CSP INC /MA/ 10-K

Item 9A. Controls and Procedures Evaluation of Controls and Procedures Disclosure Controls and Procedures. The Company evaluated the effectiveness of the design and operation of its disclosure controls and procedures as of September 30, 2025. Our Chief Executive Officer, our Chief Financial Officer and other members of our senior management team supervised and participated in this evaluation. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s ("SEC") rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of September 30, 2025, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective. Management’s Annual Report on Internal Control over Financial Reporting The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined in Rule 13a-15(f) under the Exchange Act, internal control over financial reporting is a process designed by or under the supervision of a company’s principal executive and principal financial officers and effected by a company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. It includes those policies and procedures that: ● pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of a company; ● provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of a company are being made only in accordance with authorizations of management and the board of directors of a company; and ● provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company’s assets that could have a material effect on its financial statements. Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations (“COSO”) of the Treadway Commission (“2013 Framework”). Based on our evaluation under the COSO 2013 Framework, our management concluded that our internal control over financial reporting was effective as of September 30, 2025. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 29 Table of Contents This Annual Report on Form 10-K does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s assessment of the effectiveness of the Company’s internal control over financial reporting as of September 30, 2025 was not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the SEC that call for the Company to provide only management’s report in this Annual Report on Form 10-K. Remediation of Previously Identified Material Weaknesses As reported in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, management identified two material weaknesses in internal control over financial reporting in connection with internal controls as described below: Corporate credit cards Description: The control deficiencies related to the Company’s business expense reimbursement and selected purchases policy and application of a legacy credit card program for Company credit cards. The control deficiencies arose out of a lack of adequate review and incomplete supporting documentation related to certain business expenses including those for reimbursement for Company credit card charges from a C level Company executive as well as undocumented compensation agreement with regards to the use of credit card points which resulted in undisclosed compensation. The Audit Committee engaged a third party to investigate and analyze certain transactions made on the corporate credit card and it was not led by management. As a result, the C-level executive returned to the Company approximately $20,000 in aggregate related to the portion of the undisclosed compensation in excess of the intended compensation agreement in fiscal year 2024. Remediation procedures: A formal policy was introduced for all credit cards including the C-level Company executive. This formal policy requires approval on all expenses as well as certain supporting documentation. Income tax Description: This control deficiency for reporting income taxes related to current/non-current taxes payable, certain deferred tax assets and liabilities, and current and deferred tax expenses. We use a third-party provider to prepare our tax provision and related disclosures on a quarterly basis. The company reviews the provision and disclosures. We believe the material weakness occurred due to a lack of competency of the third-party provider and management needs to perform a more comprehensive review with the third-party preparer Remediation procedures: A new accounting firm was hired with global expertise as our new third-party tax provider to prepare tax provisions and corporate income tax returns. This firm assisted with enhancing internal controls over financial reporting for income taxes. Quarterly meetings were held with the new third-party tax provider to discuss changes in tax law, key aspects of our quarterly/annual provisions and required updates to provisions, deciding a course of action and documenting such actions, review and approval of the tax data by senior members of our finance team and final discussion, review and approval of the third-party provider prepared provisions and returns. Income tax accounting training was provided to those involved in the review of the tax data from our third-party tax provider. As a result of the implementation of these processes and testing these processes in fiscal year 2025, management has determined that the remediation actions discussed above were effectively designed and demonstrated effective operation for a sufficient period of time to enable the Company to conclude that the previously identified material weaknesses in internal control over financial reporting have been remediated as of September 30, 2025. Changes in Internal Control over Financial Reporting. Except as discussed above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in connection with management’s evaluation during our 30 Table of Contents fiscal year 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Item 9B. Other Information During the three months ended September 30, 2025, no director or officer of the Company adopted or terminated any “ Rule 10b5-1 trading arrangement” or “ non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable PART III Item 10. Directors, Executive Officers and Corporate Governance We incorporate the information required by this item by reference to the sections captioned “Nominees for Election”, “Our Board of Directors”, “Our Executive Officers”, “Delinquent Section 16(a) Reports” and “Corporate Governance” in our Schedule 14A Proxy Statement for our 2026 Annual Meeting of Stockholders, to be filed with the SEC within 120 days after the end of our fiscal year ended September 30, 2025. Item 11. Executive Compensation We incorporate the information required by this item by reference to the sections captioned “Compensation of Executive Officers” and “Compensation of Non-Employee Directors” in our Schedule 14A Proxy Statement for our 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended September 30, 2025. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Securities Authorized for Issuance Under Equity Compensation Plans. The equity compensation plans approved by our stockholders consist of the CSP Inc. 2014 Employee Stock Purchase Plan (the "ESPP"), the 2015 Stock Incentive Plan and the 2025 Stock Incentive Plan. In fiscal year 2025 and 2024, the Company granted certain key employees and non-employee directors shares of non-vested common stock instead of stock options. The non-vested common stock has a four-year vesting period for key employees and officers including the Chief Executive Officer. There is a one-year vesting period for the non-employee directors. The following table sets forth information as of September 30, 2025 regarding the total number of securities outstanding under these equity compensation plans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of securities ​ ​ Number of securities to be ​ Weighted-average ​ remaining available for future ​ ​ issued upon exercise ​ exercise price of ​ issuance under equity ​ ​ of outstanding options, ​ outstanding options, ​ compensation plans (excluding ​ ​ warrants and rights ​ warrants and rights ​ securities reflected in column (a)) ​ Plan Category ​ (a) ​ (b) ​ (c) ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity plans approved by security holders: ​ ​ ​ ​ ​ ​ ​ ​ Stock Incentive Plan ​ 549,855 (1) ​ $ — (2) ​ 549,855 ​ Employee Stock Purchase Plan ​ ​ ​ ​ ​ 483,262 ​ Total ​ 549,855 ​ $ — ​ 1,033,117 ​ (1) Includes only non-vested restricted stock awards issued under the 2015 and 2025 Stock Incentive Plan. The 2015 Stock Incentive Plan expired in fiscal year 2025, but does not affect restricted stock awards issued from this plan. 31 Table of Contents (2) There are only non-vested restricted awards outstanding, which do not require the holder to give any consideration for the awards. We incorporate additional information required by this Item by reference to the section captioned “Security Ownership of Certain Beneficial Owners and Management” in our Schedule 14A Proxy Statement for our 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended September 30, 2025. Item 13. Certain Relationships and Related Transactions and Director Independence We incorporate the information required by this item by reference to the section captioned “Corporate Governance” in our Schedule 14A Proxy Statement for our 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended September 30, 2025. Item 14. Principal Accountant Fees and Services We incorporate the information required by this Item by reference to the sections captioned “Fees for Professional Services” and “Pre-approval Policies and Procedures” in our Schedule 14A Proxy Statement for our 2026 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of our fiscal year ended September 30, 2025. PART IV Item 15. Exhibits and Financial Statement Schedules (a) (1) Financial statements filed as part of this report: Consolidated Balance Sheets as of September 30, 2025 and 2024 Consolidated Statements of Operations for the years ended September 30, 2025 and 2024 Consolidated Statements of Comprehensive (Loss) Income for the years ended September 30, 2025 and 2024 Consolidated Statements of Shareholders’ Equity for the years ended September 30, 2025 and 2024 Consolidated Statements of Cash Flows for the years ended September 30, 2025 and 2024 Notes to Consolidated Financial Statements (2) Financial statement schedules All other financial statements and schedules not listed have been omitted since the required information is included in the consolidated financial statements or the notes thereto included in Item 8, or is not applicable, material or required. (3) Exhibits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Incorporated by Reference Exhibit No. ​ ​ ​ Description ​ ​ ​ Filed with this Form 10-K ​ Form ​ ​ ​ Filing Date ​ ​ ​ Exhibit No. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3.1 ​ Articles of Organization and amendments thereto ​ ​ ​ 10-K ​ December 26, 2007 ​ 3.1 3.2 ​ Articles of Amendment to the Company's Articles of Organization, adopted February 21, 2024 ​ ​ ​ 8-K ​ February 22, 2024 ​ 3.1 32 Table of Contents 3.3 ​ Articles of Amendment to the Company's Articles of Organization, adopted June 26, 2024 ​ ​ ​ 8-K ​ June 27, 2024 ​ 3.1 3.4 ​ By-laws, as amended December 13, 2012 ​ ​ ​ 10-K ​ December 20, 2012 ​ 3.2 4.1 ​ Description of Securities ​ X ​ ​ ​ ​ ​ ​ 10.1 ​ Form of Employee Invention and Non-Disclosure Agreement ​ ​ ​ 10-K ​ November 22, 1996 ​ 10.3 10.2 ​ CSPI Supplemental Retirement Income Plan ​ ​ ​ 10-K ​ December 29, 2008 ​ 10.2 10.3* ​ 2014 Variable Compensation (Executive Bonus) and Base Programs dated November 12, 2013 ​ ​ ​ 10-K ​ December 23, 2014 ​ 10.10 10.4* ​ Death Benefit and Retirement Benefit Agreement between the Company and Victor Dellovo dated September 13, 2013 ​ ​ ​ 10-K ​ December 24, 2013 ​ 10.11 10.5* ​ Form of Change of Control Agreement with Gary W. Levine dated January 11, 2008 ​ ​ ​ 10-K ​ December 23, 2010 ​ 10.12 10.6* ​ 2014 Employee Stock Purchase Plan ​ ​ ​ DEF 14A ​ January 6, 2014 ​ A 10.7* ​ 2015 Stock Incentive Plan ​ ​ ​ DEF 14RA ​ January 25, 2019 ​ A 10.8* ​ 2025 Stock Incentive Plan ​ ​ ​ DEF 14RA ​ December 30, 2024 ​ A 10.10* ​ Executive Retention and Service Agreement with Victor Dellovo, dated September 4, 2012 ​ ​ ​ 10-Q ​ February 14, 2018 ​ 10.1 10.11* ​ Forms of Employee Restricted Stock Award Agreement ​ ​ ​ 10-Q ​ February 14, 2018 ​ 10.2 19.1 ​ Insider Trading Policy ​ ​ ​ 10-K ​ December 20, 2024 ​ 19.1 21.1 ​ Subsidiaries ​ X ​ ​ ​ ​ ​ ​ 23.1 ​ Consent of RSM US LLP, Independent Registered Public Accounting Firm ​ X ​ ​ ​ ​ ​ ​ 23.2 ​ Consent of CBIZ CPAs P.C., Independent Registered Public Accounting Firm ​ X ​ ​ ​ ​ ​ ​ 31.1 ​ Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ​ X ​ ​ ​ ​ ​ ​ 31.2 ​ Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ​ X ​ ​ ​ ​ ​ ​ 32.1 ​ Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 ​ X ​ ​ ​ ​ ​ ​ 97.1 ​ Policy relating to recovery of erroneously awarded compensation ​ ​ ​ 10-K ​ December 13, 2023 ​ 97.1 101.INS ​ XBRL Instance ​ ​ ​ ​ ​ ​ ​ ​ 101.SCH ​ XBRL Taxonomy Schema ​ ​ ​ ​ ​ ​ ​ ​ 101.CAL ​ XBRL Taxonomy Extension Calculation ​ ​ ​ ​ ​ ​ ​ ​ 101.DEF ​ XBRL Taxonomy Extension Definition ​ ​ ​ ​ ​ ​ ​ ​ 101.LAB ​ XBRL Taxonomy Extension Labels ​ ​ ​ ​ ​ ​ ​ ​ 101.PRE ​ XBRL Taxonomy Extension Presentation ​ ​ ​ ​ ​ ​ ​ ​ 104 ​ Cover Page Interactive Data File ​ ​ ​ ​ ​ ​ ​ ​ ​ * Management contract or compensatory plan. Item 16. Form 10-K Summary None. 33 Table of Contents ​ 34 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. ​ CSP INC. ​ ​ ​ ​ By: /s/ Victor Dellovo ​ ​ Victor Dellovo Chief Executive Officer and President ​ Date: December 16, 2025 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Name ​ ​ ​ Title ​ ​ ​ Date ​ ​ ​ ​ ​ /s/ Victor Dellovo ​ Chief Executive Officer, President and Director ​ December 16, 2025 Victor Dellovo ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Gary W. Levine ​ Chief Financial Officer (Principal Financial Officer) ​ December 16, 2025 Gary W. Levine ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Mike Newbanks ​ Vice President of Finance (Chief Accounting Officer) ​ December 16, 2025 Mike Newbanks ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Anthony Folger ​ Director ​ December 16, 2025 Anthony Folger ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Stephen Webber ​ Director ​ December 16, 2025 Stephen Webber ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Marilyn T. Smith ​ Director ​ December 16, 2025 Marilyn T. Smith ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Izzy Azeri ​ Director ​ December 16, 2025 Izzy Azeri ​ ​ ​ ​ ​ ​ ​ 35 Table of Contents ​ Report of Independent Registered Public Accounting Firm ​ To the Shareholders and Board of Directors of CSP Inc. and Subsidiaries ​ Opinion on the Financial Statements ​ We have audited the accompanying consolidated balance sheet of CSP Inc. and Subsidiaries (the “Company”) as of September 30, 2025, the related consolidated statements of operations, comprehensive (loss) income, shareholders’ equity and cash flows for the year ended September 30, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025, and the results of its operations and its cash flows for the year ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America. ​ Basis for Opinion ​ These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. ​ Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. ​ Critical Audit Matters ​ Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. ​ ​ ​ ​ 36 Table of Contents /s/ CBIZ CPAs P.C. ​ CBIZ CPAs P.C. ​ We have served as the Company’s auditor since 2025. ​ Tampa, Florida December 16, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 37 Table of Contents ​ ​ ​ Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of CSP Inc. Opinion on the Financial Statements ​ We have audited the accompanying consolidated balance sheet of CSP Inc. and subsidiaries (the Company) as of September 30, 2024, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows, for the year then ended, and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion ​ These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion. /s/ RSM US LLP We served as the Company’s auditor from 2007 to 2025. Coral Gables, Florida December 20, 2024 ​ 38 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value) ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ASSETS ​ ​ ​ ​ Current assets: ​ ​ ​ ​ Cash and cash equivalents $ 27,418 ​ $ 30,585 Accounts receivable, net of allowances of $ 122 and $ 147 12,000 ​ 14,494 Financing receivables, net of allowances of $ 34 and $ 12 8,939 ​ 4,384 Inventories 1,442 ​ 2,293 Other current assets 2,521 ​ 3,093 Total current assets 52,320 ​ 54,849 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, equipment and improvements, net 539 ​ 429 Operating lease right-of-use assets, net ​ 1,647 ​ ​ 489 Intangibles, net 69 ​ 50 Financing receivables due after one year, net of allowances of $ 66 and $ 25 ​ 5,965 ​ 2,922 Deferred income taxes, net 4,559 ​ 2,734 Cash surrender value of life insurance 5,845 ​ 5,589 Pension benefits assets ​ 42 ​ ​ 2,201 Other assets 177 ​ 173 Total assets $ 71,163 ​ $ 69,436 ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ Current liabilities: ​ ​ ​ Accounts payable and accrued expenses $ 19,508 ​ $ 12,084 Line of credit ​ 903 ​ ​ 4,169 Deferred revenue and contract liabilities 1,503 ​ 2,171 Pension and retirement plans 77 ​ 76 Income taxes payable 192 ​ 182 Total current liabilities 22,183 ​ 18,682 Pension and retirement plans 1,219 ​ 1,306 Operating lease liabilities - noncurrent portion ​ 1,336 ​ ​ 117 Income taxes payable 165 ​ 447 Other noncurrent liabilities 1,709 ​ 1,614 Total liabilities 26,612 ​ 22,166 ​ ​ ​ ​ ​ ​ Shareholders’ equity: ​ ​ ​ Common stock, $ .01 par value per share; authorized, 20,000 shares; issued and outstanding 9,906 and 9,776 shares, respectively 99 ​ 98 Additional paid-in capital 24,744 ​ 22,689 Retained earnings 27,700 ​ 29,848 Accumulated other comprehensive loss ( 7,992 ) ​ ( 5,365 ) Total shareholders’ equity 44,551 ​ 47,270 Total liabilities and shareholders’ equity $ 71,163 ​ $ 69,436 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See accompanying notes to consolidated financial statements. 39 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ Sales: ​ ​ ​ ​ ​ Product ​ $ 37,749 ​ $ 36,793 ​ Services ​ 20,981 ​ 18,426 ​ Total sales ​ 58,730 ​ 55,219 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales: ​ ​ ​ ​ ​ Product ​ 31,463 ​ 28,800 ​ Services ​ 8,756 ​ 7,564 ​ Total cost of sales ​ 40,219 ​ 36,364 ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ 18,511 ​ 18,855 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ Research and development ​ 3,250 ​ 2,956 ​ Selling, general and administrative ​ 18,370 ​ 17,771 ​ Total operating expenses ​ 21,620 ​ 20,727 ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating loss ​ ( 3,109 ) ​ ( 1,872 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ Foreign exchange gain (loss) ​ 33 ​ ( 438 ) ​ Interest expense ​ ( 357 ) ​ ( 235 ) ​ Interest income ​ 1,854 ​ 2,047 ​ Other (expense) income, net ​ ( 82 ) ​ 79 ​ Total other income, net ​ 1,448 ​ 1,453 ​ Loss before income taxes ​ ​ ( 1,661 ) ​ ( 419 ) ​ Income tax benefit ​ ​ ( 1,570 ) ​ ( 93 ) ​ Net loss ​ $ ( 91 ) ​ $ ( 326 ) ​ Net loss attributable to common shareholders ​ $ ( 91 ) ​ $ ( 326 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per common share - basic ​ $ ( 0.01 ) ​ $ ( 0.04 ) ​ Weighted average common shares outstanding - basic ​ 9,297 ​ 9,041 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per common share - diluted ​ $ ( 0.01 ) ​ $ ( 0.04 ) ​ Weighted average common shares outstanding - diluted ​ ​ 9,297 ​ ​ 9,041 ​ ​ See accompanying notes to consolidated financial statements. 40 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ Net loss ​ $ ( 91 ) $ ( 326 ) ​ Other comprehensive (loss) income: ​ ​ ​ ​ ​ Actuarial (loss) gain on minimum pension liability, net of tax effect ​ ( 2,723 ) ​ 6 ​ Foreign currency translation gain adjustments, net of tax effect ​ 96 ​ 723 ​ Other comprehensive (loss) income ​ ( 2,627 ) ​ 729 ​ Total comprehensive (loss) income ​ $ ( 2,718 ) $ 403 ​ ​ See accompanying notes to consolidated financial statements. 41 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the Years Ended September 30, 2025 and 2024: (Amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Year ended September 30, 2025: ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ loss ​ ​ ​ Equity Balance as of September 30, 2024 9,776 ​ $ 98 ​ $ 22,689 ​ $ 29,848 ​ $ ( 5,365 ) ​ $ 47,270 Net loss — ​ — ​ — ​ ( 91 ) ​ — ​ ( 91 ) Other comprehensive loss — ​ ​ — ​ ​ — ​ ​ — ​ ( 2,627 ) ​ ( 2,627 ) Stock-based compensation — ​ ​ — ​ ​ 1,769 ​ ​ — ​ — ​ 1,769 Restricted stock cancellation ​ ( 3 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Restricted stock issuance 169 ​ ​ 2 ​ ​ — ​ ​ — ​ — ​ 2 Issuance of shares under employee stock purchase plan 26 ​ ​ — ​ ​ 286 ​ ​ — ​ — ​ 286 Purchase of common stock ​ ( 62 ) ​ ​ ( 1 ) ​ ​ — ​ ​ ( 869 ) ​ ​ — ​ ​ ( 870 ) Cash dividends paid on common stock ($ 0.120 per share) — ​ ​ — ​ ​ — ​ ​ ( 1,188 ) ​ — ​ ( 1,188 ) Balance as of September 30, 2025 9,906 ​ $ 99 ​ $ 24,744 ​ $ 27,700 ​ $ ( 7,992 ) ​ $ 44,551 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Year ended September 30, 2024: ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ loss ​ ​ ​ Equity Balance as of September 30, 2023 9,456 ​ $ 94 ​ $ 20,837 ​ $ 31,311 ​ $ ( 6,094 ) ​ $ 46,148 Adoption of Accounting Standards Update 2016-13 ​ — ​ ​ — ​ ​ — ​ ​ ( 15 ) ​ ​ — ​ ​ ( 15 ) Net loss — ​ — ​ — ​ ( 326 ) ​ — ​ ( 326 ) Other comprehensive income — ​ ​ — ​ ​ — ​ ​ — ​ ​ 729 ​ 729 Stock-based compensation — ​ ​ — ​ ​ 1,579 ​ ​ — ​ ​ — ​ 1,579 Restricted stock cancellation ​ ( 7 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Restricted stock issuance 305 ​ ​ 3 ​ ​ — ​ ​ — ​ ​ — ​ 3 Issuance of shares under employee stock purchase plan 30 ​ ​ 1 ​ ​ 273 ​ ​ — ​ ​ — ​ 274 Purchase of common stock ​ ( 8 ) ​ ​ — ​ ​ — ​ ​ ( 104 ) ​ ​ — ​ ​ ( 104 ) Cash dividends paid on common stock ($ 0.105 per share) — ​ ​ — ​ ​ — ​ ​ ( 1,018 ) ​ ​ — ​ ( 1,018 ) Balance as of September 30, 2024 9,776 ​ $ 98 ​ $ 22,689 ​ $ 29,848 ​ $ ( 5,365 ) ​ $ 47,270 ​ See accompanying notes to consolidated financial statements. 42 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Operating activities ​ ​ ​ ​ Net loss ​ $ ( 91 ) ​ $ ( 326 ) ​ ​ ​ ​ ​ ​ ​ Adjustments to reconcile net loss to net cash provided by operating activities: ​ ​ ​ ​ Depreciation ​ 237 ​ 292 Amortization of intangibles ​ 7 ​ 6 Loss on disposal of fixed assets, net ​ ​ 1 ​ ​ 1 Foreign exchange (gain) loss ​ ( 33 ) ​ 438 Provision (benefit) for credit losses - financing receivables ​ 63 ​ ( 45 ) Provision for credit losses - accounts receivable ​ ​ 25 ​ ​ 114 Provision for obsolete inventory ​ 182 ​ 354 Amortization of lease right-of-use assets ​ ​ 458 ​ ​ 496 Stock-based compensation expense on restricted stock awards ​ 1,769 ​ 1,579 Deferred income taxes ​ ( 1,825 ) ​ ( 387 ) Increase in cash surrender value of life insurance ​ ( 202 ) ​ ( 180 ) ​ ​ ​ ​ ​ ​ ​ Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ 2,474 ​ ( 1,573 ) Financing receivables ​ ​ ( 7,661 ) ​ ​ 4,058 Inventories ​ 669 ​ ( 95 ) Other assets ​ ​ 570 ​ ​ ( 681 ) Accounts payable and accrued expenses ​ 7,477 ​ 1,383 Operating lease liabilities ​ ​ ( 450 ) ​ ​ ( 485 ) Deferred revenue and contract liabilities ​ ( 668 ) ​ 273 Pension and retirement plans liabilities ​ ( 557 ) ​ 27 Income taxes payable ​ ( 272 ) ​ ( 798 ) Other noncurrent liabilities ​ 95 ​ ( 238 ) Net cash provided by operating activities ​ 2,268 ​ 4,213 ​ ​ ​ ​ ​ ​ ​ Investing activities ​ ​ ​ ​ Life insurance premiums paid ​ ( 54 ) ​ ( 50 ) Additions of intangible assets ​ ​ ( 26 ) ​ ​ ( 10 ) Purchases of property, equipment and improvements ​ ( 348 ) ​ ( 196 ) Net cash used in investing activities ​ ( 428 ) ​ ( 256 ) ​ ​ ​ ​ ​ ​ ​ Financing activities ​ ​ ​ ​ Dividends paid ​ ( 1,188 ) ​ ( 1,018 ) Net (repayment) borrowing under line-of-credit agreement ​ ​ ( 3,265 ) ​ ​ 2,654 Repayments on note payable ​ ​ — ​ ​ ( 427 ) Repurchases of common stock ​ ​ ( 869 ) ​ ​ ( 104 ) Proceeds from issuance of shares under equity compensation plans ​ 286 ​ 274 Net cash (used in) provided by financing activities ​ ( 5,036 ) ​ 1,379 Effects of exchange rate on cash, net ​ 29 ​ 32 Net (decrease) increase in Cash and cash equivalents ​ ( 3,167 ) ​ 5,368 Cash and cash equivalents beginning of period ​ ​ 30,585 ​ 25,217 Cash and cash equivalents end of period ​ $ 27,418 ​ $ 30,585 ​ ​ 43 Table of Contents CSP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Supplementary cash flow information: ​ ​ ​ ​ Cash paid for income taxes ​ $ ( 446 ) ​ $ ( 1,601 ) Cash paid for interest ​ $ ( 137 ) ​ $ ( 206 ) ​ ​ ​ ​ ​ ​ ​ Supplementary non-cash financing activities: ​ ​ ​ ​ ​ ​ Obtaining a right-of-use asset in exchange for a lease liability ​ $ 1,628 ​ $ 19 Customer financing for inventory sold (see Note 3 Financing receivables, net for details) ​ $ 13,723 ​ $ 5,240 Vendor financing for inventory purchased (see Note 9 Accounts payable and accrued expenses, and Other noncurrent liabilities for details) ​ $ 4,500 ​ $ 2,995 ​ See accompanying notes to consolidated financial statements. ​ ​ 44 Table of Contents ​ CSP INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2025 AND 2024 Organization and Business CSP Inc. ("CSPi" or "CSPI" or "the Company" or "we" or "our") was founded in 1968 and is based in Lowell, Massachusetts. To meet the diverse requirements of commercial and defense customers worldwide, CSPI and its subsidiaries develop and market IT integration solutions, advanced security products, managed IT services, purpose built network adapters, and high-performance cluster computer systems. The Company operates in two segments, its Technology Solutions ("TS") segment and its High Performance Products ("HPP") segment. 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying audited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America and the rules and regulations of the Securities and Exchange Commission. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Adopted Accounting Pronouncement in the Year Ended September 30, 2025 In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU also requires disclosure of the title and position of the Chief Operating Decision Maker (CODM) and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. Under ASU 2023-07, the disclosures that are currently required on an annual basis under Topic 280, Segment Reporting , pertaining to reportable segment profit or loss and assets will also be required for interim periods. The amendments in this Update do not change how an entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company retrospectively adopted this as of and for the year ended September 30, 2025. The effects of adopting this ASU only impacted the Company’s disclosures and did not have an effect on its consolidated financial statements. See Note 17 – Segment Information for additional information. Accounting Pronouncement Not Yet Adopted as of September 30, 2025 In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides new optional guidance relating to the estimation of expected credit losses on current accounts receivable and current contract assets under Topic 326. This ASU permits entities to apply a practical expedient when estimating credit losses and is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted, and should be applied prospectively. We are currently evaluating the adoption of this standard and its impact to the Company's consolidated financial statements and related disclosures. ​ 45 Table of Contents In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires expanded disclosures in the notes to the financial statements about certain costs and expenses. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU expands existing income tax disclosures primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The ASU is effective for all public entities for annual periods beginning after December 15, 2025, with early adoption permitted. Entities should apply the amendments on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the impact this ASU will have on its disclosures. Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The financial information for entities outside the United States is measured using the local currency as the functional currency. In consolidation, foreign transactions are remeasured into the functional currency, British Pounds, of our U.K. subsidiary. This non-cash remeasurement is included in the foreign exchange gain or loss on the Consolidated Statements of Operations. After this remeasurement, assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at average rates in effect during the period. The resulting translation adjustment is reflected as accumulated other comprehensive loss, a separate component of shareholders’ equity on the consolidated balance sheets. Currency transaction gains and losses are recorded as other income (expense) in the consolidated statements of operations. Cash Equivalents For purposes of the consolidated statements of cash flows, highly liquid investments with original maturities of three months or less at the time of acquisition are considered cash equivalents. The Company maintains its cash and cash equivalents with financial institutions and, at times, the balance may exceed the Federal Deposit Insurance Corporation federally insured limits (United States - $250,000 per depositor) or Financial Services Compensation Scheme (United Kingdom - £85,000 per depositor). The Company has never experienced any losses related to these balances. Research and Development Expense For the years ended September 30, 2025 and 2024, our expenses for research and development were approximately $ 3.3 million and $ 3.0 million, respectively. Expenditures for research and development are expensed as they are incurred. Impairment of Long-Lived Assets The Company reviews its long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management assesses the recoverability of the long-lived assets (intangibles) by comparing the estimated undiscounted cash flows associated with the related asset or group of assets against their respective carrying amounts. The amount of impairment, if any, is calculated based on the excess of the carrying amount over the fair value of those assets. Intangible assets that are not subject to amortization are also required to be tested annually, or more frequently if events or circumstances indicate that the asset may be impaired. We did not have intangible assets with indefinite lives any time during the two years ended September 30, 2025. Intangible assets subject to amortization are amortized on a straight-line basis over their estimated useful lives, generally three to ten years , and are carried at net book value. The remaining useful lives of intangible assets are evaluated on an annual basis. Intangible assets subject to amortization are also tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. If the fair value of an intangible asset subject 46 Table of Contents to amortization is determined to be less than its carrying value, then an impairment charge is recorded to write down that asset to its fair value. There