 and June 30, 2024, respectively. Actual write-offs may
vary from the recorded allowance.

 Cash

 The Company's cash is maintained in bank accounts which bear interest at prevailing interest rates and are covered by Federal Deposit Insurance Corporation ("FDIC") insurance. The Company has not historically experienced any losses in its cash accounts and does not currently believe that it is exposed to significant credit risk due to the financial position of the banks in which the Company's cash is held. The Company monitors the strength and credit worthiness of financial institutions in which it holds its cash. The Company has exposure to the extent its cash balances exceed the current $ 250,000 in maximum FDIC coverage.

 Inventories consist principally of equipment inventories and spare part inventories. Equipment inventories are valued at the lower of cost, determined on the specific identification method, or net realizable value. Spare part inventories are valued at the lower of cost, determined on average cost or first-in first-out method, or net realizable value. Lower of cost or net realizable value adjustments are recorded in cost of goods sold in the consolidated statement of operations. The Company records a reserve for aging or slow-moving inventory.

 The Company established reserves of approximately $ 1.2 million and $ 1.1 million as of June 30, 2025 and 2024, respectively, against slow moving inventory.

 Vendor Deposits

 Vendor deposits represent advances made to the Company's vendors for specialized inventory on order.

 Equipment, Improvements and Depreciation

 Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated on straight-line methods over useful lives of five to seven years for furniture and equipment, five years for vehicles, and the shorter of ten years or the remaining lease term (including renewal periods that are deemed reasonably assured) for leasehold improvements. Depreciation and amortization of property and equipment is included in selling, general and administrative expenses in the consolidated statements of operations. Repairs and maintenance costs are expensed as incurred.

 Software Capitalization

 The Company capitalizes certain costs related to the acquisition and development of internal use software, including implementation costs incurred in a cloud computing arrangement, during the application development stages of projects. The Company amortizes these costs using the straight-line method over the estimated useful life of the software, typically seven years. Costs incurred during the preliminary project or the post-implementation/operation stages of the project are expensed as incurred. Capitalized computer software, included as a component of equipment and

 improvements, net and other assets, in the accompanying consolidated balance sheets, was $ 1.3 million and $ 0.8 million at June 30, 2025 and 2024, respectively. Computer software amortization expense was $ 168,000 and $ 189,000 in fiscal 2025 and fiscal 2024, respectively. Amortization of capitalized software is included in selling, general and administrative expenses in the consolidated statements of operations.

 Business Combinations

 Business combinations are accounted for at fair value. Acquisition costs are expensed as incurred. Measurement
period adjustments are made in the period in which the amounts are determined and the current period income effect of such adjustments
will be calculated as if the adjustments had been completed as of the acquisition date. All changes that do not qualify as measurement
period adjustments are also included in current period earnings. The accounting for business combinations requires estimates and judgment
as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets,
in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible
assets acquired and liabilities assumed are based on estimates and assumptions, as well as other information compiled by the Company,
including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments
used in these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets
and goodwill, require acceleration of the amortization expense of finite-lived intangible assets, or the recognition of additional consideration
which would be expensed.

 Customer-Related Intangibles, Tradenames and Other Intangible Assets

 Finite-lived intangibles are amortized over their estimated useful life while indefinite-lived intangibles and goodwill are not amortized. Customer-related intangibles, non-compete, and other finite-lived intangible assets are stated at cost less accumulated amortization, and are amortized on a straight-line basis over the estimated future periods to be benefited ( 5 - 10 years). The estimates of fair value of the Company's indefinite-lived intangibles and long-lived assets are based on information available as of the date of the assessment and takes into account management's assumptions about expected future cash flows and other valuation techniques. Amortization of finite-lived intangibles is included in selling, general and administrative expenses in the consolidated statements of operations. The Company also evaluates indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The Company performed its annual impairment test on April 1, 2025 using the qualitative assessment to evaluate relevant events and circumstances such as macroeconomic conditions, cost factors, financial performance, and others. Based on the assessment, the Company determined there was no impairment.

 Asset Impairments

 The Company periodically reviews the carrying amounts of its long-lived assets, including property, plant and equipment and finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. The Company has concluded that there was no impairment of long-lived assets in fiscal 2025 or fiscal 2024.

 Estimates

 The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management evaluates these estimates on an ongoing basis. Estimates which may be particularly significant to the Company's consolidated financial statements include those relating to the determination of impairment of assets (including goodwill and intangible assets), the useful life of property and equipment, the recoverability of deferred income tax assets, allowances for expected credit losses, intangible assets, estimates to complete on contracts where revenue is recognized over time, the carrying value of inventories and long-lived assets, and the timing of revenue recognition. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the recognition of revenues and expenses and the carrying value of assets and liabilities that are not readily apparent from other sources. Assumptions and estimates may, however, prove to have been incorrect, and actual results may differ from these estimates.

 Earnings Per Share

 The Company computes earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Shares of the Company's common stock subject to unvested restricted stock awards and restricted stock units are considered participating securities because they contain a non-forfeitable right to cash dividends (in the case of restricted stock awards) or dividend equivalents (in the case of restricted stock units) paid prior to vesting or forfeiture, if any, irrespective of whether the awards or units ultimately vest. During fiscal 2025 and fiscal 2024, the Company granted restricted stock awards of 263,974 and 175,801 shares, respectively, and 139,122 and 85,672 restricted stock units, respectively, under the EVI Industries, Inc. 2015 Equity Incentive Plan, as amended (see Note 17). Shares of restricted stock are deemed to constitute a second class of stock for accounting purposes. Basic and diluted earnings per share for fiscal 2025 and fiscal 2024 are computed as follows (in thousands, except per share data):

 For the years ended

 2025

 2024

 $
 7,498

 $
 5,646

 Less: distributed and undistributed income allocated to non-vested restricted common stock

 1,073

 Net income allocated to EVI Industries, Inc. shareholders

 $
 6,425

 $
 4,929

 Weighted average shares outstanding used in basic earnings per share

 12,734

 12,650

 Dilutive common share equivalents

 Weighted average shares outstanding used in diluted earnings per share

 13,159

 13,218

 Basic earnings per share

 $
 0.50

 $
 0.39

 Diluted earnings per share

 $
 0.49

 $
 0.37

 At June 30, 2025, other than 1,445,267 unvested shares subject to restricted stock awards or restricted stock units, there were no potentially dilutive securities outstanding. The remaining 609,591 shares of restricted common stock were not included in the calculation of diluted earnings per share because their impact was anti-dilutive. At June 30, 2024, other than 1,475,740 shares subject to restricted stock awards or restricted stock units, there were no potentially dilutive securities outstanding. The remaining 354,610 shares of restricted common stock were not included in the calculation of diluted earnings per share because their impact was anti-dilutive.

 Supplier Concentration

 The Company purchases laundry, dry cleaning equipment, boilers and other products from a number of manufacturers and suppliers. Purchases from four manufacturers accounted for a total of approximately 72 % and 73 % of the Company's product purchases for fiscal 2025 and 2024, respectively.

 Advertising Costs

 The Company expenses the cost of advertising as of the first date an advertisement is run. The Company incurred approximately $ 960,000 and $ 852,000 of advertising costs in fiscal 2025 and fiscal 2024, respectively, which are included in selling, general and administrative expenses in the consolidated statements of operations.

 Shipping and Handling

 Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products are included in selling, general and administrative expenses.

 Fair Value of Certain Current Assets and Current Liabilities

 Fair value is the exchange price that would
be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants at the measurement date. The inputs used to measure fair value are prioritized
based on a three-level hierarchy. The three levels of inputs used to measure fair value are as follows:

 Level 1 - Quoted prices in active markets for identical assets
and liabilities.

 Level 2 - Observable inputs other than quoted prices included
in Level 1. This includes dealer and broker quotations, bid prices, quoted prices for similar assets and liabilities in active markets,
or other inputs that are observable or can be corroborated by observable market data.

 Level 3 - Unobservable inputs that are supported by little or
no market activity and that are significant to the fair value of the assets or liabilities. This includes discounted cash flow methodologies
and similar techniques that use significant unobservable inputs.

 The Company has no assets or liabilities that are adjusted to fair value on a recurring basis. The Company did not have any assets or liabilities measured at fair value on a nonrecurring basis, other than assets and liabilities from acquisitions, during fiscal 2025 or fiscal 2024.

