CSP INC /MA/ 10-Q

Item 1. Financial Statements CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except par value) ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ 2026 ​ ​ ​ 2025 ​ (Unaudited) ​ ​ ​ ASSETS ​ ​ ​ ​ Current assets: ​ ​ ​ ​ Cash and cash equivalents $ 23,101 ​ $ 27,418 Accounts receivable, net of allowances of $ 165 and $ 122 13,550 ​ 12,000 Financing receivables, net of allowances of $ 41 and $ 34 7,730 ​ 8,939 Inventories 1,546 ​ 1,442 Refundable income taxes 311 ​ — Other current assets 2,806 ​ 2,521 Total current assets 49,044 ​ 52,320 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, equipment and improvements, net 531 ​ 539 Operating lease right-of-use assets, net ​ 1,440 ​ ​ 1,647 Intangibles, net 64 ​ 69 Financing receivables due after one year, net of allowances of $ 119 and $ 66 ​ 8,631 ​ 5,965 Deferred income taxes, net 4,428 ​ 4,559 Cash surrender value of life insurance 5,988 ​ 5,845 Pension benefits assets ​ — ​ ​ 42 Other assets 191 ​ 177 Total assets $ 70,317 ​ $ 71,163 ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ Current liabilities: ​ ​ ​ Accounts payable and accrued expenses $ 15,823 ​ $ 19,508 Line of credit ​ 867 ​ ​ 903 Deferred revenue and contract liabilities 1,777 ​ 1,503 Pension and retirement plans 93 ​ 77 Income taxes payable — ​ 192 Total current liabilities 18,560 ​ 22,183 Pension and retirement plans 1,184 ​ 1,219 Operating lease liabilities - noncurrent portion ​ 1,207 ​ ​ 1,336 Income taxes payable 150 ​ 165 Other noncurrent liabilities 4,197 ​ 1,709 Total liabilities 25,298 ​ 26,612 ​ ​ ​ ​ ​ ​ Shareholders’ equity: ​ ​ ​ Common stock, $ .01 par value per share; authorized, 20,000 shares; issued and outstanding 10,072 and 9,906 shares, respectively 101 ​ 99 Additional paid-in capital 25,676 ​ 24,744 Retained earnings 27,317 ​ 27,700 Accumulated other comprehensive loss ( 8,075 ) ​ ( 7,992 ) Total shareholders’ equity 45,019 ​ 44,551 Total liabilities and shareholders’ equity $ 70,317 ​ $ 71,163 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 3 Table of Contents CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six Months Ended ​ ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 11,113 ​ $ 8,552 ​ $ 17,814 ​ $ 19,567 ​ Services ​ 4,899 ​ 4,595 ​ 10,234 ​ 9,250 ​ Total sales ​ 16,012 ​ 13,147 ​ 28,048 ​ 28,817 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ 9,398 ​ 6,879 ​ 14,680 ​ 15,998 ​ Services ​ 2,142 ​ 2,061 ​ 4,161 ​ 4,048 ​ Total cost of sales ​ 11,540 ​ 8,940 ​ 18,841 ​ 20,046 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit ​ 4,472 ​ 4,207 ​ 9,207 ​ 8,771 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 818 ​ 763 ​ 1,676 ​ 1,549 ​ Selling, general and administrative ​ 4,505 ​ 4,438 ​ 8,494 ​ 8,570 ​ Total operating expenses ​ 5,323 ​ 5,201 ​ 10,170 ​ 10,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating loss ​ ( 851 ) ​ ( 994 ) ​ ( 963 ) ​ ( 1,348 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange gain (loss) ​ 70 ​ ( 132 ) ​ 63 ​ 163 ​ Interest expense ​ ( 167 ) ​ ( 77 ) ​ ( 295 ) ​ ( 154 ) ​ Interest income ​ 527 ​ 414 ​ 1,128 ​ 903 ​ Other income (expense), net ​ 117 ​ ( 2 ) ​ 134 ​ 2 ​ Total other income, net ​ 547 ​ 203 ​ 1,030 ​ 914 ​ (Loss) income before income taxes ​ ​ ( 304 ) ​ ( 791 ) ​ ​ 67 ​ ( 434 ) ​ Income tax benefit ​ ​ ( 568 ) ​ ( 683 ) ​ ​ ( 288 ) ​ ( 798 ) ​ Net income (loss) ​ $ 264 ​ $ ( 108 ) ​ $ 355 ​ $ 364 ​ Net income (loss) attributable to common shareholders ​ $ 255 ​ $ ( 108 ) ​ $ 339 ​ $ 341 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share - basic ​ $ 0.03 ​ $ ( 0.01 ) ​ $ 0.04 ​ $ 0.04 ​ Weighted average common shares outstanding - basic ​ 9,552 ​ 9,343 ​ 9,461 ​ 9,232 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share - diluted ​ $ 0.03 ​ $ ( 0.01 ) ​ $ 0.04 ​ $ 0.04 ​ Weighted average common shares outstanding - diluted ​ ​ 9,713 ​ ​ 9,343 ​ ​ 9,662 ​ ​ 9,614 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 4 Table of Contents CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six Months Ended ​ ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Net income (loss) ​ $ 264 $ ( 108 ) ​ $ 355 $ 364 ​ Other comprehensive (loss) income: ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation (loss) gain adjustments, net of tax effect ​ ( 87 ) ​ 238 ​ ( 83 ) ​ ( 258 ) ​ Other comprehensive (loss) income ​ ( 87 ) ​ 238 ​ ( 83 ) ​ ( 258 ) ​ Total comprehensive income ​ $ 177 $ 130 ​ $ 272 $ 106 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 5 Table of Contents CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the three months ended March 31, 2026 and 2025 (Amounts in thousands, except per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Three months ended March 31, 2026 ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ loss ​ ​ ​ Equity Balance as of December 31, 2025 9,905 ​ $ 99 ​ $ 25,207 ​ $ 27,492 ​ $ ( 7,988 ) ​ $ 44,810 Net income — ​ — ​ — ​ 264 ​ — ​ 264 Other comprehensive loss — ​ — ​ — ​ — ​ ( 87 ) ​ ( 87 ) Stock-based compensation — ​ — ​ 390 ​ — ​ — ​ 390 Restricted stock issuance 175 ​ 2 ​ — ​ — ​ — ​ 2 Issuance of shares under employee stock purchase plan 8 ​ — ​ 79 ​ — ​ — ​ 79 Repurchase of common stock ( 16 ) ​ — ​ — ​ ( 139 ) ​ — ​ ( 139 ) Cash dividends paid on common stock ($ 0.03 per share) — ​ — ​ — ​ ( 300 ) ​ — ​ ( 300 ) Balance as of March 31, 2026 10,072 ​ $ 101 ​ $ 25,676 ​ $ 27,317 ​ $ ( 8,075 ) ​ $ 45,019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Three months ended March 31, 2025 ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ loss ​ ​ ​ Equity Balance as of December 31, 2024 9,880 ​ $ 98 ​ $ 23,196 ​ $ 30,023 ​ $ ( 5,861 ) ​ $ 47,456 Net loss — ​ — ​ — ​ ( 108 ) ​ — ​ ( 108 ) Other comprehensive income — ​ — ​ — ​ — ​ 238 ​ 238 Stock-based compensation — ​ — ​ 448 ​ — ​ — ​ 448 Restricted stock issuance 1 ​ ​ — ​ — ​ — ​ — ​ — Issuance of shares under employee stock purchase plan ​ 6 ​ ​ — ​ ​ 99 ​ ​ — ​ ​ — ​ ​ 99 Repurchase of common stock ( 24 ) ​ ​ — ​ — ​ ( 384 ) ​ — ​ ( 384 ) Cash dividends paid on common stock ($ 0.03 per share) — ​ — ​ — ​ ( 296 ) ​ — ​ ( 296 ) Balance as of March 31, 2025 9,863 ​ $ 98 ​ $ 23,743 ​ $ 29,235 ​ $ ( 5,623 ) ​ $ 47,453 