What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2026-09-24 compared with 2025-09-17 · 239 added, 145 removed, 689 unchanged (36% of the section changed)

4 unchanged sentences

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Key Tronic Corporation (the ”Company”) as of June 28, 2025 and June 29, 2024, the related consolidated statements of operations, comprehensive loss, cash flows, and shareholders’ equity for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”).

We have audited the accompanying consolidated balance sheets of Key Tronic Corporation (the “Company”) as of June 27, 2026 and June 28, 2025, the related consolidated statements of operations, comprehensive loss, shareholders’ equity and cash flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of June 27, 2026 and June 28, 2025, and the consolidated results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

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Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

(1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognized Over Time

Critical Audit Matter Description

As described in Notes 1 and 12 to the consolidated financial statements, the Company reported revenue of $387 million for the year ended June 27, 2026, of which $367 million related to revenue recognized over time.

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As a result, revenue is recognized under these contracts over time based on the input cost-to-cost method as it better depicts the transfer of control.

This input method is based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation.

method is based on the ratio of costs incurred to date as compared to the total estimated costs at completion of the performance obligation.

We identified the auditing of revenue recognized over time on contracts for manufacturing products, including the total estimated costs at completion of the performance obligation as a critical audit matter.

Auditing management’s estimates used in the calculation of revenue recognized over time involved significant audit effort, as well as especially challenging and subjective auditor judgment when performing audit procedures and evaluating the results of those procedures.

How We Addressed the Matter in Our Audit

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

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83,650 96,142

Contract assets 17,409 21,250

Contract Assets, net of credit losses of $ 856 and $ 0

24,219 17,409

Inventories 95,844 97,321

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Other, net of credit losses of $ 8,438 and $ 500

19,152 19,230

Total other assets 20,603 42,627

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Retained earnings 20,810 68,603

Accumulated other comprehensive income (loss) 1,029 ( 215 )

Accumulated other comprehensive income 238 1,029

Total shareholders’ equity 69,183 117,134

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Total operating expenses 38,653 35,865

Operating income 562 6,758

Operating income (loss) ( 14,716 ) 562

Interest expense, net 10,074 12,523

Loss before income taxes ( 24,790 ) ( 11,961 )

Income tax benefit ( 3,643 ) ( 2,400 )

Income tax provision (benefit) 23,003 ( 3,643 )

Net loss $ ( 47,793 ) $ ( 8,318 )

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See accompanying notes to consolidated financial statements.

KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

KEY TRONIC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited, in thousands)

Fiscal Year Ended

June 27, 2026 June 28, 2025

Operating activities:

Cash flows from operating activities:

Net loss $ ( 47,793 ) $ ( 8,318 )

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Depreciation and amortization 10,226 9,599

Amortization of interest rate swap — 97

Amortization of deferred loan costs 603 1,553

Noncash lease expense 4,853 5,663

Noncash lease amortization 4,399 4,853

Inventory write-down to net realizable value 3,307 98

1 unchanged sentence

Provision for credit losses 11,639 1,805

Gain on disposal of assets ( 42 ) ( 32 )

Loss (gain) on disposal of assets 567 ( 42 )

Gain on insurance proceeds, net of losses ( 5,904 ) —

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Deferred income taxes 21,986 ( 6,647 )

Noncash accrued compensation benefit — ( 3,925 )

Changes in operating assets and liabilities:

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Cash provided by operating activities 4,424 18,929

Investing activities:

Purchases of property and equipment ( 4,095 ) ( 3,958 )

Cash flows from investing activities:

Purchase of property and equipment ( 6,351 ) ( 4,095 )

Proceeds from insurance 2,335 —

Proceeds from sale of fixed assets — 40

Prepayments on finance lease obligations — ( 144 )

Proceeds from insurance — 1,850

Cash used in investing activities ( 4,016 ) ( 4,199 )

Financing activities:

Cash flows from financing activities:

Payment of financing costs ( 220 ) ( 2,973 )

Proceeds from issuance of long term debt 33,273 1,178

Proceeds from long term debt 442 33,273

Repayments of long term debt ( 7,216 ) ( 4,776 )

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Cash used in financing activities ( 1,208 ) ( 18,098 )

Net increase (decrease) in cash and cash equivalents ( 3,368 ) 1,149

Net decrease in cash and cash equivalents ( 800 ) ( 3,368 )

Cash and cash equivalents, beginning of period 1,384 4,752

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Income tax payments, net of refunds $ 1,659 $ 989

ASC 326 opening balance sheet adjustment $ — $ 3,278

Recognition of operating lease liabilities and right-of-use assets

$ 22,133 $ 784

Recognition of financing lease liabilities and right-of-use assets $ 8,220 $ 1,374

Derecognition of operating lease liabilities and right of use assets $ ( 2,531 ) $ —

See accompanying notes to consolidated financial statements.

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Shareholders’

Balances, July 1, 2023 10,762 $ 47,728 $ 82,986 $ ( 97 ) $ 130,617

Net loss — — ( 2,787 ) — ( 2,787 )

CECL opening balance sheet adjustment, net of tax — — ( 3,278 ) — ( 3,278 )

Unrealized loss on hedging instruments, net of tax — — — ( 118 ) ( 118 )

Share-based compensation — ( 444 ) — — ( 444 )

Balances, June 29, 2024 10,762 $ 47,284 $ 76,921 $ ( 215 ) $ 123,990

1 unchanged sentence

Unrealized gain on hedging instruments, net of tax — — 1,244 1,244

Share-based compensation — 218 — — 218

Share-based compensation expense 218 — — 218

Balances, June 28, 2025 10,762 $ 47,502 $ 68,603 $ 1,029 $ 117,134

Net loss — ( 47,793 ) — ( 47,793 )

Unrealized loss on hedging instruments, net of tax — — ( 791 ) ( 791 )

Release of restricted stock units 97 — — — —

Share-based compensation expense 633 — — 633

Balances, June 27, 2026 10,859 $ 48,135 $ 20,810 $ 238 $ 69,183

See accompanying notes to consolidated financial statements.

