# Omega Flex (OFLX) 10-Q SEC filing - Q1 FY2026

- Filed: May 1, 2026, 3:32 PM EDT
- Fiscal quarter: Q1 FY2026
- Calendar quarter: Q1 2026
- Accession: 0001493152-26-020884
- OpenCapital page: https://www.opencapital.sh/filings/0001493152-26-020884
- Markdown URL: https://www.opencapital.sh/filings/0001493152-26-020884.md
- Official SEC filing index: https://www.sec.gov/Archives/edgar/data/1317945/000149315226020884/0001493152-26-020884-index.htm

## Filing documents

- [10-Q (form10-q.htm)](https://www.sec.gov/Archives/edgar/data/1317945/000149315226020884/form10-q.htm)

---

## 10-Q

SEC source: [form10-q.htm](https://www.sec.gov/Archives/edgar/data/1317945/000149315226020884/form10-q.htm)

**UNITED
STATES**

**SECURITIES
AND EXCHANGE COMMISSION**

**Washington,
D.C. 20549**

**FORM10-Q**

(Mark
One)

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

For
the quarterly period ended **March 31, 2026**

**☐** **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 **000-51372**

**Omega
Flex, Inc.**

(Exact
name of registrant as specified in its charter)

| Pennsylvania | 23-1948942 |
| --- | --- |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 451 Creamery Way, Exton, PA | 19341 |
| (Address of principal executive offices) | (Zip Code) |

**(610) 524-7272**

Registrant’s
telephone number, including area code

**Not
Applicable**

(Former
name, former address, and former fiscal year, if changed since last report)

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, par value $0.01 per share OFLX NASDAQ  Global Market

Indicate
by check mark whether 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. Yes ☒ No ☐

Indicate
by check mark whether 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). Yes ☒ No ☐

Indicate
by check mark whether 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 ☐

Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The
number of shares of the registrant’s common stock outstanding as of May 1, 2026 was 10,094,322.

**OMEGA
FLEX, INC.**

**QUARTERLY
REPORT ON FORM 10-Q**

**FOR
THE THREE MONTHS ENDED MARCH 31, 2026**

**INDEX**

| **PART  I - FINANCIAL INFORMATION** | **Page  No.** |
| --- | --- |
| [Item 1 – Financial Statements](#su_001) |  |
| [Condensed Consolidated Balance Sheets at March 31, 2026 (unaudited) and December 31, 2025](#su_002) | 4 |
| [Condensed Consolidated Statements of Income for the three months ended March 31, 2026 and 2025 (unaudited)](#su_003) | 5 |
| [Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025 (unaudited)](#su_004) | 6 |
| [Condensed Consolidated Statements of Shareholders’ Equity for the three months ended March 31, 2026 and 2025 (unaudited)](#su_005) | 7 |
| [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited)](#su_006) | 8 |
| [Notes to the Condensed Consolidated Financial Statements (unaudited)](#su_007) | 9 |
| [Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations](#su_008) | 27 |
| [Item 3 – Quantitative and Qualitative Disclosures About Market Risk](#su_009) | 31 |
| [Item 4 – Controls and Procedures](#su_010) | 31 |
| **PART  II - OTHER INFORMATION** |  |
| [Item 1 – Legal Proceedings](#su_012) | 32 |
| [Item 1A – Risk Factors](#su_013) | 32 |
| [Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds](#su_014) | 32 |
| [Item 3 – Defaults Upon Senior Securities](#su_015) | 32 |
| [Item 4 – Mine Safety Disclosures](#su_016) | 32 |
| [Item 5 – Other Information](#su_017) | 32 |
| [Item 6 - Exhibits](#su_018) | 32 |
| **[SIGNATURES](#su_019)** | 33 |

-2-

**CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain
statements in this Quarterly Report on Form 10-Q (“Form 10-Q”) of Omega Flex, Inc. that are not historical facts —
but rather reflect our current expectations concerning future results and events — constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The words “believes,” “expects,” “intends,”
“plans,” “anticipates,” “intent,” “estimates,” “potential,” “continues,”
“hopes,” “likely,” “will,” and similar expressions, or the negative of these terms, identify such
forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.
Important factors that could cause the actual results, performance or achievements of Omega Flex, Inc., or industry results, to differ
materially from future results, performance or achievements expressed or implied by such forward-looking statements are set forth in
Part I, Item 1A. Risk Factors, and other parts of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Readers
are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s view only as of the date
of this Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events, conditions, or circumstances, except as required by law.
In addition, certain sections of this Form 10-Q contain information obtained from independent industry sources and other sources that
we have not independently verified.

Unless
otherwise indicated or the context otherwise requires, all references in this Form 10-Q to the terms “Omega Flex,” the “Company,”
“us,” “we”, and “our” refer to Omega Flex, Inc. and its subsidiaries.

-3-

**PART
I - FINANCIAL INFORMATION**

Item
1 - Financial Statements

**OMEGA FLEX, INC.**

### CONDENSED CONSOLIDATED BALANCE SHEETS

_(Dollars in Thousands, except Common Stock par value)_

| Line item | March 31, 2026 | December 31, 2025 |
| --- | --- | --- |
|  | (unaudited) |  |
| ASSETS |  |  |
| Current Assets: |  |  |
| Cash and Cash Equivalents | $49,757 | $53,226 |
| Accounts Receivable - less allowances of $817 and $857, respectively | 14,426 | 13,665 |
| Inventories - Net | 13,278 | 13,397 |
| Other Current Assets | 1,784 | 2,727 |
| Total Current Assets | 79,245 | 83,015 |
| Right-Of-Use Assets - Operating | 4,207 | 4,437 |
| Property and Equipment - Net | 10,529 | 10,163 |
| Goodwill - Net | 3,526 | 3,526 |
| Deferred Taxes | 642 | 595 |
| Other Long Term Assets | 3,156 | 3,218 |
| Total Assets | $101,305 | $104,954 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |
| Current Liabilities: |  |  |
| Accounts Payable | $2,964 | $2,528 |
| Accrued Compensation | 581 | 1,566 |
| Accrued Commissions and Sales Incentives | 2,707 | 3,520 |
| Dividends Payable | 3,433 | 3,431 |
| Taxes Payable | 151 | - |
| Lease Liability - Operating | 773 | 771 |
| Other Liabilities | 3,243 | 4,142 |
| Total Current Liabilities | 13,852 | 15,958 |
| Lease Liability - Operating, net of current portion | 3,748 | 3,986 |
| Deferred Taxes | 498 | 422 |
| Other Long Term Liabilities | 595 | 580 |
| Total Liabilities | 18,693 | 20,946 |
| Commitments and Contingencies (Note 6) | - |  |
| Shareholders’ Equity: |  |  |
| Omega Flex, Inc. Shareholders’ Equity: |  |  |
| Common Stock – par value $0.01 share: authorized 20,000,000 shares: 10,153,633 shares issued and 10,094,322 shares outstanding as of March 31, 2026 and December 31, 2025 | 102 | 102 |
| Treasury Stock | (1) | (1) |
| Paid-in Capital | 11,043 | 11,039 |
| Retained Earnings | 72,623 | 73,979 |
| Accumulated Other Comprehensive Loss | (905) | (933) |
| Total Omega Flex, Inc. Shareholders’ Equity | 82,862 | 84,186 |
| Noncontrolling Interest | (250) | (178) |
| Total Shareholders’ Equity | 82,612 | 84,008 |
| Total Liabilities and Shareholders’ Equity | $101,305 | $104,954 |

