Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or ot ...

Sales and Revenue - In fiscal year 2023, coil products accounted for 89% of total sales, up from 81% in fiscal year 2022, while tubular products decreased to 11% from 19%[17] - Sales to O'Neal Steel represented approximately 15% of total sales in fiscal year 2023, compared to 11% in fiscal year 2022[17] Operations and Facilities - The company operates five coil processing facilities and a tubular products division, with significant investments in new facilities, including a newly constructed facility in Sinton, Texas, which began operations in October 2022[12] - The tubular products segment operates two electric resistance welded pipe mills, licensed by the American Petroleum Institute, with a size range of 2 3/8" OD to 8 5/8" OD[15] - The company’s coil processing facilities are capable of cutting sheet and plate with thicknesses ranging from 16 gauge to 1" thick and widths from 36" to 96"[12] Employment and Workforce - As of March 31, 2023, the company employed 234 full-time employees, a significant increase from 98 full-time employees in the previous year[21] - The company’s sales force for coil products consisted of 24 personnel, while the tubular products division had 3 sales personnel as of March 31, 2023[18][19] Supply Chain and Competition - The company relies on a limited number of suppliers for its inventory, and the loss of any supplier could adversely affect its business[14][16] - The company is engaged in a highly competitive market, competing with other processors of hot-rolled steel coils and tubular manufacturers[20] Safety and Employee Policies - The company has established policies for employee safety and wellness, emphasizing the importance of a safe work environment and employee engagement in safety processes[23] Financial Reporting and Compliance - The financial statements for the fiscal year ended March 31, 2023, include consolidated balance sheets and statements of operations for both 2023 and 2022[56] - The company plans to file definitive copies of the proxy statement for the 2023 Annual Meeting of Shareholders with the SEC within 120 days after the end of the fiscal year[52] - The report includes a schedule for valuation and qualifying accounts as part of the financial statement schedules[56] - The report includes certifications pursuant to the Sarbanes-Oxley Act of 2002, signed by key executives[59] - The report outlines the consent of the independent auditor, Moss Adams LLP, confirming the accuracy of the financial statements[58] Corporate Governance - The company has incorporated various amendments to its Articles of Incorporation and Bylaws, reflecting changes made in previous years[58] - The company has made several amendments to its credit agreement, indicating ongoing financial management strategies[58] - The Annual Report to Shareholders for the fiscal year ended March 31, 2023, is included as a key exhibit[58] - The report lists the company's subsidiaries, providing insight into its organizational structure[58]

Financial Performance - Sales for the nine months ended December 31, 2022, increased by $213.2 million to $372.8 million compared to $172.8 million for the same period in 2021, driven by an increase in tons sold from approximately 147,500 tons to approximately 335,000 tons [76]. - Gross profit for the nine months ended December 31, 2022, decreased to $29.5 million, down from $43.4 million in the prior year, with gross profit as a percentage of sales dropping from approximately 20.7% to 7.0% [76]. - The coil product segment's sales for the 2022 period totaled $372.8 million, with an average selling price per ton decreasing from approximately $1,737 to $1,222, while tons sold increased from approximately 111,000 to 306,500 [78]. - The tubular product segment's sales for the 2022 period increased to $50.5 million from $37.3 million in 2021, with the average selling price per ton rising from approximately $1,074 to $1,785, despite a decrease in tons sold from approximately 36,500 to 28,500 [80]. - Coil segment sales for Q4 2022 totaled $100,231,001, a significant increase from $41,795,586 in Q4 2021, with a sales volume increase from approximately 29,000 tons to 106,000 tons [89]. - Tubular segment sales for Q4 2022 reached $11,629,092, up from $9,860,357 in Q4 2021, driven by an increase in average selling price per ton from approximately $1,111 to $1,648, despite a decrease in tons sold from 10,500 to 7,000 [92]. Operating Profit and Costs - The company recorded operating profits of approximately $15.7 million for the coil segment in the 2022 period, down from $33.5 million in the 2021 period, impacted by recognized net losses on hedging activities [78]. - The operating profit for the coil segment in Q4 2022 was approximately $3,259,000, compared to an operating loss of approximately $4,032,000 in Q4 2021 [89]. - The tubular segment recorded an operating profit of approximately $692,000 for Q4 2022, a recovery from an operating loss of approximately $647,000 in Q4 2021 [92]. - General, selling, and administrative costs increased by $5.0 million in the 2022 period, primarily due to costs associated with the Plateplus transaction and increased personnel [84]. - General, selling, and administrative costs increased by $2,706,608 in Q4 2022 compared to Q4 2021, primarily due to increased payroll and professional fees [94]. Other Income and Tax Provisions - Other income for the 2022 period was reported at $7.3 million, primarily from a gain on derivative instruments, compared to a loss of $4.8 million in the 2021 period [85]. - Other income for Q4 2022 was reported at $826,039, down from $1,727,134 in Q4 2021, mainly due to a decrease in gains on derivative instruments [95]. - Income tax provision decreased from $6.3 million in the 2021 period to $4.6 million in the 2022 period, mainly due to lower earnings before income tax [86]. - Income taxes shifted from a benefit of $967,681 in Q4 2021 to a provision of $431,579 in Q4 2022, reflecting higher earnings before income taxes [96]. Future Expectations - The company expects sales volume for Q4 2023 to be between 115,000 tons and 125,000 tons, higher than Q3 2023 due to increased sales at the new Sinton, Texas facility [103]. - The company anticipates margin improvement in Q4 2023 due to rising prices in the hot-rolled coil market [104]. Internal Controls and Reporting - The Company has identified material weaknesses in internal control over financial reporting, which may lead to material misstatements not being prevented or detected timely [112]. - The Company did not design relevant control activities necessary to address all identified risks of material misstatement, and some controls were implemented late in the fiscal year [112]. - The Company has added eight accounting personnel from Plateplus to improve segregation of duties and execution of controls [115]. - The Company transferred the enterprise resource planning (ERP) system from Plateplus to enhance control processes and reduce reliance on manual execution [115]. - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were not effective as of the end of the reporting period due to unresolved material weaknesses [109]. - The Company expects that the additional accounting personnel and new ERP system will remediate the identified material weaknesses over time [116]. - The Company has not filed its Form 10-K and Form 10-Q reports timely for the fiscal year ended March 31, 2022, and subsequent quarters [109]. - Management believes that the consolidated financial statements fairly present the financial condition and results of operations in accordance with U.S. Generally Accepted Accounting Principles [110]. - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the fiscal quarter ended December 31, 2022 [117]. - The Company will continue to monitor and make changes to its procedures and controls as necessary to ensure effectiveness [116]. Operational Developments - The new facility in Sinton, Texas, commenced operations in October 2022, with expected annual shipments ranging from 110,000 tons to 140,000 tons for fiscal 2024 [73]. - The company experienced significant volatility in hot-rolled steel coil prices, with a decline of approximately 52% from September 2021 to February 2022, followed by a sharp increase of approximately 60% due to geopolitical events [77].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File No. 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1121 Judson Road Suite 124, Longview, TX 75601 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (903) 758-3431 Securities registered pursuant ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State ...