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The Company’s headquarters are located in Spokane Valley, Washington with manufacturing operations in Oakdale, Minnesota;

Fayetteville, Arkansas;

Springdale, Arkansas;

Corinth, Mississippi;

and foreign manufacturing operations in Juarez, Mexico;

Shanghai, China;

and Da Nang, Vietnam.

The Company also conducts procurement operations in Shanghai, China to support the manufacturing operations at its other facilities.

Historically, due to the timing between the procurement of raw materials, production cycle and payment from our customers, we have financed operations and met our capital expenditure requirements primarily through cash flows provided by operations and borrowings under our credit facilities.

We generated operating income and net loss of $ 0.6 million and $( 8.3 ) million respectively, during the 12-month period ended June 28, 2025 and have positive working capital of $ 142.2 million as of June 28, 2025.

We generated operating loss and net loss of $( 14.7 ) million and $( 47.8 ) million respectively, during the 12-month period ended June 27, 2026 and have positive working capital of $ 117.3 million as of June 27, 2026.

Due to the timing between the procurement of raw materials, production cycle and payment from our customers, we have relied on borrowings on our credit facilities to fund operations during fiscal year 2026.

Based on current projections, we anticipate generating cash from operations as revenue increases in the first half of fiscal year 2027.

As of June 28, 2025, we have $ 25.0 million of additional borrowing capacity on our credit facility, which matures on December 3, 2029.

As of June 27, 2026 and September 12, 2026, we had approximately $ 16.5 million and $ 16.9 million of gross borrowing capacity on our credit facility, respectively, which is further limited by certain covenant blocks in the loan agreement.

The agreement matures on December 3, 2029.

If we are unable to meet projected operating results or extend our borrowing capacity, we may need to delay the purchase of raw materials or require our customers to fund inventory raw material costs ahead of production.

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We believe that projected cash from operations, funds available under our asset-based revolving credit facility and additional financing options will be sufficient to meet our working and fixed capital requirements for at least the next 12 months.

Reclassifications

Certain prior period reclassifications were made to conform with the current period presentation.

These reclassifications had no effect on reported income, comprehensive loss, cash flows, total assets, or shareholders' equity as previously reported.

Principles of Consolidation

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The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

Estimates include the allowance for credit losses, calculating inventory impairments related to obsolete and non-saleable inventories to value at net realizable value, deferred tax assets and liabilities, uncertain tax positions, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, and the fair value of stock appreciation rights granted under the Company’s share-based compensation plan.

Estimates include the allowance for credit losses, calculating inventory impairments related to obsolete and non-saleable inventories to value at net realizable value, deferred tax assets and liabilities, uncertain tax positions, impairment of long-lived assets, medical self-funded insurance liability, long-term incentive compensation accrual, the provision for warranty costs, and the number of performance-based restricted stock units expected to vest under the Company’s share-based compensation plan.

Due to uncertainties with respect to the assumptions and estimates, actual results could differ from those estimates.

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Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised.

Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of income.

Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the consolidated statements of operations.

For further information, please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements.”

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Accrued Warranty

An accrual is made for expected warranty costs, with the related expense recognized in cost of goods sold.

An accrual is made for expected warranty costs, with the related expense recognized in cost of sales.

Management reviews the adequacy of this accrual quarterly based on historical analyses and anticipated product returns.

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Shipping and Handling Fees

The Company classifies costs associated with shipping and handling fees as a component of cost of goods sold.

The Company classifies costs associated with shipping and handling fees as a component of cost of sales.

Customer billings related to shipping and handling fees are reported as revenue.

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The functional currency of the Company’s subsidiaries in Mexico, China and Vietnam is the U.S.

Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of goods sold.

Realized foreign currency transaction gains and losses for local currency denominated assets and liabilities are included in cost of sales.

Fair Value of Financial Instruments

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The Company’s incentive plan may provide for equity awards to employees in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based awards.

Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of goods sold, research, development and engineering, and selling, general, and administrative expenses.

Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations.

Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is included in cost of sales, research, development and engineering, and selling, general, and administrative expenses.

Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures accounted for prospectively as they occur.

Newly Adopted and Recent Accounting Pronouncements

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The ASU requires entities to disclose in the notes to the financial statements specified information about certain costs and expenses.

Subsequently, the FASB issued ASU 2025-01 which clarifies the effective date of ASU 2024-03 for public business entities.

The ASU applies to the Company’s annual reporting period beginning in fiscal year 2028 and interim reporting periods beginning in fiscal year 2029.The Company does not anticipate early adoption of the new disclosure standard.

On December 14, 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):

The ASU applies to the Company’s annual reporting period beginning in fiscal year 2028 and interim reporting periods beginning in fiscal year 2029.

The Company does not anticipate early adoption of the new disclosure standard.

On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

The ASU requires entities to disclose more detailed information relating to their reconciliation of statutory tax rate to effective tax rate, income taxes paid by jurisdiction, pretax income (or loss) from continuing operations, and income tax expense (or benefit).