 The Company's cash, accounts receivable
and accounts payable are reflected in the accompanying consolidated financial statements at cost, which approximated estimated fair value,
using Level 1 inputs. Cash is maintained with various high-quality financial institutions and have original maturities of three months
or less. Accounts receivable and accounts payable approximate their fair value due to the short term nature of such accounts. The fair
value of the Company's indebtedness was estimated using Level 2 inputs based on quoted prices for those or similar debt instruments
using applicable interest rates as of June 30, 2025 and approximated the carrying value of such debt because it accrues interest at variable
rates that are repriced frequently. This approximates fair value based on the variable interest rate.

 Customer Deposits

 Customer deposits represent advances paid by or amounts billed to customers when placing orders for equipment with the Company, in advance of delivery.

 Net Investment in Sales Type Leases

 The Company derives a portion of its revenue from leasing arrangements. Such arrangements provide for monthly payments covering the equipment sales, maintenance, and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, the equipment sale is recognized upon delivery of the system and acceptance by the customer. Upon the recognition of revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term.

 Income Taxes

 The Company recognizes income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the

 enactment date. If it is determined that it is more likely than not that some portion of a deferred tax asset will not be realized, a valuation allowance is recognized.

 Judgment is required in developing the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation allowances that might be required against the deferred tax assets. Management evaluates the Company's ability to realize its deferred tax assets on a quarterly basis and adjusts the valuation allowance when it believes that it is more likely than not that the asset will not be realized. There were no valuation allowance adjustments during fiscal 2025 or fiscal 2024.

 The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50 % likely of being realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately reflect actual outcomes. The Company does not believe that there are any material unrecognized tax benefits as of June 30, 2025 or 2024 related to tax positions taken on its income tax returns. The Company's policy is to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense and general and administrative expense, respectively, in the consolidated statements of operations.

 On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions to be effective in fiscal 2026. The Company is currently assessing the impact of the provisions of the OBBBA on the Company's fiscal 2026 consolidated financial statements.

 Leases

 Company as Lessee

 The Company leases warehouse and distribution facilities and administrative office space, generally for terms of three to ten years.

 The Company recognizes the lease payments
under its short-term leases (which are defined as leases with a term of twelve months or less) in profit or loss on a straight-line basis
over the lease term. The Company follows this accounting policy for all classes of underlying assets. In addition, variable lease payments
in the period in which the obligation for those payments is incurred are not included in the recognition of a lease liability or right-of-use
asset.

 Right-of-use assets represent the Company's right to use an underlying asset for the lease term, and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, certain of the Company's leases do not provide a readily determinable implicit rate. For such leases, the Company estimates the incremental borrowing rate to discount lease payments based

 on information available at lease commencement.
The Company uses instruments with similar characteristics when calculating its incremental borrowing rates.

 The Company has options to extend certain
of its operating leases for additional periods of time and the right to terminate several of its operating leases prior to their contractual
expirations, in each case, subject to the terms and conditions of the lease. The lease term consists of the non-cancellable period of
the lease and the periods covered by Company options to extend the lease when management considers it reasonably certain that the Company
will exercise such options. The Company's lease agreements do not contain residual value guarantees. The Company has elected to not separate
non-lease components from the associated lease component for all underlying classes of assets with lease and non-lease components.

 Recently Issued Accounting Guidance

 In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), to enhance segment reporting disclosures. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss, as well as disclosure of the total amount and description of other segment items by reportable segment. This ASU also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. All disclosures about a reportable segment's profit or loss and assets that are currently required on an annual basis under Segment Reporting (Topic 280) will also be required for interim periods under ASU 2023-07. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with retrospective application. The Company adopted ASU 2023-07, effective for the fiscal year ending June 30, 2025, and accordingly is providing enhanced segment disclosures herein. See Note 18, "Segment Reporting."

 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09") to enhance transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires greater standardization and disaggregation of categories within an entity's tax rate reconciliation disclosure, as well as disclosure of income taxes paid by jurisdiction, among other requirements. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 is effective on a prospective basis, with retrospective application permitted. The Company is currently evaluating the effects of this ASU on its income tax disclosures.

 In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) ("ASU 2024-03"), to enhance the transparency and clarity of the components of specific expense categories in the income statement. ASU 2024-03 requires disclosure of additional information about specific expense categories underlying certain income statement expense line items. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. ASU 2024-03 will be effective for the Company's annual financial statements beginning in the fiscal year ending June 30, 2028. The Company is currently evaluating the impact of this accounting standard on its financial statement presentation and its related disclosures.

 Management does not believe that accounting standards and updates which have been issued but are not yet effective will have a material impact on the Company's consolidated financial position, results of operations or cash flows upon adoption.

 3. Acquisitions

 Fiscal 2025 Acquisitions

 LPF Acquisition

 On July 1, 2024, the Company completed the asset acquisition of Laundry Pro
of Florida, Inc. ("LPF"), a Florida based distributor of commercial laundry products and a provider of related technical installation
and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The consideration paid by the
Company in connection with the acquisition consisted of $ 5.9 million in cash. The Company funded the acquisition with borrowings under
its credit facility. Fees and expenses related to the acquisition of LPF, consisting primarily of legal and other professional fees, were
not material and are classified as selling, general and administrative expenses in the Company's consolidated statement of operations
for fiscal 2025.

 The acquisition of LPF was treated for accounting purposes as a purchase
of LPF using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805, Business
Combinations ("ASC 805"), pursuant to which the consideration paid by the Company was allocated to the acquired assets and
assumed liabilities, in each case, based on their respective fair values as of the closing date, with the excess of the consideration
transferred over the fair value of the net assets acquired being allocated to goodwill. The computation of the purchase price consideration
and the allocation of the consideration to the net assets acquired are presented in the following table (in thousands):

 Allocation of purchase price consideration:

 $
 1,672

 Equipment and improvements

 1,470

 ( 16
)

 ( 156
)

 Total identifiable net assets

 3,495

 2,390

 Total

 $
 5,885

 Intangible assets consist of $ 550,000 allocated
to the Laundry Pro of Florida trade name and $ 920,000 allocated to customer-related intangible assets. The Laundry Pro of Florida trade
name is indefinite-lived and therefore not subject to amortization. The Laundry Pro of Florida trade name will be evaluated for impairment
annually, or more frequently if an event occurs or circumstances change that indicate that it may be impaired, by comparing its fair value
to its carrying amount to determine if a write-down to fair value is required. Customer-related intangible assets are being amortized
over 10 years.

 Goodwill is attributable primarily to the assembled workforce acquired, as well as benefits from the increased scale of the Company
as a result of the acquisition. The

 goodwill from the acquisition is deductible for income tax purposes. The financial position,
including assets and liabilities, of LPF is included in the Company's consolidated balance sheet as of June 30, 2025 and the
results of operations of LPF since the July 1, 2024 closing date are included in the Company's consolidated financial
statements for fiscal 2025.

 ODL Acquisition

 On November 1, 2024, the Company completed the asset acquisition of O'Dell
Equipment & Supply, Inc. ("ODL"), an Indiana based distributor of commercial laundry products and a provider of related
technical installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The
consideration paid by the Company in connection with the acquisition consisted of $ 4.6 million in cash, net of working capital adjustments.
The Company funded the acquisition with borrowings under its credit facility. Fees and expenses related to the acquisition of ODL, consisting
primarily of legal and other professional fees, were not material and are classified as selling, general and administrative expenses in
the Company's consolidated statement of operations for fiscal 2025.

 The acquisition of ODL was treated for accounting purposes as a purchase
of ODL using the acquisition method of accounting in accordance with ASC 805, pursuant to which the consideration paid by the Company
was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date,
with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to goodwill. The computation
of the purchase price consideration and the preliminary allocation of the consideration to the net assets acquired are presented in the
following table (in thousands):

 Allocation of purchase price consideration:

 Accounts receivable

 $

 1,032

 Equipment and improvements

 1,750

 ( 361
)

 ( 307
)

 Total identifiable net assets

 2,706

 1,894

 Total

 $
 4,600

 While, as of the date of this Annual Report on Form 10-K, the Company
has finalized its assessment of certain of the assets acquired and liabilities assumed, the Company is continuing its valuation of certain
working capital adjustments, which is subject to adjustment in
accordance with the asset purchase agreement. Accordingly, the purchase price allocation set forth above reflects preliminary fair value
estimates based on preliminary work and analyses performed by management and is subject to change as additional information to assist
in determining the fair value of those assets as of the closing date is obtained during the post-closing measurement period of up to one
year.

