AMERICAN VANGUARD CORP

American Vanguard Corporation is primarily a specialty solutions manufacturer that develops and markets safe synthetic, biological, and biorational products for agricultural, commercial, and consumer uses. The company operates as a single operating and reportable segment. Its Chief Executive Officer, who serves as the Chief Operating Decision Maker (CODM), makes strategic decisions, allocates resources, and assesses financial performance on a consolidated basis, considering the company's consolidated financial statements, market opportunities, and synergies across the entire organization. The company has undertaken a digital and structural transformation project. The digital transformation aims to provide business process owners with access to current and complete data generated through standardized systems and processes. The structural transformation seeks to improve operating leverage by applying business analytics to current operations, structures, products, and services, identifying process improvements, and refining pricing and go-to-market strategies. Transformation expenses include costs for consulting services, severance costs related to the company's former CEO, and costs for staffing and executing these initiatives. Additionally, the company has incurred costs associated with write-offs and write-downs of certain assets. Cost of sales primarily includes inventory procurement, production, warehousing, handling, and outbound freight, encompassing direct labor, materials, and manufacturing overhead. Depreciation and amortization expense included in cost of sales was $5,255 for the year ended December 31, 2025, $5,157 for the year ended December 31, 2024, and $6,599 for the year ended December 31, 2023. Advertising costs are expensed in the period incurred. All U.S. Dollar amounts in the notes to the consolidated financial statements are presented in thousands, except per share data.