was no impairment for the years ended September 30, 2025 and 2024. Leases as Lessee At the inception of an arrangement, the Company determines whether the arrangement contains a lease. This includes arrangements with goods and services to determine if there is an embedded lease. An arrangement containing a lease would allow the Company the right to control an implicitly or explicitly identified asset. If there is a lease in an arrangement, the classification is determined at inception of the arrangement. Certain leases may contain transfer of ownership or an option to purchase the underlying asset. The most relevant criterion for our lease classification is transfer of ownership, which if included in the arrangement makes the lease a finance lease rather than an operating lease. The discount rate used to assess classification is the incremental borrowing rate at the commencement date due to the implicit rate not being readily determinable. The incremental borrowing rate commensurate with the lease term is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. The lease term includes periods when we are reasonably certain we will exercise the renewal option. The Company has elected not to apply Subtopic ASC 842-25 to short-term leases, which are defined as a lease that has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. Therefore, there are no right-of-use assets or lease liabilities related to short-term leases in the Consolidated Balance Sheets and the lease payments are expensed on a straight-line basis over the lease term. Leases are typically not able to be terminated without penalty. None of our lease arrangements contain residual value guarantees, restrictions, or covenants. None of the Company’s current leases are with related parties. There are no lease arrangements that we have entered into as of September 30, 2025 that have not yet commenced. See Note 10 Leases for additional information. Operating leases The Company has operating leases for office space, data centers, and other information technology equipment under various leases. Operating lease right-of-use assets and liabilities are recognized at the commencement date using the present value of the fixed lease payments over the lease term. We do not have leases with variable consideration. The incremental borrowing rate is used in determining present value. Certain operating leases, primarily office space and IT equipment, have an option to extend the lease. Renewal periods related to certain lease agreements related to office buildings are included in the lease term for lease accounting. The Company has operating lease agreements with lease components (e.g. fixed payments including rent) as well as nonlease components (e.g. common-area maintenance, colocation services). The Company has elected to account for lease and nonlease components as one single lease component for all classes of assets. Lease expense is recognized on a straight-line basis over the lease term. Leases as Lessor The process for identifying and classifying a lease is similar to the process described above in the lessee section. Additionally, the most relevant criteria to classification is transfer of ownership and present value of the total lease payments in relation to fair value of the underlying asset. The Company as a lessor only has sales-type leases. All the Company’s agreements are bundled agreements containing managed services, software, and/or other services. The fixed payments under bundled agreements are allocated based on the relative standalone selling prices of the lease and non-lease deliverables are consistent with ASC 606. The allocation of the fixed payments may be calculated using a budgeted cost-plus margin approach if there are other services in addition to managed services. Due to the complex nature of these contracts, there is significant judgment in allocating the fixed payments. There is no variable consideration in these agreements. The discount rate used as a lessor pertaining to the lease component is the implicit rate. Lease agreements transfer ownership at the end of the lease and there is no renewal option. The leases typically do not have any residual value to the Company. In the Company’s agreements, the payments allocated to the lease component cannot be terminated. Revenue from sales-type leases is presented on a gross basis when the Company enters into a lease to realize value from a product that it would otherwise sell in its ordinary course of business. In addition, we have elected to account for sales 47 Table of Contents tax and other similar taxes collected from a lessee as lessee costs and therefore we exclude these costs from contract consideration and variable consideration and present revenue net of these costs. See Note 10 Leases for additional information. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined using the first-in, first-out method. The recoverability of inventories is based upon the types and levels of inventories held, forecasted demand, pricing, competition and changes in technology. We write down our inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. As of September 30, 2025, and September 30, 2024, the Company maintained inventory reserves of $ 1.2 million and $ 1.1 million, respectively. Property, Equipment and Improvements The components of property, equipment and improvements are stated at cost. The Company provides for depreciation by use of the straight-line method over the estimated useful lives of the related assets ( three to seven years ). Leasehold improvements are amortized by use of the straight-line method over the lesser of the estimated useful life of the asset or the remaining lease term. Repairs and maintenance costs are expensed as incurred. Accounts Receivable, net of Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of the allowance for credit losses. Allowances for credit losses are recorded for the estimated losses resulting from the inability of our customers to make required payments based on historical data as well as forecasted future conditions. The estimation of the allowance is based on an analysis of historical loss experience, management’s assessment of current conditions and reasonable and supportable expectation of future conditions as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible including reviewing the current receivables aging. If the financial condition of our customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances may be required. Accounts receivable are charged off against the reserve when management has determined they are uncollectible. Financing Receivables, net of Allowance for Credit Losses Financing receivables are recorded at the invoiced amount and are interest bearing. Financing receivables are stated at their net realizable value, net of the allowance for credit losses. Allowances for credit losses are recorded for the estimated losses resulting from the inability of our customers to make required payments based on historical data as well as forecasted future conditions. The Company recognizes an allowance for credit losses for financing receivables in an amount equal to the probable losses net of recoveries. A probability method for calculating credit losses is used based on historical data of defaults of Fitch ratings and remaining length of time to collect the receivable. Various factors are also assessed in the allowance for credit losses including internal historical data as well as macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios. Macroeconomic conditions include the level of gross domestic product growth and unemployment rates, which directly correlate with our historical credit losses. If the financial condition of our customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances may be required. Financing receivables are charged off against the reserve when management has determined they are uncollectible. Pension and Retirement Plans The funded status of pension and other postretirement benefit plans is recognized on the consolidated balance sheets. Gains and losses, prior service costs and credits and any remaining transition amounts that have not yet been recognized through pension expense will be recognized in accumulated other comprehensive loss, net of tax, until they are 48 Table of Contents amortized as a component of net periodic pension/postretirement benefits expense. Additionally, plan assets and obligations are measured as of our fiscal year-end balance sheet date (September 30). We have defined benefit and defined contribution plans in the United Kingdom (the “U.K.”) and in the U.S. In the U.K. the Company provides defined benefit pension plans for certain employees and former employees and defined contribution plans for the majority of the employees. The defined benefit plan in the U.K. is closed to newly hired employees and has been for the two year s ended September 30, 2025. In the U.S., the Company also provides defined contribution plans that cover most employees and supplementary retirement plans to certain employees and former employees who are now retired. These supplementary retirement plans are also closed to newly hired employees and have been for the two year s ended September 30, 2025. These supplementary plans are funded through whole life insurance policies. The Company expects to recover all insurance premiums paid under these policies in the future, through the cash surrender value of the policies and any death benefits or portions thereof to be paid upon the death of the participant. These whole life insurance policies are carried on the balance sheet at their cash surrender values as they are owned by the Company and not assets of the defined benefit plans. In the U.S., the Company also provides for officer death benefits and post-retirement health insurance benefits through supplemental post-retirement plans to certain officers. The Company also funds these supplemental plans’ obligations through whole life insurance policies on the officers. Pension expense is based on an actuarial computation of current future benefits using estimates for expected return on assets, expected compensation increases and applicable discount rates. Management has reviewed the discount rates and rates of return with our consulting actuaries and investment advisor and concluded they were reasonable. A decrease in the expected return on pension assets would increase pension expense. Expected compensation increases are estimated based on historical and expected increases in the future. Increases in estimated compensation increases would result in higher pension expense while decreases would lower pension expense. Discount rates are selected based upon rates of return on high quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefit. A decrease in the discount rate would result in greater pension expense while an increase in the discount rate would decrease pension expense. The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. Segment Information We have two operating segments: (i) Technology Solutions ("TS") and (ii) High Performance Products ("HPP"). In the TS segment, we focus on value added reseller ("VAR") integrated solutions including third party hardware, software and technical computer-related consulting and managed services. In the HPP segment, we design, manufacture and deliver products and services to customers that require specialized cyber security services, networking and signal processing products. The operations and assets of our TS segment are located in the United States and the United Kingdom, which are the two divisions that make up the TS segment. The operations and assets of our HPP segment are located in the United States. Revenue Recognition We derive revenue from the sale of integrated hardware and software, third-party service contracts, professional services, managed services, financing of hardware and software, and other services. We recognize revenue from hardware upon transfer of control, which is at a point in time typically upon shipment when title transfers. Revenue from software is recognized at a point in time when the license is granted. We recognize revenue from third-party service contracts as either gross sales or net sales depending on whether we are acting as the principal party to the transaction or acting as an agent or broker based on control and timing. We are the principal if we control the good or service before that good or service is transferred to the customer. For each identified performance obligation in a transaction, we evaluate the facts and circumstances present to determine whether or not we control the specified good or service prior to transfer to the customer. This evaluation includes, but is not limited to, 49 Table of Contents assessing indicators such as whether: (i) we are primarily responsible for fulfilling the promise to provide the specified goods or service, (ii) we have inventory risk before the specified good or service has been transferred to a customer and (iii) we have discretion in establishing the price for the specified good or service. When the evaluation indicates we control the specified good or service prior to transfer to the customer, we are acting as a principal. When the evaluation indicates we do not control the specified good or service prior to transfer to the customer, we are acting as an agent. We record revenue as gross when we are the principal party to the arrangement and net of cost when we are acting as a broker or agent for a third party. Under gross sales recognition, the entire selling price is recorded in revenue and our cost to the third-party service provider or vendor is recorded in cost of sales. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to revenue resulting in net sales equal to the gross profit on the transaction. Third-party service contracts are sold in different combinations with hardware, software, and services. When we are an agent, revenue is typically recorded at a point in time. When we are the principal, revenue is recognized over the contract term. We have concluded we are the agent in sales of third-party maintenance, software or hardware support, and certain security software that is sold with integral third-party delivered software maintenance that includes critical updates. When CSPi sells goods and services with a financing component the strongest indicator is whether the Company has discretion in selling price as many of the agreements are brought to us at predetermined price by the manufacturer. Professional services generally include implementation, installation, and training services. Professional services are considered a series of distinct services that form one performance obligation and revenue is recognized over time as services are performed. Revenue generated from managed services is recognized over the term of the contract. Certain managed services contracts include financing of hardware and software. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease component includes hardware, which is subject to ASC 842, Leases . The non-lease components are subject to ASC 606, Revenue from Contracts with Customers . Other services generally include revenue generated through our royalty, extended warranty, multicomputer repair, and maintenance contracts. Royalty revenue is sales-based and recognized on the date of subsequent sale of the product, which occurs on the date of customer shipment. Revenue from extended warranty contracts is recognized ratably over the warranty period. Multicomputer repair services revenue is recognized upon control transfer when the customer takes possession of the computer at time of shipping. Revenue generated from maintenance services is recognized evenly over the term of the contract. Some transactions include shipping as part of the contract. The Company records shipping billed to its customers as Product revenue and the related freight costs as Product cost of sales when the underlying product revenue is recognized. For freight not billed to its customers, the Company records the freight costs as Product cost of sales. The Company considers shipping to be a fulfillment activity and not a separate performance obligation. The right of return risk lies with the original manufacturer of the product. Managed service contracts contain the right to refund if canceled within 30 days of inception. Any products the Company manufactures, all in our HPP segment, with a standard warranty are treated as a warranty obligation under ASC 460, Guarantees. The following policies are applicable to our major categories of segment revenue transactions: TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, third-party service contracts, maintenance contracts, managed services, and financing of hardware and software. Financing revenue pertaining to the portion of an arrangement containing a lease is recognized in accordance with ASC 842. Financing revenue related to the lease is recorded in revenue as equipment leasing is part of our operations. 50 Table of Contents Third-party service contracts are evaluated to determine whether such service revenue should be recorded as gross or net sales and whether over time or at point in time. HPP Segment Revenue HPP segment revenue is derived from the sale of integrated hardware and software, maintenance, and other services through the ARIA, Multicomputer, and Myricom product lines. ARIA ADR revenue is derived from the sale of hardware, software, and maintenance. The software licenses or hardware with integrated software are not distinct from their accompanying maintenance, as they are dependent upon regular threat updates. The software updates and upgrades are highly interdependent and highly interrelated, working together to deliver continuously updated protection from cyber threats to customers. By identifying and addressing new threats, the software updates significantly modify the licensed software and are integral to maintaining its utility given the rapid pace with which new threats are identified, the value of the licensed software diminishes rapidly without the software updates. As control transfers to the customer over time of the contract term, we therefore consider the software license and related support obligations a single, combined performance obligation with revenue recognized ratably over time as our solutions are delivered. ARIA Zero Trust Gateway (“AZT”) revenue contains two performance obligations: a software license and post contract support. The transaction price is generally fixed consideration and allocated based on relative stand-alone selling price. Software license revenue is recognized at a point in time, generally when the license is made available to the customer. Post contract support revenue is recognized ratably over the contractual period of generally one year. Myricom revenue is derived from the sale of products, which are comprised of both hardware and embedded software which is essential to the products’ functionality, and post contract maintenance and support. Post contract maintenance and support is considered immaterial in the context of the contract and therefore is not a separate performance obligation. Multicomputer revenue is derived from the sale of hardware, software, extended warranties, royalties, and repair services. In the TS US division financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. See Note 3 Financing Receivables, net for more details. See details of timing of revenue recognition and whether CSPi acted as the principal or agent and geographic areas based on which the products were shipped or services rendered in Note 17 Segment Information . Contract Assets and Liabilities When we have performed work but do not have an unconditional right to payment, a contract asset is recorded. When we have the right to bill a customer, accounts receivable is recorded as an unconditional right exists. Current contract assets were $ 0.8 million and $ 1.7 million as of September 30, 2025 and September 30, 2024, respectively. Current contract assets were $ 0.9 million as of September 30, 2023. The current portion is recorded in other current assets on the consolidated balance sheets. As of September 30, 2025 there was $ 0.1 million related to amounts billed but not paid by customers under retainage provisions included in current contract assets. All amounts are expected to be collected within one year. There were no noncurrent contract assets as of September 30, 2025 and September 30, 2024. There were no noncurrent contract assets as of September 30, 2023. The difference in the balances is due to regular timing differences between when work is performed and having an unconditional right to payment. Contract liabilities arise when payment is received before we transfer a good or service to the customer. Current contract liabilities were $ 1.5 million and $ 2.2 million as of September 30, 2025 and September 30, 2024, respectively. Current contract liabilities were $ 1.9 million as of September 30, 2023. The current portion of contract liabilities is recorded in Deferred revenue and contract liabilities on the consolidated balance sheets. There were $ 37 thousand of long-term contract liabilities as of September 30, 2025 and none as of September 30, 2024, respectively. There were no long-term contract liabilities as of September 30, 2023. Revenue recognized for the year ended September 30, 2025 that was included in contract liabilities as of September 30, 2024 was $ 1.8 million. At times, customers delay projects that were supposed to be complete within a year, which is why the full balance of Deferred revenue and contract liabilities as of 51 Table of Contents September 30, 2024 was not recognized in the twelve months ended September 30, 2025. The Company cannot reasonably predict when delays will arise. Contract Costs Incremental costs of obtaining a contract involving customer transactions where the revenue and the related transfer of goods and services are equal to or less than a one year period, are expensed as incurred, utilizing the practical expedient in ASC 340-40-25-4 . Incremental costs are related to commissions in the TS portion of the business. Current capitalized contract costs are within the other current assets on the consolidated balance sheets as of September 30, 2025 and 2024. The portion of current capitalized costs were $ 33 thousand and $ 177 thousand as of September 30, 2025 and 2024, respectively. There were no noncurrent capitalized costs on the consolidated balance sheets as these commissions are paid annually even when the contract extends beyond a one year period. The amount of incremental costs amortized for the years ended September 30, 2025 and 2024 were $ 217 thousand and $ 477 thousand, respectively. This is recorded in selling, general, and administrative expenses. There was no impairment related to incremental costs capitalized for the years ended September 30, 2025 and 2024, respectively. Costs to fulfill a contract are capitalized when the costs are related to a contract or anticipated contract, generate or enhance resources that will be used in satisfying performance obligations in the future, and costs are recoverable. Costs to fulfill a contract are related to the TS portion of the business and involve activities performed before managed services can be completed. Fulfillment costs are amortized consistent with the pattern of transferring the services to which the cost relates ratably over the term of the contract. Current capitalized fulfillment costs are in the other current assets and noncurrent costs are in other assets on the consolidated balance sheets. There were no current capitalized costs as of September 30, 2025 and 2024. There were no noncurrent capitalized costs as of September 30, 2025 and 2024, respectively. There were no amounts of fulfillment costs amortized for the year ended September 30, 2025. An amount of $ 9 thousand was amortized for the year ended September 30, 2024. These costs amortized were recorded in cost of sales. There was no impairment related to fulfillment costs capitalized for the year ended September 30, 2024. Other Projects are typically billed upon completion or at certain milestones. Products and services are typically billed when shipped or as services are being performed. Payment terms are typically 30 day s to pay in full except in Europe where it could be up to 90 day s. Most of our contracts are for less than one year. There are certain contracts that contain a financing component. We elected to use the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that have an original expected duration of one year or less. This is due to a low amount of performance obligations, which are less than one year from being unsatisfied at each period end. Most of these contracts are related to product sales. We have certain contracts that have an original term of more than one year. The royalty agreement is longer than one year, but not included in the table below as the royalties are sales-based. Managed service contracts are generally longer than one year. For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2025 is set forth in the table below: ​ ​ ​ ​ ​ Fiscal Year ​ ​ ​ (Amounts in thousands) 2026 ​ $ 1,196 2027 ​ ​ 982 2028 ​ ​ 899 2029 ​ ​ 222 ​ ​ $ 3,299 ​ ​ Product Warranty Accrual Our HPP product sales with hardware generally include a hardware warranty which ranges from 90 days to three years . At time of product shipment, we accrue for the estimated cost including labor and hardware to repair or replace 52 Table of Contents potentially defective products. Estimated warranty costs are based upon prior actual warranty costs for substantially similar products. Research and Development Expenses Research and development expenses include payroll, employee benefits, stock-based compensation and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs. We consider technological feasibility for our software products to be reached upon the release of the software, accordingly, no internal software development costs have been capitalized. Income Taxes We use the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the estimated 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 in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in net income in the period that includes the enactment date. We also reduce deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology requires estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. Valuation allowances are recorded against the gross deferred tax assets that management believes, after considering all available positive and negative objective evidence, historical and prospective, with greater weight given to historical evidence, that it is more likely than not that these assets will not be realized. In addition, we are required to recognize in the consolidated financial statements, those tax positions determined to be more-likely-than-not of being sustained upon examination, based on the technical merits of the positions as of the reporting date. If a tax position is not considered more-likely-than-not to be sustained based solely on its technical merits, no benefits of the position are recognized. In addition, the calculation of the Company’s tax liabilities involves estimating uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company records liabilities for estimated tax obligations in the U.S. and other tax jurisdictions. These estimated tax liabilities include the provision for taxes that may become payable in the future. Net loss per common share We are required to present earnings per share ("EPS") utilizing the two-class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net loss per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive restricted stock awards. As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per common share equals diluted net loss per common share. ​ ​ 53 Table of Contents Basic and diluted loss per share computations for the Company’s reported net loss attributable to common stockholders are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ Net loss $ ( 91 ) ​ $ ( 326 ) Less: net income attributable to nonvested common stock ​ — ​ ​ — Net loss income attributable to common shareholders ​ $ ( 91 ) ​ $ ( 326 ) ​ ​ ​ ​ ​ ​ ​ Weighted average total shares outstanding - basic ​ ​ 9,297 ​ ​ 9,041 Less: weighted average non–vested shares outstanding ​ ​ — ​ ​ — Weighted average number of common shares outstanding - basic ​ ​ 9,297 ​ ​ 9,041 Add: potential common shares from non-vested restricted stock awards ​ ​ — ​ ​ — Weighted average common shares outstanding - diluted ​ $ 9,297 ​ ​ 9,041 ​ ​ ​ ​ ​ ​ ​ Net loss per common share - basic ​ $ ( 0.01 ) ​ $ ( 0.04 ) Net loss per common share - diluted ​ $ ( 0.01 ) ​ $ ( 0.04 ) ​ ​ All anti-dilutive securities, RSA’s, are excluded from the diluted loss per share computation. Non-vested restricted stock awards of 304 thousand and 396 thousand shares were excluded from net loss per share for the year ended September 30, 2025 and 2024 because their inclusion would have been anti-dilutive as there was a net loss for the period. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates under different assumptions or conditions. Stock-Based Compensation We measure and recognize compensation expense for nonvested stock-based payment awards made to employees and directors based on the closing market price of our common stock as quoted on the Nasdaq Global Market on the date of grant over the requisite service period. The Company recognizes stock compensation expense, net of actual forfeitures. The Company has no outstanding stock options issued as of September 30, 2025 and did not issue any for the years ended September 30, 2025 and 2024, respectively. Stock-based compensation expense recognized in the consolidated statements of operations for the fiscal years ended September 30, 2025 and 2024 is based on awards ultimately expected to vest and has been reduced for estimated forfeitures and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized for the fiscal years ended September 30, 2025 and 2024 consisted of restricted stock granted pursuant to the Company’s stock incentive and employee stock purchase plans of approximately $ 1.8 million and $ 1.6 million, respectively. Concentrations of Credit Risk The Company has bank accounts in the United States and United Kingdom, which have cash deposits in excess of federally insured limits. 54 Table of Contents For information about other concentration of credit risk, see Note 3 Financing receivables and Note 17 Segment Information . 