 Intangible assets consist of $ 530,000 allocated to the O'Dell
Equipment & Supply trade name and $ 1,220,000 allocated to customer-related intangible assets. The O'Dell Equipment & Supply trade name is indefinite-lived and therefore not subject to amortization. The O'Dell Equipment & Supply trade name will be evaluated for impairment annually, or more frequently if an event occurs or circumstances change

 that indicate that it may be impaired, by comparing its fair value to its carrying amount to determine if a write-down to fair value is required. Customer-related intangible assets are being amortized over 10 years.

 Goodwill is attributable primarily to the assembled workforce acquired,
as well as benefits from the increased scale of the Company as a result of the acquisition. The goodwill from the acquisition is deductible
for income tax purposes. The financial position, including assets and liabilities, of ODL is included in the Company's consolidated
balance sheet as of June 30, 2025 and the results of operations of ODL since the November 1, 2024 closing date are included in the Company's
consolidated financial statements for fiscal 2025.

 HMI Acquisition

 On February 1, 2025, the Company completed the asset acquisition of Haiges
Machinery, Inc. ("HMI"), an Illinois based distributor of commercial laundry products and a provider of related technical
installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The consideration
paid by the Company in connection with the acquisition consisted of $ 2.1 million in cash, net of cash acquired. The Company funded the
acquisition with borrowings under its credit facility. Fees and expenses related to the acquisition of HMI, consisting primarily of legal
and other professional fees, were not material and are classified as selling, general and administrative expenses in the Company's
consolidated statement of operations for fiscal 2025.

 The acquisition of HMI was treated for accounting purposes as a purchase
of HMI using the acquisition method of accounting in accordance with ASC 805, pursuant to which the consideration paid by the Company
was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date,
with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to goodwill. The computation
of the purchase price consideration and the preliminary allocation of the consideration to the net assets acquired are presented in the
following table (in thousands):

 Allocation of purchase price consideration:

 Accounts receivable

 $

 Equipment and improvements

 ( 80
)

 ( 121
)

 Total identifiable net assets

 1,288

 Total

 $
 2,127

 While, as of the date of this Annual Report on Form 10-K, the Company
has finalized its assessment of certain of the assets acquired and liabilities assumed, the Company is continuing its valuation of certain
working capital adjustments, which is subject to adjustment in accordance with the asset purchase agreement. Accordingly, the purchase price allocation set forth above reflects preliminary fair value
estimates based on preliminary work and analyses performed by management and is subject to change

 as additional information to assist
in determining the fair value of those assets as of the closing date is obtained during the post-closing measurement period of up to one
year.

 Intangible assets consist of $ 90,000 allocated to the Haiges Machinery
trade name and $ 140,000 allocated to customer-related intangible assets. The Haiges Machinery trade name is indefinite-lived and therefore
not subject to amortization. The Haiges Machinery trade name will be evaluated for impairment annually, or more frequently if an event
occurs or circumstances change that indicate that it may be impaired, by comparing its fair value to its carrying amount to determine
if a write-down to fair value is required. Customer-related intangible assets are being amortized over 10 years.

 Goodwill is attributable primarily to the assembled workforce acquired,
as well as benefits from the increased scale of the Company as a result of the acquisition. The goodwill from the acquisition is deductible
for income tax purposes. The financial position, including assets and liabilities, of HMI is included in the Company's consolidated
balance sheet as of June 30, 2025 and the results of operations of HMI since the February 1, 2025 closing date are included in the Company's
consolidated financial statements for fiscal 2025.

 GNA Acquisition

 On April 1, 2025, the Company completed the stock acquisition of Girbau North America, Inc. ("GNA"), acquiring 100 % of the voting equity interest in GNA, which is a Wisconsin based master distributor of commercial laundry products and a provider of related technical installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry. The consideration in connection with the acquisition of $ 38.4 million consisted of approximately $ 38.0 million in cash, net of cash acquired, approximately $ 4.2 million in amounts payable to the seller related to post-closing working capital adjustments, and approximately $ 3.8 million for the effective settlement of acquirer receivables. The Company funded the acquisition with borrowings under its credit facility. Fees and expenses related to the acquisition of GNA, consisting primarily of legal and other professional fees, were approximately $ 300,000 and are classified as selling, general and administrative expenses in the Company's consolidated statement of operations for the year ended June 30, 2025.

 The acquisition of GNA was treated for accounting purposes as a purchase
of GNA using the acquisition method of accounting in accordance with ASC 805, pursuant to which the consideration paid by the Company
was allocated to the acquired assets and assumed liabilities, in each case, based on their respective fair values as of the closing date,
with the excess of the consideration transferred over the fair value of the net assets acquired being allocated to goodwill. The computation
of the purchase price consideration and the preliminary allocation of the consideration to the net assets acquired are presented in the
following table (in thousands):

 Allocation of purchase price consideration:

 Accounts receivable

 $
 8,878

 15,158

 Other current assets

 1,209

 Equipment and improvements

 2,474

 7,700

 1,684

 ( 6,885
)

 ( 55
)

 Deferred tax liabilities

 ( 3,014
)

 Total identifiable net assets

 27,149

 11,229

 Total

 $
 38,378

 As of the date of this Annual Report on Form 10-K, the Company is continuing
its valuation of intangible assets, deferred tax liabilities, and certain working capital adjustments, which is subject to adjustment in accordance with the stock purchase agreement. Accordingly, the
purchase price allocation set forth above reflects preliminary fair value estimates based on preliminary work and analyses performed by
management and is subject to change as additional information to assist in determining the fair value of those assets as of the closing
date is obtained during the post-closing measurement period of up to one year.

 Intangible assets consist of $ 7.7 million allocated to customer-related
intangible assets being amortized over 10 years.

 Goodwill is attributable primarily to the assembled workforce acquired,
as well as benefits from the increased scale of the Company as a result of the acquisition. The financial position, including assets and
liabilities, of GNA is included in the Company's consolidated balance sheet as of June 30, 2025 and the results of operations of
GNA since the April 1, 2025 closing date are included in the Company's consolidated financial statements for fiscal 2025.

 Fiscal 2024 Acquisitions

 On September 1, 2023, the Company completed the acquisition of ALVF,
Inc. (dba ALCO Washer Center) ("ALCO"), a Pennsylvania based distributor of commercial laundry products and a provider of
related technical, installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry industry.
The consideration paid by the Company in connection with the acquisition consisted of $ 1,092,000 in cash and 8,621 shares of the Company's
common stock, with an acquisition date fair value of approximately $ 229,000. Fees and expenses related to the acquisition, consisting
primarily of legal and other professional fees, were not material and are classified as selling, general and administrative expenses in
the Company's consolidated statement of operations for fiscal 2024. The acquisition was treated for accounting purposes as a purchase
of ALCO using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805, Business
Combinations ("ASC 805"), pursuant to which the consideration paid by the Company was allocated to the acquired assets and
assumed liabilities, in each case, based on their respective fair values as of the closing date, with the excess of the consideration
transferred over the fair value of the net assets acquired being allocated to goodwill. The Company allocated $ 899,000 to goodwill, which
is expected to be amortized and deductible for tax purposes over 15 years. Goodwill is attributable primarily to the assembled workforce,
as well as the expected benefits from the increased scale of the Company as a result of the acquisition. The financial position, including
assets and liabilities, of ALCO is included in the Company's consolidated balance sheets as of June 30, 2024 and 2025 and the results
of operations of ALCO since the September 1, 2023 closing date are included in the Company's consolidated financial statements for
fiscal 2024 and fiscal 2025.

 On June 1, 2024, the Company completed the acquisition of Signature
Services Corporation (d/b/a Ed Brown Distributors) ("EBD"), a Texas based distributor of commercial laundry products and a
provider of related technical, installation and maintenance services to the on-premise and vended laundry segments of the commercial laundry
industry. The consideration paid by the Company in connection with the acquisition consisted of $ 937,000 in cash. Fees and expenses related
to the acquisition, consisting primarily of legal and other professional fees, were not material and are classified as selling, general
and administrative expenses in the Company's consolidated statement of operations for fiscal 2024. The acquisition was treated for
accounting purposes as a purchase of EBD using the acquisition method of accounting in accordance with ASC 805, pursuant to which the
consideration paid by the Company was allocated to the acquired assets and assumed liabilities, in each case, based on their respective
fair values as of the closing date, with the excess of the consideration transferred over the fair value of the net assets acquired being
allocated to goodwill. The Company allocated $ 928,000 to goodwill, which is expected to be amortized and deductible for tax purposes over
 15 years. Goodwill is attributable primarily to the assembled workforce, as well as the expected benefits from the increased scale of
the Company as a result of the acquisition. The financial position, including assets and liabilities, of EBD is included in the Company's
consolidated balance sheets as of June 30, 2024 and 2025, and the results of operations of EBD since the June 1, 2024 closing date are
included in the Company's consolidated financial statements for fiscal 2024 and fiscal 2025.

