What changed in this filing

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Item 1. Financial Statements

2025-11-10 compared with 2025-08-12 · 229 added, 191 removed, 310 unchanged (58% of the section changed)

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thousands, except share amounts)

June 30, 2025

December 31, 2024

Current assets

Cash and cash equivalents

Accounts receivable, net of allowance for credit losses

Cash and cash

Accounts receivable, net

of allowance for credit losses

Contract assets

Other current assets

current assets

Total current assets

Property, plant and equipment, net

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES AND STOCKHOLDERS’

Current liabilities

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Accrued expenses

Current maturities of long-term debt

Contract liabilities

Total current liabilities

Long-term debt, net of current portion

Total liabilities

Current maturities of

long-term debt

current liabilities

Long-term debt, net of

current portion

Stockholders’ equity:

Common stock - $ 0.01 par value – authorized 20,000,000 shares;

issued and outstanding 6,881,838 at June 30, 2025 and December 31, 2024

Common stock - $ 0.01

par value – authorized

issued and outstanding 6,937,338

September 30, 2025 and 6,881,838 at December 31, 2024

Additional paid-in capital

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

Total stockholders’

Total liabilities and

stockholders’ equity

accompanying notes are an integral part of these condensed consolidated financial statements

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thousands, except per share and share amounts)

Three months ended

Six months ended

Cost of revenue

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General and administrative

on sale of equipment

Total operating expenses

Operating loss

Operating income (loss)

Other income (expense):

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Interest expense

Other income (expense)

Total other income, net

Loss before income tax

Income (loss) before income tax

Income tax expense

Loss per common share - basic

Loss per common share - diluted

Net income (loss)

Income (loss) per common

share-diluted

Weighted average common shares

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thousands, except share amounts)

months ended June 30, 2025 and 2024

Balance at April 1, 2025

ended September 30, 2025 and 2024

Balance at July 1, 2025

Stock-based compensation

Balance at June 30, 2025

Balance at April 1, 2024

Balance at September 30, 2025

Balance at July 1, 2024

Stock-based compensation

Balance at June 30, 2024

months ended June 30, 2025 and 2024

Balance at September 30, 2024

ended September 30, 2025 and 2024

Balance at January 1, 2025

Stock-based compensation

Balance at June 30, 2025

Balance at September 30, 2025

Balance at January 1, 2024

Stock-based compensation

Balance at June 30, 2024

Balance at September 30, 2024

accompanying notes are an integral part of these condensed consolidated financial statements.

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Consolidated Statements of Cash Flows

Six months ended

Cash flows from operating activities:

Adjustments to reconcile net loss to net cash used in operating activities:

Adjustments to reconcile

net loss to net cash used in operating activities:

Stock-based compensation

Depreciation and amortization

Provision for excess and

obsolete inventory

Gain on sales of equipment

Changes in assets and liabilities,

net of effects of sale of equipment:

Accounts receivable

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Contract liabilities

Net cash used in operating activities

Net cash used in operating

Cash flows from investing activities:

Purchases of property and equipment

Investment in captive insurance company

Net cash used in investing activities

Purchases of property and

Investment in captive insurance

Net cash used in investing

Cash flows from financing activities

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financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.

They do not include all of the information

They do not include all the information

and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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The operating results for the

three and six months ended June 30, 2025 are not necessarily indicative of the results that can be expected for the year ending December

three and nine months ended September 30, 2025 are not necessarily indicative of the results that can be expected for the year ending

December 31, 2025.

condensed consolidated balance sheet as of December 31, 2024 has been derived from the audited consolidated financial statements at such

date, as filed on Form 10-K with the SEC on March 19, 2025, but does not contain all of the information and footnotes required by accounting

date, as filed on Form 10-K with the SEC on March 19, 2025, but does not contain all the information and footnotes required by accounting

principles generally accepted in the United States of America for complete financial statements.

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material intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

reclassifications have been made to the prior period condensed consolidated financial statements to conform to the current period presentation.

These reclassifications had no effect on net loss.

June 30, 2025, the Company had $ 7.0 million in cash and cash equivalents.

Transformation

November 6, 2025, the Company’s Board of Directors approved a comprehensive strategy to transform the Company in response to the

continued fluctuations in order rates and the recent decline in the bookings of the CVD Equipment division.