See
accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

-4-

**OMEGA
FLEX, INC.**

**CONDENSED
CONSOLIDATED STATEMENTS OF INCOME**

**(Amounts
in Thousands, except per Common Share data)**

_(unaudited)_

| Line item | For the three months ended / March 31, 2026 | For the three months ended / March 31, 2025 |
| --- | --- | --- |
| Net Sales | $23,093 | $23,330 |
| Cost of Goods Sold | 10,008 | 9,258 |
| Gross Profit | 13,085 | 14,072 |
| Selling Expense | 5,494 | 5,001 |
| General and Administrative Expense | 3,768 | 3,891 |
| Engineering Expense | 1,512 | 1,130 |
| Operating Profit | 2,311 | 4,050 |
| Interest Income | 456 | 511 |
| Other (Expense) Income | (93) | 83 |
| Income Before Income Taxes | 2,674 | 4,644 |
| Income Tax Expense | 670 | 1,124 |
| Net Income | 2,004 | 3,520 |
| Net Loss - Noncontrolling Interest | 73 | 48 |
| Net Income attributable to Omega Flex, Inc. | $2,077 | $3,568 |
| Basic and Diluted Earnings per Common Share | $0.21 | $0.35 |
| Cash Dividends Declared per Common Share | $0.34 | $0.34 |
| Basic and Diluted Weighted Average Shares Outstanding | 10,094 | 10,094 |

See
accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

-5-

**OMEGA
FLEX, INC.**

**CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**(Dollars
in Thousands)**

_(unaudited)_

| Line item | For the three months ended / March 31, 2026 | For the three months ended / March 31, 2025 |
| --- | --- | --- |
| Net Income | $2,004 | $3,520 |
| Other Comprehensive Income: |  |  |
| Foreign Currency Translation Adjustment | 29 | 6 |
| Other Comprehensive Income | 29 | 6 |
| Comprehensive Income | 2,033 | 3,526 |
| Comprehensive Loss Attributable to the Noncontrolling Interest | 72 | 48 |
| Total Comprehensive Income | $2,105 | $3,574 |

See
accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

-6-

**OMEGA
FLEX, INC.**

**CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY**

**(Amounts
in Thousands, Except Share Amounts)**

**(unaudited)**

**For
the three months ended March 31, 2026**

| Line item | Common Stock Outstanding | Common Stock | Treasury Stock | Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Shareholders’ Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | (unaudited) |  |  |  |
| January 1, 2026 | 10,094,322 | $102 | $(1) | $11,039 | $73,979 | $(933) | $(178) | $84,008 |
| Net Income | - | - | - | - | 2,077 | - | (73) | 2,004 |
| Cumulative Translation Adjustment |  |  |  |  |  | 28 | 1 | 29 |
| Equity Based Compensation |  |  |  | 4 |  |  |  | 4 |
| Dividends Declared | - | - | - | - | (3,433) | - | - | (3,433) |
| March 31, 2026 | 10,094,322 | $102 | $(1) | $11,043 | $72,623 | $(905) | $(250) | $82,612 |

**For
the three months ended March 31, 2025**

| Line item | Common Stock Outstanding | Common Stock | Treasury Stock | Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Shareholders’ Equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | (unaudited) |  |  |  |
| January 1, 2025 | 10,094,322 | $102 | $(1) | $11,025 | $72,880 | $(892) | $67 | $83,181 |
| Net Income | - | - | - | - | 3,568 | - | (48) | 3,520 |
| Cumulative Translation Adjustment |  |  |  |  |  | 6 |  | 6 |
| Dividends Declared | - | - | - | - | (3,432) | - | - | (3,432) |
| March 31, 2025 | 10,094,322 | $102 | $(1) | $11,025 | $73,016 | $(886) | $19 | $83,275 |

See
accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

-7-

**OMEGA
FLEX, INC.**

**CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Dollars
in Thousands)**

_(unaudited)_

| Line item | For the three months ended / March 31, 2026 | For the three months ended / March 31, 2025 |
| --- | --- | --- |
| Cash Flows from Operating Activities: |  |  |
| Net Income | $2,004 | $3,520 |
| Adjustments to Reconcile Net Income to |  |  |
| Net Cash Provided by Operating Activities: |  |  |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |  |  |
| Non-Cash Compensation Expense | 117 | 3 |
| Non-Cash Lease Expense | 174 | 173 |
| Depreciation and Amortization | 342 | 341 |
| Provision for Losses on Accounts Receivable, net of write-offs and recoveries | (40) | (80) |
| Deferred Taxes | 29 | 36 |
| Provision for Inventory Reserves | (272) | (221) |
| Changes in Assets and Liabilities: |  |  |
| Accounts Receivable | (735) | 665 |
| Inventories | 361 | (338) |
| Other Assets | 1,005 | 810 |
| Accounts Payable | 441 | (476) |
| Accrued Compensation | (981) | (1,350) |
| Accrued Commissions and Sales Incentives | (818) | (986) |
| Lease Liabilities | (181) | (174) |
| Other Liabilities | (838) | (368) |
| Net Cash Provided by Operating Activities | 608 | 1,555 |
| Cash Flows from Investing Activities: |  |  |
| Capital Expenditures | (709) | (552) |
| Net Cash Used in Investing Activities | (709) | (552) |
| Cash Flows from Financing Activities: |  |  |
| Dividends Paid | (3,431) | (3,432) |
| Net Cash Used in Financing Activities | (3,431) | (3,432) |
| Net Decrease in Cash and Cash Equivalents | (3,532) | (2,429) |
| Translation effect on cash | 63 | (44) |
| Cash and Cash Equivalents – Beginning of Period | 53,226 | 51,699 |
| Cash and Cash Equivalents – End of Period | $49,757 | $49,226 |
| Supplemental Disclosure of Cash Flow Information: |  |  |
| Cash paid for Income Taxes | $10 | $110 |
| Declared Dividend | $3,433 | $3,432 |
| Additions to Right-Of-Use Assets obtained from new operating Lease Liabilities | $7 | - |

See
accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

-8-

**OMEGA
FLEX, INC.**

### **NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**1.BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS**

**Basis
of Presentation**

The
accompanying unaudited Condensed Consolidated Financial Statements include the accounts of Omega Flex, Inc., and its subsidiaries (collectively
the “Company”). The Company’s Condensed Consolidated Financial Statements for the quarter ended March 31, 2026 have
been prepared in accordance with accounting principles generally accepted in the United States (GAAP), and with the instructions of Quarterly
Report on Form 10-Q and Article 10 of Regulation S-X. Certain information and note disclosures normally included in annual financial
statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company
believes that the disclosures made are adequate to make the information not misleading. It is suggested that these Condensed Consolidated
Financial Statements be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”). All material intercompany accounts and transactions
have been eliminated in consolidation. It is management’s opinion that all adjustments necessary for a fair statement of the results
for the interim periods have been made, and that all adjustments are of a normal recurring nature, or a description is provided for any
adjustments that are not of a normal recurring nature.

**Description
of Business**

The
Company is a leading manufacturer of flexible metal hose, which is used in a variety of applications to carry gases and liquids within
their particular applications. The Company’s business is controlled as a single operating segment that consists of the manufacture
and sale of flexible metal hose and accessories. These applications include carrying fuel gases within residential and commercial buildings;
gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks,
which is used in automotive and marina refueling, and fueling for back-up generation; and medical gases in health care facilities. The
Company’s flexible metal piping is also used to carry other types of gases and fluids in a number of industrial applications where
the customer requires the piping to have both a degree of flexibility and/or an ability to carry corrosive compounds or mixtures, or
to carry at both very high and very low (cryogenic) temperatures.

The
Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania and Houston, Texas, in the United States (U.S.), and
in Banbury, Oxfordshire in the United Kingdom (U.K.), and sells its products through distributors, wholesalers and to original equipment
manufacturers (OEMs) throughout North America, and in certain European markets.

-9-

**2.SIGNIFICANT ACCOUNTING POLICIES**

**Use
of Estimates**

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements
and the reported amounts of revenues and expenses during the reporting periods. Management develops, and changes periodically, these
estimates and assumptions based on historical experience and on various other factors that are believed to be reasonable under the circumstances.
Actual amounts could differ significantly from these estimates.

**Revenue
Recognition**

The
Company applies the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
Topic 606, *Revenue from Contracts with Customers* (“Topic 606”). The standard requires revenue to be recognized in
a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received
in exchange for those goods or services.