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 6 Table of Contents CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY For the six months ended March 31, 2026 and 2025 (Amounts in thousands, except per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Six months ended March 31, 2026: ​ ​ ​ Shares ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Earnings ​ ​ ​ loss ​ ​ ​ Equity Balance as of September 30, 2025 9,906 ​ $ 99 ​ $ 24,744 ​ $ 27,700 ​ $ ( 7,992 ) ​ $ 44,551 Net income — ​ — ​ — ​ 355 ​ — ​ 355 Other comprehensive loss — ​ ​ — ​ ​ — ​ ​ — ​ ( 83 ) ​ ( 83 ) Stock-based compensation — ​ ​ — ​ ​ 853 ​ ​ — ​ — ​ 853 Restricted stock cancellation ​ ( 1 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Restricted stock issuance 175 ​ ​ 2 ​ ​ — ​ ​ — ​ — ​ 2 Issuance of shares under employee stock purchase plan 8 ​ ​ — ​ ​ 79 ​ ​ — ​ — ​ 79 Repurchase of common stock ​ ( 16 ) ​ ​ — ​ ​ — ​ ​ ( 139 ) ​ ​ — ​ ​ ( 139 ) Cash dividends paid on common stock ($ 0.06 per share) — ​ ​ — ​ ​ — ​ ​ ( 599 ) ​ — ​ ( 599 ) Balance as of March 31, 2026 10,072 ​ $ 101 ​ $ 25,676 ​ $ 27,317 ​ $ ( 8,075 ) ​ $ 45,019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ other ​ Total ​ ​ ​ ​ ​ ​ ​ Paid-in ​ Retained ​ comprehensive ​ Shareholders’ Six months ended March 31, 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 income — ​ — ​ — ​ 364 ​ — ​ 364 Other comprehensive loss — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 258 ) ​ ( 258 ) Stock-based compensation — ​ ​ — ​ ​ 955 ​ ​ — ​ ​ — ​ 955 Restricted stock issuance 105 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ — Issuance of shares under employee stock purchase plan 6 ​ ​ — ​ ​ 99 ​ ​ — ​ ​ — ​ 99 Repurchase of common stock ​ ( 24 ) ​ ​ — ​ ​ — ​ ​ ( 384 ) ​ ​ — ​ ​ ( 384 ) Cash dividends paid on common stock ($ 0.06 per share) — ​ ​ — ​ ​ — ​ ​ ( 593 ) ​ ​ — ​ ( 593 ) Balance as of March 31, 2025 9,863 ​ $ 98 ​ $ 23,743 ​ $ 29,235 ​ $ ( 5,623 ) ​ $ 47,453 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 7 Table of Contents CSP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Operating activities ​ ​ ​ ​ Net income ​ $ 355 ​ $ 364 ​ ​ ​ ​ ​ ​ ​ Adjustments to reconcile net income to net cash (used in) provided by operating activities: ​ ​ ​ ​ Depreciation ​ 126 ​ 119 Amortization of intangibles ​ 4 ​ 3 Loss on disposal of fixed assets, net ​ ​ 1 ​ ​ 1 Foreign exchange gain ​ ( 63 ) ​ ( 163 ) Provision for credit losses - financing receivables ​ 60 ​ 52 Provision (benefit) for credit losses - accounts receivable ​ ​ 47 ​ ​ ( 16 ) Provision for obsolete inventory ​ — ​ 46 Amortization of lease right-of-use assets ​ ​ 207 ​ ​ 258 Stock-based compensation expense on restricted stock awards ​ 853 ​ 955 Deferred income taxes ​ 131 ​ ( 828 ) Increase in cash surrender value of life insurance ​ ( 89 ) ​ ( 54 ) ​ ​ ​ ​ ​ ​ ​ Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ( 1,606 ) ​ 866 Financing receivables ​ ​ ( 1,517 ) ​ ​ 863 Inventories ​ ( 104 ) ​ 137 Refundable income taxes ​ ( 308 ) ​ ( 468 ) Other assets ​ ​ ( 299 ) ​ ​ 1,182 Accounts payable and accrued expenses ​ ( 3,606 ) ​ 91 Operating lease liabilities ​ ​ ( 175 ) ​ ​ ( 257 ) Deferred revenue and contract liabilities ​ 274 ​ 297 Pension and retirement plans ​ 22 ​ ( 679 ) Income taxes payable ​ ( 210 ) ​ ( 226 ) Other noncurrent liabilities ​ 2,488 ​ 1,110 Net cash (used in) provided by operating activities ​ ( 3,409 ) ​ 3,653 ​ ​ ​ ​ ​ ​ ​ Investing activities ​ ​ ​ ​ Life insurance premiums paid ​ ( 54 ) ​ ( 54 ) Purchases of property, equipment and improvements ​ ( 119 ) ​ ( 54 ) Net cash used in investing activities ​ ( 173 ) ​ ( 108 ) ​ ​ ​ ​ ​ ​ ​ Financing activities ​ ​ ​ ​ Dividends paid ​ ( 599 ) ​ ( 593 ) Net repayment under line-of-credit agreement ​ ​ ( 36 ) ​ ​ ( 3,725 ) Repurchases of common stock ​ ​ ( 139 ) ​ ​ ( 384 ) Proceeds from issuance of shares under equity compensation plans ​ 79 ​ 99 Net cash used in financing activities ​ ( 695 ) ​ ( 4,603 ) Effects of exchange rate on cash, net ​ ( 40 ) ​ ( 32 ) Net decrease in Cash and cash equivalents ​ ( 4,317 ) ​ ( 1,090 ) Cash and cash equivalents beginning of period ​ ​ 27,418 ​ 30,585 Cash and cash equivalents end of period ​ $ 23,101 ​ $ 29,495 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ 8 Table of Contents ​ ​ ​ ​ ​ ​ ​ Supplementary cash flow information: ​ ​ ​ ​ Cash paid for income taxes ​ $ 254 ​ $ 724 Cash paid for interest ​ $ 68 ​ $ 36 ​ ​ ​ ​ ​ ​ ​ Supplementary non-cash financing activities: ​ ​ ​ ​ ​ ​ Obtaining a right-of-use asset in exchange for a lease liability ​ $ — ​ $ 247 Customer financing for inventory sold (see Note 5 Financing receivables, net for details) ​ $ 6,893 ​ $ 2,006 Vendor financing for inventory purchased (see Note 8 Accounts payable and accrued expenses, and Other noncurrent liabilities for details) ​ $ 5,820 ​ $ 1,833 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ 9 Table of Contents CSP INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ​ Organization and Business CSP Inc. ("CSPi" or "CSPI" or "the Company" or "we" or "our") was incorporated in 1968 and is based in Lowell, Massachusetts. 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 to meet the diverse requirements of its commercial and defense customers worldwide. The Company operates in two segments, its Technology Solutions (“TS”) segment and High Performance Products (“HPP”) segment. 1. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared by the Company and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited condensed consolidated financial statements should be read in conjunction with the notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. The significant accounting policies and estimates used in preparing these Condensed Consolidated Financial Statements were applied on a basis consistent with those reflected in the September 30, 2025 Consolidated Financial Statements. ​ Significant Accounting Policies There have been no significant changes to the Company's significant accounting policies described in PART II, Item 8, Note 1 Basis of Presentation and Summary of Significant Accounting Policies , of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025. Accounting Pronouncement Not Yet Adopted as of March 31, 2026 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. 