The ASU applies to the Company’s annual reporting period beginning in fiscal year 2026.

The Company does not anticipate early adoption of the new disclosure standards.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires public entities to disclose information about their reportable segments' oversight and significant expenses on an interim and annual basis.

The ASU is effective for the annual reporting period beginning in fiscal year 2025 and for interim periods beginning in fiscal year 2026.

The ASU was adopted in fiscal year 2026.

On September 18, 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

This update was made to modernize the accounting for software costs.

The ASU is effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

The Company adopted the standard during the year ended June 28, 2025.

See Note 11 to the consolidated financial statements included within this report for more information on the increased disclosure for the Company's single reportable segment.

The Company is currently evaluating the guidance and its impact to the financial statements.

On November 25, 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815), Hedge Accounting Improvements.

This update was made to clarify certain aspects of the guidance on hedge accounting and to address several incremental hedge accounting issues arising from the global reference rate reform initiative.

The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

The Company is currently assessing the impact of the requirements on its consolidated financial statements.

On December 4, 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832), Accounting for Government Grants Received by Business Entities.

The FASB is issuing this Update to improve generally accepted accounting principles (GAAP) by establishing authoritative guidance on the accounting for government grants received by business entities.

The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2029, and interim reporting periods within those annual reporting periods.

Early adoption is permitted.

The Company does not expect any material changes to its consolidated financial statements as a result of this update.

On December 8, 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements.

This update is intended to improve the navigability of the required interim disclosures and clarifying when that guidance is applicable.

The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods.

The ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027

for public business entities.

Early adoption is permitted.

The Company is currently assessing the impact of the requirements on its consolidated financial statements.

On December 17, 2025 the FASB issued ASU 2025-12, Codification Improvements.

This evergreen project facilitates Codification updates for a broad range of Topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements.

The resulting amendments are collectively referred to as Codification improvements.

The amendments in this Update are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.

The types of issues considered through this project are improvements that are not expected to have a significant effect on current accounting practice or result in significant costs to most entities, and the Company is currently assessing the impact of the requirements on its consolidated financial statements

The Company operates on a 52/53 week fiscal year.

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Foreign term loan - Banorte (5) April 24, 2026 5.5 % — 1,000

Domestic term loan - Bank of America (6) August 14, 2025 4.9 % — 1,277

Domestic term loan - Avtech 8 (7) October 31, 2028 13.6 % 278 —

Domestic term loan - Avtech 8 (6) December 16, 2028 13.6 % 604 278

Domestic term loan - Avtech 9 (7) June 30, 2028 11.7 % 3,675 4,996

Foreign term loan - Banorte (3) September 7, 2030 11.0 % 1,973 —

Total debt 108,313 107,629

2 unchanged sentences

Long-term debt, net $ 99,056 $ 98,936

(1) On December 3, 2024, Key Tronic Corporation (the "Company") entered into an asset-based credit agreement (the "Credit Agreement") among the Company, certain domestic subsidiaries (as co-borrowers or guarantors), BMO Bank, N.A (the "Bank"), as administrative agent and swing line lender, BMO Capital Markets as arranger and book runner, and certain financial institutions, as lenders.

(1) On December 3, 2024, the Company entered into an asset-based credit agreement (the "Credit Agreement") among the Company, certain domestic subsidiaries (as co-borrowers or guarantors), BMO Bank, N.A (the "Bank"), as administrative agent and swing line lender, BMO Capital Markets as arranger and book runner, and certain financial institutions, as lenders.

The Credit Agreement provides for an asset-based senior secured revolving credit facility (the "Credit Facility") of up to $ 115 million, maturing on December 3, 2029.

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In addition to the applicable interest rates, the Company is required to pay a fee of 0.2 % per annum on the unused portion of the Credit Facility, monthly in arrears.

Availability on the line of credit is generally determined based on eligible inventory and accounts receivable balances.

Availability on the line of credit is generally determined based on eligible inventory and accounts receivable balances, certain machinery and equipment located in the US, and other covenant restrictions, including a $ 13 million availability block, which functions to reduce the Company's total availability.

On May 13, 2025, the Company entered into a first amendment and limited waiver to the Credit Agreement.

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Proceeds from the Credit Facility and the Term Loan discussed below were used to pay-off the Company's prior loan and security agreement, as amended, with Bank of America, N.A.

(with the related credit facility, the "Prior Credit Facility") in the amount of $ 99.7 million, as well as its outstanding equipment term loan, and financing costs related to the Credit Agreement.

in the amount of $ 99.7 million, as well as its outstanding equipment term loan, and financing costs related to the Credit Agreement.

The Term Loan may also be used to pay-off certain other existing debt, to issue letters of credit, and for other business purposes, including working capital needs.

As of June 28, 2025, the Company had an outstanding balance under the asset-based revolving credit facility of $ 67.9 million, $ 0.4 million in outstanding letters of credit and $ 25.0 million available for future borrowings.

On August 14, 2020, the Company entered into a loan agreement with Bank of America (“Loan Agreement”).

The Loan Agreement, as amended, provided for an asset-based senior secured revolving credit facility with an availability of up to $ 120 million, subject to the Company’s borrowing base, and was set to mature on December 3, 2025.

The interest rate as of December 2, 2024 at the time of pay-off was approximately 9.2 %.

As of June 29, 2024, the Company had an outstanding balance under the Prior Credit Facility of $ 107.1 million, $ 0.3 million in outstanding letters of credit and $ 12.9 million available for future borrowings.