The
principle of Topic 606 is achieved through applying the following five-step approach:

- *Identification  of the contract, or contracts, with a customer —* a contract with a customer exists  when the Company enters into an enforceable contract with a customer, typically a purchase  order initiated by the customer, that defines each party’s rights regarding the goods  to be transferred and identifies the payment terms related to these goods.
- *Identification  of the performance obligations in the contract —* performance obligations promised  in a contract are identified based on the goods that will be transferred to the customer  that are distinct, whereby the customer can benefit from the goods on their own or together  with other resources that are readily available from third parties or from us. Persuasive  evidence of an arrangement for the sale of product must exist. The Company ships products  in accordance with the purchase order and standard terms as reflected within the Company’s  order acknowledgments and sales invoices.
- *Determination  of the transaction price* —the transaction price is determined based on the consideration  to which the Company will be entitled in exchange for transferring goods to the customer.  This would be the agreed upon quantity and price per product type in accordance with the  customer purchase order, which is aligned with the Company’s internally approved pricing  guidelines.
- *Allocation  of the transaction price to the performance obligations in the contract* — if the  contract contains a single performance obligation, the entire transaction price is allocated  to the single performance obligation. This applies to the Company as there is only one performance  obligation to ship the goods.

-10-

- *Recognition  of revenue when, or as, the Company satisfies a performance obligation* — the Company  satisfies performance obligations at a point in time when control of the goods transfers  to the customer. Determining the point in time when control transfers requires judgment.  Indicators considered in determining whether the customer has obtained control of a good  include:
- The  Company has a present right to payment
- The  customer has legal title to the goods
- The  Company has transferred physical possession of the goods
- The  customer has the significant risks and rewards of ownership of the goods
- The  customer has accepted the goods

It
is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of
the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the
goods.

The
Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon
specifications in the contract or customer purchase order (e.g., items, quantities, and prices) with the buyer, so customer acceptance
would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the
goods.

Based
upon the above, the Company has concluded that control substantively transfers to the customer upon shipment.

Other
considerations of Topic 606 include the following:

- *Contract  Costs -* costs to obtain a contract (e.g. customer purchase order) include sales commissions.  Under Topic 606, these costs may be expensed as incurred for contracts with a duration of  one year or less. The majority of the Company’s customer purchase orders are fulfilled  (e.g. goods are shipped) within two days of receipt.
- *Warranties*  - the Company does not offer a warranty as a separate component for customers to purchase.  A warranty is generally included with each purchase, providing assurance that the goods comply  with agreed-upon specifications, and the cost is therefore accrued accordingly, but contracts  do not include any requirement for additional distinct services. Therefore, there is not  a separate performance obligation, and there is no impact of warranties under Topic 606 upon  the financial reporting of the Company.
- *Returned  Goods* - from time to time, the Company provides authorization to customers to return  goods. If deemed to be material, the Company would record a “right of return”  asset for the cost of the returned goods which would reduce cost of sales.

-11-

- *Volume  Rebates (Promotional Incentives)* - volume rebates are variable (dependent upon the volume  of goods purchased by our eligible customers) and, under Topic 606, must be estimated and  recognized as a reduction of revenue as performance obligations are satisfied (e.g. upon  shipment of goods). Also under Topic 606, to ensure that the related revenue recognized would  not be probable of a significant reversal, the four following factors are considered:
- The  amount of consideration is highly susceptible to factors outside the Company’s influence.
- The  uncertainty about the amount of consideration is not expected to be resolved for a long period  of time.
- The  Company’s experience with similar types of contracts is limited.
- The  contract has a large number and broad range of possible consideration amounts.

If
it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of
revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based
upon estimates of the eligible products expected to be sold.

Accounts
receivable, net of allowances, was $14,381,000 as of January 1, 2025.

Regarding
disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that
consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract,
terms, timing, and transfer of control of goods. As indicated in this Note 2, Significant Accounting Policies, under the caption “Significant
Concentrations”, the majority of the Company’s sales were geographically contained within North America, with the remainder
scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of
the Company as a whole.

**Cash
Equivalents**

The
Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents.
Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes, and bonds, and/or
repurchase agreements, backed by such obligations, and in U.S. Treasury bills and certificates of deposit. Carrying value approximates
fair value except for U.S. Treasury bills and certificates of deposit where amortized cost approximates fair value. Cash and cash equivalents
are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking
institutions carrying their assets on a regular basis and has the ability to transfer cash to various institutions during times of risk.
The Company has not experienced any losses related to these cash balances and believes its credit risk to be minimal.

**Accounts
Receivable and Provision for Credit Losses**

All
accounts receivable is stated at amortized cost, net of allowances for credit losses, and adjusted for any write-offs. The Company maintains
allowances for credit losses, which represent an estimate of expected losses over the remaining contractual life of its receivables considering
current market conditions and estimates for supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing
assessments and evaluations of collectability, historical loss experience, and future expectations in estimating credit losses in its
receivable portfolio. For accounts receivable, the Company uses historical loss experience rates and applies them to a related aging
analysis while also considering customer and/or economic risk where appropriate. Determination of the proper amount of allowances requires
management to exercise judgment about the timing, frequency and severity of credit losses that could materially affect the provision
for credit losses and, as a result, operating profit. The allowances consider numerous quantitative and qualitative factors that include
receivable type, historical loss experience, delinquency trends, collection experience, current economic conditions, estimates for supportable
forecasts, when appropriate, and credit risk characteristics.

-12-

The
reserve for credit losses, which include future credits, discounts, and doubtful accounts, was $817,000 and $857,000 as of March 31,
2026 and December 31, 2025, respectively.

**Inventories**

Inventories
are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method.
The Company generally considers inventory quantities beyond two years of usage, measured on a historical usage basis, to be excess inventory
and reduces the carrying value of inventory accordingly.

**Property
and Equipment**

Property
and equipment are initially recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated
useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed
of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other
income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized.

**Goodwill**

In
accordance with FASB ASC Topic 350, *Intangibles – Goodwill and Other*, using the simplified method as adopted, the Company
performed an annual impairment test as of December 31, 2025. This analysis did not indicate any impairment of goodwill.

**Stock
Based Compensation Plans**

*Phantom
Stock Plan*

In
2006, the Company adopted a Phantom Stock Plan (the “Phantom Plan”), which allows the Company to grant phantom stock units
(“Units”) to certain key employees, officers, or directors. The Units each represent a contractual right to payment of compensation
in the future based upon the market value of the Company’s common stock and are accordingly recorded as liabilities. The Units
follow a vesting schedule over three years from the grant date and are then paid upon maturity. In accordance with FASB ASC Topic 718, *Compensation - Stock Compensation*, the Company uses the Black-Scholes option pricing model as its method for determining the fair
value of the Units. The liabilities for the Units are adjusted to market value over time from the grant dates to the related maturity
dates. The Company recognizes the reversal of any previously recognized compensation expense on forfeited nonvested Units in the period
the Units are forfeited.

-13-

The
Phantom Plan has been amended and restated, for all grants made starting January 1, 2023, to set the vesting method to three-year cliff
vesting following the grant date, with payment upon maturity. Additionally, for grants made starting January 1, 2023, upon retirement
at age 67 or greater, and with one year of continuous service prior to retirement, vesting of the issued grant(s) would accelerate on
a pro-rata basis, 1/3 per year from the grant date.

*Equity
Incentive Plan*

In
2024, the Flex-Trac, Inc. 2025 Equity Incentive Plan (the “Equity Incentive Plan”) was adopted to provide directors, officers,
employees, contractors and consultants of Flex-Trac, Inc. or its affiliates an equity-based incentive to maintain and enhance the performance
and profitability of Flex-Trac, Inc. Subject to adjustment as provided in the Equity Incentive Plan, up to 818,458 shares of the common
stock, par value $0.01 per share, of Flex-Trac, Inc. (“FTI Common Stock”), or 7.5% of the fully-diluted shares of FTI Common
Stock, may be issued pursuant to the Equity Incentive Plan with respect to awards.

On
January 2, 2025, 420,000 shares of restricted stock in the aggregate, or 4% of the shares of FTI Common Stock, were granted and issued
to certain eligible participants under the Equity Incentive Plan (the “Awards”). The Awards cliff vest after eight years
of continuous service or earlier upon the grantee’s death, disability or retirement, or a change of control, as defined and further
described in the Equity Incentive Plan.