Financial Performance - For the three months ended June 30, 2021, sales increased by $42,391,839 to a total of $63,000,000 compared to the same period in 2020, driven by a rise in average selling prices and tons sold, which increased from approximately 38,000 tons to 54,000 tons [63]. - Gross profit for the 2021 quarter was $17,329,935, up from $256,754 in the 2020 quarter, with gross profit as a percentage of sales increasing from approximately 1.1% to 26.3% [63]. - The coil product segment's sales for the 2021 quarter totaled $52,694,730, compared to $15,432,784 in the 2020 quarter, with the average selling price per ton rising from approximately $566 to $1,462 [64]. - The tubular product segment's sales for the 2021 quarter were $13,221,709, up from $8,091,816 in the 2020 quarter, with tons sold increasing from approximately 11,000 to 14,500 [66]. - The company recorded operating profits of approximately $13,256,000 for the coil segment and $2,600,000 for the tubular segment in the 2021 quarter, compared to operating losses in the previous year [64][67]. Operational Developments - The company expects to complete the construction of a new facility in Sinton, Texas, with an estimated total cost of $21 million, expected to commence operations in April 2022 [60]. - The Company expects strong margins for Q2 ending September 30, 2021, with an anticipated improvement in operating results compared to Q1 [79]. - Hot-rolled steel prices have increased approximately 10% since June 30, 2021, and the Company expects prices to continue rising through September 30, 2021 [79]. Financial Position - The company's current ratio was 1.6 at June 30, 2021, down from 2.7 at March 31, 2021, with working capital increasing to $50,869,746 [73]. - The company had borrowings of $23,381,289 outstanding under the ABL Facility as of the filing date, with full access to the facility [76]. Costs and Expenses - General, selling, and administrative costs increased by $1,958,400 in the 2021 quarter, primarily due to incentive compensation and professional fees [70]. - The company reported other income of $312,062, primarily from a $1,706,614 gain associated with the forgiveness of the Paycheck Protection Program loan [71]. Internal Controls and Compliance - The Company identified a material weakness in internal control over financial reporting related to the review of the annual income tax provision [88]. - The Chief Executive Officer and Chief Financial Officer concluded that the Company's internal control over financial reporting was not effective as of the end of the period covered by the report [84]. - The Company has not completed its remediation of the material weakness previously identified and disclosed in the Annual Report for the fiscal year ended March 31, 2021 [84]. - The Company plans to remediate the identified material weakness by investing in human capital, having hired an additional degreed accountant on May 24, 2021 [89]. - As of the filing date, the Company had 104 employees, with a finance team consisting of two degreed accountants [89]. - The Company believes that the additional investment in human capital will provide sufficient remediation in future periods [90]. - The Company will continue to monitor and evaluate the effectiveness of its disclosure controls and procedures [90]. Forward-Looking Statements - Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including changes in demand and prices of products [82].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File No. 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1121 Judson Road Suite 124, Longview, TX 75601 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (903) 758-3431 Securities registered pursuant ...

FOR THE QUARTERLY PERIOD ENDED December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) TEXAS 74-1504405 (State or other jurisdicti ...