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, 2024, with early adoption permitted. Entities should apply the amendments on a 10 Table of Contents prospective basis, but retrospective application is permitted. The Company plans to adopt this ASU on a prospective basis in the fourth quarter of fiscal year 2026. The Company is currently evaluating the impact this ASU will have on its disclosures. ​ 2. Revenue See details of timing of revenue recognition, whether CSPi acted as the principal or agent, and geography below. Geographic areas are based on where the products were shipped or services rendered. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Three months ended March 31, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 65 ​ $ 47 ​ $ 11,018 ​ $ 11,065 ​ $ 11,130 Transferred at a point in time where CSPi is agent ​ — ​ 30 ​ 1,780 ​ 1,810 ​ 1,810 Transferred over time where CSPi is principal ​ ​ 283 ​ ​ — ​ ​ 2,789 ​ ​ 2,789 ​ ​ 3,072 Total Revenue ​ $ 348 ​ $ 77 ​ $ 15,587 ​ $ 15,664 ​ $ 16,012 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 332 ​ $ 24 ​ $ 15,148 ​ $ 15,172 ​ $ 15,504 Americas (excluding United States) ​ ​ — ​ ​ — ​ ​ 432 ​ ​ 432 ​ ​ 432 Europe ​ ​ — ​ ​ 51 ​ ​ 7 ​ ​ 58 ​ ​ 58 APAC and Africa ​ ​ 16 ​ ​ 2 ​ ​ — ​ ​ 2 ​ ​ 18 Total Revenue ​ $ 348 ​ $ 77 ​ $ 15,587 ​ $ 15,664 ​ $ 16,012 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 276 ​ $ 417 ​ $ 7,845 ​ $ 8,262 ​ $ 8,538 Transferred at a point in time where CSPi is agent ​ — ​ 24 ​ 1,444 ​ 1,468 ​ 1,468 Transferred over time where CSPi is principal ​ ​ 371 ​ ​ 38 ​ ​ 2,732 ​ ​ 2,770 ​ ​ 3,141 Total Revenue ​ $ 647 ​ $ 479 ​ $ 12,021 ​ $ 12,500 ​ $ 13,147 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 497 ​ $ 21 ​ $ 11,452 ​ $ 11,473 ​ $ 11,970 Americas (excluding United States) ​ ​ 1 ​ ​ — ​ ​ 372 ​ ​ 372 ​ 373 Europe ​ ​ — ​ ​ 458 ​ ​ 197 ​ ​ 655 ​ ​ 655 APAC and Africa ​ ​ 149 ​ ​ — ​ ​ — ​ ​ — ​ ​ 149 Total Revenue ​ $ 647 ​ $ 479 ​ $ 12,021 ​ $ 12,500 ​ $ 13,147 ​ ​ ​ ​ ​ 11 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Six months ended March 31, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 610 ​ $ 70 ​ $ 17,473 ​ $ 17,543 ​ $ 18,153 Transferred at a point in time where CSPi is agent ​ — ​ 40 ​ 3,915 ​ 3,955 ​ 3,955 Transferred over time where CSPi is principal ​ ​ 591 ​ ​ — ​ ​ 5,349 ​ ​ 5,349 ​ ​ 5,940 Total Revenue ​ $ 1,201 ​ $ 110 ​ $ 26,737 ​ $ 26,847 ​ $ 28,048 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 745 ​ $ 34 ​ $ 25,751 ​ $ 25,785 ​ $ 26,530 Americas (excluding United States) ​ ​ — ​ ​ — ​ ​ 924 ​ ​ 924 ​ ​ 924 Europe ​ ​ — ​ ​ 69 ​ ​ 59 ​ ​ 128 ​ ​ 128 APAC and Africa ​ ​ 456 ​ ​ 7 ​ ​ 3 ​ ​ 10 ​ ​ 466 Total Revenue ​ $ 1,201 ​ $ 110 ​ $ 26,737 ​ $ 26,847 ​ $ 28,048 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Timing of Revenue Recognition ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transferred at a point in time where CSPi is principal ​ $ 358 ​ $ 550 ​ $ 18,760 ​ $ 19,310 ​ $ 19,668 Transferred at a point in time where CSPi is agent ​ — ​ 24 ​ 3,248 ​ 3,272 ​ 3,272 Transferred over time where CSPi is principal ​ ​ 719 ​ ​ 85 ​ ​ 5,073 ​ ​ 5,158 ​ ​ 5,877 Total Revenue ​ $ 1,077 ​ $ 659 ​ $ 27,081 ​ $ 27,740 ​ $ 28,817 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Geography ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States ​ $ 919 ​ $ 93 ​ $ 26,195 ​ $ 26,288 ​ $ 27,207 Americas (excluding United States) ​ ​ 4 ​ ​ — ​ ​ 616 ​ ​ 616 ​ 620 Europe ​ ​ — ​ ​ 566 ​ ​ 270 ​ ​ 836 ​ ​ 836 APAC and Africa ​ ​ 154 ​ ​ — ​ ​ — ​ ​ — ​ ​ 154 Total Revenue ​ $ 1,077 ​ $ 659 ​ $ 27,081 ​ $ 27,740 ​ $ 28,817 ​ 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 5 Financing Receivables, net for more details. Revenue from these agreements in the three months ended March 31, 2026 was $ 417 thousand in which the Company acted as the agent. Revenue from these agreements in the three months ended March 31, 2025 was $ 142 thousand in which the Company acted as the agent. Revenue from these agreements in the six months ended March 31, 2026 was $ 1,072 thousand in which the Company acted as the agent. Revenue from these agreements in the six months ended March 31, 2025 was $ 165 thousand in which the Company acted as the agent. 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 $ 0.7 million and $ 0.8 million as of March 31, 2026 and September 30, 2025, respectively. Current contract assets were $ 1.7 million as of September 30, 2024. The current portion is recorded in Other current assets on the condensed consolidated balance sheets. There were no noncurrent contract assets as of March 31, 2026 and September 30, 2025. There were no noncurrent contract assets as of September 30, 2024. The difference in the balances is due to regular timing differences between when work is performed and having an unconditional right to payment. 12 Table of Contents Contract liabilities arise when payment is received before we transfer a good or service to the customer. Current contract liabilities were $ 1.7 million and $ 1.5 million as of March 31, 2026 and September 30, 2025, respectively. Current contract liabilities were $ 2.2 million as of September 30, 2024. The current portion of contract liabilities is recorded in Deferred revenue and contract liabilities on the condensed consolidated balance sheets. There were $ 42 thousand and $ 37 thousand of long-term contract liabilities as of March 31, 2026 and September 30, 2025, respectively. There were no long-term contract liabilities as of September 30, 2024. Long-term contract liabilities are in Other noncurrent liabilities on the condensed consolidated balance sheets. Revenue recognized for the six months ended March 31, 2026 that was included in contract liabilities as of September 30, 2025 was $ 0.9 million. 