2. Accounts Receivable, net The Company recognizes an allowance for credit losses on accounts receivable in an amount equal to the current expected credit losses. The estimation of the allowance is based on an analysis of historical loss experience, management’s assessment of current conditions and reasonable and supportable expectation of future conditions as well as an assessment of specific identifiable customer accounts considered at risk or uncollectible including reviewing the current receivables aging. This results in a general reserve and a specific reserve. The Company assesses collectability by pooling receivables where similar characteristics exist and evaluates receivables individually when specific customer balances no longer share those risk characteristics and are considered at risk or uncollectible. The expense associated with the allowance for expected credit losses is recognized in Selling, general, and administrative expenses in the Consolidated Statements of Operations. The following table presents the changes in the allowance for accounts receivable for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ (Amounts in thousands) Allowance for credit losses for accounts receivable: ​ ​ ​ ​ ​ ​ Balances at beginning of the period ​ $ 147 ​ $ 100 Adjustment for adoption of new CECL standard ​ ​ - ​ ​ ( 67 ) Charge-offs ​ ​ ( 50 ) ​ ​ - Provision for credit losses ​ ​ 25 ​ ​ 114 Balances at end of the period ​ $ 122 ​ $ 147 ​ ​ ​ 3. Financing Receivables, net In the TS-US division financing of goods and services is offered to certain customers within the United States. This involves amounts due reflecting sales whose payment terms exceed one year. This financing is separate from agreements with a leasing component, see Note 10 Leases for financing through leases. Determining whether to offer financing involves looking at the customer’s payment history, economic conditions, and capacity to pay. These financing arrangements do not contain collateral. The Company assigns an internal risk rating to each customer at inception, which groups customers into a portfolio based on this risk rating. A risk rating is assigned by analyzing a customer’s financial statements and the latest Fitch rating, if publicly available, as well as recent payment activity. The credit quality of customers is continually monitored by these items. Accounts rated low risk have the equivalent of a Fitch rating of BBB– or higher, accounts rated moderate risk have the equivalent of BB, and accounts rated high risk have the equivalent of B. The risk characteristics of each portfolio are consistent with the Fitch rating or equivalent. According to Fitch Ratings: ‘BBB' ratings indicate that expectations of default risk are currently low 'BB' ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments ‘B’ ratings indicate that material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment. 55 Table of Contents Financing receivables, net carry a weighted average interest rate of 8.7 %, which reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. Interest income attributable to financing receivables is recognized on the accrual basis using the effective interest method. The amount of interest income earned from sales whose payment terms exceed one year for the years ended September 30, 2025 and 2024 was $ 641 thousand and $ 700 thousand, respectively. Interest income from these agreements is recorded in Interest income on the Consolidated Statements of Operations. The following table presents the components of the Company’s Financing receivables, net segregated by portfolio (risk rating) for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2025 ​ As of September 30, 2024 ​ ​ Risk Rating ​ ​ ​ ​ Risk Rating ​ ​ ​ ​ ​ ​ Low ​ ​ Moderate ​ ​ High ​ ​ Total ​ ​ Low ​ ​ Moderate ​ ​ High ​ ​ Total ​ ​ (Amounts in thousands) Financing receivables, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables, gross ​ $ 13,651 ​ $ 1,751 ​ $ 891 ​ $ 16,293 ​ $ 7,153 ​ $ 874 ​ $ - ​ $ 8,027 Unearned interest income ​ ​ ( 1,038 ) ​ ​ ( 156 ) ​ ​ ( 95 ) ​ ​ ( 1,289 ) ​ ​ ( 599 ) ​ ​ ( 85 ) ​ ​ - ​ ​ ( 684 ) Allowance for credit losses ​ ​ ( 50 ) ​ ​ ( 18 ) ​ ​ ( 32 ) ​ ​ ( 100 ) ​ ​ ( 27 ) ​ ​ ( 10 ) ​ ​ - ​ ​ ( 37 ) Financing receivables, net ​ $ 12,563 ​ $ 1,577 ​ $ 764 ​ $ 14,904 ​ $ 6,527 ​ $ 779 ​ $ - ​ $ 7,306 Short-term ​ $ 7,778 ​ $ 791 ​ $ 370 ​ $ 8,939 ​ $ 4,013 ​ $ 371 ​ $ - ​ $ 4,384 Long-term ​ $ 4,785 ​ $ 786 ​ $ 394 ​ $ 5,965 ​ $ 2,514 ​ $ 408 ​ $ - ​ $ 2,922 ​ ​ The following table presents the changes in Allowance for credit losses for Financing receivables, net for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ Risk Rating ​ ​ ​ ​ Risk Rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Low ​ ​ ​ Moderate ​ ​ ​ High ​ Total ​ ​ ​ Low ​ ​ ​ Moderate ​ High ​ ​ ​ Total ​ ​ (Amounts in thousands) Allowance for credit losses for financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balances at beginning of the period ​ $ 27 ​ $ 10 ​ $ - ​ $ 37 ​ $ - ​ $ - ​ $ - ​ $ - Adjustment for adoption of new accounting standard ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 27 ​ ​ 55 ​ ​ - ​ ​ 82 Provision (benefit) charged to Consolidated Statements of Operations ​ ​ 23 ​ ​ 8 ​ ​ 32 ​ ​ 63 ​ ​ - ​ ​ ( 45 ) ​ ​ - ​ ​ ( 45 ) Balances at end of the period ​ $ 50 ​ $ 18 ​ $ 32 ​ $ 100 ​ $ 27 ​ $ 10 ​ $ - ​ $ 37 ​ ​ The Company recognizes an allowance for credit losses for financing receivables in an amount equal to the probable losses net of recoveries. A probability method for calculating credit losses is used based on historical data of defaults of Fitch ratings and length of time. Various factors are also assessed in the allowance for credit losses including internal historical data as well as macroeconomic forecast assumptions and management judgments applicable to and through the expected life of the portfolios. Macroeconomic conditions include the level of gross domestic product (“GDP”) growth and unemployment rates, which directly correlate with our historical credit losses. The expense associated with the allowance for expected credit losses is recognized in Selling, general, and administrative expenses in the Consolidated Statements of Operations. Financing receivables whose payment terms exceed one year are placed on non-accrual status, meaning interest income stops being recorded, when the customer has a past due amount in excess of 30 days or reasonable doubt exists in collecting all interest and principal. A payment due in excess of 30 days is considered delinquent. If a payment is received 56 Table of Contents for a receivable on non-accrual status the payment is first applied to interest and then principal. Recording interest income resumes once no reasonable doubt exists regarding collecting all interest and principal. There were no financing receivables placed on non-accrual status as of September 30, 2025 or September 30, 2024. The following table presents Financing receivables, gross, including accrued interest and excluding any allowance for credit loss, by credit quality indicator segregated by risk rating and year of origination as of September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ ​ Fiscal year of origination ​ ​ Risk Rating ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ High ​ $ 891 ​ $ — ​ $ — ​ $ 891 Moderate ​ 1,268 ​ ​ 369 ​ 114 ​ ​ 1,751 Low 10,888 ​ ​ 1,507 ​ ​ 1,256 ​ ​ 13,651 Total $ 13,047 ​ $ 1,876 ​ $ 1,370 ​ $ 16,293 ​ ​ Contractual maturities of outstanding financing receivables are as follows: ​ ​ ​ ​ Fiscal year ending September 30: ​ ​ ​ (Amounts in thousands) 2026 ​ $ 9,883 2027 ​ ​ 5,257 2028 ​ ​ 1,153 Total payments ​ $ 16,293 Less: unearned interest income ​ ​ ( 1,289 ) Less: allowance for credit losses ​ ​ ( 100 ) Total, net of unearned interest income and allowance for credit losses ​ $ 14,904 ​ ​ ​ 4. Inventories Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Raw materials ​ $ — ​ $ 77 Work-in-process ​ 94 ​ ​ 315 Finished goods ​ 1,348 ​ ​ 1,901 Total ​ $ 1,442 ​ $ 2,293 ​ ​ We evaluate inventory for obsolescence on at least a quarterly basis or more frequently if needed. Our HPP segment has a multi-faceted approach in determining obsolescence including reviewing inventory by product line, program, and individual part. In the TS segment, we seek to minimize obsolete inventory by having nearly all of our inventory purchased in conjunction with a sales agreement. From time to time, we do purchase certain inventory in bulk to receive discounts, but only when we anticipate selling this inventory in the near-term. The inventory we purchase at the TS segment is in high demand, especially in the current environment, and has a limited risk of obsolescence. The TS-US division has many vendors it transacts with and does not have any specific agreement with any vendor that it must purchase certain products. Management believes other suppliers could provide similar products with comparable terms. ​ 57 Table of Contents 5. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ Foreign ​ Minimum ​ Other ​ ​ Currency ​ Pension ​ Comprehensive ​ ​ Translation ​ Liability ​ Loss ​ ​ (Amounts in thousands) Balance as of September 30, 2023 ​ $ ( 4,829 ) ​ $ ( 1,265 ) ​ $ ( 6,094 ) Change in period ​ 723 ​ ( 60 ) ​ 663 Tax effect of change in period ​ — ​ 66 ​ 66 Balance as of September 30, 2024 ​ $ ( 4,106 ) ​ $ ( 1,259 ) ​ $ ( 5,365 ) Change in period ​ 96 ​ ( 2,714 ) ​ ( 2,618 ) Tax effect of change in period ​ — ​ ( 9 ) ​ ( 9 ) Balance as of September 30, 2025 ​ $ ( 4,010 ) ​ $ ( 3,982 ) ​ $ ( 7,992 ) ​ The changes in the minimum pension liability are net of an amortization loss of $ 243 thousand in 2025 and a loss of $ 185 thousand in 2024 included in net periodic pension cost. 6. Income Taxes The components of income (loss) before income tax benefit and income tax benefit are comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended ​ ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Income (loss) before income tax benefit ​ ​ ​ ​ ​ ​ U.S. ​ $ ( 1,620 ) ​ $ 74 Foreign ​ ( 41 ) ​ ( 493 ) ​ ​ $ ( 1,661 ) ​ $ ( 419 ) Income tax expense: ​ ​ ​ ​ ​ ​ Current: ​ ​ ​ ​ ​ ​ Federal ​ $ — ​ $ 123 State ​ 173 ​ 172 ​ ​ $ 173 ​ $ 295 Deferred: ​ ​ ​ ​ ​ ​ Federal ​ $ ( 1,173 ) ​ $ ( 372 ) State ​ ( 570 ) ​ ( 15 ) ​ ​ $ ( 1,743 ) ​ $ ( 387 ) ​ ​ ​ ​ ​ ​ ​ Total income tax benefit ​ $ ( 1,570 ) ​ $ ( 93 ) ​ ​ 58 Table of Contents The effective income tax rate differed from the statutory federal income tax rate due to the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Years Ended September 30, ​ ​ 2025 ​ 2024 ​ ​ (Dollar amounts in thousands) Tax benefit at the statutory rate ​ ​ ​ $ ( 349 ) ​ ​ ​ 21.0 % $ ( 88 ) ​ ​ ​ 21.0 % Increases (reductions) in taxes resulting from: ​ ​ ​ ​ ​ ​ ​ State income taxes, net of federal benefit ​ 16 ( 1.0 ) % ( 87 ) 20.8 % Impact of non-U.S. earnings ​ 2 ( 0.1 ) % — - % Change in valuation allowance ​ ​ ( 293 ) ​ 17.6 % ​ 180 ​ ( 43.0 ) % Excess stock compensation deductions ​ ​ ( 748 ) ​ 45.0 % ​ ( 189 ) ​ 45.1 % Permanent differences ​ 31 ( 1.9 ) % 19 ( 4.5 ) % Non-deductible executive compensation ​ 240 ( 14.4 ) % — - % Change in uncertain tax positions ​ ( 94 ) 5.7 % 89 ( 21.2 ) % Tax credits ​ ​ ( 148 ) ​ 8.9 % ​ ( 90 ) ​ 21.5 % Return to provision and prior period assessments ​ ​ ( 226 ) ​ 13.6 % ​ 43 ​ ( 10.3 ) % Other items ​ ​ ( 1 ) ​ 0.1 % ​ 30 ​ ( 7.2 ) % Income tax benefit ​ $ ( 1,570 ) 94.5 % $ ( 93 ) 22.2 % ​ ​ Significant components of the Company's net deferred tax assets and liabilities as of September 30, 2025 and 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Deferred tax assets: ​ ​ ​ ​ ​ ​ Net operating loss carryforward ​ $ 2,689 ​ $ 2,558 Tax credits ​ 669 ​ 829 Capitalized research and development expenses ​ ​ 1,681 ​ ​ 1,155 Other reserves and accruals ​ 881 ​ 975 Lease liability ​ ​ 423 ​ ​ 121 Accrued expenses ​ 1,165 ​ — Inventory reserve ​ 327 ​ 303 Pension ​ 422 ​ 331 Other temporary differences ​ ​ 2 ​ ​ — Gross deferred tax assets ​ ​ 8,259 ​ ​ 6,272 Less: valuation allowance ​ ( 3,167 ) ​ ( 2,800 ) Net deferred tax asset ​ ​ 5,092 ​ ​ 3,472 ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: ​ ​ ​ ​ ​ ​ Fixed assets ​ ​ ( 96 ) ​ ​ ( 69 ) Pension ​ ​ ( 21 ) ​ ​ ( 119 ) ROU asset ​ ​ ( 416 ) ​ ​ ( 550 ) Realizable deferred tax liabilities ​ ​ ( 533 ) ​ ​ ( 738 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax assets ​ $ 4,559 ​ $ 2,734 ​ ​ The Company undertakes a review of its valuation allowance at each financial statement period, reviewing the positive and negative evidence to help determine whether it is more likely than not that the Company will realize the future tax benefits from its deferred tax balances. The Company has determined that it is more likely than not that substantially all of its net deferred tax assets in the U.S., except for certain state tax credits, will be realized for the fiscal years ended September 30, 2024 and 2025. The Company separately analyzed the realizability of its federal and state credits and determined $ 495 thousand (net of federal benefit) of state credits are expected to expire unutilized and maintained a 59 Table of Contents valuation allowance against these credits. The Company continued to maintain a full valuation allowance against the net U.K. deferred tax assets. As of September 30, 2025 and 2024, the Company had no U.S. net operating loss or tax credit carryforwards for federal tax purposes. As of September 30, 2025 and 2024, the Company had U.S. net operating loss carryforwards for state purposes of approximately $ 60 thousand and $ 60 thousand, respectively, which begin to expire in FY 2031. As of September 30, 2025, the Company had state tax credit carryforwards of $ 1.0 million available to reduce future state tax expense, of which $ 50 thousand has unlimited carryover status and the remainder of the credits begin to expire in FY 2029. As of September 30, 2024, the Company had state tax credit carryforwards of $ 1.1 million available to reduce future state tax expense, of which $ 55 thousand has unlimited carryover status and the remainder of the credits begin to expire in FY 2025. As of September 30, 2025 and 2024, the Company had U.K. net operating loss carryforwards of approximately $ 10.8 million and $ 10.6 million, respectively, that have an indefinite life with no expiration. Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $ 10.3 million and $ 10.3 million as of September 30, 2025 and 2024, respectively. The Company is considering cash distributions of undistributed foreign earnings in the future and will continue to assess the potential impact of any future distributions on U.S. taxes. The state tax impact of a distribution of foreign earnings and profits would not be material. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company records liabilities for estimated tax obligations in the U.S. and other tax jurisdictions. These estimated tax liabilities include the provision for taxes that may become payable in the future. As of September 30, 2025, uncertain tax benefits were primarily related to federal and state tax credits and were partially recorded net in deferred taxes and as a long term tax payable. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ (Amounts in thousands) Balance, beginning of year ​ $ 351 ​ $ 323 Additions for tax positions of current year ​ 23 ​ ​ 11 Additions for tax positions of prior years ​ ​ 3 ​ ​ 8 Reduction for lapse of the applicable statute of limitations ​ ​ ( 77 ) ​ ​ ( 13 ) Accrued penalties and interest ​ 6 ​ ​ 22 Balance, end of period ​ $ 306 ​ $ 351 ​ ​ The unrecognized tax benefits of $ 306 thousand as of September 30, 2025, if recognized, would reduce our annual effective tax rate, subject to the valuation allowance maintained against certain state tax credits. The Company does not expect our unrecognized tax benefits to change significantly over the next 12 months. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company has reviewed the tax positions taken on returns filed domestically and in its foreign jurisdictions for all open years, generally fiscal 2022 through 2025, and believes that any tax adjustments not currently reserved in any audited year would not be material. 