As of June 27, 2026, the Company had an outstanding balance under the asset-based revolving credit facility of $ 74.7 million, $ 0.7 million in outstanding letters of credit and $ 16.5 million of potential borrowing capacity, further limited by the availability block in the loan agreement.

(2) On December 3, 2024, the Company entered into a $ 28 million term loan (the "Term Loan") credit agreement among the Company, certain domestic subsidiaries (as co-borrowers or guarantors), Callodine Commercial Finance, LLC (“Callodine”), as administrative agent, and certain financial institutions, as term loan lenders.

The Term Loan requires quarterly repayments of

principal in the amount of $ 0.75 million.

The Term Loan requires quarterly repayments of principal in the amount of $ 0.75 million.

The remainder will be payable at maturity which is the earlier of December 3, 2029 or the maturity of the Credit Agreement described above.

The Term Loan bears interest at Adjusted Term SOFR (Term SOFR plus 0.15 %, subject to a floor of 3.50 %) plus an applicable margin of 7.00 %.

The Term Loan bears interest at Adjusted Term SOFR (Term SOFR plus

0.15 %, subject to a floor of 3.50 %) plus an applicable margin of 7.00 %.

If there is an event of default under the Term Loan, all loans and other obligations may bear interest at a rate of an additional 2.00 % on the otherwise applicable interest rate.

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The agreement provides for a three-year secured line of credit up to MXN 100 million, subject to the Company’s borrowing base, maturing on December 11, 2026.

On October 2, 2025, the company refinanced its loan agreement with Banorte Financial Group.

The refinanced agreement separated the existing MXN 100 million line of credit into two separate debt instruments.

The first instrument allows for a line of credit of up to MXN 20 million, subject to the Company’s borrowing base, maturing on December 11, 2026.

The second component is a MXN 40 million term loan, requiring monthly payments of MXN 678 thousand through maturity on September 7, 2030.

No proceeds were received as a result of the refinanced agreement.

The agreement is subject to certain financial covenants which are reviewed on an annual basis.

During fiscal year 2026 it was determined that the Company was not in compliance with the debt coverage and leverage covenants for the local Mexico entity.

The non-compliance was primarily due to a change in the methodology for calculating and remitting Income Tax (ISR).

The Company was notified by the Banorte Financial Group that they have chosen to not exercise their right to accelerate the maturity of outstanding loans.

The credit facility bears interest at Iterbancario de Equilibrio Interest Rate plus 2.75 %, and as of June 27, 2026, was 9.5 %.

As of June 28, 2025, the Company had an outstanding balance under the revolving credit facility of MXN 61 million ($ 3.25 million USD) and MXN 39 million ($ 1.67 million USD) available for future borrowings.

As of June 27, 2026, the Company had an outstanding balance under the revolving credit facility of MXN 18 million ($ 1.0 million USD) and MXN 2 million ($ 0.1 million USD) was available for future borrowings.

(4) On September 19, 2023, the Company entered into a $ 1.1 million equipment financing agreement with Ameris Bank dba Balboa Capital ("Balboa Capital").

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(5) On November 24, 2020, the Company entered into a $ 6.0 million equipment financing facility related to the Company’s existing manufacturing equipment that bears interest at 5.52 % and matures on April 24, 2026.

Under this loan agreement, equal monthly payments of $ 100,000 commenced on May 24, 2021 and will continue through the maturity of the equipment financing facility on April 24, 2026.

(6) On August 14, 2020, the Company entered into a $ 5.0 million equipment financing facility with Bank of America relating to the Company’s existing U.S.

manufacturing equipment that accrued interest at 4.85 % and was set to mature on August 14, 2025.

Under this loan agreement, equal monthly payments of approximately $ 94,000 commenced on September 14, 2020 and continued through the pay-off of the Prior Credit Facility on December 4, 2024.

(7) On May 1, 2025, the Company entered into a $ 4.0 million equipment financing facility related to new manufacturing equipment that bears interest at 13.56 % and matures on October 31, 2028.

Under this loan agreement, equal quarterly payments of $ 383,679 will commence when the full amount of the facility is drawn and will continue through the maturity of the equipment financing facility on October 31, 2028.

Under this loan agreement, equal monthly payments of $ 100,000 commenced on May 24, 2021 and continued through the maturity of the equipment financing facility on April 24, 2026.

(6) On May 1, 2025, the Company entered into a $ 4.0 million equipment financing facility related to new manufacturing equipment.

On December 16, 2025, the equipment financing facility was amended and restated to reduce the financing proceeds to $ 0.7 million to be paid in equal quarterly payments of $ 69,022 The amended equipment financing facility bears interest at 13.6 % and will mature on December 16, 2028.

(7) On March 6, 2025, the Company entered into a $ 5.0 million equipment financing facility related to the Company’s existing manufacturing equipment that bears interest at 11.71 % and matures on June 30, 2028.

2 unchanged sentences

Fiscal Years Ending Amount

2030 - Thereafter $ 82,457

Total debt $ 108,313

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limit or restrict the ability of the Company to incur additional liens, make acquisitions or investments, incur additional indebtedness, engage in mergers, consolidations, liquidations, dissolutions, or dispositions, pay dividends or other restricted payments, prepay certain indebtedness, engage in transactions with affiliates, and use proceeds.

As of June 28, 2025, the Company was in compliance with all applicable financial covenants.

On May 13, 2025, the Company executed a first amendment and limited waiver to the Term Loan which waived an existing event of default as of that date.