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 . For a period greater than one year, incremental contract costs are capitalized if we expect to recover these costs. The costs are amortized over the contract term and expected renewal periods. The period of amortization is generally three years . Incremental costs are related to commissions in the TS portion of the business. In fiscal year 2026 the TS segment paid commissions on a monthly basis for contracts over one year. Current capitalized contract costs are within the Other current assets on the condensed consolidated balance sheets as of March 31, 2026 and September 30, 2025. The portion of current capitalized costs were $ 25 thousand and $ 33 thousand as of March 31, 2026 and September 30, 2025, respectively. There are no noncurrent capitalized costs on the condensed consolidated balance sheets. The amount of incremental costs amortized for the three months ended March 31, 2026 and 2025 were $ 14 thousand and $ 50 thousand, respectively. The amount of incremental costs amortized for the six months ended March 31, 2026 and 2025 were $ 24 thousand and $ 154 thousand, respectively and is recorded in selling, general, and administrative expenses. There was no impairment related to incremental costs capitalized during the six months ended March 31, 2026 and 2025. 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 days to pay in full except in Europe where it could be up to 90 days . Most of our contracts are less than one year. There are certain contracts that contain a financing component. See Note 5 Financing receivables, net to the condensed consolidated financial statements for additional information. 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 number 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 and revenue is recognized ratably over the contract term. For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2026 is set forth in the table below: ​ ​ ​ ​ ​ Fiscal Year ​ ​ ​ (Amounts in thousands) 2026 (remaining 6 months) ​ $ 560 2027 ​ ​ 982 2028 ​ ​ 899 2029 ​ ​ 222 ​ ​ $ 2,663 ​ ​ ​ 13 Table of Contents 3 . Earnings Per Share of Common Stock 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 income (loss) per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per share includes the dilutive effect of restricted stock awards (RSA’s), if any, calculated using the treasury stock method. Using the treasury stock method, the effect of dilutive securities includes the additional shares of common stock that would have been outstanding based on the assumption that these potentially dilutive securities had been issued. The treasury stock method assumes proceeds from the unamortized compensation expense of restricted stock awards are used to repurchase common shares at the average market price during the period, thus reducing the dilutive effect. RSA’s with assumed proceeds per unit above the Company’s average share price for the periods presented are excluded from the diluted EPS calculation because the effect is anti-dilutive. Basic and diluted EPS computations for the Company’s reported net income attributable to common stockholders are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six Months Ended ​ ​ March 31, ​ March 31, ​ March 31, ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (Amounts in thousands except per share data) Net income (loss) $ 264 ​ $ ( 108 ) $ 355 ​ $ 364 Less: net income attributable to nonvested common stock ​ ( 9 ) ​ ​ — ​ ( 16 ) ​ ​ ( 23 ) Net income (loss) attributable to common shareholders ​ $ 255 ​ $ ( 108 ) ​ $ 339 ​ $ 341 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average total shares outstanding - basic ​ 9,913 ​ 9,343 ​ ​ 9,909 ​ ​ 9,851 Less: weighted average non–vested shares outstanding ​ ( 361 ) ​ — ​ ​ ( 448 ) ​ ​ ( 619 ) Weighted average number of common shares outstanding - basic ​ 9,552 ​ 9,343 ​ ​ 9,461 ​ ​ 9,232 Add: potential common shares from non-vested restricted stock awards ​ 161 ​ — ​ ​ 201 ​ ​ 382 Weighted average common shares outstanding - diluted ​ 9,713 ​ 9,343 ​ ​ 9,662 ​ ​ 9,614 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) per common share - basic ​ $ 0.03 ​ $ ( 0.01 ) ​ $ 0.04 ​ $ 0.04 Net income (loss) per common share - diluted ​ $ 0.03 ​ $ ( 0.01 ) ​ $ 0.04 ​ $ 0.04 ​ Anti-dilutive securities include restricted stock awards, which are excluded from the diluted income per share computation. Non-vested restricted stock awards of 141 thousand shares and 269 thousand shares were excluded from net income (loss) per common share - diluted for the three months ended March 31, 2026 and 2025 because their inclusion would have been anti-dilutive. Non-vested restricted stock awards of 114 thousand shares were excluded from net income per share - diluted for the six months ended March 31, 2026 because their inclusion would have been anti-dilutive. ​ ​ 4 . Accounts receivable, net The Company recognizes an allowance for 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 14 Table of Contents 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 tables present the changes in the allowance for accounts receivable for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, 2026 ​ March 31, 2025 ​ ​ (Amounts in thousands) Allowance for credit losses for accounts receivable: ​ ​ ​ ​ ​ ​ Balances at beginning of the period ​ $ 95 ​ $ 153 Charge-offs ​ ​ ( 4 ) ​ ​ - Provision (benefit) for credit losses ​ ​ 74 ​ ​ ( 22 ) Balances at end of the period ​ $ 165 ​ $ 131 ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ ​ March 31, 2026 ​ March 31, 2025 ​ ​ (Amounts in thousands) Allowance for credit losses for accounts receivable: ​ ​ ​ ​ ​ ​ Balances at beginning of the period ​ $ 122 ​ $ 147 Charge-offs ​ ​ ( 4 ) ​ ​ - Provision (benefit) for credit losses ​ ​ 47 ​ ​ ( 16 ) Balances at end of the period ​ $ 165 ​ $ 131 ​ ​ ​ 5 . Financing receivables, net In the TS U.S. division, financing of goods and services is offered to certain customers. This involves amounts due reflecting sales whose payment terms exceed one year. This financing is separate from agreements with a leasing component, see Note 7 Leases for financing through leases. Determining whether to offer financing involves looking at the customer’s payment history, economic conditions, and capacity to pay. The Company assigns an internal risk rating to each customer at inception, which groups customers into a portfolio based off 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, moderate risk accounts have the equivalent of BB, and high risk accounts have the equivalent of B. The risk characteristics of each customer are consistent with the Fitch rating or equivalent, which are defined by Fitch as the following: 'BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. ’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. 