As part of this strategy,

the Company intends to transition the operating model for our CVD Equipment business from vertically integrated fabrication to outsourced

fabrication of certain components.

These actions are expected to reduce the Company’s fixed operating costs.

initiatives of the plan include a reduction in the CVD Equipment division’s workforce, expected to reduce annual operating

costs by approximately $ 2.0 million;

outsourcing of the fabrication operations for certain components;

and implementation of a revised sales strategy utilizing distributors and outside sales

representatives to supplement internal sales efforts.

The SDC division will not be impacted by these actions.

transformation strategy also includes the exploration of strategic alternatives for businesses and product lines, including the potential

sale or divestiture of assets or business lines.

Company expects to complete the workforce reduction plan during the fourth quarter of 2025 and anticipates incurring approximately $ 0.1

million in severance and other charges.

In connection with the transformation plan, the Company

may incur non-cash impairment charges in future periods with respect to certain of its long-lived assets to the extent any such assets

are disposed of for amounts less than their book values.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

September 30, 2025, the Company had $ 8.4 million in cash and cash equivalents.

The Company believes that its existing cash and cash equivalents,

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condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reclassifications

reclassifications have been made to the prior period condensed consolidated financial statements to conform to the current period presentation.

These reclassifications had no effect on net income (loss).

accordance with FASB ASC 606 - Revenue from Contracts with Customers (“ASC 606”), the Company records revenue in an amount

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costs are included in incurred costs when the project materials have been purchased or moved to work in process, and installed, as required

by the project’s engineering design.

Cost based input methods of revenue recognition require the Company to make estimates of costs

to complete the projects.

In making such estimates, significant judgment is required to evaluate assumptions related to the costs to

complete the projects, including materials, labor and other system costs.

If the estimated total costs on any contract are greater than

the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably

There were no impairment losses recognized on contract assets during the three

and six months ended June 30, 2025 and 2024 .

by the project’s engineering

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Cost based input methods of revenue recognition require the Company to make estimates of costs to complete the projects.

making such estimates, significant judgment is required to evaluate assumptions related to the costs to complete the projects, including

materials, labor and other system costs.

If the estimated total costs on any contract are greater than the net contract revenues, the

Company recognizes the entire estimated loss in the period the loss becomes known and can be reasonably estimated.

were no impairment losses recognized on contract assets during the three and nine months ended September 30, 2025 and 2024 .

timing of revenue recognition, billings and collections results in accounts receivables, unbilled receivables or contract assets and

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are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ASC 606, payments received from customers in excess of revenue recognized to date results in a contract liability.

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product or service to a customer and is the unit of account under ASC 606, “Revenue from Contracts with Customers”.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

any system equipment sales where the equipment would have an alternative use or where the contract provisions of the contract preclude

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the customer.

For the three and six months ended June 30, 2025 and 2024, all system equipment sales were recorded over time by using

an input method except a) one contract that was recorded as revenue at the point in time the equipment was transferred to the customer

during the third quarter of fiscal year 2024 and b) one contract that was entered during 2024 and will be recognized as revenue after

June 30, 2025 upon transfer of the equipment to the customer.

For the three and nine months ended September 30, 2025 and 2024, all system equipment sales were recorded over time by

using an input method except a) one contract that was recorded as revenue at the point in time the equipment was transferred to the customer

during the third quarter of fiscal year 2024 and b) one contract that was entered during 2024 was not recognized using over time revenue

recognition until July 2025 when a contract modification was entered into with the customer to change certain contract provisions.

and gross profit recognized for this modified contract was $ 1.0 million and $ 0.6 million, respectively for the three and nine months

ended September 30, 2025.

(raw materials, work-in-process and finished goods) are valued at the lower of cost (determined on the first-in, first-out method) or

net realizable value.

Work-in-process and finished goods inventory reflect all accumulated production costs, which are comprised

of direct production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized.

costs relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred

and are not included in our cost of sales or work-in-process and finished goods inventory.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Work-in-process and finished goods inventory reflect all accumulated production costs, which are comprised of direct

production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized.

Indirect costs

relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred and are

not included in our cost of sales or work-in-process and finished goods inventory.

inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated net realizable value

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The Company updates its warranty estimates based on actual costs incurred.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Standards

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Improvement to Income Tax Disclosures.

The amendments

further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income

taxes paid by jurisdiction.

