A：The forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 include NTC's future financial and operating results, business plans, objectives, and expectations as discussed during the conference call.

A：To address the temporary cost pressure, the company is pursuing pricing and procurement initiatives that are expected to improve gross margin and profitability in the fourth quarter. Additionally, the company is focusing on driving more profitable growth by expanding sales of higher margin zero oil and gas solutions and broadening applications of a-tech globally.

A：The company expects any economic recovery from the targeted economic stimulus packages being implemented by European governments to lead to a positive impact on the joint venture operating income in future periods, especially in Germany.

A：The wholly owned NTC China subsidiary's net sales in the fiscal 2026 third quarter decreased by less than 1% to $4.5 million. However, NTSE China's sales have increased 12.8% to $17.8 million comparing to the same period last fiscal year.

A：Zero oil and gas net sales were $2.2 million in the third quarter, an increase of 32.3% from the same period last year. This growth reflects investments in global sales infrastructure and the increasing adoption of VCI solutions within the global oil and gas industry.

A：The company experienced higher year-over-year oil and gas sales in the Middle East during the third quarter, which was supported by investments in enhancing the sales team and adding resources for future growth. This resulted in an expanded sales pipeline with more opportunities.

A：a-tech sales in the third quarter were a quarterly record at $6.1 million, a 5% year-over-year increase. New initiatives include NTC's selection in the International Fresh Produce Association's Packaging Innovation Program for compostable burial lament solutions for food packaging in North America, and a collaboration with Bayer for biodegradable and compostable seedling cups in India. These initiatives are expected to further benefit naturetech and build on new food packaging opportunities.

A：As of May 31, 2026, the company had $7.3 million in cash and cash equivalents.

A：Key factors driving financial performance include continued sales and profit supported by pricings and expense management. The company is also focused on expanding nature-tech applications globally to drive stronger financial performance and cash flow generation in the coming quarters.

A：The company does not specifically look at the oil and gas business as a separate, standalone division in terms of profitability. However, it provides guidance that the total revenue from oil and gas is expected to be above $10 million for the year.

A：Oil and gas revenue this year for the third quarter is up significantly, by 77% or 72% compared to the same period last year. However, trailing oil and gas numbers for the third quarter were lower than the second quarter, indicating a drop in comparison.

A：The expected profitability in the fourth quarter is driven by ramping up across the board in the oil and gas segment, with continued sales and profit supported by pricings and expense management. There are also positive expectations based on the markets returning to August 2025 levels and the ability to pass on cost increases to customers.

A：Polyethylene prices increased by more than 30% due to conflicts in the Middle East, impacting gross margins. However, with the markets returning to previous levels and the company having passed on cost increases to customers, the gross margin situation is expected to improve. The company remains optimistic about the fourth quarter, which is expected to be the strongest of the year, providing momentum into fiscal 2027.

A：The positivity in Germany pertains to certain operational or financial improvements or developments, although the exact details were not provided in the transcript.

A：Revenues are bouncing back compared to prior periods and there is a stabilization in industrial conditions. It is suggested that the trough in revenue has been hit and the trend is expected to continue as they ramp up revenues and expect fourth-quarter revenues to be higher than third-quarter revenues with expenses held relatively flat.

A：The company is not making significant investment plans from an employee or capital purchase standpoint in North America in fiscal 2027. However, investments are being made at the subsidiary level, particularly due to growth in Brazil and opportunities in Nature Tech India.

A：The company has been looking at diversifying its production capabilities by producing in China, India, subcontracting in Vietnam and Thailand, and other areas to capitalize on changes in tariffs and to ensure effective production in the face of global trade impacts.

A：The compostable seedling cup can be implemented globally, and testing is ongoing with the goal of starting commercialization in a year. It is part of a global effort with Bayer, not just specific to any one region.

A：The contract in Brazil, worth over 14 million dollars over several years, is scaling up for the Brazilian subsidiary to take advantage of opportunities. This is a process that has been ongoing for a few quarters and is expected to lead to increased sales in the geographic area.

A：Nature has different business lines including a commodity niche spec business and proprietary resin formulations. The commodity business has been impacted by pricing, with positive gross margin improvement noted due to lower raw material prices. However, price competition has been a headwind. In the industrial business, gross margin recovery has been seen in Q4, but issues persist related to discounts and pricing, which could change if input costs vary.

A：The war in the Middle East had a negative impact on the oil and gas business in the third quarter. Operations in Dubai were affected by security concerns, with employees not allowed to leave their houses at times due to bombs and missile activities. Although there was a decrease in normal business operations, there is potential for future infrastructure rebuilding and investments which could drive opportunities in the region.

A：The decision to sell the Beachwood facility was based on the opportunity to consolidate operations with the building purchased in Minnesota and another building adjacent to Nature's headquarters. With the expansion in Minnesota, there was no real need to maintain the facility in Ohio.

A：No significant one-time charges or expenses were responsible for the unexpected revenue growth in SNA.

A：Nature Tech's revenues for the nine-month period and third quarter are up 5%, but on a volume standpoint, the growth is likely closer to 10% to 12% based on case quantities. This growth is a mix of price concessions and volume growth, and it reflects positively on the company's focus on food packaging innovations which are expected to fuel future growth.

A：The company has seen unexpected benefits from the data gathering since switching to SAP 18 months ago. With tools like Claude, they can analyze large data sets and gain insights into customer and product-level gross margins. They are also implementing internal AI tools in SAP to assist employees in being more reactive and efficient in their business operations.