In
accordance with FASB ASC Topic 718, *Compensation - Stock Compensation*, the Company values the Awards at fair value at grant date
and recognizes compensation expense over the vesting period. The Company recognizes the reversal of any previously recognized compensation
expense on forfeited nonvested Awards in the period the Awards are forfeited.

Further
details of the Phantom Plan and Equity Incentive Plan are provided in Note 7, Stock Based Compensation Plans, to the Condensed Consolidated
Financial Statements included in this report.

**Product
Liability Reserves**

Except
for most product liability claims made for its yellow-jacketed TracPipe® CSST on or after September 1, 2025, for which the Company
decided to self-insure (the “Self-Insured Claims”), product liability reserves represent the estimated unpaid amounts under
the Company’s insurance policy deductibles or self-insured retention limits (or “retentions”), with respect to existing
claims. The Company uses the most current available data to estimate claims. As explained more fully under Note 6, Commitments and Contingencies,
to the Condensed Consolidated Financial Statements included in this report, for various product liability claims covered under the Company’s
general liability insurance policies, the Company must pay certain defense and settlement costs within its insurance policy retentions,
ranging primarily from $250,000 to $3,000,000 per claim, depending on the terms of the policy and the applicable policy year, up to an
aggregate amount. The Company is vigorously defending against all known claims. There are no open Self-Insured Claims as of March 31,
2026.

-14-

**Leases**

The
Company applies the requirements of FASB ASC Topic 842, *Leases* which defines a lease as any contract that conveys the right to
use a specific asset for a period of time in exchange for consideration. Leases are classified as a finance lease, formerly called a
capital lease, if any of the following criteria are met:

| 1. | The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. |
| --- | --- |
| 2. | The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. |
| 3. | The lease term is for the major part of the remaining economic life of the underlying asset. |
| 4. | The present value of the sum of lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset. |
| 5. | The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. |

For
any leases that do not meet the criteria identified above for finance leases, the Company treats such leases as operating leases. As
of March 31, 2026 and December 31, 2025, each of the Company’s leases is classified as an operating lease.

Both
finance and operating leases are reflected on the balance sheet as lease or “right-of-use” assets and lease liabilities.

There
are some exceptions which the Company has elected in its accounting policies. For leases with terms of twelve months or less, or below
the Company’s general capitalization policy threshold, the Company has elected an accounting policy to not recognize lease assets
and lease liabilities for all asset classes. The Company recognizes lease expense for such leases generally on a straight-line basis
over the lease term.

The
Company determines if a contract is a lease at the inception of the arrangement. The Company reviews all options to extend, terminate,
or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain to
be exercised. Certain leases contain non-lease components, such as common area maintenance, which are generally accounted for separately.
In general, the Company will assess if non-lease components are fixed and determinable, or variable, when determining if the component
should be included in the lease liability. For purposes of calculating the present value of the lease obligations, the Company utilizes
the implicit interest rate within the lease agreement when known and/or determinable, and otherwise utilizes its incremental borrowing
rate at the time of the lease agreement.

-15-

**Fair
Value of Financial and Nonfinancial Instruments**

The
Company measures financial instruments in accordance with FASB ASC Topic 820, *Fair Value Measurements and Disclosures*. The accounting
standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements.
Fair value is defined as 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 on the measurement
date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable
inputs. The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into
three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level
2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market
participants would use in pricing the asset or liability. The Company relies upon Level 1 inputs in determining the fair value of the
Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, *Intangibles - Goodwill and Other* and Level 3 inputs to value the Awards under the Equity Incentive Plan. Refer to Note 7, Stock Based Compensation Plans, of the Condensed
Consolidated Financial Statements for additional details.

**Earnings
per Common Share**

Basic
earnings per share have been computed using the weighted-average number of common shares outstanding. For the periods presented, there
are no dilutive securities. Consequently, basic and diluted earnings per share are the same.

**Currency
Translation**

Assets
and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet
dates. The assets and liabilities denominated in foreign currencies relate to the Company’s U.K. subsidiary whose functional currency
is the British Pound and the U.K. subsidiary’s France subsidiary whose functional currency is the Euro. The Condensed Consolidated
Statements of Income are translated into U.S. dollars at average exchange rates for the period. Adjustments resulting from the translation
of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’
equity. Exchange gains and losses resulting from foreign currency transactions are included in the Condensed Consolidated Statements
of Income in the period in which they occur.

**Income
Taxes**

The
Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, *Income Taxes*. Under this method the Company records
tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions.

Deferred
tax assets and liabilities are recognized for the future tax consequences attributable 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 from a change in tax rates is recognized in income in the period that includes
the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either
expire before the Company is able to realize the benefit, or that future deductibility is uncertain.

-16-

The
FASB ASC Topic 740, *Income Taxes*, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits
of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely
than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions
to be recognized in the financial statements.

The
Company follows the provisions of FASB ASC Subtopic 740-10 relative to accounting for uncertain tax positions. These provisions provide
guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company recognizes
interest and penalties related to uncertain tax positions in income tax expense. As of March 31, 2026 and December 31, 2025, the Company
had no unrecognized tax benefits related to various federal and state income tax matters nor any accrued interest or penalties.

Effective
January 1, 2022, as a result of changes made by the Tax Cuts and Jobs Act of 2017, the Company was required to capitalize certain research
and development expenses for tax purposes, and amortize those expenses over a five year period, resulting in a deferred tax asset for
the capitalized amounts. Effective January 1, 2025, as a result of the changes made by the One Big Beautiful Bill Act, the previously
capitalized research and development expenses became deductible.

**Other
Comprehensive Income**

For
the three months ended March 31, 2026 and 2025, the components of other comprehensive income consisted solely of foreign currency translation
adjustments.

**Significant
Concentrations**

The
Company has one significant customer which represented more than 10% of the Company’s Accounts Receivable as of March 31, 2026
and as of December 31, 2025. That same customer represented more than 10% of the Company’s Net Sales for the three months ended
March 31, 2026 and 2025. Geographically, the Company has a significant amount of sales in the United States versus internationally. These
concentrations are consistent with those discussed in detail in the Company’s Form 10-K.

**Subsequent
Events**

The
Company evaluates all events or transactions through the date of the related filing that may have a material impact on its Condensed
Consolidated Financial Statements. Refer to Note 12 of the Condensed Consolidated Financial Statements.

-17-

**Recent
Accounting Pronouncements**

In
December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The ASU expands
public entities tax disclosures including improving disclosures surrounding the company’s rate reconciliation, cash taxes paid,
and disaggregation of income tax expense (or benefit) from continuing operations. The amendment is effective for annual periods beginning
after December 15, 2024. In 2025, the Company adopted ASU No. 2023-09 retrospectively and reflected these improvements in Note 9. Income
Taxes of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

In
November 2024, the FASB issued ASU No. 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses*. The ASU requires new tabular disclosures disaggregating prescribed
expense categories within relevant income statement captions. The amendment is effective for annual periods beginning after December
15, 2026 and interim periods in fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the impact
of ASU No. 2024-03 on its Condensed Consolidated Financial Statements.

**3.INVENTORIES**

Inventories,
net of reserves of $548,000 and $822,000 as of March 31, 2026 and December 31, 2025, respectively, consisted of the following:

SCHEDULE
OF INVENTORIES, NET OF RESERVES 

_(in thousands)_

| Line item | March 31, 2026 | December 31, 2025 |
| --- | --- | --- |
| Finished Goods | $7,012 | $6,838 |
| Raw Materials | 6,266 | 6,559 |
| Inventories - Net | $13,278 | $13,397 |

See
Note 4, Other Long Term Assets, for details on inventories which are estimated to be used beyond the next twelve months.