Also on May 13, 2025, the Company executed a first amendment and limited waiver to the Credit Agreement which waived an existing event of cross-default as of that date.

Income tax benefit consists of the following:

As of June 27, 2026, the Company was in compliance with all applicable financial covenants under the Credit Agreement.

As noted above in (3), the Company was not in compliance with certain financial covenants for the local Mexico entity.

The Company was notified by the Banorte Financial Group that they have chosen to not exercise their right to accelerate the maturity of outstanding loans.

For the period ended June 27, 2026, the Company has prospectively adopted ASU 2023-09 (Improvements to Income Tax Disclosures).

The domestic and foreign components of loss before income taxes were:

Fiscal Year Ended

1 unchanged sentence

(in thousands)

Domestic $ ( 26,489 ) $ ( 19,691 )

Foreign 1,699 7,730

Loss before income taxes $ ( 24,790 ) $ ( 11,961 )

Income tax provision (benefit) consists of the following:

Fiscal Year Ended

June 27, 2026 June 28, 2025

(in thousands)

Current income tax provision (benefit):

United States $ 112 $ 263

Federal $ ( 106 ) $ ( 10 )

State and local 29 122

Foreign 673 2,841

$ 596 $ 2,953

Deferred income tax provision (benefit):

United States ( 5,546 ) ( 4,322 )

Federal $ 20,687 $ ( 5,101 )

State and local 838 ( 445 )

Foreign 882 ( 1,050 )

22,407 ( 6,596 )

Total income tax benefit $ ( 3,643 ) $ ( 2,400 )

Total income tax expense (benefit) $ 23,003 $ ( 3,643 )

The Company has gross tax credit carryforwards of approximately $ 12.2 million at June 27, 2026 consisting of federal research and development (R&D) tax credits.

1 unchanged sentence

A valuation allowance against deferred tax assets is required if it is more likely than not that some of the deferred tax assets will not be realized.

In spite of the Company’s current cumulative loss position before nonrecurring items such as cyber losses and restructuring costs, based upon the Company’s historical profitability and forecasted income, management determined that it is more likely than not that the deferred tax assets will be realized.

The Company’s largest deferred tax assets are federal research and development tax credits, deferred research and development expenses, and interest expense deduction carryforwards.

Company forecasts show that the credits will be utilized within the expiration period.

Deferred research and development expenses will be deductible in fiscal year 2026 under the One Big Beautiful Bill Act.

Interest expense deduction carryforwards, which never expire and carry forward indefinitely, are projected to be utilized in future periods as profitability increases and interest expense decreases.

Profitability is forecasted in the coming years due to the nonrecurrence of significant expense items in recent years such as cyber losses and restructuring costs, the future cost benefits associated with the restructuring costs, and significant income and increased margins from multiple new customers.

The Company has closely monitored the realizability of deferred tax assets, tracking book income, permanent differences, and nonrecurring items while projecting future utilization of deferred tax assets, and will continue to do so as future actual results are compared to forecasted results.

At June 27, 2026, the Company evaluated the realizability of its U.S.

federal and state deferred tax assets by considering all available positive and negative evidence.

The principal negative evidence included a significant cumulative loss in recent years in the U.S.

tax-paying group, continued annual U.S.

losses, and fiscal 2026 revenue and operating results below the levels reflected in prior forecasts.

At earlier fiscal 2026 reporting dates, management concluded that this negative evidence was outweighed by the positive evidence then available, including scheduled reversals of existing taxable temporary differences, the absence of a history of tax credit or operating loss carryforwards expiring unused, and forecasted future U.S.

taxable income associated with anticipated program ramps and operating improvements.

At March 28, 2026, the forecast continued to reflect a return to operating profitability during the fourth quarter and was supported by strong customer demand.

During the fourth quarter, actual U.S.

operating results did not achieve the timing or magnitude contemplated in the March 28, 2026, realizability assessment.

This additional actual-result evidence, considered together with previous forecast shortfalls and the significant cumulative U.S.

loss position, reduced the weight that could be placed on projected future taxable income as positive evidence.

Because future reversals of existing taxable temporary differences were insufficient to realize the net U.S.

deferred tax assets and no carryback or qualifying tax-planning strategies were available, management concluded at June 27, 2026, that it was no longer more likely than not that the affected deferred tax assets would be realized.

Accordingly, the Company recorded a full valuation allowance of approximately $ 28.4 million against its net U.S.

deferred tax assets, which increased income tax expense by approximately $ 28.4 million in the fourth quarter.

allowance, together with the valuation allowance recorded against deferred tax assets in China, resulted in a total valuation allowance of approximately

$ 29.5 million at June 27, 2026.

On January 27, 2021, the Company received official notice from the Vietnamese tax authorities, confirming tax benefits awarded related to the Company’s principal product line in Vietnam (the “Tax Holiday”).

Under the Tax Holiday, the tax rate applied to income derived from this product line will be zero percent for four years beginning with fiscal year 2021, then five percent for nine years, then ten percent for one year (as opposed to the normal twenty percent Vietnamese statutory rate).

Under the Tax Holiday, the tax rate applied to income derived from this product line will be zero percent for four years beginning with fiscal year 2021, then five

percent for nine years, then ten percent for one year (as opposed to the normal twenty percent Vietnamese statutory rate).

For fiscal year 2026, the impact of the Vietnam Tax Holiday on the effective tax rate was $ 177,000 or 1.0 percentage points.

The Company continuously evaluates impact of tax law and regulatory changes.

The Company noted no changes during the current quarter or fiscal year that would have a material impact on its provision for income taxes or overall income tax position.