60 Table of Contents 7. Property, Equipment and Improvements, net Property, equipment and improvements, net consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ ​ September 30, ​ ​ 2025 ​ 2024 ​ ​ (Amounts in thousands) Leasehold improvements ​ $ 29 ​ $ 224 Equipment ​ 2,731 ​ 8,814 Automobiles ​ 200 ​ 194 Property, equipment and improvements, gross ​ 2,960 ​ 9,232 Less accumulated depreciation and amortization ​ ( 2,421 ) ​ ( 8,803 ) Property, equipment and improvements, net ​ $ 539 ​ $ 429 ​ ​ The Company uses the straight-line method over the estimated useful lives of the assets to record depreciation expense. Depreciation expense was $ 237 thousand and $ 292 thousand for the years ended September 30, 2025 and 2024, respectively. 8. Intangibles, net As of September 30, 2025 and 2024, intangible assets are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ ​ ​ Remaining ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ ​ ​ Accumulated ​ ​ ​ Amortization ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ Period ​ ​ ​ Gross ​ ​ ​ Amortization ​ ​ ​ Net ​ ​ ​ Period ​ ​ ​ Gross ​ ​ ​ Amortization ​ ​ ​ Net ​ ​ (Amounts in thousands) Patent ​ 7 years ​ $ 86 ​ $ ( 17 ) ​ $ 69 8 years ​ $ 60 ​ $ ( 10 ) ​ $ 50 ​ Amortization expense on these intangible assets was $ 7 thousand and $ 6 thousand for the years ended September 30, 2025 and 2024, respectively. There were additions of $ 26 thousand and $ 10 thousand for the years ended September 30, 2025 and 2024, respectively. These additions were at our HPP segment related to our ARIA cybersecurity products. Annual amortization expense related to intangible assets for each of the following five successive fiscal years is as follows: ​ ​ ​ ​ Fiscal year ending September 30: ​ ​ ​ (Amounts in thousands) 2026 ​ ​ 9 2027 ​ ​ 9 2028 ​ ​ 9 2029 ​ ​ 9 2030 ​ ​ 9 Thereafter ​ ​ 24 Total ​ $ 69 ​ ​ ​ 61 Table of Contents 9. Accounts payable and accrued expenses, and Other noncurrent liabilities Accounts payable and accrued expenses consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Accounts payable ​ $ 13,465 ​ $ 6,953 Vendor financing agreements ​ ​ 3,160 ​ ​ 2,309 Commissions ​ 580 ​ 527 Compensation and fringe benefits ​ 1,421 ​ 1,342 Professional fees ​ ​ 300 ​ ​ 370 Taxes, other than income ​ 198 ​ 170 Director fees ​ 42 ​ 14 Operating lease liability ​ ​ 340 ​ ​ 382 Employee retention tax credit payable ​ ​ — ​ ​ 11 Product warranty ​ 2 ​ 6 Total ​ $ 19,508 ​ $ 12,084 ​ The TS US division enters into certain multi-year agreements with vendors when also entering into some of the multi-year contracts the Company enters into with customers. The caption “Vendor financing agreements” above represents the interest-bearing amounts due to vendors, which are current. See Note 3 Financing Receivables, net for further information related to the multi-year agreements with customers. There was not an interest rate stated explicitly in the agreements and therefore interest was imputed under ASC 835 Interest as the payments in the exchange represented two elements: principal and interest. The average weighted imputed interest rate for the agreements was determined to be 9.2 %. The rate was determined primarily based on the rate the Company could obtain by financing from other sources at the date of the transaction. Interest expense related to these agreements was $ 346 thousand and $ 219 thousand for the years ended September 30, 2025 and 2024, respectively. The amounts owed for these agreements are within the Consolidated balance sheets in accounts payable and other noncurrent liabilities because they are owed to a vendor rather than banks or financial institutions for borrowings. See Note 12 Line of Credit for amounts due to banks and other financial institutions for borrowings. Below are details of the aforementioned agreements with the vendors that contain imputed interest: ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ September 30, 2024 ​ (Amounts in thousands) Current $ 3,475 ​ $ 2,553 Less: discount ​ ( 315 ) ​ ​ ( 244 ) Accounts payable and accrued expenses $ 3,160 ​ $ 2,309 ​ ​ ​ ​ ​ ​ Noncurrent $ 1,786 ​ $ 1,677 Less: discount ​ ( 114 ) ​ ​ ( 146 ) Total within Other noncurrent liabilities $ 1,672 ​ $ 1,531 ​ ​ The TS US division has many vendors it transacts with and does not have any specific agreement with any vendor that it must purchase certain products. Management believes other suppliers could provide similar products with comparable terms. 62 Table of Contents 10. Leases Information related to both lessee and lessor The following table specifies where the right-of-use assets, lease liabilities, and investment in lease are within the Consolidated Balance Sheets as of September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated Balance Sheets Location ​ ​ ​ September 30, 2025 September 30, 2024 ​ ​ ​ (Amounts in thousands) Assets ​ ​ ​ ​ ​ ​ ​ Operating leases, net Operating lease right-of-use assets, net ​ $ 1,647 ​ $ 489 ​ ​ ​ ​ ​ ​ ​ ​ Lease receivable - current Other current assets ​ $ 41 ​ $ 14 Lease receivable - noncurrent Other assets ​ ​ 45 ​ ​ 11 Total lease receivable ​ ​ $ 86 ​ $ 25 ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ Current operating lease liabilities Accounts payable and accrued expenses ​ $ 340 ​ $ 382 Non-current operating lease liabilities Operating lease liabilities - noncurrent portion ​ ​ 1,336 ​ ​ 117 Total operating lease liabilities ​ ​ $ 1,676 ​ $ 499 ​ ​ The components of lease costs for the year ended September 30, 2025 and 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ Consolidated Statements of Operations Location ​ September 30, 2025 ​ September 30, 2024 ​ ​ ​ (Amounts in thousands) Operating Lease: ​ ​ ​ ​ ​ Operating lease cost Selling, general, and administrative ​ $ 509 ​ $ 531 Short-term lease cost Selling, general, and administrative ​ ​ 73 ​ ​ 34 Total lease costs ​ ​ $ 582 ​ $ 565 Less lessor interest income Revenue ​ ​ ( 9 ) ​ ​ ( 3 ) Total lease costs, net of lessor interest income ​ ​ $ 573 ​ $ 562 ​ ​ For the year ended September 30, 2025 an amount of $ 100 thousand was recognized in Sales: Product and $ 86 thousand in Cost of sales - Product for a sales-type lease. For the year ended September 30, 2024 an amount of $ 20 thousand was recognized in Sales: Product and $ 10 thousand in Cost of sales - Product related for a sales-type lease. 63 Table of Contents Future lease payments under our non-cancellable leases and payments to be received as a lessor as of September 30, 2025 are in the following table: ​ ​ ​ ​ ​ ​ ​ Operating lease ​ Lessor Fiscal year ending September 30: costs ​ payments ​ (Amounts in thousands) 2026 $ 440 ​ $ 47 2027 ​ 346 ​ ​ 41 2028 ​ 296 ​ ​ 6 2029 ​ 261 ​ ​ — 2030 ​ 266 ​ ​ — Thereafter 410 ​ — Total $ 2,019 ​ $ 94 Less imputed interest ​ ( 343 ) ​ ​ ( 8 ) Total $ 1,676 ​ $ 86 ​ Supplemental cash flow information related to leases for the fiscal years ended September 30, 2025 and 2024 is below: ​ ​ ​ ​ ​ ​ ​ Year ended ​ September 30, 2025 September 30, 2024 ​ (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows paid for operating leases $ 488 $ 539 Operating cash flows paid for short-term leases ​ 73 ​ 34 Operating cash flows paid for finance leases ​ — ​ 1 Cash received from lessor agreements ​ ( 48 ) ​ ( 15 ) Lease assets obtained in exchange for new lease liabilities ​ ​ ​ ​ Operating leases ​ 1,628 ​ 19 ​ ​ Information as a lessee related to weighted averages of lease term and discount rate as of September 30, 2025 is below: ​ ​ Weighted-average remaining lease term (years) September 30, 2025 Operating leases 5.6 ​ ​ Weighted-average discount rate September 30, 2025 Operating leases 6.9 % ​ ​ ​ 11. Product Warranties Product warranty activity for the year ended September 30, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Balance at the beginning of the year ​ $ 6 ​ $ 22 Usage for warranties for products sold in the period ​ ( 1 ) ​ ( 16 ) Fulfillment of warranty obligations ​ ( 3 ) ​ — Balance at the end of the year ​ $ 2 ​ $ 6 ​ ​ These amounts are within Accounts payable and accrued expenses on the Consolidated Balance Sheets. 64 Table of Contents 12. Line of Credit As of September 30, 2025 and September 30, 2024, the Company maintained an inventory line of credit with a borrowing capacity of $ 15.0 million. It may be used by the TS or HPP segment in the U.S. to purchase inventory from approved vendors with payment terms which exceed those offered by the vendors. No interest accrues under the inventory line of credit when advances are paid within terms, however, late payments are subject to an interest charge of the rate published in the Wall Street Journal as the “ prime rate ” plus 1 % or 8.25 % as of September 30, 2025. The line of credit automatically renews for one year periods unless terminated by the Company with at least 60 days’ notice or immediate termination by the lender. The collateral is a blanket UCC filing on Modcomp, Inc. and CSPi assets. The credit agreement for the inventory line of credit contains financial covenants which require the Company to maintain the following TS segment-specific financial ratios: (1) a minimum current ratio of 1.2 , (2) tangible net worth of no less than $ 4.0 million, and (3) a maximum ratio of total liabilities to total net worth of less than 5.0 :1. As of September 30, 2025 and September 30, 2024, Company borrowings, all from the TS segment, under the inventory line of credit were $ 0.9 million and $ 4.2 million, respectively, and the Company was in compliance with all covenants. There is no unused commitment fee. As of September 30, 2025 and September 30, 2024, this line of credit also included availability of a limited cash withdrawal option of up to $ 1.0 million. As of September 30, 2025 and 2024, there were no cash withdrawals outstanding. ​ 13. Pension and Retirement Plans We have defined benefit and defined contribution plans in the U.K. and in the U.S. In the U.K., the Company provides defined benefit pension plans for certain employees and former employees and defined contribution plans for the majority of the employees. The defined benefit plan in the U.K. is frozen to newly hired employees and has been for the two years ended September 30, 2025. In the U.S., the Company provides defined contribution plans that cover most employees and supplementary retirement plans to certain employees and former employees who are now retired. These supplementary retirement plans are also closed to newly hired employees and have been for the two years ended September 30, 2025. These supplementary plans are funded through whole life insurance policies. The Company expects to recover all insurance premiums paid under these policies in the future, through the cash surrender value of the policies and any death benefits or portions thereof to be paid upon the death of the participant. These whole life insurance policies are carried on the balance sheet at their cash surrender values as they are owned by the Company and not assets of the defined benefit plans. In the U.S., the Company also provides for officer death benefits and post-retirement health insurance benefits through supplemental post-retirement plans to certain officers. The Company also funds these supplemental plans’ obligations through whole life insurance policies on the officers. Defined Benefit Plans The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. If the liabilities are below funding levels an asset is recorded. The domestic supplemental retirement plans have life insurance policies which are not considered plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. These insurance policies are included in the balance sheet in the financial statement line item “Cash surrender value of life insurance” at their cash surrender value, net of policy loans aggregating $ 4.0 million and $ 3.8 million as of September 30, 2025 and 2024, respectively. The loans against the policies have been taken out by the Company to pay the premiums. The costs and benefit payments for these plans are paid through operating cash flows of the Company to the extent that they cannot be funded through the use of the cash values in the insurance policies. The Company expects that the recorded value of the insurance policies will be sufficient to fund all of the Company’s obligations under these plans. 65 Table of Contents Assumptions: The following table provides the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Domestic ​ International ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 Discount rate: 5.32 % 4.86 % 5.6 % 5.0 % Expected return on plan assets: ​ ​ 5.6 % 4.7 % ​ ​ The following table provides the weighted average actuarial assumptions used to determine net periodic benefit cost for years ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Domestic ​ ​ ​ International ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 Discount rate: 4.86 % 5.62 % 5.6 % 5.0 % Expected return on plan assets: ​ ​ 5.6 % 4.7 % ​ ​ The periodic benefit cost and the actuarial present value of projected benefit obligations are based on actuarial assumptions that are reviewed on an annual basis. The Company revises these assumptions based on an annual evaluation of long-term trends, as well as market conditions, which may have an impact on the cost of providing retirement benefits. For domestic plans, in making the cost assessments, a discount rate of 5.32 % was used to reflect prevailing interest rates. Medical benefits are assumed to be increasing based on the Long-Term Healthcare Cost Trends Getzen Model commencing with 8.0 % per year with such increase decreasing by 0.5 % per year over the next several years and decreasing in accordance with the model to 4.54 % in 2090. For ages 65 and beyond, the increase is 5.00 % for 2025, 4.75 % for 2026 and 4.54 % thereafter. Life expectancy for medical benefits is based on the PRI-2012 White Collar for Males and Females Pre and Post retirement, Adjusted to 2006 projected using scale MP-2021. For the international plan, the discount rate based on a yield curve, constructed from the iBoxx Sterling AA Corporate Index as of September 30, 2025. An assumption of a rate of increase in the Retail Price Index (RPI) is derived from the difference in the yields on fixed and index-linked UK government bonds (gilts) at the effective date published by the Bank of England. Demographic assumptions are those agreed for the funding valuation as of January 1, 2022, but using more recent mortality projections (CMI2024). The plan’s main asset is now a buy-in contract. As the value of this contract is set equal to the value of the liabilities, the expected return on assets is set equal to the assumed discount rate. 66 Table of Contents The components of net periodic benefit costs related to the U.S. and international plans are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended September 30, ​ ​ 2025 ​ 2024 ​ ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ (Amounts in thousands) Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 431 ​ $ 8 ​ $ 439 ​ $ 440 ​ $ 11 ​ $ 451 Expected return on plan assets ​ ( 519 ) ​ — ​ ( 519 ) ​ ( 515 ) ​ — ​ ( 515 ) Amortization of past service costs ​ ​ 8 ​ ​ — ​ ​ 8 ​ ​ 8 ​ ​ — ​ ​ 8 Amortization of net gain ​ — ​ ( 2 ) ​ ( 2 ) ​ — ​ ( 5 ) ​ ( 5 ) Net periodic (benefit) cost ​ $ ( 80 ) ​ $ 6 ​ $ ( 74 ) ​ $ ( 67 ) ​ $ 6 ​ $ ( 61 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ — ​ $ 26 ​ $ 26 ​ $ — ​ $ 23 ​ $ 23 Interest cost ​ — ​ 58 ​ 58 ​ — ​ 64 ​ 64 Amortization of net gain ​ — ​ ( 119 ) ​ ( 119 ) ​ — ​ ( 172 ) ​ ( 172 ) Net periodic benefit ​ $ — ​ $ ( 35 ) ​ $ ( 35 ) ​ $ — ​ $ ( 85 ) ​ $ ( 85 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in