This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted,

and should be applied either prospectively or retrospectively.

The Company is currently evaluating the timing of adoption and impact

of this ASU on our consolidated financial statements.

The amendments further enhance

income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid

by jurisdiction.

This ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted, and should

be applied either prospectively or retrospectively.

The resulting new annual disclosures requirements will be reflected in the Company’s 2025 report on Form 10-K.

November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statements Expenses (Subtopic 220-40),” to improve

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each interim and annual income statement’s expense caption, as applicable.

This authoritative guidance can be applied prospectively

or retrospectively and will be effective for financial statements issued for annual periods beginning after December 15, 2026, and interim

reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently

in the process of evaluating the impact of adoption on its consolidated financial statements.

authoritative guidance can be applied prospectively or retrospectively and will be effective for financial statements issued for annual

periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15,

2027, with early adoption permitted.

The Company is currently in the process of evaluating the impact of adoption on its consolidated

financial statements.

Company believes there is no additional new accounting guidance adopted, but not yet effective, which is relevant to the readers of our

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and cash equivalents

Company had cash and cash equivalents of $ 7.0 million and $ 12.6 million at June 30, 2025 and December 31, 2024, respectively.

invests excess cash in U.S.

treasury securities, certificates of deposit or deposit accounts, all with maturities of less than three

Company had cash and cash equivalents of $ 8.4 million and $ 12.6 million at September 30, 2025 and December 31, 2024, respectively.

Company invests excess cash in U.S.

treasury securities, certificates of deposit or deposit accounts, all with maturities of less than

three months.

Cash equivalents consisting of U.S.

treasury securities were $ 5.9 million and $ 11.9 million at June 30, 2025 and December 31,

treasury securities were $ 7.6 million and $ 11.9 million at September 30, 2025 and December

31, 2024, respectively.

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Insurance Corporation limit.

The amount at risk at June 30, 2025 and December 31, 2024 was $ 0.7 million and $ 0.4 million, respectively.

The amount at risk at September 30, 2025 and December 31, 2024 was $ 0.7 million and $ 0.4 million, respectively.

CONCENTRATION OF CREDIT RISK (continued)

Company routinely assesses the financial strength of its customers .

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conditions and reasonable supportable forecasts .

The Company records an allowance for credit losses based upon a specific

review of all significant outstanding invoices.

For those invoices not specifically reviewed, provisions are provided based upon the

collection history, current economic trends and reasonable supportable forecasts.

receivable is presented net of an allowance for credit losses of $ 48,000

as of June 30, 2025 and December 31, 2024.

The allowance is based on prior experience and

management’s evaluation of future economic conditions.

Measurement of credit losses requires consideration of historical loss

experience, including the need to adjust for changing business conditions, and judgments about the probable effects of relevant

observable data, including present economic conditions such as delinquency rates and the financial health of specific customers.

Future changes to the estimated allowance for credit losses could be material to our results of operations and financial

June 30, 2025, the accounts receivable balance included amounts from one customer that represented 31.5 % of total accounts receivable.

The Company records an allowance for credit losses based upon a specific review

of all significant outstanding invoices.

For those invoices not specifically reviewed, provisions are provided based upon the collection

history, current economic trends and reasonable supportable forecasts.

receivable is presented net of an allowance for credit losses of $ 23,000 and $ 48,000 as of September 30, 2025 and December 31, 2024,

respectively.

The allowance is based on prior experience and management’s evaluation of future

economic conditions.

Measurement of credit losses requires consideration of historical loss experience, including the need to adjust

for changing business conditions, and judgments about the probable effects of relevant observable data, including present economic conditions

such as delinquency rates and the financial health of specific customers.

Future changes to the estimated allowance for credit losses

could be material to our results of operations and financial condition.

September 30, 2025, the accounts receivable balance included amounts from three customers that represented 47.4 %, 11.3 %, and 13.1 % of

total accounts receivable.

As of December 31, 2024, the accounts receivable balance includes amounts from three customers that represented

28.6 %, 14.0 % and 11.9 % of total accounts receivable.

CONCENTRATION OF CREDIT RISK (continued)

concentration

from a single customer in any one period can exceed 10 % of our total revenues.