15 Table of Contents Financing receivables, net, carry an average weighted interest rate of 8.6 %, which reflects the approximate interest rate consistent with a separate financing transaction with the customer at the inception of the agreement. The amount of interest income earned from sales whose payment terms exceed one year for the three months ended March 31, 2026 and 2025 was $ 320 thousand and $ 113 thousand, respectively. The amount of interest income earned from sales whose payment terms exceed one year for the six months ended March 31, 2026 and 2025 was $ 662 thousand and $ 254 thousand, respectively. Interest income from these agreements is recorded in Other (expense) income, net on the Condensed 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 March 31, 2026 ​ As of September 30, 2025 ​ ​ Risk Rating ​ ​ ​ ​ Risk Rating ​ ​ ​ ​ ​ ​ Low ​ ​ Moderate ​ ​ High ​ ​ Total ​ ​ Low ​ ​ Moderate ​ ​ High ​ ​ Total ​ ​ (Amounts in thousands) Financing receivables, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financing receivables, gross ​ $ 13,608 ​ $ 3,135 ​ $ 1,259 ​ $ 18,002 ​ $ 13,651 ​ $ 1,751 ​ $ 891 ​ $ 16,293 Unearned interest income ​ ​ ( 1,053 ) ​ ​ ( 333 ) ​ ​ ( 95 ) ​ ​ ( 1,481 ) ​ ​ ( 1,038 ) ​ ​ ( 156 ) ​ ​ ( 95 ) ​ ​ ( 1,289 ) Allowance for credit losses ​ ​ ( 47 ) ​ ​ ( 64 ) ​ ​ ( 49 ) ​ ​ ( 160 ) ​ ​ ( 50 ) ​ ​ ( 18 ) ​ ​ ( 32 ) ​ ​ ( 100 ) Financing receivables, net ​ $ 12,508 ​ $ 2,738 ​ $ 1,115 ​ $ 16,361 ​ $ 12,563 ​ $ 1,577 ​ $ 764 ​ $ 14,904 Short-term ​ $ 6,065 ​ $ 1,168 ​ $ 497 ​ $ 7,730 ​ $ 7,778 ​ $ 791 ​ $ 370 ​ $ 8,939 Long-term ​ $ 6,443 ​ $ 1,570 ​ $ 618 ​ $ 8,631 ​ $ 4,785 ​ $ 786 ​ $ 394 ​ $ 5,965 ​ The following table presents the changes in Allowance for credit losses for Financing receivables, net for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ ​ March 31, 2026 ​ March 31, 2025 ​ ​ Risk Rating ​ ​ ​ ​ Risk Rating ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Low ​ ​ ​ Moderate ​ ​ ​ High ​ Total ​ ​ ​ Low ​ ​ ​ Moderate ​ High ​ ​ ​ Total ​ ​ (Amounts in thousands) ​ (Amounts in thousands) Allowance for credit losses for financing receivables: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balances at beginning of the period ​ $ 47 ​ $ 42 ​ $ 32 ​ $ 121 ​ $ 21 ​ $ 8 ​ $ 6 ​ $ 35 (Benefit) provision charged to Consolidated Statements of Operations ​ ​ - ​ ​ 22 ​ ​ 17 ​ ​ 39 ​ ​ 3 ​ ​ ( 2 ) ​ ​ 53 ​ ​ 54 Balances at end of the period ​ $ 47 ​ $ 64 ​ $ 49 ​ $ 160 ​ $ 24 ​ $ 6 ​ $ 59 ​ $ 89 ​ ​ ​ ​ ​ ​ 16 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ ​ March 31, 2026 ​ March 31, 2025 ​ ​ 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 ​ $ 50 ​ $ 18 ​ $ 32 ​ $ 100 ​ $ 27 ​ $ 10 ​ $ - ​ $ 37 Provision (benefit) charged to Consolidated Statements of Operations ​ ​ ( 3 ) ​ ​ 46 ​ ​ 17 ​ ​ 60 ​ ​ ( 3 ) ​ ​ ( 4 ) ​ ​ 59 ​ ​ 52 Balances at end of the period ​ $ 47 ​ $ 64 ​ $ 49 ​ $ 160 ​ $ 24 ​ $ 6 ​ $ 59 ​ $ 89 ​ 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 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 March 31, 2026 or September 30, 2025. The following table presents Financing receivables, gross, including accrued interest and excluding any allowance, by credit quality indicator segregated by risk rating and year of origination as of March 31, 2026: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ Fiscal year of origination Risk Rating 2026 ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ High $ 415 ​ $ 844 ​ $ — ​ $ — ​ $ 1,259 Moderate ​ 1,636 ​ ​ 1,268 ​ ​ 231 ​ — ​ ​ 3,135 Low 4,516 ​ 6,625 ​ ​ 1,211 ​ ​ 1,256 ​ ​ 13,608 Total $ 6,567 ​ $ 8,737 ​ $ 1,442 ​ $ 1,256 ​ $ 18,002 ​ ​ ​ ​ ​ ​ ​ ​ 17 Table of Contents ​ ​ Contractual maturities of outstanding financing receivables are as follows: ​ ​ ​ ​ ​ Fiscal year ending September 30: ​ ​ ​ (Amounts in thousands) 2026 (remaining 6 months) ​ $ 5,790 2027 ​ ​ 7,130 2028 ​ ​ 3,706 2029 ​ ​ 1,063 2030 ​ ​ 313 Total payments ​ $ 18,002 Less: unearned interest income ​ ​ ( 1,481 ) Less: allowance for credit losses ​ ​ ( 160 ) Total, net of unearned interest income and allowance for credit losses ​ $ 16,361 ​ ​ ​ 6 . Inventories Inventories consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (Amounts in thousands) Work-in-process ​ $ — ​ $ 94 Finished goods ​ 1,546 ​ ​ 1,348 Total ​ $ 1,546 ​ $ 1,442 ​ ​ ​ 7 . Leases Information related to both lessee and lessor The components of lease costs for the three months ended March 31, 2026 and 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Consolidated Statements of Operations Location ​ March 31, 2026 March 31, 2025 ​ ​ ​ (Amounts in thousands) Operating Lease: ​ ​ ​ ​ ​ Operating lease cost Selling, general, and administrative ​ $ 129 ​ $ 127 Short-term lease cost Selling, general, and administrative ​ ​ 8 ​ ​ 7 Total lease costs ​ ​ $ 137 ​ $ 134 Less lessor interest income Revenue ​ ​ ( 1 ) ​ ​ ( 3 ) Total lease costs, net of lessor interest income ​ ​ $ 136 ​ $ 131 ​ ​ ​ ​ ​ ​ ​ ​ ​ 18 Table of Contents ​ The components of lease costs for the six months ended March 31, 2026 and 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended ​ Consolidated Statements of Operations Location ​ March 31, 2026 ​ March 31, 2025 ​ ​ ​ (Amounts in thousands) Operating Lease: ​ ​ ​ ​ ​ Operating lease cost Selling, general, and administrative ​ $ 259 ​ $ 266 Short-term lease cost Selling, general, and administrative ​ ​ 16 ​ ​ 16 Total lease costs ​ ​ $ 275 ​ $ 282 Less lessor interest income Revenue ​ ​ ( 3 ) ​ ​ ( 4 ) Total lease costs, net of lessor interest income ​ ​ $ 272 ​ $ 278 ​ Supplemental cash flow information related to leases for the six months ended March 31, 2026 and 2025 is below: ​ ​ ​ ​ ​ ​ ​ Six months ended ​ March 31, 2026 March 31, 2025 ​ (Amounts in thousands) Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ Operating cash flows paid for operating leases $ 228 $ 281 Operating cash flows paid for short-term leases ​ 16 ​ 16 Cash received from lessor agreements ​ ( 23 ) ​ ( 21 ) Lease assets obtained in exchange for new lease liabilities ​ ​ ​ ​ Operating leases ​ — ​ 247 ​ ​ ​ 8 . Accounts payable and accrued expenses, and Other noncurrent liabilities The TS US division enters into certain multi-year agreements with vendors when also entering into some of the multi-year financing contracts the Company enters into with customers. See Note 5 Financing receivables, net for further information related to the multi-year agreements with customers. There was no interest rate stated 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 imputed interest rate for the agreements was determined to be 8.6 % as of March 31, 2026. 