minimum liability included in other comprehensive income ​ $ 2,736 ​ ​ — ​ $ 2,736 ​ $ ( 106 ) ​ $ 6 ​ $ ( 100 ) Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Decrease) increase in minimum liability included in other comprehensive income ​ — ​ ( 22 ) ​ ( 22 ) ​ — ​ 160 ​ 160 Total: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) increase in minimum liability included in other comprehensive income ​ $ 2,736 ​ $ ( 22 ) ​ $ 2,714 ​ $ ( 106 ) ​ $ 166 ​ $ 60 ​ ​ 67 Table of Contents The following table presents an analysis of the changes in 2025 and 2024 in the benefit obligation, the plan assets and the funded status of the plans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended September 30 ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Foreign ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Foreign ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ (Amounts in thousands) Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in projected benefit obligation (“PBO”) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance beginning of year ​ $ 9,165 ​ $ 160 ​ $ 9,325 ​ $ 8,076 ​ $ 202 ​ $ 8,278 Interest cost ​ 431 ​ 8 ​ 439 ​ 440 ​ 11 ​ 451 Changes in actuarial assumptions ​ ( 518 ) ​ ( 3 ) ​ ( 521 ) ​ 349 ​ 1 ​ 350 Foreign exchange impact ​ 17 ​ — ​ 17 ​ 788 ​ — ​ 788 Benefits paid ​ ( 667 ) ​ ( 34 ) ​ ( 701 ) ​ ( 488 ) ​ ( 54 ) ​ ( 542 ) Projected benefit obligation at end of year ​ $ 8,428 ​ $ 131 ​ $ 8,559 ​ $ 9,165 ​ $ 160 ​ $ 9,325 Changes in fair value of plan assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair value of plan assets at beginning of year ​ $ 11,366 ​ $ — ​ $ 11,366 ​ $ 10,034 ​ $ — ​ $ 10,034 Actual (loss) gain on plan assets ​ ( 2,746 ) ​ — ​ ( 2,746 ) ​ 985 ​ — ​ 985 Company contributions ​ 720 ​ 34 ​ 754 ​ — ​ 54 ​ 54 Foreign exchange impact ​ ( 36 ) ​ — ​ ( 36 ) ​ 978 ​ — ​ 978 Administrative expenses ​ ​ ( 167 ) ​ — ​ ​ ( 167 ) ​ ​ ( 143 ) ​ — ​ ​ ( 143 ) Benefits paid ​ ( 667 ) ​ ( 34 ) ​ ( 701 ) ​ ( 488 ) ​ ( 54 ) ​ ( 542 ) Fair value of plan assets at end of year ​ $ 8,470 ​ $ — ​ $ 8,470 ​ $ 11,366 ​ $ — ​ $ 11,366 Funded status \ net amount recognized ​ $ 42 ​ $ ( 131 ) ​ $ ( 89 ) ​ $ 2,201 ​ $ ( 160 ) ​ $ 2,041 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in projected benefit obligation (“PBO”): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance beginning of year ​ $ — ​ $ 1,222 ​ $ 1,222 ​ $ — ​ $ 1,147 ​ $ 1,147 Service cost ​ — ​ 26 ​ 26 ​ — ​ 23 ​ 23 Interest cost ​ — ​ 58 ​ 58 ​ — ​ 64 ​ 64 Changes in actuarial assumptions ​ — ​ ( 141 ) ​ ( 141 ) ​ — ​ ( 12 ) ​ ( 12 ) Projected benefit obligation at end of year ​ $ — ​ $ 1,165 ​ $ 1,165 ​ $ — ​ $ 1,222 ​ $ 1,222 Funded status \ net amount recognized ​ $ — ​ $ ( 1,165 ) ​ $ ( 1,165 ) ​ $ — ​ $ ( 1,222 ) ​ $ ( 1,222 ) ​ ​ 68 Table of Contents The amounts recognized in the consolidated balance sheet consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended September 30 ​ ​ 2025 ​ 2024 ​ ​ ​ ​ Foreign ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Foreign ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ (Amounts in thousands) Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued benefit asset (liability) ​ $ 42 ​ $ ( 131 ) ​ $ ( 89 ) ​ $ 2,201 ​ $ ( 160 ) ​ $ 2,041 Deferred tax ​ — ​ 23 ​ 23 ​ — ​ 23 ​ 23 Accumulated other comprehensive income ​ 3,031 ​ 12 ​ 3,043 ​ 212 ​ 12 ​ 224 Net amount recognized ​ $ 3,073 ​ $ ( 96 ) ​ $ 2,977 ​ $ 2,413 ​ $ ( 125 ) ​ $ 2,288 Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued benefit liability ​ $ — ​ $ ( 1,165 ) ​ $ ( 1,165 ) ​ $ — ​ $ ( 1,222 ) ​ $ ( 1,222 ) Deferred tax ​ — ​ 221 ​ 221 ​ — ​ 212 ​ 212 Accumulated other comprehensive loss ​ — ​ ( 158 ) ​ ( 158 ) ​ — ​ ( 144 ) ​ ( 144 ) Net amount recognized ​ $ — ​ $ ( 1,102 ) ​ $ ( 1,102 ) ​ $ — ​ $ ( 1,154 ) ​ $ ( 1,154 ) Total pension and post retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued benefit asset (liability) ​ $ 42 ​ $ ( 1,296 ) ​ $ ( 1,254 ) ​ $ 2,201 ​ $ ( 1,382 ) ​ $ 819 Deferred tax ​ — ​ 244 ​ 244 ​ — ​ 235 ​ 235 Accumulated other comprehensive income (loss) ​ 3,031 ​ ( 146 ) ​ 2,885 ​ 212 ​ ( 132 ) ​ 80 Net amount recognized ​ $ 3,073 ​ $ ( 1,198 ) ​ $ 1,875 ​ $ 2,413 ​ $ ( 1,279 ) ​ $ 1,134 Accumulated Benefit Obligation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension ​ $ ( 8,428 ) ​ $ ( 131 ) ​ $ ( 8,559 ) ​ $ ( 9,165 ) ​ $ ( 160 ) ​ $ ( 9,325 ) Post Retirement ​ — ​ ( 1,165 ) ​ ( 1,165 ) ​ — ​ ( 1,222 ) ​ ( 1,222 ) Total accumulated benefit obligation ​ $ ( 8,428 ) ​ $ ( 1,296 ) ​ $ ( 9,724 ) ​ $ ( 9,165 ) ​ $ ( 1,382 ) ​ $ ( 10,547 ) ​ ​ Plans with projected benefit obligations in excess of plan assets are attributable to unfunded domestic supplemental retirement plans. Accrued benefit assets and liabilities reported as: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Pension benefits assets ​ $ 42 ​ $ 2,201 ​ ​ ​ ​ ​ ​ ​ Current accrued benefit liability ​ $ 77 ​ $ 76 Non-current accrued benefit liability ​ 1,219 ​ 1,306 Total accrued benefit liability ​ $ 1,296 ​ $ 1,382 ​ As of September 30, 2025 and 2024, the amounts included in accumulated other comprehensive income, consisted of deferred net losses totaling approximately $ 2.9 million and $ 0.1 million, respectively. The amount of net deferred loss expected to be recognized as a component of net periodic benefit cost for the year ending September 30, 2026, is approximately $ 129 thousand. 69 Table of Contents Contributions The Company does not expect to contribute any money to its pension plans in fiscal 2026. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (amounts in thousands): ​ ​ ​ ​ Fiscal year ending September 30: ​ ​ ​ (Amounts in thousands) 2026 ​ $ 639 2027 ​ $ 675 2028 ​ $ 716 2029 ​ $ 716 2030 ​ $ 729 Thereafter ​ $ 1,273 ​ ​ Plan Assets The Company’s pension plan in the U.K. is the only pension plan with plan assets. In October 2024 the company contributed approximately 0.6 million Great British Pounds to the U.K. pension plan and all of the plan assets were converted to cash. Also in October 2024, in connection with the planned termination of our defined benefit pension plan in the U.K., we paid 8.5 million Great British Pounds to enter into a buy-in contract. This payment is subject to adjustment as a result of subsequent data cleansing activities. Under the terms of this buy-in contract, the insurer is liable to pay the benefits of the plan, but the Company still retains full legal responsibility to pay the benefits to members using the insurance payments. In accordance with US GAAP, specifically ASC 715-30 Defined Benefit Plans – Pension , the buy-in contract does not qualify as a significant event and therefore remeasurement was not required. The buy-in contract is treated as a plan asset. When the buy-in contract transitions to a buy-out contract the Company will no longer have legal responsibility to pay the benefits to the members. This transition is a significant event and the pension assets and liabilities will be remeasured at this time. The company’s remeasurement date is September 30, 2025 and the pension assets and liabilities were remeasured as of this date in accordance with our Pension and Retirement Plans accounting policy. Pension plan assets are managed by a fiduciary committee. Prior to the conversion of the plan assets to cash the Company’s investment strategy for pension plan assets was to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. Local regulations, local funding rules, and local financial and tax considerations were part of the funding and investment process. In deciding on the investments to be held, the trustees take into account the risk of possible fluctuations in income from, and market values of, the assets as well as the risk of departing from an asset profile which broadly matches the liability profile. The committee invested the plan assets in a single pooled fund with an authorized investment company (the “Fund”). The Fund selected by the trustees was consistent with the plan’s overall investment principles and strategy described herein. There are no specific targets as to asset allocation other than those contained within the Fund that is managed by the authorized investment company. 70 Table of Contents The fair value of the assets held by the U.K. pension plan by asset category are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Values as of ​ ​ September 30, 2025 ​ September 30, 2024 ​ ​ Fair Value Measurements Using Inputs Considered as ​ Fair Value Measurements Using Inputs Considered as Asset Category ​ ​ ​ Total ​ ​ ​ Level 1 ​ ​ ​ Level 2 ​ ​ ​ Level 3 ​ ​ ​ Total ​ ​ ​ Level 1 ​ ​ ​ Level 2 ​ ​ ​ Level 3 ​ ​ (Amounts in thousands) Cash on deposit ​ $ 42 ​ $ 42 ​ $ — ​ $ — ​ $ 65 ​ $ 65 ​ $ — ​ $ — Fixed income ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 10,388 ​ ​ 8,714 ​ ​ 1,674 ​ ​ — Buy-in contract ​ ​ 8,428 ​ ​ — ​ ​ — ​ ​ 8,428 ​ ​ — ​ ​ — ​ ​ — ​ ​ — Equity ​ — ​ — ​ ​ — ​ ​ — ​ 913 ​ 263 ​ ​ 650 ​ ​ — Total plan assets ​ $ 8,470 ​ $ 42 ​ $ — ​ $ 8,428 ​ $ 11,366 ​ $ 9,042 ​ $ 2,324 ​ $ — ​ Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. Level 2 investment represents a mutual fund, which a quoted market price is not available on an active market. Significant observable inputs that reflect quoted prices for similar assets or liabilities in active markets are used. This investment primarily holds stocks within developed global equity markets, excluding the UK. Level 3 represents the buy-in contract. While the purchase of the buy-in contract does not result in an actual settlement, it can be viewed as financially equivalent to an effective settlement since the majority of the risks and rewards associated with the benefit obligation and related assets have been eliminated (especially if there has been no downgrade in the ratings of the insurance company that wrote the contract). As a result, the discount rate used in pricing the buy-in contract also represents the rate at which the obligation can be effectively settled (ASC 715-30-35-43). The fair value of the buy-in contract is equivalent to the total accumulated benefit obligation. ​ Defined Contribution Plans The Company has defined contribution plans in domestic and international locations under which the Company matches a portion of the employees’ contributions and may make discretionary contributions to the plans. The Company’s contributions were $ 226 thousand and $ 212 thousand for the years ended September 30, 2025 and 2024, respectively. ​ 14. Stock Based Incentive Compensation In 2015, the Company adopted the 2015 Stock Incentive Plan (the "2015 Plan") and authorized 600,000 shares of common stock to be reserved for issuance pursuant to the 2015 Plan. This plan expired on November 18, 2024. Awards issued under the 2015 Plan are not affected by expiration of the plan, but no further awards will be issued under this plan. In fiscal year 2025, the Company adopted the 2025 Stock Incentive Plan (the "2025 Plan") and authorized 600,000 shares of common stock to be reserved for issuance pursuant to the 2025 Plan. As of September 30, 2025, there were 535,595 shares available to be granted under the 2025 Plan. Under the 2025 Plan, incentive and non-qualified stock options and restricted stock awards may be granted to officers, key employees and other people providing services to the Company. The 2025 Plan has a ten-year life and is the only effective plan as of September 30, 2025. The Company had no awarded stock options outstanding as of September 30, 2025 or 2024. The Company issues restricted stock awards at their fair value on the date of grant. Vesting of restricted stock awards granted pursuant to the 2025 Plan is determined by the Company’s compensation committee. In fiscal year 2025 and 2024, the Company granted non-employee directors, officers, and key employees shares of nonvested common stock. The vesting period for officers’ and key employees’ restricted stock awards is four years . The vesting for non-employee directors’ restricted stock awards is one year . 71 Table of Contents We measure and recognize compensation expense for nonvested stock-based payment awards made to employees and directors based on the closing market price of our common stock as quoted on the Nasdaq Global Market on the date of grant over the requisite service period. The Company recognizes stock compensation expense, net of actual forfeitures. Stock-based compensation expense incurred and recognized for the years ended September 30, 2025 and 2024 related to nonvested stock granted to employees and non-employee directors under the Company’s stock incentive and employee stock purchase plans totaled approximately $ 1.8 million and $ 1.6 million, respectively. The classification of the cost of stock-based compensation, in the consolidated statements of operations, is consistent with the nature of the services being rendered in exchange for the share-based payment. The following table summarizes stock-based compensation expense in the Company’s consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ ​ September 30, ​ September 30, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ (Amounts in thousands) Cost of sales ​ $ 2 ​ $ 5 Research and development ​ 310 ​ 190 Selling, general and administrative ​ 1,457 ​ 1,384 Total ​ $ 1,769 ​ $ 1,579 ​ ​ For the year ended September 30, 2025, the Company granted a total of 169,205 nonvested shares including 97,705 to key employees, 54,000 to officers including 35,000 to the Chief Executive Officer, and 17,500 to non-employee directors. For the year ended September 30, 2024, the Company granted a total of 305,000 nonvested shares including 161,000 nonvested shares to certain key employees, 104,000 nonvested shares to certain officers including 70,000 shares granted to the Chief Executive Officer, and 40,000 nonvested shares to its non-employee directors. No cash was used to settle equity instruments granted under share-base payment arrangements in any of the years in the two-year period ended September 30, 2025. The following table provides summary data of nonvested stock award activity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Weighted ​ ​ ​ ​ ​ ​ ​ Average ​ Average ​ Aggregate ​ ​ ​ ​ Grant Date ​ Remaining ​ Intrinsic ​ ​ ​ ​ Fair ​ Contractual ​ Value ​ ​ ​ ​ Shares ​ ​ ​ Value ​ ​ ​ Term ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonvested shares outstanding as of September 30, 2023 590,150 ​ $ 4.77 2.33 Years ​ $ 5,164 Activity in fiscal year 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Granted 305,000 ​ $ 9.75 — ​ — Vested ( 237,175 ) ​ $ 4.95 — ​ — Forfeited ​ ( 6,625 ) ​ $ 6.58 — ​ — Nonvested shares outstanding as of September 30, 2024 651,350 ​ $ 7.01 2.27 Years ​ $ 8,461 Activity in fiscal year 2025: ​ ​ ​ ​ ​ ​ Granted 169,205 ​ $ 12.69 — ​ — Vested ( 268,300 ) ​ $ 6.83 — ​ — Forfeited ( 2,400 ) ​ $ 8.86 — ​ — Nonvested shares outstanding as of September 30, 2025 549,855 ​ $ 8.89 2.20 Years ​ $ 6,351 ​ ​ As of September 30, 2025, there was $ 3.7 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements (nonvested stock awards) granted under the Company’s stock incentive plans. This cost is expected to be expensed over a weighted average period of approximately 2.6 years. The total fair value of shares vested during the years ended September 30, 2025 and 2024 was $ 1.8 million and $ 1.2 million, respectively. ​ 72 Table of Contents 15. Employee Stock Purchase Plan In December 2013, the Board of Directors of the Company adopted the 2014 Employee Stock Purchase Plan (the "ESPP") covering up to 500,000 shares of Common Stock, which was ratified by a vote of the Company’s