During the three months ended June 30, 2025, two customers

exceeded 10 % of revenues, representing 23.4 % and 17.7 % of revenues, and during the six months ended June 30, 2025, two customers represented

34.3 % and 15.4 % of revenues.

the three months ended June 30, 2024, one customer represented 35.2 % of revenues, and during the six months ended June 30, 2024,

During the three months ended September 30, 2025, three

customers exceeded 10 % of revenues, representing 22.7 %, 19.1 %, and 13.6 % of revenues, and during the nine months ended September 30,

2025, two customers represented 30.2 % and 16.7 % of revenues.

the three months ended September 30, 2024, two customers represented 29.1 % and 11.2 % of revenues, and during the nine months ended September

30, 2024, one customer represented 31.2 % of revenues.

REVENUE RECOGNITION

following table represents a disaggregation of revenue for the three and six months ended June 30, 2025, and 2024 (in thousands):

following table represents a disaggregation of revenue for the three and nine months ended September 30, 2025, and 2024 (in thousands):

SCHEDULE OF DISAGGREGATION OF REVENUE

Point in time

Three months ended June 30, 2025

Point in time

months ended June 30, 2024

Point in time

REVENUE RECOGNITION (continued)

Point in time

Six months ended June 30, 2025

months ended September 30, 2025

Point in time

months ended September 30, 2024

Point in time

months ended June 30, 2024

months ended September 30, 2025

Point in time

months ended September 30, 2024

energy market includes customers involved in the manufacture of silicon carbide wafers and batteries.

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principally represents customers such as universities and other research institutions.

Company has unrecognized contract revenue of approximately $ 10.9 million at June 30, 2025, which it expects to substantially recognize

as revenue within the next twelve months based on over time revenue recognition.

REVENUE RECOGNITION (continued)

Company has unrecognized contract revenue of approximately $ 5.3 million at September 30, 2025 of contracts in progress that it expects

to substantially recognize as revenue within the next twelve months based on over time revenue recognition.

is required to evaluate assumptions including the amount of net contract revenues and the total estimated costs to determine our progress

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Changes in estimates may have a material effect on the Company’s condensed consolidated statements of operations.

REVENUE RECOGNITION (continued)

assets and liabilities

assets and contract liabilities on input method type contracts in progress are summarized as follows as of June 30, 2025 (in thousands):

assets and contract liabilities on input method type contracts in progress are summarized as follows as of September 30, 2025 (in thousands):

OF COST AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS

Costs incurred on contracts in progress

Costs incurred

on contracts in progress

Estimated earnings

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cost in excess of billings

Deferred revenue related to non-system contracts

revenue related to non-system contracts

liability in excess of contract assets

in accompanying condensed consolidated balance sheet as of June 30, 2025 under the following captions (in thousands):

Contract assets

Contract liabilities

the contract liability balances at December 31, 2024 and 2023, $ 2.1 million and $ 2.7 million was recognized as revenue during

the six months ended June 30, 2025 and 2024, respectively.

in accompanying condensed consolidated balance sheet as of September 30, 2025 under the following captions (in thousands):

the contract liability balances at December 31, 2024 and 2023, $ 2.4 million and $ 2.7 million was recognized as revenue during the nine

months ended September 30, 2025 and 2024, respectively.

Contract assets and contract liabilities at December 31, 2023 were $ 1.6 million

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SCHEDULE OF INVENTORIES

June 30, 2025

December 31, 2024

Raw materials

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anticipation of future orders.

INVENTORIES (continued)

of June 30, 2025, the net amount of PVT 150/200 systems inventory is approximately $ 0.4 million.

of September 30, 2025, the net amount of PVT 150/200 systems inventory is approximately $ 0.4 million.

If future PVT 150/200 orders do

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September 2022, the Company entered into a loan agreement to fund the acquisition of machinery.

The loan amount of $ 432,000 , is payable

in 60 equal monthly installments of $ 8,352 and secured by equipment.

The remaining loan balance of $ 203,000

is payable in equal monthly installments of $ 8,352 and secured by equipment.

The interest rate is 6 %.

