Dynamic Materials Corporation

Broomfield, Colorado · Corporate and Sales Office · 18,000 sq. ft. · Leased · September 30, 2029, with renewal option for 60 months

Arcadia Products owns a manufacturing site and sales office in Vernon, California and leases other manufacturing and distribution centers throughout the United States. The table below summarizes Arcadia Products’ material properties, including their location, type, size, whether owned or leased and expiration terms, if applicable, as of December 31, 2025.

Vernon, California · Corporate office, metal shop building, warehouse · 27,000 sq. ft. · Owned

Land for office, paint shop, anodizing line · 1 acre · Owned

Land for office, paint shop, anodizing line · 2 acres · Leased · May 31, 2046

Vernon, California · Land for parking · 40,000 sq. ft. · Leased · March 31, 2027

Vernon, California (1) · Office, paint shop · 112,000 sq. ft. · Leased · December 22, 2026, with renewal option for 60 months

Vernon, California (1) · Office, warehouse · 111,000 sq. ft. · Leased · December 22, 2026, with renewal option for 60 months

Hayward, California (1) · Distribution, light assembly · 46,000 sq. ft. · Leased · December 22, 2027

West Sacramento, California (1) · Distribution, light assembly · 16,000 sq. ft. · Leased · December 22, 2027

Stamford, Connecticut (1) · Office, warehouse · 39,000 sq. ft. · Leased · December 22, 2026, with renewal option for 12 months

Phoenix, Arizona (1) · Office, warehouse · 52,000 sq. ft. · Leased · December 22, 2026, with renewal option for 24 months

Las Vegas, Nevada (1) · Office, warehouse · 89,000 sq. ft. · Leased · December 22, 2026, with renewal option for 24 months

Tucson, Arizona (1) · Office, paint shop, warehouse · 107,000 sq. ft. · Leased · December 22, 2026, with renewal option for 60 months

Waipahu, Hawaii · Distribution, light assembly · Building: 13,000 sq. ft.Land: 22,000 sq. ft. · Leased · May 31, 2028

South Gate, California · Office, manufacturing · 46,000 sq. ft. · Leased · December 31, 2027

South Gate, California · Office, manufacturing, storage · Building: 25,000 sq. ft.Land: 45,000 sq. ft. · Leased · April 30, 2027

Houston, Texas · Office, warehouse · 43,000 sq. ft. · Leased · November 30, 2028, with renewal option for 60 months

Dallas, Texas · Office, warehouse · 87,000 sq. ft. · Leased · December 31, 2028

Kent, Washington · Distribution, light assembly · 25,000 sq. ft. · Leased · May 31, 2029

(1) These leases are with entities affiliated with the holder of the redeemable noncontrolling interest holder and president of Arcadia Products. During the year ended December 31, 2025, DMC recorded $4,666 in lease expense related to these properties.

DynaEnergetics leases a manufacturing site and administration office in Troisdorf, Germany. Subsequent to December 31, 2025, the lease for this property was extended effective January 1, 2026, through December 31, 2036, with options to renew the lease which would then extend through December 31, 2046. In the U.S., DynaEnergetics owns manufacturing and assembly sites in Texas and leases storage bunkers and office and warehouse space in various cities throughout Texas. DynaEnergetics also leases office and warehouse space and bunkers for storage of its explosives in Alberta, Canada.

The table below summarizes DynaEnergetics’ material properties, including their location, type, size, whether owned or leased and expiration terms, if applicable, as of December 31, 2025, unless otherwise noted.

Troisdorf, Germany (1) · Manufacturing and administration office · 85,000 sq.ft. · Leased · December 31, 2036, with renewal option for 120 months

Troisdorf, Germany · Office · 5,000 sq. ft. · Leased · February 28, 2027

Liebenscheid, Germany · Manufacturing and office · 6,000 sq. ft. · Owned

Liebenscheid, Germany · Land · 78,000 sq. ft. · Owned

Houston, Texas · Office · 11,000 sq. ft. · Leased · November 30, 2026

Blum, Texas · Office, warehouse, and manufacturing · 83,000 sq. ft. · Owned

Blum, Texas (2) · Warehouse · 10,000 sq. ft. · Owned

Blum, Texas · Land for office, warehouse, and manufacturing · 284 acres · Owned

Midland, Texas · Land · 13 acres · Leased · April 1, 2029

Whitney, Texas · Warehouse · Building: 30,000 sq ftLand: 4 acres · Leased · October 31, 2029

Whitney, Texas · Office, warehouse, and manufacturing · 36,000 sq. ft. · Owned

Alberta, Canada · Office and warehouse · 8,000 sq. ft. · Leased · August 31, 2030

(1) Subsequent to December 31, 2025, this lease was extended effective January 1, 2026 through December 31, 2036.

(2) The Blum, Texas warehouse is separate from the main Blum manufacturing campus.

NobelClad owns its principal domestic manufacturing site, which is located in Mount Braddock, Pennsylvania. We currently lease our domestic cladding site located in Dunbar, Pennsylvania to support our Mount Braddock facility. The lease for the Dunbar property will expire on May 6, 2029, but we have options to renew the lease which would then extend through May 6, 2054.

NobelClad owns a manufacturing site in Liebenscheid, Germany as well as a mine used as a cladding site in Dillenburg, Germany. We purchased the buildings and land around the Dillenburg mine in 2022. NobelClad leases the building housing its sales and administrative office in Perpignan, France.