**4.OTHER LONG TERM ASSETS**

Other
long term assets were as follows:

SCHEDULE
OF OTHER LONG TERM ASSETS 

_(in thousands)_

| Line item | March 31, 2026 | December 31, 2025 |
| --- | --- | --- |
| Inventories - net | $1,812 | $1,926 |
| Cash surrender value of life insurance policies | 1,158 | 1,150 |
| Other | 186 | 142 |
| Other Long Term Assets | $3,156 | $3,218 |

The
Company maintains inventories, net of reserves of $1,000,000 as of March 31, 2026 and December 31, 2025, which is estimated to be used
beyond the next twelve months, mainly for the corrugated medical tubing (“CMT”) products. Higher amounts of materials for
the CMT products were initially purchased for cost considerations and because of longer required lead times.

The
Company has obtained and is the beneficiary of life insurance policies with respect to past employees.

-18-

**5.LINE OF CREDIT AND OTHER BORROWINGS**

On
July 3, 2023, the Company agreed to an Amended and Restated Loan Agreement with Santander Bank, N.A. (the “Bank”), and a
Second Amended and Restated Committed Revolving Line of Credit Note to the Bank (both documents together, the “Facility”).
The Facility is an unsecured revolving credit facility in the maximum amount of $15,000,000, with a $1,000,000 letter of credit sublimit,
expiring June 1, 2028, with funds available for working capital and other corporate purposes. The interest rate payable on any borrowings
is either the Term SOFR Reference Rate or the Bank’s Prime Rate, as specified by the Company, plus the Applicable Margin. The Applicable
Margin for the Term SOFR Reference Rate is plus 0.75% to plus 1.75%, and for Prime Rate, up to plus 0.50%, depending upon the Company’s
then existing specified financial ratios. As of March 31, 2026, the Company’s ratio would allow for the most favorable rate under
the Facility’s ranges or 4.40%. The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points
of the average unused balance of the note and an annual commitment fee of $5,000 due and payable on each anniversary date of the Facility. The Company may terminate the Facility at any time as long as there are no amounts outstanding and may prepay any borrowings.

As
of March 31, 2026 and December 31, 2025, the Company had no outstanding borrowings on the Facility and was in compliance with all debt
covenants.

**6.COMMITMENTS AND CONTINGENCIES**

**Commitments**

Under
a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each
of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both. The Company’s
indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements.
Under the terms of the agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in
connection with claims arising by reason of these individuals’ roles as officers and directors. The Company has obtained directors’
and officers’ insurance policies to fund certain obligations under the indemnity agreements.

The
Company has a salary continuation agreement with a past employee. The agreement provides for monthly payments to the employee or their
designated beneficiary upon the employee’s retirement or death. The payment benefits are $3,000 per month with the term of such
payments limited to 15 years after the employee’s retirement. The net present value of the retirement payments associated with
this agreement is $270,000 as of March 31, 2026, of which $234,000 is included in Other Long Term Liabilities, and the remaining current
portion of $36,000 is included in Other Liabilities, associated with the applicable retirement benefit payments over the next twelve
months. The December 31, 2025 liability of $276,000 had $240,000 reported in Other Long Term Liabilities, and a current portion of $36,000 in Other Liabilities.

-19-

In
addition to the above, the Company has other contractual employment and or change of control agreements in place with key employees,
as previously disclosed and noted in the Exhibit Index to the Company’s Form 10-K. Obligations related to these arrangements are
currently indeterminable due to the variable nature and timing of possible events required to incur such obligations.

As
disclosed in detail in Note 8, Leases, to the Condensed Consolidated Financial Statements included in this report, the Company has several
lease obligations in place that will be paid over time. Most notably, the Company leases a facility in Banbury, England that serves the
manufacturing, warehousing, and distribution functions.

Lastly,
the Company has contractual obligations in place for the current year, mainly related to purchase obligations for the Company’s
raw material inventories.

**Contingencies**

In
the ordinary and normal conduct of the Company’s business, it is subject to lawsuits, investigations, and claims (collectively,
the “Claims”). The Claims generally relate to alleged lightning or other electrical damage to our flexible gas piping products
and may result in legal and product liability related expenses. The Company does not believe the Claims have legal merit and vigorously
defends them. It is possible that the Company may incur increased litigation costs in the future due to a variety of factors, including
a higher number of Claims, higher legal and expert costs, higher retentions, and/or the Company’s decision to self-insure most
product liability Claims made for its yellow-jacketed TracPipe® CSST on or after September 1, 2025 (the “Self-Insured Claims”).

Except
for the Self-Insured Claims, the Company has in place commercial general liability insurance policies that cover most Claims, which are
subject to retentions, ranging primarily from $250,000 to $3,000,000 per claim (depending on the terms of the policy and the applicable
policy year), up to an aggregate amount. Litigation is subject to many uncertainties and management is unable to predict the outcome
of the pending suits and claims. Except for Self-Insured Claims, the potential liability for a given claim could range from zero to a
maximum of $3,000,000, depending upon the circumstances, and retentions in place for the respective claim year. The aggregate maximum
exposure for all open Claims as of March 31, 2026, is estimated to not exceed approximately $547,000, which represents the potential
costs that may be incurred over time for the Claims within the applicable retentions. As of March 31, 2026, there are no open Self-Insured
Claims.

From
time to time, depending upon the nature of a particular case, the Company may decide to spend in excess of retentions to enable more
discretion regarding the defense, although this is not common. It is possible that the results of operations or liquidity of the Company,
as well as the Company’s ability to procure reasonably priced insurance, could be adversely affected by the pending litigation,
potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending
litigation, or potential litigation from future claims or claims that have not yet come to our attention, and accordingly, the liability
in the Condensed Consolidated Financial Statements primarily represents an accrual for legal costs for services previously rendered,
outstanding settlements for Claims not yet paid, and anticipated, probable, settlements for Claims within the Company’s remaining
retentions under its insurance policies. The liabilities recorded in the Company’s books as of March 31, 2026 and December 31,
2025 were $250,000 and $703,000, respectively, and are included in Other Liabilities.

-20-

**7.STOCK BASED COMPENSATION PLANS**

**Phantom
Stock Plan**

***Plan
Description.*** On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Phantom Plan”).
The Phantom Plan authorizes the grant of up to one million units of phantom stock to employees, officers, or directors of the Company.
The phantom stock units (“Units”) each represent a contractual right to payment of compensation in the future based on the
market value of the Company’s common stock. The Units are not shares of the Company’s common stock, and a recipient of the
Units does not receive any of the following:

- ownership  interest in the Company;
- shareholder  voting rights; and
- other  incidents of ownership to the Company’s common stock

The
Units are granted to participants upon the recommendation of the Company’s Chief Executive Officer and President, and the approval
of the Compensation Committee. Each of the Units that are granted to a participant will be initially valued by the Compensation Committee
at an amount equal to the closing price of the Company’s common stock on the grant date but are recorded at fair value using the
Black-Sholes method as described below. The Units follow a vesting schedule, with a maximum vesting of three years after the grant date.
Grants made on or after January 1, 2023, will cliff vest three years from the grant date. Upon vesting, the Units represent a contractual
right of payment for the value of the Unit and therefore are stated as liabilities in accordance with FASB ASC Topic 718, *Compensation
- Stock Compensation*. The Units will be paid on their maturity date, one year after all the Units granted in a particular award have
fully vested, unless a specified event occurs under the terms of the Phantom Plan, which would allow for earlier payment. Units granted
with value at the maturity date equal to the closing price of the Company’s common stock as of the maturity date are defined as
Full Value Units. Unless stated otherwise, all Units described herein are Full Value Units.

In
2009, the Board of Directors authorized an amendment to the Phantom Plan to pay an amount equal to the value of any cash or stock dividend
declared by the Company on its common stock to be accrued to the Units outstanding as of the record date of the common stock dividend.
The dividend equivalent will be paid at the same time the underlying Units are paid to the participant.

In
addition, the Phantom Plan has been amended and restated, for all grants made starting January 1, 2023, to set the vesting method to
three-year cliff vesting following the grant date, with payment upon maturity. Additionally, for grants made starting January 1, 2023,
upon retirement at age 67 or greater, and with one year of continuous service prior to retirement, vesting of the issued grant(s) would
accelerate on a pro-rata basis, 1/3 per year from the grant date.