EARNINGS PER SHARE

calculation of basic and diluted weighted average common shares outstanding for the three and six months ended June 30, 2025 and 2024

calculation of basic and diluted weighted average common shares outstanding for the three and nine months ended September 30, 2025 and

2024 is as follows:

SCHEDULE OF BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

months ended June 30,

Basic weighted average common shares outstanding

Dilutive effect of options and unvested restricted stock

months ended September

months ended September 30,

Basic weighted average common

shares outstanding

Dilutive effect of

unvested restricted stock

Diluted weighted average shares outstanding

the three and six months ended June 30, 2025 and 2024, all stock options were excluded in the computation of diluted earnings per share

because their effect was antidilutive.

the three and nine months ended September 30, 2025 and 2024, all stock options were excluded in the computation of diluted earnings per

share because their effect was antidilutive.

STOCK-BASED COMPENSATION EXPENSE

Company recorded stock-based compensation for the three and six months ended June 30, 2025 and 2024, respectively, that were included

Company recorded stock-based compensation for the three and nine months ended September 30, 2025 and 2024, respectively, that were included

in the following line items in our condensed consolidated statements of operations (in thousands):

SCHEDULE OF STOCK BASED COMPENSATION EXPENSE

months ended June 30,

Three months ended

September 30,

Nine months ended

September 30,

Cost of revenue

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General and administrative

compensation expense for three months ended June 30, 2025 and 2024 included $ 50,000 and $ 57,423 , respectively, and for the six month

periods June 30, 2025 and 2024 included $ 100,000 and $ 103,736 , respectively, related to restricted stock awards that directors are entitled

to receive pursuant to the Director Compensation Plan.

Under this plan each of the Company’s independent directors is entitled to an Annual Equity Retainer in the amount of $ 40,000 ,

to be granted on the date of the Company’s annual meeting of shareholders.

following table summarizes stock options awards through June 30, 2025:

compensation expense for three months ended September 30, 2025 and 2024 included $ 50,000 and $ 50,000 , respectively, and for the nine

month periods ended September 30, 2025 and 2024 included $ 150,000 and $ 153,736 , respectively, related to restricted stock awards that

directors are entitled to receive pursuant to the Director

Compensation Plan.

Under this plan each of the five Company’s independent directors is entitled to an Annual Equity Retainer in

the amount of $ 40,000 , to be granted on the date of the Company’s annual meeting of shareholders.

following table summarizes stock options activity through September 30, 2025:

SCHEDULE OF STOCK OPTIONS AWARDS

Outstanding at January 1, 2025

Outstanding at June 30, 2025

following table summarizes information about the outstanding and exercisable options at June 30, 2025 by ranges of exercise prices:

Outstanding at September

following table summarizes information about the outstanding and exercisable options at September 30, 2025 by ranges of exercise prices:

SCHEDULE OF OUTSTANDING AND EXERCISABLE OPTIONS RANGES OF EXERCISE PRICES

Options Outstanding

Options Exercisable

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STOCK-BASED COMPENSATION EXPENSE (continued)

of June 30, 2025, there was $ 1.1 million of unrecognized compensation costs related to stock options expected to be recognized over a

weighted average period of 1.6 years.

of June 30, 2025 and December 31, 2024, the Company has provided a full valuation allowance against its net deferred tax assets.

was based on management’s assessment, including the last four years of operating losses, that it is more likely than not that the

net deferred tax assets may not be realized in the future.

of September 30, 2025, there was $ 0.9 million of unrecognized compensation costs related to stock options expected to be recognized over

a weighted average period of 1.4 years.

of September 30, 2025 and December 31, 2024, the Company has provided a full valuation allowance against its net deferred tax assets.

This was based on management’s assessment, including the last four years of operating losses, that it is more likely than not that

the net deferred tax assets may not be realized in the future.

Management continues to evaluate for potential utilization of the Company’s

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– provided electronic printing services and products (heaters, antennas, and sensors).

The operations of MesoScribe were closed

down during 2024.

The operations of MesoScribe were ceased

CVD Equipment and SDC also sell spares and parts and provide services related to the equipment each segment sells.

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to the segments and to assess the performance for each segment.

results for the reportable segments and other business are prepared on a basis consistent with the internal disaggregation of financial

results for the reportable segments are prepared on a basis consistent with the internal disaggregation of financial

information to assist the CODM in making internal operating decisions.

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income and expenses are excluded from segment net income (loss) and included in the unallocated amounts in the reconciliation of reportable

segment net income (loss) to net loss.

These items are not used by the CODM in allocating resources or evaluating the results of the

segments and include the following:

segment net income (loss) to net income (loss).