The table below summarizes NobelClad’s material properties, including their location, type, size, whether owned or leased and expiration terms, if applicable, as of December 31, 2025.

Mt. Braddock, Pennsylvania · Clad plate manufacturing and administration office · Land: 14 acresBuildings: 101,000 sq. ft. · Owned

Dunbar, Pennsylvania · Cladding site · Land: 322 acresBuildings:16,000 sq. ft. · Leased · May 6, 2029, with renewal options through May 6, 2054.

• If we are not able to design, develop, and produce commercially competitive products in a timely manner in response to changes in the market, customer requirements, competitive pressures, and technology trends, our business and consolidated results of operations and the value of our intellectual property could be materially and adversely affected.
• We may be unable to successfully execute and realize the expected financial benefits from strategic initiatives.
• Demand for DynaEnergetics’ products could be reduced by existing and future legislation, regulations and public sentiment.
• NobelClad’s business is dependent on sales to a limited number of customers in cyclical markets and our results are affected by the price of metals.
• We are dependent on a relatively small number of large projects and customers for a significant portion of our net sales.
• Our backlog figures may not accurately predict future sales.
• There is a limited availability of sites suitable for cladding operations.
• There is no assurance that we will continue to compete successfully against other manufacturers of competitive products.
• Customers have the right to change orders until products are completed.
• Our costs could substantially increase if we experience a large claim or a significant number of warranty claims.
• Our efforts to grow and transform our businesses may require significant investments; if our strategies are unsuccessful, our business, results of operations and/or financial condition may be materially adversely affected.
• Our operations are subject to political and economic instability and risk of government actions that could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
• Inflation and elevated interest rates have, and may continue to, adversely affect our financial position and results of operations.
• Our business, financial condition and results of operations could be adversely affected by disruptions in the global and European economies caused by the ongoing conflict between Russia and Ukraine and instability in the Middle East.
• Our operating results fluctuate from quarter to quarter.
• We are exposed to potentially volatile fluctuations of the U.S. dollar (our reporting currency) against the currencies of many of our operating subsidiaries.
• Disruptions or delays involving our suppliers or increases in prices for the components, raw materials and parts that we obtain from our suppliers could have a material adverse effect on our business and consolidated results of operations.
• The terms of our indebtedness contain a number of restrictive covenants, the breach of any of which could result in acceleration of payment of our credit facilities.
• If our customers delay paying or fail to pay a significant amount of our outstanding receivables, it could have a material adverse effect on our liquidity, consolidated results of operations, and consolidated financial condition.
• New or existing tariffs and other trade measures could adversely affect our results of operations, financial position and cash flows.
• Failure to attract and retain key personnel and source sufficient labor could adversely affect our current operating results.
• Changes in immigration laws or enforcement programs could adversely affect our business.
• A failure in our information technology systems or those of third parties, including those caused by security breaches, cyber-attacks or data protection failures, could disrupt our business, result in significant legal costs and other losses and damage our reputation.
• Artificial intelligence presents risks and challenges that could adversely affect our business.
• Failure to establish and maintain adequate internal controls over financial reporting could result in the inability to report our financial results in a timely and reliable manner, which could harm our business and impact the value of our securities.
• Our operations require us to comply with numerous laws and regulations, violations of which could have a material adverse effect on our consolidated results of operations, financial condition or cash flows.
• The use of explosives in our DynaEnergetics and NobelClad manufacturing processes and products subject us to additional environmental, health and safety laws and any accidents or injuries could subject us to significant liabilities.
• Demand for our products could be reduced by existing and future legislation, regulations and public sentiment.
• We are subject to extensive environmental, health and safety laws and failure to comply with such laws and regulations could result in restrictions or prohibitions on our facilities, substantial civil or criminal liabilities and could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
• Failure to comply with applicable federal, state and local employment and labor laws and regulations could have a material, adverse impact on our business.
• The regulatory environment governing information, data security and privacy is increasingly demanding and evolving and a data security breach could result in litigation, enforcement actions and related penalties and fines.
• Legal, regulatory or market measures to address climate change, including proposals to restrict emissions of greenhouse gas and other sustainability initiatives, could have an adverse impact on the Company’s business and results of operations.
• Changes in or interpretation of tax law could impact the determination of our income tax liabilities for a tax year.
• Our failure to protect our proprietary information and any successful intellectual property challenges against us could materially and adversely affect our competitive position.
• We may incur substantial costs defending against third parties alleging that we infringe their proprietary rights.
• We have incurred debt to finance the acquisition of 60% of Arcadia Products and may incur additional substantial financial obligations in connection with the acquisition of the remaining 40% of Arcadia Products.
• DMC is the majority shareholder of Arcadia Products, and our interest in Arcadia Products is subject to the risks normally associated with the conduct of businesses with a minority shareholder.
• To the extent that we seek to further expand our business through acquisitions, we may experience issues in executing acquisitions or integrating acquired operations.
• The price and trading volume of our common stock has been and may continue to be volatile, which may make it difficult for investors to resell the common stock at attractive timing or pricing.
• Our business could be negatively affected as a result of actions of activist stockholders or others.
• Our stockholder protection rights agreement includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorable.
• Future sales of our common stock in the public market or the issuance of equity securities, including in connection with an exercise of the Put Option, could dilute our existing stockholders and adversely affect the trading price of our common stock and our ability to raise funds in future equity offerings.