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 for the three months ended March 31, 2026 and 2025 was $ 164 thousand and $ 75 thousand, respectively. Interest expense related to these agreements for the six months ended March 31, 2026 and 2025 was $ 289 thousand and $ 150 thousand, respectively. These amounts are within “Interest expense” within the Condensed Consolidated Statements of Operations. The amounts owed for these agreements are in Accounts payable and accrued expenses and Other noncurrent liabilities because they are owed to vendors rather than banks or financial institutions for borrowings. See Note 9 Line of Credit for amounts due to financial institutions for borrowings. ​ ​ ​ 19 Table of Contents Below are details of the agreements with the vendors that contain imputed interest: ​ ​ ​ ​ ​ ​ ​ ​ March 31, 2026 ​ September 30, 2025 ​ (Amounts in thousands) Current $ 5,126 ​ $ 3,475 Less: discount ​ ( 512 ) ​ ​ ( 315 ) Total within Accounts payable and accrued expenses $ 4,614 ​ $ 3,160 ​ ​ ​ ​ ​ ​ Noncurrent $ 4,391 ​ $ 1,786 Less: discount ​ ( 236 ) ​ ​ ( 114 ) Total within Other noncurrent liabilities $ 4,155 ​ $ 1,672 ​ ​ The TS segment has many vendors it transacts with and does not have any specific agreement with these vendors that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms. 9. Line of Credit As of March 31, 2026 and September 30, 2025, the Company maintained an inventory line of credit with a borrowing capacity of $ 15.0 million. It may be used by the TS and HPP segments 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 %, which was 7.75 % as of March 31, 2026. 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., a wholly-owned subsidiary, 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 :1. As of March 31, 2026 and September 30, 2025, Company borrowings, all from the TS segment, under the inventory line of credit were $ 0.9 million and $ 0.9 million, respectively, and the Company was in compliance with all financial covenants. As of March 31, 2026 and September 30, 2025, this line of credit also included availability of a limited cash withdrawal of up to $ 1.0 million. As of March 31, 2026 and September 30, 2025 there were no cash withdrawals outstanding. ​ 10. Pension and Retirement Plans The Company’s operations 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 and defined contribution plans for some of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain former employees. The U.S. supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. The Company also provides for officer death benefits through post-retirement plans to certain current officers of the Company in the U.S. All the Company’s defined benefit plans are closed to newly hired employees and have been since September 2009. 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 condensed consolidated balance sheets. The Company’s pension plan in the U.K. is the only pension plan with plan assets. In fiscal year 2025 the Company 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 20 Table of Contents of the plan, but the Company still retains full legal responsibility to pay the benefits to members using the insurance payments. The buy-in contract is treated as a plan asset. When the buy-in contract transitions to a buy-out contract the Company will be relieved of primary responsibility for the pension benefit obligation and settlement will be recognized. The components of net periodic benefit costs related to the US and UK plans are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ (Amounts in thousands) Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 114 ​ $ 2 ​ $ 116 ​ $ 104 ​ $ 2 ​ $ 106 Expected return on plan assets ​ ( 114 ) ​ — ​ ( 114 ) ​ ( 122 ) ​ — ​ ( 122 ) Amortization of past service costs ​ ​ 2 ​ ​ — ​ ​ 2 ​ ​ 2 ​ ​ — ​ ​ 2 Amortization of net gain ​ — ​ ( 1 ) ​ ( 1 ) ​ — ​ ( 1 ) ​ ( 1 ) Net periodic (benefit) cost ​ $ 2 ​ $ 1 ​ $ 3 ​ $ ( 16 ) ​ $ 1 ​ $ ( 15 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ — ​ $ 6 ​ $ 6 ​ $ — ​ $ 6 ​ $ 6 Interest cost ​ — ​ 15 ​ 15 ​ — ​ 15 ​ 15 Amortization of net gain ​ — ​ ( 32 ) ​ ( 32 ) ​ — ​ ( 30 ) ​ ( 30 ) Net periodic benefit ​ $ — ​ $ ( 11 ) ​ $ ( 11 ) ​ $ — ​ $ ( 9 ) ​ $ ( 9 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended March 31, ​ ​ 2026 ​ 2025 ​ ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ U.K. ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ (Amounts in thousands) Pension: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest cost ​ $ 227 ​ $ 4 ​ $ 231 ​ $ 209 ​ $ 4 ​ $ 213 Expected return on plan assets ​ ( 227 ) ​ — ​ ( 227 ) ​ ( 244 ) ​ — ​ ( 244 ) Amortization of past service costs ​ ​ 4 ​ ​ — ​ ​ 4 ​ ​ 4 ​ ​ — ​ ​ 4 Amortization of net gain ​ — ​ ( 2 ) ​ ( 2 ) ​ — ​ ( 3 ) ​ ( 3 ) Net periodic cost (benefit) ​ $ 4 ​ $ 2 ​ $ 6 ​ $ ( 31 ) ​ $ 1 ​ $ ( 30 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Post Retirement: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ — ​ $ 12 ​ $ 12 ​ $ — ​ $ 13 ​ $ 13 Interest cost ​ — ​ 31 ​ 31 ​ — ​ 30 ​ 30 Amortization of net gain ​ — ​ ( 64 ) ​ ( 64 ) ​ — ​ ( 60 ) ​ ( 60 ) Net periodic benefit ​ $ — ​ $ ( 21 ) ​ $ ( 21 ) ​ $ — ​ $ ( 17 ) ​ $ ( 17 ) ​ The fair value of the assets held by the UK pension plan by asset category are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Values as of ​ ​ March 31, 2026 ​ September 30, 2025 ​ ​ 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 ​ $ 66 ​ $ 66 ​ $ — ​ $ — ​ $ 42 ​ $ 42 ​ $ — ​ $ — Buy-in contract* ​ ​ 8,281 ​ ​ — ​ ​ — ​ ​ 8,281 ​ ​ 8,428 ​ ​ — ​ ​ — ​ ​ 8,428 Total plan assets ​ $ 8,347 ​ $ 66 ​ $ — ​ $ 8,281 ​ $ 8,470 ​ $ 42 ​ $ — ​ $ 8,428 ​ *This fair value is based on the latest information available, which is as of September 30, 2025 not March 31, 2026 as the table is labeled. The difference from September 30, 2025 is due to the Great British Pounds being converted into U.S. dollars at a different exchange rate. 21 Table of Contents 11. Income Taxes ​ The Company recorded an income tax benefit of $ 568 thousand and $ 683 thousand for the three months ended March 31, 2026 and 2025, respectively. An income tax benefit of $ 288 thousand and $ 798 thousand was recorded for the six months ended March 31, 2026 and 2025, respectively. For all of these periods, the difference between our effective income tax rate and the U.S. federal statutory rate was the impact of tax credits that we expect to be able to utilize against federal and state taxes, the change in valuation allowance maintained against certain state tax credits, and the excess tax benefits on restricted stock awards that vested during the period. ​ ​ 12. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ September 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ (Amounts in thousands) Cumulative effect of foreign currency translation, net ​ $ ( 4,093 ) ​ $ ( 4,010 ) Cumulative unrealized loss on pension liability ​ ( 3,982 ) ​ ( 3,982 ) Accumulated other comprehensive loss, net ​ $ ( 8,075 ) ​ $ ( 7,992 ) ​ ​ ​ 13. Fair Value of Financial Assets and Liabilities 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 basis (except our pension plan assets and whole life insurance policies, see Note 10 Pension and Retirement Plans for pension plan assets) or non-recurring basis as of March 31, 2026 or September 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 22 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 March 31, 2026 ​ ​ As of September 30, 2025 ​ ​ ​ ​ ​ ​ Carrying Amount ​ ​ Fair Value ​ ​ Carrying Amount ​ ​ Fair Value ​ Fair Value Level ​ Reference ​ ​ (Amounts in thousands) ​ ​ ​ ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 23,101 ​ $ 23,101 ​ $ 27,418 ​ $ 27,418 ​ 1 ​ Condensed Consolidated Balance Sheets Accounts receivable, net ​ 13,550 ​ ​ 13,550 ​ ​ 12,000 ​ ​ 12,000 ​ 1 ​ Condensed Consolidated Balance Sheets and Note 4 Financing receivables, net* ​ 16,361 ​ ​ 16,361 ​ ​ 14,904 ​ ​ 14,904 ​ 3 ​ Condensed Consolidated Balance Sheets and Note 5 Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued expenses and other noncurrent liabilities** ​ 8,769 ​ ​ 8,769 ​ ​ 4,832 ​ ​ 4,832 ​ 3 ​ Note 8 Line of Credit ​ 867 ​ ​ 867 ​ ​ 903 ​ ​ 903 ​ 2 ​ Condensed Consolidated Balance Sheets and Note 9 *Original maturity over one year ** Vendor financing agreements with original maturity over one year included within Accounts payable and accrued expenses and Other noncurrent liabilities ​ Cash and cash equivalents Carrying amount approximated fair value. ​ Accounts receivable and Accounts payable and accrued expenses with original maturity of less than one year Fair value was not materially different from their carrying values as of March 31, 2026, and September 30, 2025 ​ Financing receivables, net Fair value was estimated by discounting future cash flows based on the current rate with similar terms. ​ Vendor financing agreements within Accounts payable and accrued expenses and other noncurrent liabilities with original maturity over one year 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. 23 Table of Contents 14. 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 of the company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025. 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. The following tables presents certain operating segment information. ​ 24 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Three months ended March 31, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 66 ​ $ 47 ​ $ 11,000 ​ $ 11,047 ​ $ 11,113 Service ​ 282 ​ 30 ​ 4,587 ​ 4,617 ​ 4,899 Total sales ​ ​ 348 ​ ​ 77 ​ ​ 15,587 ​ ​ 15,664 ​ ​ 16,012 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 7 ​ ​ 35 ​ ​ 9,356 ​ ​ 9,391 ​ ​ 9,398 Services ​ 168 ​ — ​ 1,974 ​ 1,974 ​ 2,142 Total cost of sales ​ ​ 175 ​ ​ 35 ​ ​ 11,330 ​ ​ 11,365 ​ ​ 11,540 Gross profit ​ ​ 173 ​ ​ 42 ​ ​ 4,257 ​ ​ 4,299 ​ ​ 4,472 Research and development ​ ​ 818 ​ ​ — ​ ​ — ​ ​ — ​ ​ 818 Selling, general and administrative ​ ​ 1,043 ​ ​ 112 ​ ​ 3,350 ​ ​ 3,462 ​ ​ 4,505 Total operating expenses ​ ​ 1,861 ​ ​ 112 ​ ​ 3,350 ​ ​ 3,462 ​ ​ 5,323 Operating (loss) income ​ $ ( 1,688 ) ​ $ ( 70 ) ​ $ 907 ​ $ 837 ​ $ ( 851 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 4 ) ​ $ — ​ $ ( 163 ) ​ $ ( 163 ) ​ $ ( 167 ) Interest income ​ $ — ​ $ 32 ​ $ 495 ​ $ 527 ​ $ 527 Depreciation and amortization ​ $ ( 17 ) ​ $ — ​ $ ( 51 ) ​ $ ( 51 ) ​ $ ( 68 ) Cash and cash equivalents ​ $ 60 ​ $ 5,012 ​ $ 18,029 ​ $ 23,041 ​ $ 23,101 Accounts receivable, net of allowance ​ $ 513 ​ $ 566 ​ $ 12,471 ​ $ 13,037 ​ $ 13,550 Financing receivables, net of allowance ​ $ — ​ $ — ​ $ 16,361 ​ $ 16,361 ​ $ 16,361 Total assets ​ $ 12,017 ​ $ 5,674 ​ $ 52,626 ​ $ 58,300 ​ $ 70,317 Capital expenditures ​ $ ( 2 ) ​ $ — ​ $ ( 12 ) ​ $ ( 12 ) ​ $ ( 14 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 273 ​ $ 417 ​ $ 7,862 ​ $ 8,279 ​ $ 8,552 Service ​ 374 ​ 62 ​ 4,159 ​ 4,221 ​ 4,595 Total sales ​ ​ 647 ​ ​ 479 ​ ​ 12,021 ​ ​ 12,500 ​ ​ 13,147 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 101 ​ ​ 385 ​ ​ 6,393 ​ ​ 6,778 ​ ​ 6,879 Services ​ 175 ​ 23 ​ 1,863 ​ 1,886 ​ 2,061 Total cost of sales ​ ​ 276 ​ ​ 408 ​ ​ 8,256 ​ ​ 8,664 ​ ​ 8,940 Gross profit ​ ​ 371 ​ ​ 71 ​ ​ 3,765 ​ ​ 3,836 ​ ​ 4,207 Research and development ​ ​ 763 ​ ​ — ​ ​ — ​ ​ — ​ ​ 763 Selling, general and administrative ​ ​ 1,174 ​ ​ 91 ​ ​ 3,173 ​ ​ 3,264 ​ ​ 4,438 Total operating expenses ​ ​ 1,937 ​ ​ 91 ​ ​ 3,173 ​ ​ 3,264 ​ ​ 5,201 Operating (loss) income ​ $ ( 1,566 ) ​ $ ( 20 ) ​ $ 592 ​ $ 572 ​ $ ( 994 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 3 ) ​ $ — ​ $ ( 74 ) ​ $ ( 74 ) ​ $ ( 77 ) Interest income ​ $ 1 ​ $ 43 ​ $ 370 ​ $ 413 ​ $ 414 Depreciation and amortization ​ $ ( 18 ) ​ $ — ​ $ ( 41 ) ​ $ ( 41 ) ​ $ ( 59 ) Cash and cash equivalents ​ $ 74 ​ $ 4,571 ​ $ 24,850 ​ $ 29,421 ​ $ 29,495 Accounts receivable, net of allowance ​ $ 794 ​ $ 621 ​ $ 12,230 ​ $ 12,851 ​ $ 13,645 Financing receivables, net of allowance ​ $ — ​ $ — ​ $ 6,391 ​ $ 6,391 ​ $ 6,391 Total assets ​ $ 11,544 ​ $ 8,061 ​ $ 47,517 ​ $ 55,578 ​ $ 67,122 Capital expenditures ​ $ ( 2 ) ​ $ — ​ $ ( 5 ) ​ $ ( 5 ) ​ $ ( 7 ) ​ 25 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Technology Solutions Segment ​ ​ ​ ​ ​ High ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Products ​ United ​ ​ ​ ​ ​ ​ ​ Consolidated Six months ended March 31, ​ ​ ​ Segment ​ ​ ​ Kingdom ​ ​ ​ U.S. ​ ​ ​ Total ​ ​ ​ Total ​ ​ (Amounts in thousands) 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 273 ​ $ 69 ​ $ 17,472 ​ $ 17,541 ​ $ 17,814 Service ​ 928 ​ 41 ​ 9,265 ​ 9,306 ​ 10,234 Total sales ​ ​ 1,201 ​ ​ 110 ​ ​ 26,737 ​ ​ 26,847 ​ ​ 28,048 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 16 ​ ​ 51 ​ ​ 14,613 ​ ​ 14,664 ​ ​ 14,680 Services ​ 393 ​ — ​ 3,768 ​ 3,768 ​ 4,161 Total cost of sales ​ ​ 409 ​ ​ 51 ​ ​ 18,381 ​ ​ 18,432 ​ ​ 18,841 Gross profit ​ ​ 792 ​ ​ 59 ​ ​ 8,356 ​ ​ 8,415 ​ ​ 9,207 Research and development ​ ​ 1,676 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,676 Selling, general and administrative ​ ​ 2,077 ​ ​ 200 ​ ​ 6,217 ​ ​ 6,417 ​ ​ 8,494 Total operating expenses ​ ​ 3,753 ​ ​ 200 ​ ​ 6,217 ​ ​ 6,417 ​ ​ 10,170 Operating (loss) income ​ $ ( 2,961 ) ​ $ ( 141 ) ​ $ 2,139 ​ $ 1,998 ​ $ ( 963 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 7 ) ​ $ — ​ $ ( 288 ) ​ $ ( 288 ) ​ $ ( 295 ) Interest income ​ $ 1 ​ $ 68 ​ $ 1,059 ​ $ 1,127 ​ $ 1,128 Depreciation and amortization ​ $ ( 36 ) ​ $ — ​ $ ( 94 ) ​ $ ( 94 ) ​ $ ( 130 ) Cash and cash equivalents ​ $ 60 ​ $ 5,012 ​ $ 18,029 ​ $ 23,041 ​ $ 23,101 Accounts receivable, net of allowance ​ $ 513 ​ $ 566 ​ $ 12,471 ​ $ 13,037 ​ $ 13,550 Financing receivables, net of allowance ​ $ — ​ $ — ​ $ 16,361 ​ $ 16,361 ​ $ 16,361 Total assets ​ $ 12,017 ​ $ 5,674 ​ $ 52,626 ​ $ 58,300 ​ $ 70,317 Capital expenditures ​ $ ( 3 ) ​ $ — ​ $ ( 116 ) ​ $ ( 116 ) ​ $ ( 119 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ $ 355 ​ $ 550 ​ $ 18,662 ​ $ 19,212 ​ $ 19,567 Service ​ 722 ​ 109 ​ 8,419 ​ 8,528 ​ 9,250 Total sales ​ ​ 1,077 ​ ​ 659 ​ ​ 27,081 ​ ​ 27,740 ​ ​ 28,817 Cost of sales: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Product ​ ​ 123 ​ ​ 504 ​ ​ 15,371 ​ ​ 15,875 ​ ​ 15,998 Services ​ 368 ​ ​ 49 ​ ​ 3,631 ​ 3,680 ​ 4,048 Total cost of sales ​ ​ 491 ​ ​ 553 ​ ​ 19,002 ​ ​ 19,555 ​ ​ 20,046 Gross profit ​ ​ 586 ​ ​ 106 ​ ​ 8,079 ​ ​ 8,185 ​ ​ 8,771 Research and development ​ ​ 1,549 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,549 Selling, general and administrative ​ ​ 2,276 ​ ​ 221 ​ ​ 6,073 ​ ​ 6,294 ​ ​ 8,570 Total operating expenses ​ ​ 3,825 ​ ​ 221 ​ ​ 6,073 ​ ​ 6,294 ​ ​ 10,119 Operating (loss) income ​ $ ( 3,239 ) ​ $ ( 115 ) ​ $ 2,006 ​ $ 1,891 ​ $ ( 1,348 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense ​ $ ( 5 ) ​ $ — ​ $ ( 149 ) ​ $ ( 149 ) ​ $ ( 154 ) Interest income ​ $ 2 ​ $ 92 ​ $ 809 ​ $ 901 ​ $ 903 Depreciation and amortization ​ $ ( 38 ) ​ $ — ​ $ ( 84 ) ​ $ ( 84 ) ​ $ ( 122 ) Cash and cash equivalents ​ $ 74 ​ ​ 4,571 ​ ​ 24,850 ​ $ 29,421 ​ $ 29,495 Accounts receivable, net of allowance ​ $ 794 ​ ​ 621 ​ ​ 12,230 ​ $ 12,851 ​ $ 13,645 Financing receivables, net of allowance ​ $ — ​ ​ — ​ ​ 6,391 ​ $ 6,391 ​ $ 6,391 Total assets ​ $ 11,544 ​ $ 8,061 ​ $ 47,517 ​ $ 55,578 ​ $ 67,122 Capital expenditures ​ $ ( 3 ) ​ $ — ​ $ ( 51 ) ​ $ ( 51 ) ​ $ ( 54 ) ​ 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. 26 Table of Contents Concentrations of Credit Risk All customers below are in the U.S. division of our TS segment. Each customer’s letter (e.g. “Customer A”) does not change meaning if Customer A is in multiple tables, it is the same customer. Below are customers with 10% or more of accounts receivable as of March 31, 2026 or September 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2026 ​ ​ As of September 30, 2025 ​ ​ ​ (Amounts in millions) ​ ​ ​ ​ ​ % of Total ​ ​ ​ ​ % of Total ​ ​ ​ Accounts receivable ​ ​ ​ Accounts receivable ​ Accounts receivable ​ ​ ​ Accounts receivable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer A ​ $ 1.6 ​ 12 % ​ $ 0.3 ​ 3 % ​ Below are customers with 10% or more of financing receivables as of March 31, 2026 or September 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2026 ​ ​ As of September 30, 2025 ​ ​ ​ (Amounts in millions) ​ ​ ​ ​ ​ % of Total ​ ​ ​ ​ % of Total ​ ​ ​ Financing Receivables ​ ​ ​ Financing Receivables ​ Financing Receivables ​ ​ ​ Financing Receivables ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Customer B ​ $ 2.6 ​ 16 % ​ $ 0.8 ​ 5 % Customer A ​ $ 2.8 ​ 17 % ​ $ 5.9 ​ 40 % Customer C ​ $ 2.1 ​ 13 % ​ $ 0.2 ​ 1 % Customer D ​ $ 2.0 ​ 12 % ​ $ 2.8 ​ 19 % Customer E ​ $ 1.5 ​ 9 % ​ $ 1.6 ​ 11 % ​ The following table lists customers from which the Company derived revenues of 10% or more of total revenues for the three and six months ended March 31, 2026 and 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ Six months ended March 31, ​ ​ ​ 2026 ​ ​ 2025 ​ ​ 2026 ​ ​ 2025 ​ ​ ​ (Amounts in millions) ​ ​ (Amounts in millions) ​ ​ ​ Customer ​ % of Total ​ ​ Customer ​ % of Total ​ ​ Customer ​ % of Total ​ ​ Customer ​ % of Total ​ ​ ​ ​ ​ Revenues ​ ​ ​ Revenues ​ ​ ​ ​ Revenues ​ ​ ​ Revenues ​ ​ ​ ​ Revenues ​ ​ ​ Revenues ​ ​ ​ ​ Revenues ​ ​ ​ Revenues ​ ​ ​ ​ ​ (Amounts in millions) ​ Customer F ​ $ 2.8 ​ 18 % ​ $ — ​ - % ​ $ 3.1 ​ 11 % ​ $ — ​ - % Customer G ​ $ 0.6 ​ 4 % ​ $ 1.5 ​ 11 % ​ $ 1.0 ​ 4 % ​ $ 2.6 ​ 9 % ​ ​ ​ 15. Dividend On December 16, 2025 , the Company’s board of directors declared a dividend of $ 0.03 per share payable January 15, 2026 , to shareholders of record on the close of business on December 26, 2025 . On February 12, 2026 , the Company’s board of directors declared a dividend of $ 0.03 per share payable March 12, 2026 , to shareholders of record on the close of business on February 26, 2026 . ​ ​ 27 Table of Contents