After the end of fiscal year 2025, on July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, which includes several tax related provisions that may impact the Company beginning in fiscal year 2026.

The Company is still evaluating the implications, and it is expected that these tax law changes will mitigate federal income taxes payable, but it is not expected to materially impact the Company’s overall tax position and effective tax rate.

For fiscal year 2026, the Company evaluated the impact of enacted tax law changes, including the One Big Beautiful Bill Act (“OBBBA”) which was enacted on July 4, 2025, and reflected the effects of enacted changes in the measurement of current and deferred taxes as applicable.

These tax law changes mitigate federal income taxes payable, but do not materially impact the Company’s overall tax position and effective tax rate.

The 2017 Tax Cuts and Jobs Act (TCJA) mandated that, for tax years after fiscal year 2022, certain costs incurred for research and development (R&D) activities would no longer be allowed for immediate deduction but would be capitalized and amortized over 5 years (for R&D activities performed domestically) or 15 years (for R&D activities performed abroad).

The Company began capitalizing and amortizing such costs in fiscal year 2023, resulting in an increase to income taxes payable that was largely offset by the utilization of R&D credit carryovers.

However, one aspect of the OBBBA is to eliminate the capitalization requirement and the Company expects to expense any unamortized capitalized R&D costs in fiscal year 2026.

The OBBBA eliminated the capitalization requirement, applicable to the Company beginning in 2026.

In future years, repatriations of cash will generally be tax-free in the U.S.

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All other unremitted foreign earnings are expected to remain permanently reinvested for planned fixed assets purchases and improvements in foreign locations.

The Company’s effective tax rate differs from the federal tax rate as follows:

Income tax expense differed from the amounts computed by applying the U.S.

Federal statutory income tax rate to income (loss) before income taxes, as presented in conformity with ASU 2023-09 as follows:

Fiscal Year Ended

June 28, 2025 June 29, 2024

June 27, 2026

(in thousands) %

Tax at Statutory Rate $ ( 5,206 ) 21.0 %

State and local taxes, net of federal effect (1),(2)

968 ( 3.9 ) %

Domestic federal tax effects

Cross-border tax laws

GILTI and other foreign income inclusion 124 ( 0.5 ) %

Withholding tax ( 180 ) 0.7 %

Research & development tax credits ( 942 ) 3.8 %

Nontaxable and nondeductible items

Equity compensation 33 ( 0.1 ) %

Changes in valuation allowances 27,073 ( 109.2 ) %

Other ( 65 ) 0.3 %

Foreign tax effects

Statutory income tax rate differential ( 110 ) 0.4 %

Nondeductible expenses 4 — %

Changes in valuation allowances 1,033 ( 4.2 ) %

Statutory income tax rate differential 83 ( 0.3 ) %

Foreign exchange 90 ( 0.4 ) %

Inflation adjustments 65 ( 0.3 ) %

Fixed assets 126 ( 0.5 ) %

Nondeductible salaries 966 ( 3.9 ) %

Maquiladora deduction ( 857 ) 3.4 %

Other nondeductible expenses 23 ( 0.1 ) %

Tax incentives ( 177 ) 0.7 %

Statutory income tax rate differential ( 35 ) 0.2 %

Foreign exchange ( 16 ) 0.1 %

Income tax expense $ 23,003 ( 92.8 ) %

(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include Mississippi, Minnesota, and Arkansas for fiscal year 2026.

(2) The State and local taxes, net of federal effect, category includes $ 1.3 million, or ( 5.4 )%, related to changes in valuation allowances.

Income tax expense differed from the amounts computed by applying the U.S.

Federal statutory income tax rate to loss before income taxes, as presented prior to the adoption of ASU 2023-09 as follows:

Fiscal Year Ended

June 28, 2025

(in thousands)

Federal income tax provision at statutory rates $ ( 2,512 )

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Effect of income tax credits ( 569 )

Previously unrecognized tax benefits — ( 232 )

Inflation adjustments 115

Deferred income tax on unremitted foreign earnings ( 474 )

Global Intangible Low-Taxed Income (GILTI) tax — 53

Provision to return reconciliation ( 44 )

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Foreign exchange gains/losses unrealized for tax purposes ( 204 )

Other ( 8 ) ( 15 )

Income tax benefit $ ( 3,643 )

The domestic and foreign components of loss before income taxes were:

Cash paid for income taxes (net of refunds) by jurisdiction consists of the following:

(in thousands)

Fiscal Year Ended

June 28, 2025 June 29, 2024

June 27, 2026

(in thousands)

Domestic $ ( 19,691 ) $ ( 13,539 )

Foreign 7,730 8,352

Loss before income taxes $ ( 11,961 ) $ ( 5,187 )

State and Local 53

Total Foreign 1,606

Total income taxes paid, net $ 1,659

The amount of income taxes paid by the Company during the year ended June 28, 2025, was $ 1.0 million.

Deferred income tax assets and liabilities consist of the following at:

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Deferred tax assets:

Net operating loss $ 1,558 $ —

Tax credit carryforwards, net 9,171 8,121

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Other 326 389

Deferred income tax assets $ 30,416 $ 27,089

Total gross deferred income tax assets $ 43,226 $ 30,416

valuation allowance ( 29,453 ) —

Total net deferred income tax assets $ 13,773 $ 30,416

Deferred tax liabilities:

Accrued withholding tax - unremitted earnings $ ( 93 ) $ ( 287 )

Property, plant, and equipment — ( 127 )

Right-of-use assets ( 6,038 ) ( 2,737 )

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Additions based on tax positions related to the current year 100 80

Adjustment to prior year tax positions & amended tax returns ( 16 ) ( 7 )

Adjustment to prior year tax positions and amended tax returns 5 ( 16 )

Lapse of statute of limitations — —

Ending balance $ 3,068 $ 2,963

The $ 3.0 million of unrecognized tax benefits at the end of fiscal year 2025, if recognized, would reduce the effective tax rate.