-21-

In
certain circumstances, the Units may be immediately vested upon the participant’s death or disability. All Units granted to a participant
are forfeited if the participant is terminated from their relationship with the Company or its subsidiary for “cause,” which
is defined under the Phantom Plan. If a participant’s employment or relationship with the Company is terminated for reasons other
than for “cause,” then any vested Units will be paid to the participant upon termination. However, Units granted to certain
“specified employees” as defined in Section 409A of the Internal Revenue Code will be paid approximately 181 days after termination.

***Grants
of Units.*** As of December 31, 2025, the Company had 23,057 nonvested and unmatured Units outstanding. In February 2026, the Company
paid $72,000 for 1,680 fully vested and matured Units that were granted during 2022, including their respective earned dividend values.
In addition, the Company granted 11,895 Units with a fair value of $32.66 per Unit on grant date, using historical volatility in February
2026. As of March 31, 2026, the Company had 32,683 nonvested and unmatured Units outstanding.

The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units. The Company uses the straight-line
method of attributing the value of the stock based compensation expense relating to the Units. The compensation expense (including adjustment
of the liability to its fair value) from the Units is recognized over the vesting and maturity periods of each grant.

The
FASB ASC Topic 718, *Compensation - Stock Compensation*, requires forfeitures either to be estimated at the time of grant and revised,
if necessary, in subsequent periods if actual forfeitures differ from those estimates to derive an estimate of awards ultimately to vest
or to recognize the effect of any forfeited awards for which the requisite vesting period is not completed in the period that the award
is forfeited.

The
Company recognizes the reversal of any previously recognized compensation expense on forfeited awards in the period that the award is
forfeited. During the three months ended March 31, 2026 and 2025, no awards were forfeited.

The
total liability related to the Units as of March 31, 2026 was $475,000 of which $115,000 is included in Other Liabilities, as it is expected
to be paid within the next twelve months, and the balance of $360,000 is included in Other Long Term Liabilities. The total liability
related to the Units as of December 31, 2025 was $434,000 of which $92,000 was included in Other Liabilities, and the balance of $342,000 was included in Other Long Term Liabilities.

Related
to the Phantom Plan, in accordance with FASB ASC Topic 718, *Compensation - Stock Compensation*, the Company recorded compensation
expense of $113,000 and $3,000 for the three months ended March 31, 2026 and 2025, respectively. Compensation expense or income for a
given period largely depends upon fluctuations in the Company’s stock price.

-22-

The
following table summarizes information about the Company’s nonvested and unmatured Units as of and for the three months ended March
31, 2026:

SCHEDULE
OF NONVESTED AWARDS 

| Line item | Units | Weighted Average Grant Date Fair Value |
| --- | --- | --- |
| Number of Units: |  |  |
| Nonvested and Unmatured as of December 31, 2025 | 23,057 | $52.68 |
| Granted | 11,895 | $32.66 |
| Vested | (2,269) | $108.47 |
| Forfeited | — | — |
| Canceled | — | — |
| Nonvested and Unmatured as of March 31, 2026 | 32,683 | $41.52 |
| Units Expected to Vest and Mature | 32,683 | $41.52 |

Total
unrecognized compensation costs as of March 31, 2026 were $606,000 which will be recognized through February 2029. The Company will recognize
the related expense for the Units over the weighted average period of 2.0 years.

**Equity
Incentive Plan**

In
2024, the Flex-Trac, Inc. 2025 Equity Incentive Plan (the “Equity Incentive Plan”) was adopted to provide directors, officers,
employees, contractors and consultants of Flex-Trac, Inc. or its affiliates an equity-based incentive to maintain and enhance the performance
and profitability of Flex-Trac, Inc. Subject to adjustment as provided in the Equity Incentive Plan, up to 818,458 shares of the common
stock, par value $0.01 per share, of Flex-Trac, Inc. (“FTI Common Stock”), or 7.5% of the fully-diluted shares of FTI Common
Stock, may be issued pursuant to the Equity Incentive Plan with respect to awards.

On
January 2, 2025, 420,000 shares of restricted stock in the aggregate, or 4% of the shares of FTI Common Stock, were granted and issued
to certain eligible participants under the Equity Incentive Plan (the “Awards”). The Awards cliff vest after eight years
of continuous service or earlier upon the grantee’s death, disability or retirement, or a change of control, as defined and further
described in the Equity Incentive Plan.

In
accordance with FASB ASC Topic 718, *Compensation - Stock Compensation*, the Company values the Awards at fair value at grant date
and recognizes compensation expense, on a straight-line basis, over the vesting period. The Company recognizes the reversal of any previously
recognized compensation expense on forfeited nonvested Awards in the period the Awards are forfeited.

The
fair value of the Awards at the grant date of January 2, 2025 was $0.27 per share or $113,400. The fair value of the Awards was determined
through the income valuation approach using real option analysis which utilized the Black-Scholes option pricing model.

-23-

The
following table summarizes information about the nonvested Awards as of and for the three months ended March 31, 2026:

SCHEDULE
OF NONVESTED AWARDS 

| Line item | Awards | Weighted Average Grant Date Fair Value |
| --- | --- | --- |
| Number of Awards: |  |  |
| Nonvested as of December 31, 2025 | 420,000 | $0.27 |
| Granted | — | — |
| Vested | — | — |
| Forfeited | — | — |
| Canceled | — | — |
| Nonvested as of March 31, 2026 | 420,000 | $0.27 |
| Awards Expected to Vest | 420,000 | $0.27 |

The
Company recorded compensation expense of $4,000 for the three months ended March 31, 2026. There were no forfeitures.

**8.LEASES**

In
the U.S., the Company owns its two main operating facilities located in Exton, Pennsylvania. In addition to the owned facilities, the
Company also has operations in other locations that are leased, as well as other leased assets. In conjunction with the guidance for
leases, as defined by FASB ASC Topic 842, *Leases*, the Company has described the existing leases, which are all classified as operating
leases, pursuant to the below.

In
the U.S., the Company leases a facility in West Chester, Pennsylvania, which was consummated effective January 2024, with its lease terminating
in February 2031, which provides warehousing and storage, quality control, distribution, and office space. The Company also leases a
facility in Houston, Texas, which was consummated effective June 2024, with its lease terminating in July 2029, which provides manufacturing,
stocking, and sales operations. Additionally, the Company leases office space in Middletown, Connecticut, with its lease terminating
in June 2027.

In
the U.K., the Company leases a facility in Banbury, England, which serves manufacturing, warehousing, and other operational functions.The lease in Banbury has a 15-year term ending in March 2036.

In
addition to property rentals, the Company also has lease agreements in place for various fleet vehicles and equipment with various lease
terms.

As
of March 31, 2026, the Company recorded right-of-use assets of $4,207,000, and a lease liability of $4,521,000, of which $773,000 is
reported as a current liability. On December 31, 2025, the Company recorded right-of-use assets of $4,437,000, and a lease liability
of $4,757,000, of which $771,000 was reported as a current liability. The respective weighted average remaining lease term and discount
rate are approximately 6.9 years and 3.59% as of March 31, 2026 and 7.7 years and 3.69% as of March 31, 2025.

-24-

Rent
expense for operating leases was $238,000 and $233,000 for the three months ended March 31, 2026 and 2025, respectively.

Future
minimum lease payments under non-cancelable leases as of March 31, 2026 are as follows:

SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 

_(in thousands)_

| Twelve Months Ending March 31, | Operating Leases |
| --- | --- |
| 2027 | $921 |
| 2028 | 835 |
| 2029 | 816 |
| 2030 | 691 |
| 2031 | 607 |
| Thereafter | 1,095 |
| Total Future Minimum Lease Payments | 4,965 |
| Less: Interest | 444 |
| Lease Liability | 4,521 |
| Less: Current Portion of Lease Liability | 773 |
| Lease Liability – Net of Current Portion | $3,748 |

**9.SHAREHOLDERS’ EQUITY**

As
of March 31, 2026 and December 31, 2025, the Company had 20,000,000 shares of common stock, with par value of $0.01 per share, authorized.
For both periods, the total number of outstanding shares was 10,094,322, shares held in Treasury was 59,311, and total shares issued
was 10,153,633.