shareholders in February 2014. An additional 600,000 shares of common stock were approved by stockholders in fiscal year 2024. Under the ESPP, the Company’s employees may purchase shares of common stock at a price per share that is currently 95 % of the lesser of the fair value as of the beginning or end of semi-annual option periods. Pursuant to the ESPP, the Company issued 26,115 and 29,693 shares for the years ended September 30, 2025 and September 30, 2024, respectively. The weighted average purchase price was $ 10.96 and $ 9.28 per share for the years ended September 30, 2025 and September 30, 2024, respectively. As of September 30, 2025, 483,262 shares remain authorized to be issued under the Employee Stock Purchase Plan. ​ 16. Repurchase of Common Stock On February 8, 2011, the Board of Directors authorized the Company to purchase up to 500 thousand additional shares of the Company's outstanding common stock at market price. The plan does not expire. The Company repurchased 62,300 shares of its outstanding common stock on the open market during fiscal year 2025. There were 69,900 total shares of treasury stock with a cost basis of $ 972 thousand as of September 30, 2025. As of September 30, 2025, 272,354 shares remain authorized to repurchase under the stock repurchase program. ​ 17. Segment Information We have two reporting segments, High Performance Products and Technology Solutions, discussed below. The Company’s country of domicile is the United States. High Performance Products (HPP) – The HPP segment consists of primarily of the following product lines: ARIA, Multicomputer, and Myricom. Most of the revenue is from US customers for all product lines, but the segment has expanded into APAC and Africa regions with its ARIA product line. The segment’s operations are based in Lowell, Massachusetts. Technology Solutions (TS) – The TS segment generates revenue by reselling third-party computer hardware, software, and related support/maintenance/warranty as a value-added reseller (“VAR”). The TS segment generates service revenues by the delivery of professional services for complex IT solutions, including advanced security; unified communications and collaboration; wireless and mobility; data center solutions; and network solutions as well as managed IT services that primarily serve the small and mid-sized business market. TS has two divisions – United Kingdom and U.S. which are displayed separately and in total below. The U.S. division, located in Boca Raton, Florida, primarily has U.S. customers and the United Kingdom division, located in Wokingham, Berkshire, primarily has U.K. customers as well as other European countries. The factors used in identifying the Company’s reportable segments include geographical location of operations and the types of products and services. The accounting policies of the Company's segments are consistent with those described in Note 1 Basis of presentation and Summary of Significant Accounting Policies . All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company's Chief Operating Decision Maker (“CODM”) Victor Dellovo, Chief Executive Officer , assesses segment performance and allocates resources based upon revenues and operating income before certain other nonroutine items, if any. Asset information utilized by the CODM for purposes of assessing performance and allocating resources includes Cash and cash equivalents, Accounts receivable, and Financing receivables. Cash and cash equivalents are utilized due to the HPP segment incurring losses and receiving cash from the TS-US division. Accounts and Financing receivables are regularly provided to the CODM to assess customer trends, credit policies, and operational efficiency. 73 Table of Contents The following table presents certain operating segment information. We have recast certain prior period amounts to conform to the way we internally manage and monitor our business, for details see Note 1 Basis of presentation and Summary of Significant Accounting Policies . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Year ended September 30, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 487 ​ $ 822 ​ $ 36,440 ​ $ 37,262 ​ $ 37,749 Service ​ 1,435 ​ 276 ​ 19,270 ​ 19,546 ​ 20,981 Total sales ​ ​ 1,922 ​ ​ 1,098 ​ ​ 55,710 ​ ​ 56,808 ​ ​ 58,730 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 264 ​ ​ 750 ​ ​ 30,449 ​ ​ 31,199 ​ ​ 31,463 Services ​ 782 ​ 88 ​ 7,886 ​ 7,974 ​ 8,756 Total cost of sales ​ ​ 1,046 ​ ​ 838 ​ ​ 38,335 ​ ​ 39,173 ​ ​ 40,219 Gross profit ​ ​ 876 ​ ​ 260 ​ ​ 17,375 ​ ​ 17,635 ​ ​ 18,511 Research and development ​ ​ 3,250 ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,250 Selling, general and administrative ​ ​ 4,584 ​ ​ 423 ​ ​ 13,363 ​ ​ 13,786 ​ ​ 18,370 Total operating expenses ​ ​ 7,834 ​ ​ 423 ​ ​ 13,363 ​ ​ 13,786 ​ ​ 21,620 Operating (loss) income ​ $ ( 6,958 ) ​ $ ( 163 ) ​ $ 4,012 ​ $ 3,849 ​ $ ( 3,109 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 12 ) ​ $ — ​ $ ( 345 ) ​ $ ( 345 ) ​ $ ( 357 ) Interest income ​ $ 12 ​ $ 173 ​ $ 1,669 ​ $ 1,842 ​ $ 1,854 Depreciation and amortization ​ $ ( 75 ) ​ $ — ​ $ ( 169 ) ​ $ ( 169 ) ​ $ ( 244 ) Cash and cash equivalents ​ $ 200 ​ $ 4,872 ​ $ 22,346 ​ $ 27,218 ​ $ 27,418 Accounts receivable, net of allowance ​ $ 215 ​ $ 356 ​ $ 11,429 ​ $ 11,785 ​ $ 12,000 Financing receivables, net of allowance ​ $ — ​ $ — ​ $ 14,904 ​ $ 14,904 ​ $ 14,904 Total assets ​ $ 11,664 ​ $ 5,446 ​ $ 54,053 ​ $ 59,499 ​ $ 71,163 Capital expenditures ​ $ ( 47 ) ​ $ — ​ $ ( 301 ) ​ $ ( 301 ) ​ $ ( 348 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 2,599 ​ $ 594 ​ $ 33,600 ​ $ 34,194 ​ $ 36,793 Service ​ 1,555 ​ 260 ​ 16,611 ​ 16,871 ​ 18,426 Total sales ​ ​ 4,154 ​ ​ 854 ​ ​ 50,211 ​ ​ 51,065 ​ ​ 55,219 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 736 ​ ​ 507 ​ ​ 27,557 ​ ​ 28,064 ​ ​ 28,800 Services ​ 716 ​ 104 ​ 6,744 ​ 6,848 ​ 7,564 Total cost of sales ​ ​ 1,452 ​ ​ 611 ​ ​ 34,301 ​ ​ 34,912 ​ ​ 36,364 Gross profit ​ ​ 2,702 ​ ​ 243 ​ ​ 15,910 ​ ​ 16,153 ​ ​ 18,855 Research and development ​ ​ 2,956 ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,956 Selling, general and administrative ​ ​ 4,591 ​ ​ 517 ​ ​ 12,663 ​ ​ 13,180 ​ ​ 17,771 Total operating expenses ​ ​ 7,547 ​ ​ 517 ​ ​ 12,663 ​ ​ 13,180 ​ ​ 20,727 Operating (loss) income ​ $ ( 4,845 ) ​ $ ( 274 ) ​ $ 3,247 ​ $ 2,973 ​ $ ( 1,872 ) 74 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 16 ) ​ $ — ​ $ ( 219 ) ​ $ ( 219 ) ​ $ ( 235 ) Interest income ​ $ 38 ​ $ 218 ​ $ 1,791 ​ $ 2,009 ​ $ 2,047 Depreciation and amortization ​ $ ( 99 ) ​ $ — ​ $ ( 199 ) ​ $ ( 199 ) ​ $ ( 298 ) Cash and cash equivalents ​ $ 65 ​ $ 5,442 ​ $ 25,078 ​ $ 30,520 ​ $ 30,585 Accounts receivable, net of allowance ​ $ 260 ​ $ 158 ​ $ 14,076 ​ $ 14,234 ​ $ 14,494 Financing receivables, net of allowance ​ $ — ​ $ — ​ $ 7,306 ​ $ 7,306 ​ $ 7,306 Total assets ​ $ 9,554 ​ $ 7,880 ​ $ 52,002 ​ $ 59,882 ​ $ 69,436 Capital expenditures ​ $ ( 137 ) ​ $ — ​ $ ( 59 ) ​ $ ( 59 ) ​ $ ( 196 ) ​ ​ Depreciation and amortization are included in Selling, general, and administrative expenses. Operating (loss) income is not affected by either non-operating charges/income or by income taxes. Non-operating charges/income consists principally of foreign exchange gain (loss), interest income, and interest expense. Our long-lived assets are located in the United States. See details of timing of revenue recognition and whether CSPi acted as the principal or agent below. Also see geographic areas based on where the products were shipped or services rendered. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Year ended September 30, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 487 ​ $ 831 ​ $ 37,220 ​ $ 38,051 ​ $ 38,538 Transferred at a point in time where CSPi is agent ​ — ​ 79 ​ 8,057 ​ 8,136 ​ 8,136 Transferred over time where CSPi is principal ​ ​ 1,435 ​ ​ 188 ​ ​ 10,433 ​ ​ 10,621 ​ ​ 12,056 Total Revenue ​ $ 1,922 ​ $ 1,098 ​ $ 55,710 ​ $ 56,808 ​ $ 58,730 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 1,673 ​ $ 218 ​ $ 50,692 ​ $ 50,910 ​ $ 52,583 Americas (excluding United States) ​ ​ 3 ​ ​ — ​ ​ 4,525 ​ ​ 4,525 ​ ​ 4,528 Europe ​ ​ 1 ​ ​ 875 ​ ​ 486 ​ ​ 1,361 ​ ​ 1,362 APAC and Africa ​ ​ 245 ​ ​ 5 ​ ​ 7 ​ ​ 12 ​ ​ 257 Total Revenue ​ $ 1,922 ​ $ 1,098 ​ $ 55,710 ​ $ 56,808 ​ $ 58,730 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 3,098 ​ $ 603 ​ $ 33,921 ​ $ 34,524 ​ $ 37,622 Transferred at a point in time where CSPi is agent ​ — ​ 37 ​ 7,070 ​ 7,107 ​ 7,107 Transferred over time where CSPi is principal ​ ​ 1,056 ​ ​ 214 ​ ​ 9,220 ​ ​ 9,434 ​ ​ 10,490 Total Revenue ​ $ 4,154 ​ $ 854 ​ $ 50,211 ​ $ 51,065 ​ $ 55,219 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 3,098 ​ $ 75 ​ $ 45,611 ​ $ 45,686 ​ $ 48,784 Americas (excluding United States) ​ ​ 714 ​ ​ — ​ ​ 3,810 ​ ​ 3,810 ​ 4,524 Europe ​ ​ 6 ​ ​ 775 ​ ​ 344 ​ ​ 1,119 ​ ​ 1,125 APAC and Africa ​ ​ 336 ​ ​ 4 ​ ​ 446 ​ ​ 450 ​ ​ 786 Total Revenue ​ $ 4,154 ​ $ 854 ​ $ 50,211 ​ $ 51,065 ​ $ 55,219 ​ ​ In the TS-US division financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. Revenue from these agreements in fiscal year 2025 was $ 2.5 75 Table of Contents million, which consisted of $ 0.8 million with CSPi acting as the principal and $ 1.7 million with CSPi acting as the agent. Revenue from these agreements in fiscal year 2024 was $ 2.0 million, which consisted of $ 1.5 million with CSPi acting as the principal and $ 0.5 million with CSPi acting as the agent. ​ ​ Concentrations of Credit Risk There were no customers with 10% or more of accounts receivable as of September 30, 2025 or 2024. Below are customers with 10% or more of financing receivables as of September 30, 2025 or 2024. All financing receivables are in the TS-US division. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2025 ​ ​ As of September 30, 2024 ​ ​ ​ (Amounts in millions) ​ ​ ​ ​ ​ % of Total ​ ​ ​ ​ % of Total ​ ​ ​ Financing Receivables ​ ​ ​ Financing Receivables ​ Financing Receivables ​ ​ ​ Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer A ​ $ 0.7 ​ 5 % ​ $ 3.0 ​ 41 % Customer B ​ $ 1.6 ​ 11 % ​ $ 1.9 ​ 25 % Customer C ​ $ 2.8 ​ 19 % ​ $ — ​ - % Customer E ​ $ 5.9 ​ 40 % ​ $ 1.3 ​ 18 % ​ ​ The were no customers from which the Company derived revenues of 10% or more of total revenues year ended September 30, 2025 or 2024. ​ 18. Fair Value Disclosures Under the fair value standards fair value is based on the exit price and defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement should reflect all the assumptions that market participants would use in pricing an asset or liability. A fair value hierarchy is established in the authoritative guidance outlined in three levels ranking from Level 1 to level 3 with Level 1 being the highest priority. Level 1: observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly Level 3: unobservable inputs (e.g., a reporting entity’s or other entity’s own data) The Company had no assets or liabilities measured at fair value on a recurring (except our pension plan assets, see Note 13 Pension and Retirement Plan ) or non-recurring basis as of September 30, 2025 or September 30, 2024. 76 Table of Contents To estimate fair value of the financial instruments below quoted market prices are used when available and classified within Level 1. If this data is not available, we use observable market-based inputs to estimate fair value, which are classified within Level 2. If the preceding information is unavailable, we use internally generated data to estimate fair value which is classified within Level 3. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2025 ​ ​ As of September 30, 2024 ​ ​ ​ ​ ​ ​ Carrying Amount ​ ​ Fair Value ​ ​ Carrying Amount ​ ​ Fair Value ​ Fair Value Level ​ Reference ​ ​ (Amounts in thousands) ​ ​ ​ ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 27,418 ​ $ 27,418 ​ $ 30,585 ​ $ 30,585 ​ 1 ​ Consolidated Balance Sheets Accounts receivable, net ​ 12,000 ​ ​ 12,000 ​ ​ 14,494 ​ ​ 14,494 ​ 1 ​ Note 2 Financing receivables, net* ​ 14,904 ​ ​ 14,904 ​ ​ 7,306 ​ ​ 7,306 ​ 3 ​ Note 3 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses and other long-term liabilities* ​ 4,832 ​ ​ 4,832 ​ ​ 3,840 ​ ​ 3,840 ​ 3 ​ Note 9 Line of Credit ​ 903 ​ ​ 903 ​ ​ 4,169 ​ ​ 4,169 ​ 2 ​ Note 12 *Original maturity over one year ​ Cash and cash equivalents Carrying amount approximated fair value. Accounts receivable and accounts payable with original maturity of less than one year Fair value was not materially different from their carrying values as of September 30, 2025, and 2024 Financing receivables. net Fair value was estimated by discounting future cash flows based on the current rate with similar terms. Line of credit The fair value of our line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity. The carrying amount of our outstanding revolving line of credit approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk. No interest accrues under the inventory line of credit when advances are paid within terms. 77 Table of Contents 19. Dividend Holders of outstanding shares of common stock are entitled to receive ratably any dividends declared by our Board of Directors, in its discretion, out of assets legally available, subject to any preferences that may be applicable to any preferred stock outstanding at the time. There was no outstanding preferred stock as of September 30, 2025 and or 2024. Payment of dividends on the common stock may be restricted by loan agreements, indentures and other transactions entered into by us from time to time. There were no restrictions during the year ended September 30, 2025 and 2024. For the fiscal year ended September 30, 2025 the Company paid cash dividends on common stock below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Paid Fiscal Year ​ Date Declared ​ Record Date ​ Date Paid ​ Per Share 2024 12/12/2023 ​ 12/22/2023 ​ 1/9/2024 ​ $ 0.020 2024 ​ 2/14/2024 ​ 2/26/2024 ​ 3/8/2024 ​ $ 0.025 2024 ​ 5/8/2024 ​ 5/24/2024 ​ 6/12/2024 ​ $ 0.030 2024 ​ 8/13/2024 ​ 8/23/2024 ​ 9/10/2024 ​ $ 0.030 2025 ​ 12/20/2024 ​ 12/27/2024 ​ 1/15/2025 ​ $ 0.030 2025 ​ 2/10/2025 ​ 2/24/2025 ​ 3/10/2025 ​ $ 0.030 2025 ​ 5/14/2025 ​ 5/28/2025 ​ 6/11/2025 ​ $ 0.030 2025 ​ 8/14/2025 ​ 8/29/2025 ​ 9/15/2025 ​ $ 0.030 ​ ​ 20. Related Party Transactions Under ASC 850 “Related Party Transactions” an entity or person is considered to be a “related party” if it has control, significant influence or is a key member of management personnel or affiliate. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company, in accordance with ASC 850 presents disclosures about related party transactions and outstanding balances with related parties. ​ The Audit Committee has the responsibility of reviewing and approving transactions with related parties. In connection with the review of any related party transactions, the Audit Committee considers, among other matters, the nature, timing and duration of the transactions, the relationships of the parties to the transactions, whether the transactions are in the ordinary course of the Company’s business, the dollar value of the transactions and whether the transactions are in the interests of the Company. ​ Gary Southwell, Vice President and General Manager of High Performance Products segment, is a minority shareholder in one of our vendors. He has no operational responsibilities. There were $ 267 thousand and $ 324 thousand of purchases from this vendor for the fiscal year ended September 30, 2025 and 2024, respectively. An amount of $ 69 thousand was due to this vendor as of September 30, 2025. There was no balance due as of September 30, 2024. ​ 78