Management does not anticipate any material changes to this amount during the next 12 months.

The $ 3.1 million of unrecognized tax benefits at the end of fiscal year 2026, if recognized, would increase the deferred tax assets and corresponding valuation allowance, having no impact on the effective tax rate.

The Company recognizes interest accrued related to unrecognized tax benefits and penalties in its income tax provision.

The Company has not recognized any interest or penalties in the fiscal years presented in these financial statements.

is subject to income tax in the U.S.

The Company is subject to income tax in the U.S.

federal jurisdiction, various state jurisdictions, Mexico, China and Vietnam.

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Antidilutive stock-based awards not included in diluted earnings per share 181 11

STOCK-BASED COMPENSATION AND BENEFIT PLANS

SHARE-BASED COMPENSATION AND BENEFIT PLANS

The Company’s 2024 Incentive Plan provides for equity and liability awards to employees and non-employee directors with service and performance vesting conditions in the form of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards.

The 2024 Incentive Plan replaced the previous 2010 Incentive Plan, which provided for similar awards, and expired on October 24, 2024.

At June 28, 2025, 1,596,135 shares were available for grant from the 2024 Incentive Plan.

New shares of common stock are issued upon the exercise of SARs or when vesting conditions on restricted stock units are fully satisfied.

Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses.

At June 27, 2026, 1,135,150 shares were available for grant under the 2024 Incentive Plan.

Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of sales, research, development and engineering, and selling, general and administrative expenses.

Share-based compensation is recognized only for those awards that are expected to vest.

For SARs awards forfeitures are estimated at the date of grant based on historical experience and future expectations.

Due to a lack of historical experience and a different grant pool than SARs, forfeitures for restricted stock units are accounted for prospectively as they occur.

Stock Appreciation Rights

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Price Weighted

Balance, July 1, 2023 626,250 $ — $ 6.41 2.2

Outstanding, June 30, 2024 387,500 $ — $ 5.78 1.8

SARs forfeited ( 136,250 ) — 7.17

SARs expired ( 115,000 ) 4.93

Balance, June 30, 2024 387,500 $ — 5.78 1.8

Outstanding, June 28, 2025 136,250 $ — $ 5.10 2.1

SARs forfeited ( 136,250 ) 5.10

SARs expired ( 115,000 ) 4.93

Balance, June 28, 2025 136,250 $ — $ 5.10 2.1

Exercisable at June 28, 2025 — — — —

Outstanding, June 27, 2026 — $ — $ — —

Exercisable, June 27, 2026 — $ — $ — —

The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs.

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This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated.

Total SARs expense recognized during fiscal years ended June 28, 2025 and June 29, 2024 was approximately $( 141,000 ) and $( 400,000 ), respectively

No SARs expense was recognized during fiscal year ended June 27, 2026 and $( 141,000 ) was recognized during fiscal year ended June 28, 2025.

There were no SARs exercised during fiscal years ended June 27, 2026 or June 28, 2025.

As of June 28, 2025, there is no unrecognized compensation expense for SARs awards due to unachieved performance.

Restricted Stock Units

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The fair value of restricted stock units is the market close price on the date of grant.

The Company granted 329,457 restricted stock units at a weighted average grant date fair value of $ 4.52 per share during the fiscal year ended June 28, 2025.

During the same period, 47,880 restricted stock units with a weighted average grant date fair value of $ 4.52 per share were forfeited due to not meeting the minimum performance threshold as of June 28, 2025 .

Total restricted stock unit expense recognized during the fiscal year ended June 28, 2025 was approximately $ 359,000 .

The following table is a summary of restricted stock unit activity:

Number of Restricted Stock Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in

Outstanding, June 30, 2024 — —

Granted 329,457 4.52

Forfeited ( 47,880 ) 4.52

Outstanding, June 28, 2025 281,577 $ 4.52

Granted 552,375 2.79

Released ( 97,398 ) 4.52 285

Forfeited ( 137,574 ) 3.42

Outstanding, June 27, 2026 598,980 $ 3.18

Vested but not released, June 27,2026 —

Total restricted stock unit expense recognized during the fiscal years ended June 27, 2026 and June 28, 2025 was approximately $ 633,000 and $ 359,000 .

As of June 27, 2026 total unrecognized compensation expense on restricted stock units was $ 1.4 million, which is expected to be recognized over a weighted average period of approximately 1.6 years.

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employees who have attained age 21.

Company contributions to the plans were approximately $ 1.4 million during fiscal years ended June 28, 2025 and $ 1.3 million during June 29, 2024, respectively.

Company contributions to the plans were approximately $ 1.3 million and $ 1.4 million during the fiscal years ended June 27, 2026 and June 28, 2025, respectively.

COMMITMENTS AND CONTINGENCIES

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The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty.

If actual return rates and/or repair and replacement costs differ significantly from management's estimates, adjustments to recognize additional cost of sales may be required in future

If actual return rates and/or repair and replacement costs differ significantly from management's estimates, adjustments to recognize additional cost of sales may be required in future periods.