These items are not used by the CODM in allocating resources or evaluating the results

of the segments and include the following:

corporate expenses consisting of employment costs of executives, finance, information technology

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following provides segment information as described below (in thousands):

OF SEGMENT INFORMATION

For the three months ended June 30, 2025

SCHEDULE OF SEGMENT INFORMATION

the three months ended September 30, 2025

Segment revenue

Cost of revenue

Research and development

General and administrative

Other expense

Interest expense

Segment net income (loss)

Segment assets

Capital expenditures

Depreciation and amortization

For the three months ended June 30, 2024

and development

and administrative

Gain on equipment

and amortization

the three months ended September 30, 2024

Segment revenue

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General and administrative

Other expense

Interest expense

Gain on equipment

Segment net income (loss)

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following provides segment information as described below (in thousands):

For the six months ended June 30, 2025

the nine months ended September 30, 2025

Segment revenue

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General and administrative

Interest expense

Segment net income

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Depreciation and amortization

For the six months ended June 30, 2024

the nine months ended September 30, 2024

Segment revenue

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General and administrative

Other income (expense)

Interest expense

Segment net income

Gain on Equipment

Segment net income (loss)

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revenues are determined based on similar product sales to external customers of the Company.

following table presents a reconciliation of net income (loss) of reportable segments to consolidated net loss (in thousands):

following table presents a reconciliation of net income (loss) of reportable segments to consolidated net income (loss) (in thousands):

OF RECONCILIATION OF NET INCOME (LOSS) OF REPORTABLE SEGMENTS TO CONSOLIDATED NET LOSS

months ended June 30,

Net income (loss) of reportable segments

months ended September

months ended September 30,

Net income (loss) of reportable

Unallocated amounts:

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Interest income

Income tax (expense) benefit

Consolidated net loss

Income tax (expense)

Consolidated net income (loss)

SEGMENT REPORTING (continued)

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SCHEDULE OF REVENUE BY GEOGRAPHIC AREA

months ended June 30,

months ended September 30,

United States

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Europe, Middle East and Africa

total revenue

Consolidated total revenue

geographical reporting, revenues are attributed to the location in which the customer facility is located.

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general inflationary pressures.

Other economic challenges include the effects of the current U.S.

government shutdown and the ongoing

geopolitical developments across Europe and Asia including the war in Ukraine.

The specific impacts on the Company have included:

may make the Company’s products less cost competitive and reduce gross margins.

The impact on the Company’s business

related to these or any other tariffs that may be imposed, is uncertain and depends on multiple factors, including the duration and

expansion of current tariffs, future changes to tariff rates, scope or enforcement, retaliatory measures by impacted trade partners,

and related inflationary effects.

In addition, economic uncertainties may potentially affect our future order rate.

geopolitical developments across Europe and Asia (including the war in Ukraine) have and may continue to restrict the Company’s

ability to procure raw materials and components such as nickel and integrated circuits, as well as impacting the Company’s

ability to sell its products into China, Russia and other Eastern European and Asian regions.

impact on the Company’s business related to these or any other tariffs that may be

imposed is uncertain and depends on multiple factors, including the duration and expansion

of current tariffs, future changes to tariff rates, scope or enforcement, retaliatory measures

by impacted trade partners, and related inflationary effects.

In addition, economic uncertainties

may potentially affect our future order rate.

September 30, 2025, the continuing resolution (CR) allowing U.S.

government departments and

agencies to operate through the end of the government fiscal year expired and the U.S.

shut down most of its operations.

As a result of the U.S.

government shutdown, our business

and results of operations may be impacted by the disruptions to federal government offices,

workers, and operations, including disruptions relating to the funding of research activities

to both universities and companies that may result in delays in new orders or the loss of

We may also experience similar impacts in the event of a series of short-term continuing

resolutions rather than full-year fiscal year 2026 appropriations.

Generally, the significance

of these impacts will primarily be based on the length of the shutdown and timing of passage

of a new CR or a full budget.

● Significant

geopolitical developments across Europe and Asia have and may continue to restrict the Company’s

ability to procure raw materials and components such as nickel and integrated circuits, as

well as impact the Company’s ability to sell its products into China, Russia and other

Eastern European and Asian regions.

management has initiated actions to mitigate the potential negative impacts to its revenue and profitability, the Company is unable to

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements