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Data I/O designs, manufactures and sells programming and security deployment systems and services for electronic device manufacturers, specifically targeting high-growth areas such as high-volume users of flash memory and flash memory-based microcontrollers.
−Removed: Most electronic products today incorporate a number of programmable semiconductor devices that contain data, operating instructions and security credentials essential for the proper operation of the product and more and more products require security deployment.
Our mission is to bring the world’s electronic devices to life.
−Removed: Programmable devices are used in products such as automobile electronics, smartphones, HDTV, smart meters, gaming systems and a broad category called Internet of Things (“IoT”).
−Removed: IoT is a broad term that addresses the interconnectivity of devices and other electronic or smart products.
+Added: Programmable devices are used in products such as automobile electronics, smartphones, HDTVs, smart meters, gaming systems and a broad category called Internet of Things (“IoT”).
Our solutions, some of which include security deployment and process control capabilities, enable us to address the demanding requirements of the electronic device market, where applications security and IP protection are essential to our customer’s success.
−Removed: Our largest customers are heavy users of programmable semiconductor devices and include original equipment manufacturers (“OEMs”) and tier 1 suppliers in automotive electronics, industrial electronics, consumer electronics and IoT markets as well as their programming center partners and electronic manufacturing service (“EMS”) contract manufacturers.
Data I/O was incorporated in the State of Washington in 1969 and its business was founded in 1972.
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Major Impacts on 2025
−Removed: Due to economic and automotive electronics uncertainties and slower customer capacity expansion, shipments of the Company’s automated systems in the Americas and Europe were lower which was partially offset by revenue growth in Asia.
−Removed: COVID-19 impacts in past years were no longer an operational challenge with personnel staffing, inventory levels, supply chain and operational activities returning to normal levels.
−Removed: However, late in 2024 with the new incoming United States Administration, geo-political, economic and trade uncertainties have increased.
−Removed: The resulting future impact on the Company’s markets, customers, supply chain and operations are uncertain.
−Removed: We will leverage the experience gained from the impacts of COVID-19, along with the expertise of our leadership and operational teams, to effectively navigate and mitigate these potential challenges.
−Removed: After a period of stability which lasted over a decade, a key organizational leadership transition occurred in the fourth quarter of 2024 with the planned retirement of Anthony Ambrose and the appointment of a new CEO and President, William Wentworth.
−Removed: Subsequent changes have also occurred in the leadership of the Sales, Marketing and Engineering functions.
+Added: The year ended December 31, 2025 was defined by the Company’s strategic transformation, directed by President and CEO William Wentworth, who assumed the role in the fourth quarter of 2024.
+Added: The Company’s strategic plan was designed around six priorities:
+Added: modernizing our go-to-market strategy, investing in our core technology platform, strengthening customer relationships, optimizing business operations and IT infrastructure, improving operational processes, and deploying artificial intelligence across the organization.
+Added: As we enter 2026, management believes the transformation is approximately one year ahead of the original execution timeline projected by management and that the Company believes it is well positioned to return to revenue growth and a path to positive operating cash flow.
+Added: A central element of the strategy was the rapid refresh of the Company’s core technology platform, initiated and completed through the course of 2025.
+Added: The Company launched the next-generation LumenX2 programming platform and LumenX2-M4 manual programmer at the productronica 2025 tradeshow in Munich, Germany in November 2025.
+Added: The LumenX2 platform, with higher pin counts and increased power, significantly expands the breadth of device technologies supported on the LumenX architecture, including microcontrollers, eMMC, UFS, SPI NOR flash, Secure Elements, and other device types.
+Added: The LumenX2-M4 features VerifyBoost technology delivering verify speeds of up to 750 megabytes per second.
+Added: The LumenX2 platform received the 2025 Global Technology Award in the Programming category, and the refreshed LumenX-M8 manual programmer received both the 2025 Mexico Technology Award and the 2025 Step-by-Step Excellence Award.
+Added: These products support the Company’s Unified Programming Platform strategy, which provides a single, scalable programming architecture from design and new product introduction through high-volume production, creating a seamless transition across the preprogrammed parts supply chain.
+Added: With the updated programming platform, the Company has turned its attention to broadening and stabilizing its business model.
+Added: Historically, Data I/O’s revenues have been overwhelmingly tied to capital expenditure cycles in programming equipment, making the business highly cyclical and dependent on customers’ capacity expansion decisions.
+Added: The Company is now focusing its efforts on progressing toward a more balanced revenue model that incorporates recurring services and consumables revenues, including adapter sales, software services, and programming-at-test service offerings.
+Added: For the full year, consumable adapters and services revenue represented approximately 58% of total revenue, helping to moderate the impact of continued softness in capital equipment demand.
+Added: This diversification is expected to continue as the Company expands its addressable market from traditional programming capex into the broader data provisioning ecosystem.
+Added: During 2025, the Company underwent a significant transition in its financial leadership.
+Added: Gerald Ng, who had served as Vice President, Chief Financial Officer, Secretary and Treasurer since August 2023, departed the Company in July 2025.
+Added: Todd Henne served as interim CFO during the transition period.
+Added: Effective August 11, 2025, the Company appointed Charles DiBona as Vice President of Finance, and as an Executive Officer of the Company and the Company’s Vice President, Chief Financial Officer, Secretary and Treasurer, effective August 15, 2025.
+Added: DiBona brings extensive experience in financial leadership across public and private companies, including prior roles at Microsoft Corporation, Unify Square, Inc., and LabVantage Solutions, Inc.
+Added: The leadership transition was part of a broader deliberate strengthening of the executive suite to ensure the Company has the right team in place to execute its growth strategy.
+Added: On August 16, 2025, the Company experienced a ransomware incident affecting certain internal IT systems.
+Added: Upon discovery, the Company promptly activated its response protocols, secured its global IT systems and implemented containment measures, including proactively taking certain platforms offline.
+Added: The Company engaged leading cybersecurity experts to support system recovery and conduct a comprehensive investigation.
+Added: It was determined that the attack was not specifically targeted at Data I/O but originated through a vulnerability in a commercially available third-party firewall service provider.
+Added: By September 2025, the incident had been completely contained and remediated, all global systems were restored, and the Company does not believe it has any remaining risk exposure from the incident.
+Added: The remediation and associated professional fees resulted in approximately $388,000 of one-time costs, primarily recorded in the third quarter of 2025.
+Added: As an outcome of the incident, the Company’s IT systems and cybersecurity posture were strengthened, with improved corporate processes and enhanced security infrastructure.
+Added: In the latter part of 2025, the Company began the implementation process of a new enterprise resource planning (“ERP”) system, Acumatica, to replace the legacy IFS system.
+Added: This initiative is part of the broader effort to optimize business operations and IT infrastructure.
+Added: The Company is leveraging AI-driven tools to accelerate traditionally time-consuming aspects of the ERP implementation, including chart of accounts mapping, data migration planning, and intercompany policy documentation.
+Added: The ERP transition is expected to improve operational efficiency, enhance financial reporting capabilities, and support the Company’s growth objectives.
+Added: The Acumatica implementation project remains on schedule with a target switchover date of July 1, 2026.
+Added: Geopolitical, economic and trade uncertainties continued to impact the Company’s markets in 2025.
+Added: Tariff policies affecting goods manufactured in the United States and China created additional cost pressures and business uncertainty for the Company and its customers.
+Added: As a company that produces products in both the United States and China and sells into global markets, the evolving tariff environment required ongoing evaluation of manufacturing strategies, supply chain resilience, and pricing.
+Added: Some customers continued to shift production locations in response to trade tensions, affecting demand patterns.
+Added: The Company’s dual-sourced manufacturing strategy in Redmond, Washington and Shanghai, China provides flexibility to navigate these challenges and optimize tariff exposure and to support customers to the extent they shift manufacturing to the Americas.
+Added: While oil price increases and conflicts in the Middle East have limited direct effect on our input factors, their broader impacts on general price levels and economic activity could affect our customers and end markets as well as our material, labor, and shipping costs.
+Added: The broader semiconductor market has experienced a multi-year cyclical downturn continuing into 2025, with notable softness in automotive electronics, historically the Company’s largest end market, as a reassessment of electric vehicle capacity and manufacturing plans affecting customer ordering patterns.
+Added: Automotive electronics represented approximately 64% of 2025 bookings, compared to 59% in 2024.
+Added: Demand for capital equipment was further impacted by a reallocation of technology spending, with AI and AI datacenter-related investments taking priority.
+Added: In response, the Company has shifted its strategic focus to diversify its market reach, expanding into the broader data provisioning market and positioning to capitalize on the emerging buildout of Edge AI.
+Added: The shift toward servicing the overall data provisioning market represents a significantly larger opportunity than the traditional programming equipment market.
+Added: Early evidence of customer alignment and interest in this expanded value proposition was encouraging in the fourth quarter 2025 and into early 2026.
+Added: During 2025, the Company deployed artificial intelligence internally across all functional departments to accelerate operations and reduce costs.
+Added: AI-enabled efficiencies contributed to a 7% reduction in normalized operating expense run-rate, from an annualized $26.7 million at the time of the CEO transition in November 2024 to $24.8 million by year end 2025, with plans for at least an additional $1 million of annual run rate savings within the first half of 2026.
+Added: AI tools were applied to software engineering to accelerate programming algorithm development and device support, ERP implementation planning and data migration, customer support processes, legal documentation, and internal business operations.
+Added: These capabilities enabled the Company to accomplish its transformation objectives faster than originally planned.
+Added: Additionally, in January 2026, the Company filed a shelf registration statement on Form S-3 providing the ability to issue up to $20 million dollars of equity securities, providing financial flexibility for potential strategic initiatives, including acquisitions aligned with the Company’s growth strategy.
+Added: The Company also engaged a leading boutique middle-market investment bank during 2025 to support inorganic growth initiatives.
+Added: Subsequent to year end, in February 2026, the Company announced a collaboration with IAR, a leader in embedded development tools and security solutions, to combine IAR’s security expertise with Data I/O’s provisioning expertise to create a frictionless solution that reduces the complexity that exists with current device provisioning approaches.
+Added: This collaboration is intended to simplify the process of securely programming and provisioning devices across global manufacturing supply chains.
Industry Background
−Removed: We enable companies to improve productivity, increase supply-chain security and reduce costs by providing device data programming and security deployment solutions that allow our customers to take IP (large design and data files) and protect and program it into memory, microcontroller, security and logic devices quickly and cost-effectively.
−Removed: We also provide services related to hardware support, system installation and repair, and device programming.
−Removed: Companies that design and manufacture products utilizing programmable electronic devices, ranging from automobiles to cell phones, purchase programming solutions from us.
+Added: Data I/O enables companies to improve productivity, increase supply-chain security and reduce costs by providing device data programming and security deployment solutions that allow our customers to take IP (large design and data files) and protect and program it into memory, microcontroller, security and logic devices quickly and cost-effectively.
+Added: We also provide services related to hardware support, system and repair, and device programming.
+Added: Companies that design and manufacture products utilizing programmable electronic devices, ranging from automobiles to industrial controls to edge AI, purchase programming solutions from us.
Trends of increasing device densities, shrinking device packages, increased demands for security, and customers increasing their software content file sizes, combined with the increasing numbers of intelligent devices such as automotive electronics and IoT applications, are driving demand for our solutions.
−Removed: Traditionally, our programming market opportunity focused on the number of semiconductor devices to be programmed, but because of the rapid increase in the density of devices, and increasing demands for supply-chain security, the focus has shifted in many cases, from the number and type of devices to the number and type of bits per device to be programmed or securely provisioned.
−Removed: With expected growth in IoT applications, the business opportunity for this market differs depending on quality, security and automation.
−Removed: Some of our automated programming systems integrate data programming, automated handling functions and/or security deployment into a single product solution.
−Removed: Quality and security-conscious customers, particularly those in high-volume manufacturing and programming, drive this portion of our business.
+Added: Geopolitical, economic and trade uncertainties continued to impact the Company’s markets in 2025.
+Added: Tariff policies created additional cost pressures and business uncertainty in the market with some players shifting production locations in response to trade tensions and thereby affecting demand patterns.
+Added: In line with the multi-year cyclical downturn in the broader semiconductor market, automotive electronics, historically the Company’s largest end market, has exhibited notable weakness continuing into 2025 as a reassessment of electric vehicle capacity and manufacturing plans affected customer ordering patterns.
+Added: Automotive electronics represented approximately 64% of 2025 bookings, compared to 59% in 2024.
+Added: More generally, overall capital equipment spending has seen a reallocation of technology spending towards AI and AI datacenter-related investments.
+Added: Responding to and taking advantage of these long-term trends, the Company has shifted its strategic focus towards expanding into the greater data provisioning market and positioning to capitalize on the nascent buildout of Edge AI.
+Added: Semiconductors in general, but especially within the emerging Edge AI sector, have exhibited an increasing need for security provisioning.
+Added: The data provisioning market has also continued to diversify such that adjacent segments such as programming services and programming at test now exceed the company’s traditional market segment of capital equipment.
To accommodate the expanding variety and quantities of programmable devices being manufactured today, we offer multiple solutions for the numerous types of device mix and volume usage by our customers in the various market segments and applications.
−Removed: We work closely with leading manufacturers of programmable devices to develop our products to meet the requirements of a particular device.
−Removed: Our newer products are positioned and recognized as some of the most advanced programming and security deployment solutions.
−Removed: Our programming solutions include a broad range of products, systems, modules and accessories, grouped into two general categories:
−Removed: automated programming systems and manual programming systems.
−Removed: Our PSV family of automated programming systems delivers a broad range of programming capacity and capability to the marketplace.
−Removed: Our PSV2800 Automated Programming System focuses on dedicated high-volume manufacturing in a lower cost platform.
−Removed: Our PSV7000 Automated Programming System continues to be well adopted in the marketplace, in particular for automotive electronics customers and as a base for security deployment upgrades.
−Removed: Our PSV5000 Automated Programming System combines mid-range capacity and flexibility with competitive pricing and also supports security deployment.
−Removed: Our PSV3500 Automated Programming System is a lower cost platform for basic programming needs.
−Removed: Our PSV family of handlers has won multiple industry awards for technical excellence and innovation and has a large global installed base.
+Added: We work closely with leading manufacturers of programmable devices to develop our products to meet the requirements of a particular device and invested in 2025 in updating our programming platform to meet customers’ evolving needs.
+Added: The Company launched the next-generation LumenX2 programming platform and LumenX2-M4 manual programmer at the productronica 2025 tradeshow in Munich, Germany in November 2025.
+Added: The LumenX2 platform, with higher pin counts and increased power, significantly expands the breadth of device technologies supported on the LumenX architecture, including microcontrollers, eMMC, UFS, SPI NOR flash, Secure Elements, and other device types.
+Added: The LumenX2-M4 features VerifyBoost technology delivering verify speeds of up to 750 megabytes per second.
+Added: The platform received the 2025 Global Technology Award in the Programming category, and the refreshed LumenX-M8 manual programmer received both the 2025 Mexico Technology Award and the 2025 Step-by-Step Excellence Award.
+Added: These products support the Company’s Unified Programming Platform strategy, which provides a single, scalable programming architecture from design and new product introduction through high-volume production, creating a seamless transition across the preprogrammed parts supply chain.
Our automated systems have list selling prices ranging from approximately $150,000 to $210,000 and our manual systems have list selling prices ranging from approximately $8,000 to $11,000.
−Removed: Our security deployment system, SentriX®, is offered as a software license added to existing programming systems or on a pay per part use basis along with related fees.
−Removed: Data I/O programming technology is integrated with the PSV family to create highly-flexible systems that deliver outstanding performance with low total cost of ownership.
−Removed: The Lumen®X programming engine is our highest performance programming engine, designed to support eMMC and UFS programming of large NAND FLASH, as well as microcontrollers, serial FLASH and other devices.
−Removed: Increasing memory densities and the need for faster data interfaces are resulting in an expected transition to the use of UFS devices.
−Removed: LumenX is available on our PSV7000 and PSV5000 and as a standalone manual programmer.
−Removed: FlashCORE™, and our universal job setup tool, Tasklink™ for Windows®, are available in each family of our automated programming systems and in FlashPAK™, our manual programming system.
−Removed: The SentriX security system adds security capability to our data programming system.
−Removed: SentriX allows customers of any size and demand-profile to securely add keys, certificates, and other security information to specialized regions of authentication integrated circuits ("ICs”), secure elements and secure microcontrollers.
−Removed: We provide device support and service on all of our products.
−Removed: Device support is a critical aspect of our business and consists of writing software algorithms for devices and developing socket adapters to hold and connect to the device for programming.
Sales Percentage of Total Sales Breakdown by Type
−Removed: Equipment Sales
+Added: Platform Sales
Capacity, Process improvement, Technology
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• Fast program and verify speeds
−Removed: Managed and secure programming
• Up to 112 programming sites
• Up to 2000 devices per hour throughput
−Removed: High throughput for high-density flash memory programming
+Added: • UFS Support
• Supports LumenX and FlashCORE III programmers
−Removed: Flexible I/O options (tray, tape, tube), marking/labeling and vision for coplanarity inspection
• Supports multiple media types
• Supports quality options – fiber laser marking, ink dot marking, 2D inspection, 3D coplanarity
+Added: • ConneX Service Software enables connected factory integration and automation and system monitoring dashboards
+Added: • Managed and secure programming
+Added: • High throughput for high-density flash memory programming
+Added: • Flexible I/O options (tray, tape, tube), marking/labeling and vision for coplanarity inspection
• Scalable solutions for low to high-volume manufacturing
• Access to system data for connected factory and traceability
−Removed: ConneX Service Software enables connected factory integration and automation
−Removed: LumenX Programmer
(Non-automated)
• Extensible architecture for fast programming, verify and download speeds
+Added: • Supports UFS memory, microcontrollers, serial flash, secure elements and other device types
+Added: • Large file size support
+Added: • Secure job creation
+Added: • Four or eight sockets configuration with tool-less changeover with single-socket adapters
• Managed and secure programming
• Fast setup and job changeover
−Removed: Supports UFS memory, microcontrollers, serial flash, secure elements and other device types ·
• Highest yield and low total cost of programming
• High performance
−Removed: Large file size support
−Removed: Secure job creation
• Create and validate designs before moving down the firmware supply chain
−Removed: Eight sockets with tool-less changeover with single-socket adapters
−Removed: FlashPAK III programmer:
(Non-automated)
+Added: • Scalability
• Network control via Ethernet
−Removed: Create and validate designs before moving down the firmware supply chain
• Stand-alone operation or PC compatible
−Removed: Unmatched ease of use in manual production systems
• Parallel programming
+Added: • Four sockets
• Universal device support
−Removed: SentriX Security Deployment
−Removed: Unique ability to securely provision keys and certificates one device at a time ·
−Removed: Create secure IoT devices across a global network
−Removed: Maintain IP control over their product’s lifecycle
−Removed: Broad set of secure devices supported with wide range of silicon partners ·
−Removed: Secure supply chain and flexible key management architecture
−Removed: Software license model allows easy upgrades from deployed PSV data programming systems
−Removed: Pay per use model
+Added: • Create and validate designs before moving down the firmware supply chain
+Added: • Unmatched ease of use in manual production systems
Customers/Markets
−Removed: We sell our solutions to customers worldwide, many of whom are world-class manufacturers of electronic devices used in a broad range of industries, as described in the following table:
+Added: We sell our solutions to customers worldwide, many of whom are world-class manufacturers of electronic devices used in a broad range of industries.
Programming Centers
Automotive Electronics
−Removed: IoT, Industrial, Consumer Electronics, including Wireless
+Added: IoT, Industrial, Consumer Electronics
Contract Manufacturers
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Borg Warner, Bosch, Alps Alpine, Visteon, Kostal, JVCKenwood, Harman, Hitachi, Denso Ten, Continental, Aptiv Panasonic, Magna, Marelli, Tesla, Desay, BYD
−Removed: LG, TCL, Siemens, Danfoss, Philips, Schneider, Endress+Hauser, Insta, Sony, UTEC, Nokia
+Added: LG, TCL, Siemens, Danfoss, Philips, Schneider, Endress+Hauser, Insta, Sony, UTEC
Pegatron, Flex, Jabil, Wistron, Sanmina SCI, Foxconn, Salcomp, Calcomp, Plexus
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Shift from analog to connected intelligent devices, security.
+Added: Initial buildout of Edge AI impacting investment decisions.
Production contract wins
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Partner focus of our SentriX deployments
−Removed: Our solutions address the data programming and security deployment needs of programmable semiconductor devices.
−Removed: Semiconductor devices are a large, growing market, in terms of units, bits programmed and need for security.
−Removed: We believe that our sales are driven by many of the same forces that propel the semiconductor industry as well as the automotive electronics industry.
−Removed: We sell to the manufacturers who are consumers of certain semiconductors.
−Removed: When their business grows, they buy more semiconductors which, in turn, require additional programming equipment to maintain production speeds or program new device technologies.
+Added: Our solutions address the data programming and security deployment needs of programmable semiconductors (flash memory, microcontrollers and secure elements) at high volumes, with security, quality and traceability requirements.
+Added: We provide our programming solutions in the factory and through service, programming centers and programming at test to support our customers’ manufacturing requirements.
Our device programming solutions currently target two high volume growing markets:
−Removed: automotive electronics and IoT systems, including industrial and consumer devices.
+Added: automotive electronics and IoT, including industrial, consumer electronics and wireless.
Growth drivers for automotive electronics
−Removed: Consumers desire advanced car features requiring higher levels of sophistication, including autonomous cars, infotainment options (audio, radio, dashboard displays, navigation), ADAS, wireless connectivity and electrification
+Added: Consumers desire advanced car features requiring higher levels of sophistication, including autonomous vehicle capabilities and safety assistance.
Proliferation of programmable microcontrollers to support the next-generation electronic car systems.
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Growth drivers for IoT, including industrial, consumer electronics and wireless
−Removed: Securely controlling groups of connected devices through a secure supply chain and lifecycle firmware integrity management
+Added: Securely controlling groups of connected devices through a secure supply chain and lifecycle firmware integrity.
Adding intelligence and processing into devices.
−Removed: Connecting previously unconnected devices to networks and the internet (such as smart home, including intelligent thermostats and lighting)
+Added: Connecting previously unconnected devices to networks and the internet (such as smart home, including security, appliances, wearables and other devices).
Emergence of new devices and applications (such as health and wellness wearable devices and applications).
−Removed: Diversification of accounts receivable and net sales
+Added: Diversification of net sales and accounts receivable
During 2025, we sold products to approximately 170 customers throughout the world.
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Approximate percentage of net sales
−Removed: Percentage of each
−Removed: Percentage of each
−Removed: The following represented greater than 10% of our consolidated accounts receivable for the applicable years:
−Removed: Percentage of Consolidated Accounts Receivable
+Added: Percentage of Customer 1
+Added: Percentage of Customer 2
+Added: Percentage of Customer 3
+Added: The following represented greater than 10% of our accounts receivable:
+Added: Percentage of Accounts Receivable
Number of customers
−Removed: Approximate percentage of consolidated accounts receivable balance
−Removed: Percentage of each
−Removed: Percentage of each
−Removed: Percentage of each
+Added: Approximate percentage of AR balance
+Added: Percentage of Customer 1
+Added: Percentage of Customer 2
+Added: Percentage of Customer 3
Geographic Markets and Distribution
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In addition, new security devices may be required to be programmed using device-specific programmers developed by the semiconductor manufacturer.
−Removed: While we are not aware of any published industry market information covering the programming systems or security deployment market, according to our internal analysis of competitors’ revenues, we believe we continue to be the largest supplier in the programming systems market.
+Added: While we are not aware of any published industry market reports covering the programming systems or security deployment market, according to our internal analysis of competitors’ revenues, we believe we continue to be one of the largest suppliers in the programming systems market.
Manufacturing, Raw Materials and Backlog
26 unchanged sentences
Our research and development efforts have resulted in the release of significant new products and product enhancements over the past several years.
+Added: During 2025, the Company’s R&D efforts focused on the development and launch of the next-generation LumenX2 programming platform and LumenX2-M4 manual programmer, which were introduced at the productronica 2025 tradeshow in November 2025.
+Added: The LumenX2 programming platform, with higher pin counts and increased power, significantly expands the breadth of device technologies supported, including microcontrollers, eMMC, UFS, SPI NOR flash, Secure Elements, and other device types.
+Added: The R&D team has begun the systematic integration of artificial intelligence tools to accelerate programming algorithm development and device support.
During 2025, 2024 and 2023, we made expenditures for research and development of (in millions) $6.5, $6.2 and $6.5, respectively, representing 30%, 29% and 23% of net sales, respectively.
Research and development costs are generally expensed as incurred.
+Added: Finance and Administration
+Added: The Company began the implementation process of a new enterprise resource planning system, Acumatica, to replace the legacy IFS system.
+Added: This initiative is part of the broader effort to optimize business operations and IT infrastructure.
+Added: The Company is leveraging AI-driven tools to accelerate traditionally time-consuming aspects of the ERP implementation, including chart of accounts mapping, data migration planning, and intercompany policy documentation.
+Added: The ERP transition is expected to improve operational efficiency, enhance financial reporting capabilities, and support the Company’s growth objectives.
+Added: The Acumatica implementation project remains on schedule with a target switchover date of July 1, 2026.
+Added: During 2025, the Company deployed artificial intelligence internally across all functional departments to accelerate operations and reduce costs.
+Added: AI tools were applied to software engineering to accelerate programming algorithm development and device support, ERP implementation planning and data migration, customer support processes, legal documentation, and internal business operations.
+Added: These capabilities enabled the Company to accomplish its transformation objectives faster than originally planned.
+Added: On August 16, 2025, the Company experienced a ransomware incident affecting certain internal IT systems.
+Added: Upon discovery, the Company promptly activated its response protocols, secured its global IT systems and implemented containment measures, including proactively taking certain platforms offline.
+Added: The Company engaged leading cybersecurity experts to support system recovery and conduct a comprehensive investigation.
+Added: It was determined that the attack was not specifically targeted at Data I/O but originated through a vulnerability in a commercially available third-party firewall service provider.
+Added: By September 2025, the incident had been completely contained and remediated, all global systems were restored, and the Company does not believe it has any remaining risk exposure from the incident.
+Added: The remediation and associated professional fees resulted in approximately $388,000 of one-time costs, primarily recorded in the third quarter.
+Added: As an outcome of the incident, the Company’s IT systems and cybersecurity posture were strengthened, with improved corporate processes and enhanced security infrastructure.
Patents, Copyrights, Trademarks and Licenses
17 unchanged sentences
Our hiring and retention strategies and efforts include emphasis on the advantages of working in a technology oriented, smaller, international, public company, and the culture of our organization.
−Removed: We utilize competitive pay practices, incentive compensation, equity awards, and benefits such as health care, life and disability insurance;
−Removed: paid time off;
−Removed: education and volunteer time.
+Added: We utilize competitive pay practices, incentive compensation, equity awards, and benefits such as health care, life and disability insurance, paid time off, education and volunteer time.
+Added: Through the course of 2025 and early 2026, the Company has undertaken organizational changes to centralize the direction and management of business functions in its Redmond, Washington headquarters.
+Added: The Company believes that this structure will enable a more consistent strategic focus, especially as the Company seeks to expand into adjacent segments of the data provisioning market and generally extend market reach.
Environmental, Social and Governance (“ESG”)
4 unchanged sentences
In addition to this commitment, the Company has a track record of meeting its ESG regulatory obligations, being a solid corporate citizen, delivering superior value to its customers and partners, and demonstrating corporate stewardship including returning capital to shareholders through past share buybacks.
−Removed: As the largest and only publicly traded company in its sector, according to our internal analysis, Data I/O has led its industry in disclosing significant operational and financial information.
−Removed: The Company's Board currently includes Data I/O's CEO and four Independent Directors.
−Removed: It is diverse in gender, education, professional experience and differences in viewpoints and skills.
−Removed: Through its continuous improvement practices and our operations’ focus on assembly and test with no fabrication, the Company consumes relatively little energy, has minimal or no emissions or pollutants to air and wastewater, and complies with workplace labor, safety and business practices on three continents.
−Removed: Additionally, the Company started to purchase only sustainable (green) electric power (in our China & U.S.
−Removed: facilities in 2023;
−Removed: German facility in prior years) and started to purchase offsets for its carbon emissions from natural gas use in the U.S.
−Removed: For our vehicles, we have been replacing company-owned cars with hybrid or electric vehicles where feasible.
−Removed: None of these actions have had a material financial impact.
−Removed: Recent developments to climate regulations and guidelines have increased customer demands for climate disclosures on their timelines as opposed to regulations applicability to the Company.
−Removed: Data I/O is also committed to giving back to our local communities through volunteer and internship programs.
−Removed: The Company provide employees time-off to volunteer.
−Removed: In addition, the Company provides internships to local high school and college students through STEM and technical colleges.
−Removed: Compliance with environmental laws has not had, nor is it currently expected to have, a material effect on our capital expenditures, financial position, results of operations or competitive position.
−Removed: Potential regulations regarding climate change measurements and disclosures could require significant effort and costs.
Executive Officers of the Registrant
−Removed: Set forth below is certain information concerning the executive officers of Data I/O as of March 18, 2025:
+Added: During 2025, the Company underwent a significant transition in its financial leadership.
+Added: Gerry Ng, who had served as Vice President and Chief Financial Officer since August 2023, departed the Company.
+Added: Todd Henne served as interim CFO during the transition period.
+Added: Effective August 11, 2025 as Vice President of Finance, and effective August 15, 2025 as an Executive Officer of the Company and the Company’s Vice President, Chief Financial Officer, Secretary and Treasurer.
+Added: The leadership transition was part of a broader deliberate strengthening of the Board and executive suite to ensure the Company has the right team in place to execute its growth strategy.
+Added: Set forth below is certain information concerning the executive officers of Data I/O as of April 16, 2026:
William Wentworth
President and Chief Executive Officer
+Added: Charles DiBona
Vice President, Chief Financial Officer, Secretary and Treasurer
1 unchanged sentence
Bill Wentworth brings a wealth of industry experience spanning over 35 years, including private equity and M&A exposure.
−Removed: As the CEO of Source Electronics, the global market share leader in programming and test services, he was a Data I/O customer and led the sale of controlling interest of Source Electronics to HIG Capital in 2001 and the company’s subsequent sale to Avnet in 2008 with significant investor return.
+Added: In 1988 he cofounded Source Electronics, the global market share leader in programming and test services, and a Data I/O customer.
+Added: He led the sale of controlling interest of Source Electronics to HIG Capital in 2001 and the company’s subsequent sale to Avnet in 2008 with significant investor return.
Under Bill’s leadership, Source developed compelling programming solutions for the automotive and consumer industries, expanding the business and limiting its industry and customer concentration.
For the years prior to joining Data I/O, as President and owner of Wentworth Advisors, he has consulted in the programming, IT, and private equity markets, focusing on expanding deal flow, performing due diligence and Board service.
−Removed: Ng joined Data I/O in July 2023 as Data I/O's Vice President of Finance and, effective August 16, 2023, became Data I/O's Vice President and Chief Financial Officer.
−Removed: Gerry brings a wealth of experience in finance and treasury functions, business development, financial planning & forecasting, monthly reporting and business compliance.
−Removed: He was previously CFO for Kymeta Corporation, a broadband satellite and cellular networks communication company, and prior to that, held CFO titles at FUJIFILM SonoSite, Inc.
−Removed: and Fluke Networks.
−Removed: Gerry holds a Masters of Business Administration from Northwestern University – Kellogg School of Management and a Bachelor of Arts Finance and Accounting from the University of Washington.
+Added: Charles DiBona joined Data I/O on August 11, 2025 as Vice President of Finance, and effective August 15, 2025 as an Executive Officer of the Company and the Company’s Vice President, Chief Financial Officer (“CFO”), Secretary and Treasurer .
+Added: DiBona brings extensive experience in financial leadership across public and private companies and equity research.
+Added: He previously served as the Senior Equity Analyst covering Enterprise Software at Sanford C.
+Added: Bernstein & Co., LLC.
+Added: He then served as GM of Strategy and M&A in Microsoft’s Server and Tools Business (which subsequently became Microsoft’s Cloud + Enterprise division).
+Added: Subsequently, he was CFO of Unify Square, Inc., a purveyor of unified communications monitoring and management solutions which was successfully sold to Unisys Corporation in 2021, and of LabVantage Solutions, Inc., a closely-held leader in the Laboratory Information Management space.
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.