The shareholders' equity section of Charles Corporation at December $31,2024,$ included the

following:

$$4$ preferred shares, cumulative,

$10,000$ shares authorized, $4,000$ shares issued $$400,000$

Common shares, $500,000$ shares authorized,

$350,000$ shares issued

$2,000,000$

Dividends were not declared on the preferred shares in $2024$ and are in arrears.

On September $15,2025,$ the board of directors of Charles Corporation declared all of the annual

dividends on the preferred shares for $2024$ and $2025,$ to shareholders of record on October $1,2025,$

payable on October $15,2025.$

The amount of total dividends declared on preferred shares on September $15,2025,$ is

$$16,000.$

$$20,000.$

$$32,000.$

$$64,000.$