 Supplemental Pro Forma Results of Operations

 The following supplemental pro forma information presents the results of operations of the Company, after giving effect to the above-described acquisitions completed by the Company during fiscal 2025 and fiscal 2024. As permitted by ASC 805-10-50-2, the following supplemental pro forma information does not give effect to the acquisition of ODL because it was impracticable to provide such information for the periods presented due to the lack of availability of meaningful financial statements of ODL that comply with GAAP.

 The following supplemental pro forma information was prepared as if
the acquisitions were consummated on July 1, 2023. The supplemental pro forma information set forth below reflects
adjustments based on currently available information and assumptions made by management. While management believes the assumptions made
are reasonable under the circumstances, they may not prove to be accurate. The pro forma information set forth below is presented for
informational purposes only and is not necessarily indicative of what the actual results of operations of the Company would have been
if the acquisitions had occurred on the date assumed, nor is it indicative of future results of operations.

 For the year ended

 (in thousands)

 2025
 (Unaudited)

 2024
 (Unaudited)

 Revenues

 $
 433,485,131

 $
 423,357,744

 11,133,187

 12,537,051

 The Company's consolidated results of operations for fiscal 2025
include total revenue of approximately $ 30.8 million and total net income of approximately $ 2.0 million attributable to businesses acquired
during fiscal 2025 and fiscal 2024, based on the consolidated effective tax rate. These results of acquired businesses do not include
the effects of acquisition costs or interest expense associated with consideration paid for the acquisitions.

 Subsequent Acquisition

 On August 1, 2025, the Company acquired New York-based ASN Laundry
Group for total consideration of $ 0.6 million in cash. The Company is in the process of determining the respective fair values of the
assets acquired and liabilities assumed. The amounts for these items are subject to change as additional information to assist in determining
their respective fair values as of the closing date is obtained during the post-closing measurement period of up to one year.

 4. Accounts Receivable

 Accounts receivable as of June 30, 2025 and 2024 consisted of the following
(in thousands):

 2025

 2024

 Accounts receivable - trade

 $
 63,572

 $
 43,009

 Allowance for expected credit losses

 ( 3,078
)

 ( 2,077
)

 $
 60,494

 $
 40,932

 5. Other Current Assets

 Other current assets as of June 30, 2025 and 2024 were comprised of
the following (in thousands):

 2025

 2024

 Other receivables

 $

 $

 Prepaid insurance

 Net investments in sales type leases - current

 1,769

 1,679

 Other current assets

 5,579

 2,856

 $
 8,346

 $
 5,671

 6. Leases

 Company as Lessee

 As of June 30, 2025, the Company had 36 facilities, consisting of warehouse
facilities and administrative offices, financed under operating leases with lease term expirations between 2025 and 2031. Rent expense
consists of monthly rental payments under the terms of the Company's lease agreements recognized on a straight-line basis.

 The following table sets forth the Company's future minimum lease
payments under operating lease liabilities recorded on the Company's consolidated balance sheet as of June 30, 2025. The
table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.

 Fiscal years ending June 30,

 Maturity of

 Operating Lease
 Liabilities
 (in thousands)

 2026

 $
 4,233

 2027

 3,200

 2028

 2,190

 2029

 1,531

 2030

 1,256

 Thereafter

 Total lease payments

 $
 12,822

 Less: amounts representing interest

 1,047

 Present value of lease liabilities

 $
 11,775

 Less: current portion

 3,778

 Long-term portion

 $
 7,997

 The table below presents additional information related to the Company's
operating leases (in thousands):

 Operating lease cost

 Fiscal year ended

2025

 Fiscal year ended

2024

 Operating lease cost (1)

 $

 3,967

 $

 3,995

 Variable
lease cost (2)

 5,016

 4,810

 Total lease cost

 $

 8,983

 $

 8,805

 (1)
 Expenses are classified within selling, general and administrative
expenses in the Company's consolidated statements of operations for the fiscal years ended June 30, 2025 and 2024.

 (2)
 Certain of the Company's subsidiaries lease space at
locations where (i) they install laundry equipment and customers pay for the use of equipment and (ii) the leased space is paid for as
part of a revenue sharing arrangement. These expenses are classified within cost of sales in the Company's consolidated statements
of operations for the fiscal years ended June 30, 2025 and 2024.

 The table below presents lease-related terms and discount rates as
of June 30, 2025 and 2024:

 June 30, 2025

 June 30, 2024

 Weighted average remaining lease terms

 Operating leases

 3.74 years

 3.6 years

 Weighted average discount rate

 Operating leases

 4.10
 %

 3.48
 %

 The table below presents supplemental cash flow information related
to the Company's long-term operating lease liabilities for the fiscal years ended June 30, 2025 and 2024 (in thousands):

 Fiscal year ended
June 30, 2025

 Fiscal year
ended
June 30, 2024

 Cash paid for amounts included in the measurement of lease liabilities:

 $
 3,967

 $
 3,995

 Operating lease right-of-use assets obtained in exchange for operating lease liabilities:

 $
 6,197

 $
 2,955

 Company as Lessor

 The Company derives a portion of its revenue from equipment leasing
arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance, and interest. These arrangements
meet the criteria to be accounted for as sales type leases. Accordingly, revenue related to the provision of the equipment is recognized
upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the
investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term.

 The future minimum lease payments receivable for sales type leases
are as follows (in thousands):

 Fiscal years ending June 30,

 Total Minimum

 Lease Payments

 to be Received

 Amortization

 of Unearned

 Income

 Net Investment in

 Sales Type

 Leases

 2026

 $
 5,219

 $
 3,362

 $
 1,857

 2027

 4,086

 2,575

 1,511

 2028

 3,052

 1,754

 1,298

 2029

 2,091

 1,071

 1,020

 2030

 1,206

 Thereafter

 1,416

 $
 7,042
 *

 * Excludes non-guaranteed residual
values of $ 2.8 million.

 The total net investments in
sales type leases, including stated residual values, as of June 30, 2025 and June 30, 2024 was $ 9.8 million and $ 9.7 million, respectively.
The current portion of $ 1.8 million and $ 1.7 million is included in other current assets in the consolidated balance sheets as of June
30, 2025 and June 30, 2024, respectively, and the long term portion of $ 8.0 million is included in other assets in the consolidated balance
sheets as of both June 30, 2025 and June 30, 2024.

 7. Equipment and Improvements

 Major classes of equipment and improvements as of June 30, 2025 and
2024 consisted of the following (in thousands):

 2025

 2024

 Furniture and equipment

 $
 23,586

 $
 18,512

 Building and leasehold improvements

 4,387

 3,399

 Vehicles

 8,282

 7,427

 36,255

 29,338

 Accumulated depreciation and amortization

 ( 18,483
)

 ( 15,388
)

 $
 17,772

 $
 13,950

 Depreciation and amortization of equipment, vehicles, and improvements
totaled approximately $ 4.2 million in fiscal 2025 compared to $ 3.9 million in fiscal 2024 and is recorded in selling, general and administrative
expenses.

 8. Goodwill and Intangible Assets

 The changes in the carrying amount of goodwill are as follows (in thousands):

 Balance at June 30, 2023

 $
 73,388

 Goodwill from fiscal 2024 acquisitions (as described in Note 3)

 1,739

 Working capital adjustments (1)

 ( 25
)

 Balance at June 30, 2024

 $
 75,102

 Goodwill from fiscal 2025 acquisitions (as described in Note 3)

 16,352

 Goodwill from other acquisitions (2)

 Working capital adjustments (3)

 Balance at June 30, 2025

 $
 91,667

 (1)
 Relates to working capital adjustments from business acquisitions consummated by the Company during fiscal
2023.

 (2)
 Relates to other, smaller-scale acquisitions consummated during fiscal 2025

 (3)
 Relates to working capital adjustments from business acquisitions
consummated by the Company during fiscal 2024.