During
2026 and 2025, upon approval of the Board of Directors (the “Board”) the Company has declared and paid regular quarterly
dividends, as set forth in the following table:

SCHEDULE OF REGULAR QUARTER DIVIDEND PAYMENTS 

| Dividend Declared / Date | Dividend Declared / Price Per Share | Dividend Paid / Date | Dividend Paid / Amount |
| --- | --- | --- | --- |
| March 24, 2026 | $0.34 | April 21, 2026 | 3,433,000 |
| December 5, 2025 | $0.34 | January 7, 2026 | 3,431,000 |
| September 12, 2025 | $0.34 | October 8, 2025 | 3,433,000 |
| June 17, 2025 | $0.34 | July 10, 2025 | 3,432,000 |
| March 25, 2025 | $0.34 | April 22, 2025 | 3,432,000 |
| December 5, 2024 | $0.34 | January 7, 2025 | 3,432,000 |

It
should be noted that from time to time, the Board may elect to pay special dividends, in addition to or in lieu of the regular quarterly
dividends, depending upon the financial condition of the Company. The most recent special dividend was declared and paid in December
2019.

-25-

**10.SEGMENT REPORTING**

The
Company derives revenues from the manufacture and sale of flexible metal hose and accessories (the “flexible metal hose”
segment). These applications include carrying fuel gases within residential and commercial buildings; gasoline and diesel gasoline products
(both above and below the ground) in a double containment piping to contain any possible leaks, which is used in automotive and marina
refueling, and fueling for back-up generation; and medical gases in health care facilities.

The
accounting policies of the flexible metal hose segment are the same as described in Note 2. Significant Accounting Policies. The Chief
Operating Decision Maker (“CODM”), which includes the Chief Executive Officer, Executive Chairman, and President, assesses
performance for the flexible metal hose segment and decides how to allocate resources based on the measures which are also reported in
the Condensed Consolidated Statements of Income as Operating Profit and Net Income. Segment assets are reported in the Consolidated Balance
Sheets as Total Assets.

The
CODM uses Operating Profit and Net Income to evaluate performance and income generated from segment assets (return on assets) in deciding
whether to reinvest profits into the flexible metal hose segment or into other areas, such as for acquisitions or to pay dividends. Significant
segment expense categories reviewed by the CODM are consistent with the categories reflected in the Consolidated Statements of Income.

**11.RELATED PARTY TRANSACTIONS**

From
time to time the Company may have related party transactions (“RPTs”). RPTs represent any transaction between the Company
and any Company employee, director or officer, or any related entity, or relative, etc. The Company performs a review of transactions
each year to determine if any RPTs exist, and if so, determines if the related parties act independently of each other in a fair transaction.
Through this investigation the Company noted a limited number of RPTs. In all cases, these RPTs have been determined to be arms length
transactions with no indication that they are influenced by the related relationships.

**12.SUBSEQUENT EVENTS**

The
Company evaluated all events or transactions that occurred through the date of this filing. During this period, no events came to the
Company’s attention that would impact the Condensed Consolidated Financial Statements for the period ended March 31, 2026.

-26-

**Item
2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations**

*You
should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated
financial statements and related notes thereto included in Part I, Item 1 of this Form 10-Q. This discussion contains forward-looking
statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those
anticipated in these forward-looking statements as a result of various factors, including those set forth under Part I, Item 1A. Risk
Factors, and other parts of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. See “Cautionary
Note Regarding Forward-Looking Statements” in this Form 10-Q.*

**OVERVIEW**

The
Company is a leading manufacturer of flexible metal hose and is currently engaged in a number of different markets, including construction,
manufacturing, transportation, petrochemical, pharmaceutical and other industries.

The
Company’s business is managed as a single operating segment that consists of the manufacture and sale of flexible metal hose, fittings,
and accessories. The Company’s products are concentrated in residential and commercial construction within buildings, and general
industrial markets, with a comprehensive portfolio of intellectual property and patents issued in various countries around the world.
The residential and commercial construction market also utilizes corrugated stainless steel tubing (“CSST”) primarily for
flexible gas piping. Through its flexibility and ease of use, the Company’s TracPipe® CSST and TracPipe® CounterStrike® CSST, along with its fittings distributed under the trademark AutoFlare®, allows users
to substantially cut the time required to install gas piping, as compared to traditional methods. The Company’s newest product
line MediTrac® corrugated medical tubing (“CMT”) is used for piping medical gases (oxygen, nitrogen, nitrous
oxide, carbon dioxide, and medical vacuum) in health care facilities. Building on the recognized strengths and strategies employed in
the flexible gas piping market, MediTrac® CMT can be used in place of rigid copper pipe, and due to its long continuous
lengths and flexibility, it can be installed approximately five times faster than rigid copper pipe, saving on installation labor and
construction schedules. The Company’s products are manufactured at its Exton, Pennsylvania and Houston, Texas facilities in the
U.S., and in Banbury, Oxfordshire in the U.K. A majority of the Company’s sales across all industries are generated through independent
outside sales organizations such as sales representatives, wholesalers and distributors, or a combination of both. The Company has a
broad distribution network in North America and to a lesser extent in other global markets.

-27-

**CHANGES
IN FINANCIAL CONDITION**

**For
the period ended March 31, 2026 vs. December 31, 2025**

The
Company’s cash and cash equivalents balance of $49,757,000 on March 31, 2026 decreased $3,469,000 (6.5%) from a $53,226,000 balance
at December 31, 2025. Consistent with prior years, the Company paid a significant amount of cash during the first quarter for obligations
that were accrued as of the end of the preceding year such as incentive related compensation. The Company also paid a dividend during
2026 totaling $3,431,000, as detailed in Note 9, Shareholders’ Equity, to the Condensed Consolidated Financial Statements included
in this report, and capital expenditures of $709,000 partially offset by cash provided by operating activities of $608,000. See the Company’s
Condensed Consolidated Statements of Cash Flow for further details regarding the change in cash.

Retained
earnings were $72,623,000 and $73,979,000 as of March 31, 2026 and December 31, 2025, respectively, decreasing $1,356,000 or 1.8%. The
decrease was primarily due to a dividend declared during 2026, as discussed in detail in Note 9, Shareholders’ Equity, to the Condensed
Consolidated Financial Statements included in this report, partially offset by net income during the year, as provided on the Company’s
Condensed Consolidated Statements of Income.

**RESULTS
OF OPERATIONS**

**Three
months ended March 31, 2026 compared to three months ended March 31, 2025**

The
Company reported comparative results from operations for the three month periods ended March 31, 2026 and 2025 as follows:

_(in thousands)_

| Line item | Three months ended March 31, 2026 | Three months ended March 31, 2026 | Three months ended March 31, 2025 | Three months ended March 31, 2025 |
| --- | --- | --- | --- | --- |
|  | ($000)% | % | ($000)% | % |
| Net Sales | $23,093 | 100.0% | $23,330 | 100.0% |
| Gross Profit | $13,085 | 56.7% | $14,072 | 60.3% |
| Operating Profit | $2,311 | 10.0% | $4,050 | 17.4% |

Net
Sales. The Company’s 2026 first quarter sales of $23,093,000 decreased $237,000 or 1.0% compared to the first quarter of 2025,
which generated sales of $23,330,000.

Gross
Profit. The Company’s gross profit margins were 56.7% and 60.3% for the quarters ended March 31, 2026 and 2025, respectively.
The decrease in gross profit is mostly attributable to an increase in raw material costs, which includes tariffs.

Selling
Expenses. Selling expenses consist primarily of employee salaries and associated overhead costs, commissions, and the cost of marketing
programs such as advertising, trade shows and related communication costs, and freight. Selling expenses were $5,494,000 and $5,001,000
for the quarters ended March 31, 2026 and 2025, respectively, representing an increase of $493,000 or 9.9%. The increase is mostly related
to higher trade show and advertising, salary related, annual sales meeting, and outbound freight related expenses, partly offset by lower
travel and commissions. Selling expenses increased as a percentage of net sales compared to last year, being 23.8% for the quarter ended
March 31, 2026, and 21.4% for the quarter ended March 31, 2025.

-28-

General
and Administrative Expenses. General and administrative expenses consist primarily of employee salaries, benefits for administrative,
executive and finance personnel, legal and accounting, and corporate general and administrative services. General and administrative
expenses were $3,768,000 and $3,891,000 for the quarters ended March 31, 2026 and 2025, respectively, decreasing by $123,000 or 3.2%.
The decrease is due to lower legal and product liability and incentive compensation expenses, which are aligned with profitability, partly
offset by higher stock based compensation, which moves in relation to the Company’s stock price, as detailed in Note 7, Stock Based
Compensation Plans. As a percentage of sales, general and administrative expenses decreased to 16.3% for the quarter ended March 31,
2026 from 16.7% for the quarter ended March 31, 2025.

Engineering
Expense. Engineering expenses consist of development expenses associated with the development of new products and enhancements to
existing products, and manufacturing engineering costs. Engineering expenses were $1,512,000 and $1,130,000 for the quarters ended March
31, 2026 and 2025, respectively, increasing by $382,000 or 33.8%. The increase is mostly due to product development and certification
related expenses. Engineering expenses increased as a percentage of sales, being 6.5% for the quarter ended March 31, 2026, and 4.8%
for the same quarter in 2025.

Operating
Profits. Reflecting all of the factors mentioned above, operating profits were $2,311,000 and $4,050,000 for the quarters ended March
31, 2026 and 2025, respectively, decreasing by $1,739,000 or 42.9%.

Interest
Income. Interest income is recorded on cash investments, and interest expense is recorded at times when the Company has debt amounts
outstanding on its line of credit. The Company recorded $456,000 of interest income for the first quarter of 2026 and $511,000 for the
first quarter of 2025. The decrease is mainly due to lower interest rates.

Other
(Expense) Income. Other (expense) income primarily consists of foreign currency exchange gains (losses) on transactions settled in
currencies other than the Company’s local currency, typically related to the Company’s foreign U.K. and France subsidiaries.
There was a loss of $93,000 during the first quarter of 2026 compared to a gain of $83,000 during the first quarter of 2025 mainly due
to the strengthening of the U.S. dollar in the current quarter compared to the British Pound and Euro and, conversely, the weakening
of the U.S dollar in the same quarter of 2025.

Income
Tax Expense. Income tax expense was $670,000 for the first quarter of 2026, compared to $1,124,000 for the first quarter in 2025,
decreasing $454,000 or 40.4%, mostly the result of lower income before income taxes. The effective tax rates were 25.1% and 24.2% for
the quarters ending March 31, 2026 and March 31, 2025 respectively.

**LIQUIDITY
AND CAPITAL RESOURCES**

Historically,
the Company’s primary cash needs have been related to working capital items, which the Company has largely funded through cash
generated from operations.

-29-

As
of March 31, 2026, the Company had a cash balance of $49,757,000. Additionally, the Company has a $15,000,000 line of credit available,
as discussed in detail in Note 5, which had no borrowings outstanding upon it as of March 31, 2026. As of December 31, 2025, the Company
had a cash balance of $53,226,000, also with no borrowings against the line of credit.

We
believe our existing cash and cash equivalents, along with our borrowing capacity, will be sufficient to meet our anticipated cash needs
for at least the next twelve months. Our future capital requirements will depend upon many factors including our rate of revenue growth,
the timing and extent of any expansion efforts, and the potential for investments in, or the acquisition of any complementary products,
businesses, or supplementary facilities for additional capacity.

See
Notes 6 and 8 to the Company’s Condensed Consolidated Financial Statements included in this Form 10-Q for a description of the
Company’s commitments and contingencies.

**CASH
FLOWS**

**Operating
Activities**

Cash
provided or used by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities,
such as those included in working capital.

For
the three months ended March 31, 2026, the Company’s operating activities provided cash of $608,000, compared to the three months
ended March 31, 2025 which provided cash of $1,555,000, a decrease of $947,000. For details of the operating cash flows refer to the
Condensed Consolidated Statements of Cash Flows in Part I – Financial Information on page eight.

As
a general trend, the Company tends to deplete or generate lower amounts of cash early in the year, as significant payments are typically
made for incentive compensation and accrued promotional incentives. Cash has then historically shown a tendency to be restored and accumulated
during the latter portion of the year.

**Investing
Activities**

Cash
used in investing activities during the three months ended March 31, 2026 and 2025 was $709,000 and $552,000, respectively, mainly as
a result of payments for manufacturing equipment capital expenditures and leasehold improvements.

**Financing
Activities**

All
financing activities relate to dividend payments, which are detailed in Note 9, Shareholders’ Equity. Dividend payments through
the first three months of 2026 and 2025 amounted to $3,431,000 and $3,432,000, respectively.

-30-

**CRITICAL
ACCOUNTING POLICIES AND ESTIMATES**

See
our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of our critical accounting policies and estimates.
There have been no material changes to our critical accounting policies and estimates discussed in such report.

**RECENT
ACCOUNTING PRONOUNCEMENTS**

In
December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The ASU expands
public entities tax disclosures including improving disclosures surrounding the company’s rate reconciliation, cash taxes paid,
and disaggregation of income tax expense (or benefit) from continuing operations. The amendment is effective for annual periods beginning
after December 15, 2024. In 2025, the Company adopted ASU No. 2023-09 retrospectively and reflected these improvements in Note 9. Income
Taxes of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

In
November 2024, the FASB issued ASU No. 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40): Disaggregation of Income Statement Expenses*. The ASU requires new tabular disclosures disaggregating prescribed
expense categories within relevant income statement captions. The amendment is effective for annual periods beginning after December
15, 2026 and interim periods in fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the impact
of ASU No. 2024-03 on its Condensed Consolidated Financial Statements.

**Item
3 – Quantitative and Qualitative Disclosures about Market Risk**

The
Company does not engage in the purchase or trading of market risk sensitive instruments. The Company does not presently have any positions
with respect to hedge transactions such as forward contracts relating to currency fluctuations. No market risk sensitive instruments
are held for speculative or trading purposes.

**Item
4 – Controls and Procedures**

(a)
Evaluation of Disclosure Controls and Procedures.

Our
management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of
our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period
covered by this Form 10-Q. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that,
as of the end of the period covered by this Form 10-Q, our disclosure controls and procedures were effective at the reasonable assurance
level. In designing and evaluating our disclosure controls
and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the
fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls
and procedures relative to their costs.

(b)
Changes in Internal Controls.

There
were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) during the most recent quarter ended March 31, 2026, that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.

-31-

**PART
II - OTHER INFORMATION**

Item
1 – Legal Proceedings

See
legal proceedings disclosure in Note 6, Commitments and Contingencies, to the Condensed Consolidated Financial Statements included in
this Form 10-Q.

**Item
1A – Risk Factors**

Risk
factors are discussed in detail in the Company’s December 31, 2025 Form 10-K.

**Item
2 – Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item
3 – Defaults Upon Senior Securities**

None.

**Item
4 – Mine Safety Disclosures**

Not
Applicable.

**Item
5 – Other Information**

None.

Item
6 - Exhibits

**Exhibit**

| No. | Description |
| --- | --- |
| 31.1 | Certification of Chief Executive Officer of Omega Flex, Inc. pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
| 31.2 | Certification of Chief Financial Officer of Omega Flex, Inc. pursuant to 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
| 32.1 | Certification of Chief Executive Officer and Chief Financial Officer of Omega Flex, Inc., pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

| 101.INS | Inline XBRL Instance Document |
| --- | --- |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

-32-

**SIGNATURES**

Pursuant
to the requirements 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.

OMEGA  FLEX, INC.

(Registrant)

Date:  May 1, 2026 By : */s/  Matthew F. Unger*

Matthew F. Unger

Vice President – Finance,

Chief Financial Officer, and Assistant Secretary

-33-