 Customer-related intangibles and tradenames as of June 30, 2025 and 2024 consisted of the following (dollars in thousands):

 Estimated
 Useful Lives
 (in years)

 2025

 2024

 Customer-related intangibles

 8 - 10

 $
 31,047

 $
 20,887

 Tradenames

 Indefinite

 14,175

 13,005

 45,222

 33,892

 Accumulated amortization

 ( 14,347
)

 ( 11,870
)

 $
 30,875

 $
 22,022

 Amortization expense was approximately $ 2.5 million in fiscal 2025
compared to approximately $ 2.1 million in fiscal 2024, and is included in selling, general and administrative expenses in the consolidated
statements of operations. As of June 30, 2025, the weighted average remaining estimated useful lives for customer-related intangibles was 7.4 years.

 Based on the carrying amount of intangible assets as of June 30, 2025,
and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in the five-year
period ending June 30, 2030 and thereafter is as follows (in thousands):

 Fiscal years ending June 30,

 2026

 $
 3,117

 2027

 2,794

 2028

 2,272

 2029

 1,732

 2030

 1,532

 Thereafter

 5,253

 Total

 $
 16,700

 9. Accounts Payable and Accrued Expenses

 Accounts payable and accrued expenses as of June 30, 2025 and 2024
were comprised of the following (in thousands):

 2025

 2024

 Accounts payable

 $
 37,942

 $
 23,101

 Accrued expenses

 11,080

 6,025

 Sales tax accruals

 1,941

 1,778

 $
 50,963

 $
 30,904

 10. Income Taxes

 The following are the components of income taxes provision (benefit)
(in thousands):

 Fiscal years ended June 30,

 2025

 2024

 Current

 Federal

 $
 3,200

 $
 2,195

 State

 1,148

 4,348

 2,763

 Deferred

 Federal

 ( 638
)

 State

 ( 183
)

 ( 41
)

 ( 821
)

 $
 3,527

 $
 3,238

 The reconciliation of income tax expense computed at the federal statutory
tax rate of 21 % for the fiscal years ended June 30, 2025 and 2024 to the provision for income taxes is as follows (in thousands):

 Fiscal years ended June 30,

 2025

 2024

 Tax at the statutory rate

 $
 2,313

 $
 1,866

 State income taxes, net of federal benefit

 Nondeductible compensation

 Other

 ( 49
)

 $
 3,527

 $
 3,238

 Effective tax rate

 32.0
 %

 36.4
 %

 Deferred income taxes reflect the net tax effect of temporary differences
between the basis of assets and liabilities for financial reporting purposes and the basis used for income tax purposes. Significant components
of the Company's current and noncurrent deferred tax assets and liabilities as of June 30, 2025 and 2024 were as follows (in thousands):

 As of June 30,

 2025

 2024

 Deferred tax assets:

 Allowance for credit losses

 $

 $

 Other reserves

 1,048

 -

 Inventory capitalization

 1,303

 Stock compensation

 1,325

 1,039

 Accrued liabilities

 1,958

 1,581

 Other

 6,549

 4,030

 Deferred tax liabilities:

 ( 6,984
)

 ( 5,755
)

 Inventory method changes

 ( 1,366
)

 -

 Depreciation

 ( 2,701
)

 ( 2,228
)

 ( 3,189
)

 ( 1,348
)

 Other

 -

 ( 197
)

 ( 14,240
)

 ( 9,528
)

 Net deferred income tax (liabilities) assets

 $
 ( 7,691
)

 $
 ( 5,498
)

 As of June 30, 2025, the Company was subject to potential federal and
state tax examinations for the tax years including and subsequent to 2020.

 11. Debt

 The Company's long-term debt as of June 30, 2025 and 2024 was
as follows (in thousands):

 2025

 2024

 Revolving Line of Credit

 $
 53,000

 $
 13,000

 Less: unamortized discount and deferred financing costs

 -

 ( 97
)

 Total long-term debt

 $
 53,000

 $
 12,903

 The Company is party, as borrower, to a syndicated credit agreement
(the "Credit Agreement"). Prior to the amendment described below, the agreement allowed for borrowings in the maximum aggregate
principal amount of up to $ 100 million, with an accordion feature to increase the revolving credit facility by up to $ 40 million for a
total of $ 140 million. On March 26, 2025, the Company amended the Credit Agreement to increase the maximum aggregate principal amount
from $ 100 million to $ 150 million and increase the accordion feature from $ 40 million to $ 50 million, for a total of $ 200 million. A portion
of the revolving credit facility is available for swingline loans and for the issuance of standby letters of credit. The amendment increased
the sublimit for swingline loans from $ 5 million to $ 7.5 million and the sublimit for standby letters of credit from $ 10 million to $ 15
million. In addition, as part of the amendment, the maturity date of the Credit Agreement was extended from May 6, 2027 to March 26, 2030.

 Pursuant to the terms of the Credit Agreement, in connection with the
discontinuation of the Bloomberg Short-Term Bank Yield Index rate (the "BSBY rate"), during October 2024, the BSBY rate was
replaced as the reference rate under the Credit Agreement by the Secured Overnight Financing Rate ("SOFR") plus a SOFR adjustment
ranging from a minimum of 0.11 % to a maximum of 0.43 %. As a result, borrowings (other than swingline loans) under the Credit Agreement
bear interest, at a rate, at the Company's election at the time of borrowing, equal to (a) SOFR plus 0.11 % to 0.43 %, plus an additional
adjustment margin that ranges between 1.25 % and 1.75 % depending on the Company's consolidated leverage ratio, which is a ratio of
consolidated funded indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (the "Consolidated
Leverage Ratio") or (b) the highest of (i) prime, (ii) the federal funds rate plus 50 basis points, and (iii) SOFR plus 100 basis
points (such highest rate, the "Base Rate"), plus a margin that ranges between 0.25 % and 0.75 % depending on the Consolidated
Leverage Ratio. Swingline loans generally bear interest at the Base Rate plus a margin that ranges between 0.25 % and 0.75 % depending on
the Consolidated Leverage Ratio.

 The Credit Agreement contains certain
covenants, including financial covenants requiring the Company to comply with maximum leverage ratios and minimum interest coverage ratios.
The Credit Agreement also contains other provisions which may restrict the Company's ability to, among other things, dispose of
or acquire assets or businesses, incur additional indebtedness, make certain investments and capital expenditures, pay dividends, repurchase
shares and enter into transactions with affiliates. At June 30, 2025, the Company was in compliance with its covenants under the Credit
Agreement and $ 56.1 million was available to borrow under the revolving credit facility.

 The obligations of the Company under the Credit Agreement are secured
by substantially all of the assets of the Company and certain of its subsidiaries, and are guaranteed, jointly and severally, by certain
of the Company's subsidiaries.

 The carrying value of the Company's long-term debt reported in
the consolidated balance sheets herein approximates its fair value since it bears interest at variable rates approximating market
rates.

 12. Related Party Transactions

 Certain of the Company's subsidiaries lease warehouse and office
space from one or more of the principals (or former principals) of the Company or its subsidiaries. These leases include the following:

 On October 10, 2016, the Company's wholly-owned subsidiary, Western
State Design, entered into a lease agreement pursuant to which it leases 17,600 square feet of warehouse and office space from an affiliate
of Dennis Mack, a director and employee of the Company, and Tom Marks, Executive Vice President, Business Development and President of
the West Region of the Company. The lease had an initial term of five years and provides for two successive three-year renewal terms at
the option of the Company. The Company exercised its option to renew the lease for the first three-year renewal term, which commenced
in October 2021, and the second three-year renewal term, which commenced in October 2024. Base rent for the first renewal term was $ 19,000
per month. Base rent for the second renewal term is $ 21,000 per month. In addition to base rent, Western State Design is responsible under
the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments under this lease totaled approximately
$ 244,000 and $ 252,000 during fiscal 2025 and fiscal 2024, respectively.

 On November 1, 2018, the Company's wholly-owned subsidiary, AAdvantage
Laundry Systems, entered into a lease agreement pursuant to which it leases warehouse and office space from an affiliate of Mike Zuffinetti,
former Chief Executive Officer of AAdvantage. Pursuant to the lease agreement, on January 1, 2019, the lease expanded to cover additional
warehouse space. The lease had an initial term of five years and provides for two successive three-year renewal terms at the option
of the Company. The Company exercised its option to renew the lease for the first three-year renewal term, which commenced in November
2023. Base rent for the initial term was $ 36,000 per month. Base rent for the first renewal term is $ 40,000 per month. In addition to
base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance.
Payments under this lease totaled approximately $ 480,000 and $ 464,000 during fiscal 2025 and fiscal 2024, respectively.

 On November 3, 2020, the Company's wholly-owned subsidiary, Yankee
Equipment Systems, entered into a lease agreement pursuant to which it leases a total of 12,500 square feet of warehouse and office space
from an affiliate of Peter Limoncelli, President of Yankee Equipment Systems. The lease had an initial term of three years and

 provides
for three successive three-year renewal terms at the option of the Company. The Company exercised its option to renew this lease for the
first three-year renewal term, which commenced in November 2023. Base rent for the initial term was $ 11,000 per month. Base rent for the
first year of the renewal term was $ 12,500 per month. Base rent for the second year of the renewal term is $ 12,750 per month. In addition
to base rent, Yankee Equipment Systems is responsible under the lease for costs related to real estate taxes, utilities, maintenance,
repairs and insurance. Payments under this lease totaled approximately $ 152,000 and $ 150,000 during fiscal 2025 and fiscal 2024, respectively.

 13. Concentrations of Credit Risk

 The Company believes that concentrations of credit risk with respect
to trade receivables are limited due to the Company's large customer base. Also, based on the Company's credit evaluation,
trade receivables are often collateralized by the equipment sold. No single customer or contract accounted for more than 10% of the Company's
revenues for fiscal 2025 or fiscal 2024. As of June 30, 2025, there were no accounts receivable due from any customer which accounted
for greater than 10% of the Company's accounts receivable.

 14. Commitments and Contingencies

 In the ordinary course of business, certain of the Company's
contracts require the Company to provide performance and payment bonds related to projects in process. These bonds are intended to provide
a guarantee to the customer that the Company will perform under the terms of the contract and that the Company will pay subcontractors
and vendors. If the Company fails to perform under the contract or pay subcontractors and vendors, the customer may demand that the surety
make payments or provide services under the bond. The Company is required to reimburse the surety for expenses or outlays it incurs. Outstanding
performance bonds totaled $ 1.2 million at both June 30, 2025 and June 30, 2024.

 The Company may from time to time become subject to litigation and
other legal and regulatory proceedings. Litigation and other proceedings may require the Company to incur significant expenses, including
those relating to legal and other professional fees, as well as damages or other payments. Litigation and other proceedings are inherently
uncertain, and adverse outcomes in litigation or other proceedings could adversely affect the Company's financial condition, cash
flows, and operating results.

 15. Retirement Plan

 The Company has participatory deferred compensation plans under which
it matches 50 % of employee contributions up to 6 % of an eligible employee's yearly compensation on a discretionary basis. Employees
are eligible to participate in the plans after six months of service. The Company contributed approximately $ 833,000 and $ 821,000 to the
plans during fiscal 2025 and fiscal 2024, respectively. The plans are qualified plans under Section 401(k) of the Internal Revenue Code.

 16. Shareholders' Equity

 The declaration and payment of cash dividends with respect to the Company's
common stock is determined by the Company's Board of Directors based on the Company's financial condition and liquidity needs
and other factors deemed relevant by the Company's Board of Directors. In addition, the Company's Credit Agreement contains
certain covenants which may, among other things, restrict the Company's ability to pay dividends, and any future facilities may
contain similar or more stringent requirements.

 On October 4, 2023, the Company's Board of Directors declared a special cash dividend on the Company's common stock of $ 0.28 per share (totaling approximately $ 4.1 million in the aggregate), which was paid on October 26, 2023 to stockholders of record at the close of business on October 16, 2023.

 On September 11, 2024, the Company's Board of Directors declared a special cash dividend on the Company's common stock of $ 0.31 per share (totaling approximately $ 4.6 million in the aggregate), which was paid on October 7, 2024 to stockholders of record at the close of business on September 26, 2024.

 On September 11, 2025, the Company's Board of Directors declared a special cash dividend on the Company's
common stock of $ 0.33 per share to be paid on October 6, 2025 to shareholders of record at the close of business on September 25, 2025.

 17. Equity Plan

 Equity Incentive Plan

 During 2015, the Company's board of directors and stockholders approved the Company's 2015 Equity Incentive Plan (the "Plan"). During December 2020, the Company's stockholders approved an amendment to the Plan to increase the number of shares of the Company's common stock authorized for issuance pursuant to awards granted under the Plan from 1,500,000 shares to 3,000,000 shares. During December 2024, the Company's stockholders approved an amendment to the Plan to, among other things, further increase the number of shares of the Company's common stock authorized for issuance pursuant to awards granted under the Plan to 3,500,000 shares. The fair value of awards granted under the Plan is expensed on a straight-line basis over the vesting period of the awards. Share-based compensation expense is included in selling, general and administrative expenses in the Company's consolidated statements of operations. Non-cash share-based compensation expense under the Plan totaled $ 4.6 million and $ 5.0 million for fiscal 2025 and fiscal 2024, respectively. Included within the non-cash share-based compensation expense for fiscal 2024 is an additional expense of $ 1.2 million related to the acceleration of vesting of 120,851 restricted stock awards and 30,000 restricted stock units, in each case, pursuant to the terms of the applicable award agreement.

 During fiscal 2025, restricted stock awards of a total of 263,974 shares
and 139,122 restricted stock units were granted under the Plan. A portion of the restricted stock awards granted during fiscal 2025 is
scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 years from the date of grant. The total grant date
fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $ 4.2 million. A portion
of the restricted stock units granted during fiscal 2025 is scheduled to vest ratably over four years and the remainder is scheduled to
vest in 4 to 19 years from the date of grant. The total grant date fair value of such restricted stock units was $ 2.6 million.

 During fiscal 2024, restricted stock awards of a total of 175,801 shares
and 85,672 restricted stock units were granted under the Plan. A portion of the restricted stock awards granted during fiscal 2024 is
scheduled to vest ratably over four years and the remainder is scheduled to vest in 10 years from the date of grant. The total grant date
fair value, determined by using the closing stock price on the date of grant, of such restricted stock awards was $ 4.8 million. A portion
of the restricted stock units granted during fiscal 2024 is scheduled to vest ratably over four years and the remainder is scheduled to
vest in 4 to 22 years from the date of grant. The total grant date fair value of such restricted stock units was $ 2.2 million.

 During fiscal 2025, 73,277 shares of restricted stock awards and 35,009
restricted stock units vested and 37,207 shares of common stock with an aggregate fair market value of $ 0.7 million were withheld as payment
in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock.

 During fiscal 2024, 107,859 shares of restricted stock awards and 34,955
restricted stock units vested and 50,671 shares of common stock with an aggregate fair market

 value of $ 1.2 million were withheld as payment
in lieu of cash to satisfy tax withholding obligations in connection with the vesting of such restricted stock.

 As of June 30, 2025, the Company had $ 22.5 million and $ 11.0 million
of total unrecognized compensation expense related to non-vested restricted stock awards and restricted stock units, respectively, which
is expected to be recognized over the weighted-average period of 11.8 years and 9.5 years, respectively.

 The following is a summary of non-vested restricted stock activity
as of, and for the fiscal year ended, June 30, 2025:

 Restricted Stock Awards

 Restricted Stock Units

 Shares

 Weighted-

Average Grant

Date Fair Value

 Shares

 Weighted-

Average Grant

Date Fair Value

 Non-vested restricted stock outstanding at June 30, 2024

 1,295,824

 $
 21.06

 548,524

 $
 24.20

 Granted

 263,974

 16.10

 139,122

 18.74

 Vested

 ( 73,227
)

 24.17

 ( 35,009
)

 24.80

 Forfeited

 -

 -

 ( 8,304
)

 28.94

 Non-vested restricted stock outstanding at June 30, 2025

 1,486,571

 20.03

 644,333

 22.93

 Employee Stock Purchase Plan

 During 2017, the Company's stockholders approved the Company's
2017 Employee Stock Purchase Plan (the "ESPP"). Subject to the terms and conditions thereof, the ESPP allows eligible employees
the opportunity to purchase shares of the Company's common stock at a 5 % discount. The ESPP provides for six-month offering periods
ending on December 31 and June 30 of each year. During fiscal 2025, 6,927 shares of common stock were purchased under the ESPP for which
the Company received net proceeds of $ 124,000. During fiscal 2024, 5,716 shares of common stock were purchased under the ESPP for which
the Company received net proceeds of $ 116,000.

 18. Segment Reporting

 The Company has one operating and reporting segment: commercial laundry,
which includes the distribution of commercial laundry equipment, related parts, supplies, and service. The segment is managed on a consolidated
basis, with the CEO serving as the chief operating decision maker (the "CODM"). On a monthly basis, the CODM reviews financial
information presented on a consolidated basis and uses consolidated operating income and net income to assess performance and allocate
resources.

 Significant expenses within operating income and net income include
cost of sales and selling, general and administrative expenses, which are each separately presented in the consolidated statements of
income. Other segment items within net income include interest and income taxes.

 Item 9. Changes in and Disagreements
With Accountants on Accounting and Financial Disclosure.

 None.

 Item 9A. Controls and Procedures.

 Evaluation of Disclosure Controls and Procedures

 As of
the end of the period covered by this Report, management of the Company, with the participation of the Company's principal executive
officer and principal financial officer, evaluated the effectiveness of the Company's "disclosure controls and procedures"
(as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")). Based
on that evaluation, the Company's principal executive officer and principal financial officer concluded that, as of June 30, 2025,
the Company's disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports
that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified
in the rules and forms of the SEC and is accumulated and communicated to the Company's management, including the Company's
principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

 The Company's management,
including the Company's principal executive officer and principal financial officer, does not expect that the Company's disclosure
controls and procedures and internal control over financial reporting will prevent all errors and improper conduct. A control system,
no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures
within the Company to disclose material information otherwise required to be set forth in the Company's periodic reports or that
the objectives of the control system will otherwise be met. Further, the design of a control system must reflect the fact that there are
resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in
all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of improper conduct,
if any, 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
or by the collusion of two or more people. Further, the design of any control system is based in part upon assumptions about the likelihood
of future events, and there can be no assurance that any such design will succeed in achieving its stated goals under all potential future
conditions.

 Management's Report on Internal Control over Financial Reporting

 The Company's management
is responsible for establishing and maintaining adequate "internal control over financial reporting" (as defined in Rule 13a-15(f)
and 15d-15(f) under the Exchange Act). "Internal control over financial reporting" means a process designed by, or under the
supervision of, a company's principal executive and principal financial officers, and effected by the company's board of directors,
management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with GAAP and includes those policies and procedures that (i) pertain to the
maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the
company, (ii) provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements
in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of the
company's management and directors, and (iii) provide reasonable assurance regarding the prevention or timely detection of unauthorized
acquisition, use or disposition of the company's assets that could have a material effect on the company's financial statements.

 Because of inherent limitations,
internal control over financial reporting may not prevent or detect misstatements. Also, the projection of any evaluation of effectiveness
to future periods is subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies and procedures may deteriorate.

 The Company's
management, with the participation of the Company's principal executive officer and principal financial officer, evaluated the effectiveness
of the Company's internal control over financial reporting as of June 30, 2025. This evaluation was conducted using the criteria
set forth by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in the 2013 Internal Control – Integrated
Framework. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing
of the operating effectiveness of controls and a conclusion on this evaluation. Based on its evaluation, the Company's management
concluded that the Company's internal control over financial reporting was effective as of June 30, 2025.

 Management has excluded GNA, HMI, LPF, and ODL from its assessment
of internal control over financial reporting as of June 30, 2025. These businesses were acquired by the Company during fiscal 2025, and
management has not conducted an assessment of the internal control over financial reporting of these businesses. Total assets and revenues
of GNA represented 20% and 4%, respectively, of the related consolidated financial statement amounts of the Company as of, and for the
fiscal year ended, June 30, 2025. Total assets and revenues of HMI in each case represented 1% of the related consolidated financial statement
amount of the Company as of, and for the fiscal year ended, June 30, 2025. Total assets and revenues of LPF in each case represented 2%
of the related consolidated financial statement amount of the Company as of, and for the fiscal year ended, June 30, 2025. Total assets
and revenues of ODL represented 2% and 1%, respectively, of the related consolidated financial statement amounts of the Company as of,
and for the fiscal year ended, June 30, 2025.

 BDO
USA, P.C. ("BDO"), the Company's independent registered public accounting firm, has audited the Company's internal
control over financial reporting as of June 30, 2025 and its report thereon is included herein.

 Changes in Internal Control over Financial Reporting

 During the quarter ended June
30, 2025, there were no changes in the Company's internal control over financial reporting that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over financial reporting.

 Report of Independent Registered Public Accounting Firm

 Shareholders and Board of Directors

 EVI Industries, Inc.

 Miami, Florida

 Opinion on Internal Control over Financial Reporting

 We have audited EVI Industries, Inc.'s (the
"Company's") internal control over financial reporting as of June 30, 2025, based on criteria established in Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the "COSO
criteria"). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting
as of June 30, 2025, based on the COSO criteria.

 We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2025 and 2024, the related consolidated statements
of operations, shareholders' equity, and cash flows for each of the years then ended, and the related notes and our report dated
September 11, 2025 expressed an unqualified opinion thereon.

 Basis for Opinion

 The Company's management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Item 9A, Management's Report on Internal Control over Financial Reporting. Our responsibility
is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit of internal control over financial
reporting in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

 As indicated in the accompanying Item 9A, Management's
Report on Internal Control over Financial Reporting, management's assessment of and conclusion on the effectiveness of internal
control over financial reporting did not include the internal controls of Girbau
North America, Inc. ("GNA"), Haiges Machinery, Inc. ("HMI"), Laundry Pro of Florida, Inc. ("LPF"),
and O'Dell Equipment & Supply, Inc. ("ODL") which were acquired by the Company during the year ended June 30, 2025,
and which are included in the consolidated balance sheet of the Company as of June 30, 2025, and the related consolidated statements
of operations, shareholders' equity, and cash flows for the year then ended. Total assets and revenues of GNA represented 20% and
4%, respectively, of the related consolidated financial statement amounts of the Company as of and for the year ended, June 30, 2025,
respectively. Total assets and revenues of HMI represented 1% and 1%, respectively, of the related consolidated financial statement amounts
of the Company as of and for the year ended, June 30, 2025, respectively. Total assets and revenues of LPF represented 2% and 2%, respectively,
of the related consolidated financial statement amounts of the Company as of and for the year ended, June 30, 2025, respectively. Total
assets and revenues of ODL represented 2% and 1%, respectively, of the related consolidated financial statement amounts of the Company
as of and for the year ended, June 30, 2025, respectively. Management did not assess the effectiveness of internal control over financial
reporting of GNA, HMI, LPF, and ODL because of the timing of their acquisitions. Our audit of internal control over financial reporting
of the Company also did not include an evaluation of the internal control over financial reporting of GNA, HMI, LPF and ODL.

 Definition and Limitations of Internal Control
over Financial Reporting

 A company's internal control over
financial reporting is a process designed 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. A
company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect
on the financial statements.

 Because of its inherent limitations, internal control
over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

 /s/ BDO USA, P.C.

 Miami, Florida

 Item 9B. Other Information.

 During the quarter ended June
30, 2025, none of the Company's directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading plan or a "non-Rule
10b5-1 trading arrangement," as defined in Item 408(a) of Regulation S-K.

 Item 9C. Disclosure Regarding
Foreign Jurisdictions that Prevent Inspections.

 Not applicable.

 Item 10. Directors, Executive Officers
and Corporate Governance.

 The information required by Item
10 of Form 10-K will be provided by incorporating the information required under such item by reference to the Company's Definitive
Proxy Statement with respect to the Company's 2025 Annual Meeting of Stockholders, if filed with the SEC within 120 days after the
end of the fiscal year covered by this Report, or, alternatively, by amendment to this Report filed with the SEC under cover of Form 10-K/A
no later than the end of such 120-day period.

 Item 11. Executive Compensation.

 The information required by Item
11 of Form 10-K will be provided by incorporating the information required under such item by reference to the Company's Definitive
Proxy Statement with respect to the Company's 2025 Annual Meeting of Stockholders, if filed with the SEC within 120 days after the
end of the fiscal year covered by this Report, or, alternatively, by amendment to this Report filed with the SEC under cover of Form 10-K/A
no later than the end of such 120-day period.

 Item 12. Security Ownership
of Certain Beneficial Owners and Management and Related Stockholder Matters.

 Equity Compensation Plan Information

 The following table sets forth
information, as of June 30, 2025, with respect to compensation plans under which shares of the Company's common stock are authorized
for issuance.

 Plan category

 Number of securities to

be issued upon exercise of

 outstanding options,

warrants and rights

 Weighted-average

 exercise price of

outstanding options,

warrants and rights

 Number of securities

 remaining available for

 future issuance under

equity compensation

 plans (excluding

securities reflected in

column (a))

 (a)

 (b)

 (c)

 Equity compensation plans approved by security holders

 $-

 869,884 (1)

 Equity compensation plans not approved by security holders

 $-

 Total

 $-

 869,884 (1)

 (1)
 Includes 802,397 shares of the Company's common stock
available for issuance under the Company's 2015 Equity Incentive Plan, as amended, and 67,487 shares of the Company's common
stock available for issuance under the Company's 2017 Employee Stock Purchase Plan.

 Other Information

 The remaining information required
by Item 12 of Form 10-K will be provided by incorporating such information by reference to the Company's Definitive Proxy Statement
with respect to the Company's

 2025 Annual Meeting of Stockholders, if filed with the SEC within 120 days after the end of the fiscal
year covered by this Report, or, alternatively, by amendment to this Report filed with the SEC under cover of Form 10-K/A no later than
the end of such 120-day period.

 Item 13. Certain Relationships and
Related Transactions, and Director Independence.

 The information required by Item
13 of Form 10-K will be provided by incorporating the information required under such item by reference to the Company's Definitive
Proxy Statement with respect to the Company's 2025 Annual Meeting of Stockholders, if filed with the SEC within 120 days after the
end of the fiscal year covered by this Report, or, alternatively, by amendment to this Report filed with the SEC under cover of Form 10-K/A
no later than the end of such 120-day period.

 Item 14. Principal Accountant Fees
and Services.

 The information required by Item
14 of Form 10-K will be provided by incorporating the information required under such item by reference to the Company's Definitive
Proxy Statement with respect to the Company's 2025 Annual Meeting of Stockholders, if filed with the SEC within 120 days after the
end of the fiscal year covered by this Report, or, alternatively, by amendment to this Report filed with the SEC under cover of Form 10-K/A
no later than the end of such 120-day period.

 Item 15. Exhibits and Financial Statement
Schedules.

 (a)
 Documents filed as part of this Report:

 (1) Financial
Statements. The following consolidated financial statements of the Company and its subsidiaries are included in Part II, Item 8
of this Report.

 Report
of Independent Registered Public Accounting Firm

 Consolidated
Balance Sheets at June 30, 2025 and 2024

 Consolidated
Statements of Operations for the years ended June 30, 2025 and 2024

 Consolidated
Statements of Shareholders' Equity for the years ended June 30, 2025 and 2024

 Consolidated
Statements of Cash Flows for the years ended June 30, 2025 and 2024

 (2) Financial
Statement Schedules. All financial statement schedules have been omitted because the information is either not applicable or not
required or because the information is included in the Company's consolidated financial statements or the related notes to

 (3) Exhibits.
The following exhibits are either filed as a part of or furnished with this Report, or are incorporated into this Report by
reference to documents previously filed by the Company with the SEC, as indicated below:

 Exhibit No.

 Description

 Stock Purchase Agreement, dated February 28, 2025, by and among the Company, Girbau North America Inc. and Girbau S.A. (Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the SEC on March 6, 2025)

 3(a)(1)

 Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on June 13, 1963 (Incorporated by reference to Exhibit 3.1(a) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(2)

 Certificate of Amendment to the Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on March 27, 1968 (Incorporated by reference to Exhibit 3.1(b) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(3)

 Certificate of Amendment to the Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on November 4, 1983 (Incorporated by reference to Exhibit 3.1(c) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(4)

 Certificate of Amendment to the Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on November 5, 1986 (Incorporated by reference to Exhibit 3.1(d) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(5)

 Certificate of Change of Location of Registered Office and of Agent, as filed with the Secretary of State of the State of Delaware on December 31, 1986 (Incorporated by reference to Exhibit 3.1(e) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(6)

 Certificate of Amendment to the Company's Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on October 30, 1998 (Incorporated by reference to Exhibit 3.1(f) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(7)

 Certificate of Amendment to the Company's Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on November 5, 1999 (Incorporated by reference to Exhibit 3.1(g) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(8)

 Certificate of Amendment to the Company's Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on November 13, 2009 (Incorporated by reference to Exhibit 3.1(h) to the Company's Current Report on Form 8-K filed with the SEC on November 13, 2009)

 3(a)(9)

 Certificate of Amendment to the Company's Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on November 30, 2016 (Incorporated by reference to Appendix A of the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on October 28, 2016)

 3(a)(10)

 Certificate of Amendment to the Company's Certificate of Incorporation, as filed with the Secretary of State of the State of Delaware on December 21, 2018 (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on December 21, 2018)

 3(b)

 Amended and Restated By-Laws of the Company (Incorporated by reference to Exhibit 3(b) to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the SEC on September 14, 2020)

 4(a)

 Specimen Common Stock Certificate (Incorporated by reference to Exhibit 4 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2016 filed with the SEC on September 20, 2016)

 4(b)

 Description of the Company's Securities (Incorporated by reference to Exhibit 4(g) to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 filed with the SEC on September 13, 2019)

 10(a)(1)

 Credit Agreement, dated as of November 2, 2018, by and among the Company, as Borrower, certain subsidiaries of the Company party thereto, as Guarantors, Bank of America, N.A, as Administrative Agent, Swingline Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated and U.S. Bank National Association, as Joint Lead Arrangers, Merrill Lynch Pierce, Fenner & Smith Incorporated, as Sole Bookrunner, and other lender parties thereto (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on November 7, 2018)

 10(a)(2)

 First Amendment to Credit Agreement dated as of May 6, 2022 by and among the Company, certain subsidiaries of the Company party thereto, as Guarantors, the lenders identified on the signature pages thereto and Bank of America, N.A., as Administrative Agent (Incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on May 10, 2022)

 10(a)(3)

 Annex A to First Amendment to Credit Agreement dated as of May 6, 2022 by and among the Company, certain subsidiaries of the Company party thereto, as Guarantors, the lenders identified on the signature pages thereto and Bank of America, N.A., as Administrative Agent (Incorporated by reference to Exhibit 10.02 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on May 10, 2022)

 10(a)(4)

 Second Amendment to Credit Agreement and Joinder Agreement dated as of March 26, 2025 by and among the Company, certain subsidiaries of the Company identified on the signature pages thereto, as Guarantors, Bank of America, N.A., as Administrative Agent, Swingline Lender and L/C Issuer, and the lenders identified on the signature pages thereto (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 28, 2025)

 10(b)(1)*

 EVI Industries, Inc. 2015 Equity Incentive Plan, as amended (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on December 13, 2024)

 10(b)(2)*

 Form of Notice of Grant and Restricted Stock Agreement (Incorporated by reference to Exhibit 10(e)(2) to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2017 filed with the SEC on September 28, 2017)

 10(b)(3)*

 Form of Notice of Grant and Stock Option Agreement (Incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on November 17, 2015)

 10(c)*

 EVI Industries, Inc. 2017 Employee Stock Purchase Plan (Incorporated by reference to Appendix A of the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on October 30, 2017)

 Insider Trading Policy (Incorporated by reference to Exhibit 19 to Amendment No. 1 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 filed with the SEC on September 13, 2024)

 Subsidiaries of the Company

 Consent of BDO USA, P.C.

 31(a)

 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31(b)

 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32(a) +

 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32(b) +

 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 Policy for the Recovery of Erroneously Awarded Compensation (Incorporated by reference to Exhibit 97 to Amendment No. 1 to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 filed with the SEC on September 13, 2024)

 101.INS

 101.SCH

 101.CAL

 101.DEF

 101.LAB

 101.PRE

 The cover page of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025,

 *
 Indicates management contract or compensatory plan or arrangement.

 +
 Indicates that document is furnished, not filed, with this Report.
All other exhibits not so indicated are filed with this Report.

 Item 16. Form 10-K Summary.

 None.

 SIGNATURES

 Pursuant to the requirements of Section 13
or 15(d) 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.

 EVI Industries, Inc.

 Dated: September 11, 2025

 By:

 /s/ Henry M. Nahmad

 Henry M. Nahmad

 Chairman, Chief Executive Officer and President

 Pursuant to the requirements of the Securities
Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.

 Signature

 Capacity

 Date

 /s/ Henry M. Nahmad

 Chairman, Chief Executive Officer

 Henry M. Nahmad

 (Principal Executive Officer) and President

 /s/ Robert H. Lazar

 Chief Financial Officer

 Robert H. Lazar

 (Principal Financial and Accounting Officer)

 /s/ Dennis Mack

 Dennis Mack

 /s/ David Blyer

 David Blyer

 /s/ Timothy P. LaMacchia

 Timothy P. LaMacchia

 /s/ Hal M. Lucas

 Hal M. Lucas

 /s/ Glen Kruger

 Glen Kruger

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