As of June 27, 2026 and June 28, 2025, the reserve for warranty costs was approximately $ 25,279 and $ 26,047 respectively.

Please refer to Footnote “Leases” of the “Notes to Consolidated Financial Statements” for information regarding lease commitments.

Internal Investigation

Internal Investigation and SEC Settlement

During fiscal year 2021, the Company’s Audit Committee completed an internal investigation arising from a notification from an employee regarding certain alleged accounting irregularities.

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The investigation did not result in a restatement of our previously filed financial statements.

The Company is cooperating with the Securities and Exchange Commission’s (the “SEC”) inquiries related to the internal investigation.

The Company cannot currently form an estimate of any possible loss or range of loss, including any potential monetary penalties;

or other remedies potentially imposed by the SEC.

On April 20, 2026, the Company, its CEO Brett R.

Larsen, and employee, Nicholas S.

Fasciana, settled books and records and internal controls charges with the Securities and Exchange Commission (“SEC”), fully resolving the previously disclosed SEC inquiries, which related to the Company’s response to the employee’s notification and related earnings release disclosure.

Under the terms of the SEC Order, each of the Company, Mr.

Larsen, and Mr.

Fasciana agreed to cease-and-desist from committing or causing any violations or any future violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Mr.

Fasciana also agreed to cease-and-desist from committing or causing any violations or any future violations of Section 13(b)(5) of the Exchange Act.

The Company was not required to pay any civil penalty or other payments in connection with the settlement.

Indemnification Rights

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As of June 27, 2026, the Company had outstanding foreign currency forward contracts with a total notional amount of $ 10.7 million.

The maturity dates for these contracts extend through December 2025.

The maturity dates for these contracts extend through the third quarter of fiscal year 2027.

For the three months ended June 27, 2026, the Company did not enter into any foreign currency forward contracts and settled $ 8.7 million of such contracts.

During the same period of the previous year, the Company entered $ 12.5 million of foreign currency forward contracts and did not settle any of such contracts.

For the twelve months ended June 28, 2025, the Company entered into $ 29.0 million of foreign currency forward contracts and settled $ 28.6 million of such contracts.

During the same period of the previous year, the Company did no t enter into any foreign currency forward contracts and settled $ 8.0 million of such contracts.

During the twelve months ended June 27, 2026, the Company entered into $ 27.0 million of foreign currency forward contracts and settled $ 29.1 million of such contracts.

During the same period of the previous year, the Company entered into $ 29.0 million of foreign currency forward contracts and settled $ 28.6 million of such contracts.

Changes in the fair value of the forward contracts are recognized as a component of OCI and will be recognized in cost of sales when the hedged item affects earnings.

The amount of net gains expected to be reclassified into earnings in the next 6 months is $ 1.1 million.

On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of November 1, 2023, related to the borrowings outstanding under the line of credit with Wells Fargo Bank.

This interest rate swap contract was terminated on August 14, 2020 when the Company entered into the Loan Agreement with Bank of America.

On the date of termination this interest rate swap was in a liability position of $ 776,500 , which has been amortized to interest expense over the original term of the swap.

The amount of net gains expected to be reclassified into earnings in the next 12 months is $ 238,000 .

The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of June 27, 2026 and June 28, 2025 (in thousands):

1 unchanged sentence

Foreign currency forward contracts Other current assets $ 308 $ 1,330

Foreign currency forward contracts Other current liabilities $ — $ ( 277 )

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the fiscal year 2025 and 2024, respectively (in thousands):

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the twelve months ended June 27, 2026 and June 28, 2025, respectively (in thousands):

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

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Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

July 1, 2023 Effective

June 29, 2024 Effective

AOCI Effective Portion

3 unchanged sentences

Forward contracts Cost of sales $ 215 ( 2,803 ) 1,559 $ ( 1,029 )

Interest rate swap Interest expense ( 97 ) — 97 —

Total $ 215 ( 2,803 ) 1,559 ( 1,029 )

As of June 27, 2026, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China and Vietnam operations.

The Company is subject to the risk of fluctuating interest rates from our lines of credit and foreign currency risk resulting from our China and Vietnam operations.

The Company does not currently manage these risk exposures by using derivative instruments.

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In accordance with the adoption of ASU 2023-07 in 2025, the Company determined that significant segment measures included gross profit which is primarily composed of materials and labor costs as follows (in thousands).

The other category includes various expenses such as depreciation, lease expense, utilities, supplies, maintenance, and other operating costs.

Twelve Months Ended

45 unchanged sentences

Contract Assets

Beginning balance, July 1, 2023

Beginning balance, June 29, 2024

Revenue recognized $ 443,294

1 unchanged sentence

Ending balance, June 28, 2025

The Company also has long term contract assets of approximately $ 4.7 million at June 27, 2026, and $ 10.4 million at June 28, 2025, classified under Other long-term assets in the condensed consolidated balance sheet.

No revenue was recognized, and approximately $ 0.8 million was collected or invoiced related to these balances during the period.

The remaining decrease relates to a provision for credit losses that was booked during 2026.

The remaining performance obligations related to these amounts are tied to the manufacturing of electronic products.

Disaggregation of Revenue

The following table presents the Company’s revenue disaggregated for the twelve months ended June 28, 2025, the twelve months ended June 29, 2024, (in thousands):

The following table presents the Company’s revenue disaggregated for the twelve months ended June 27, 2026, and the twelve months ended June 28, 2025, (in thousands):

Recognition June 27, 2026 June 28, 2025

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Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability.

For operating leases, management assumed a discount rate of 4.07 %.

For operating leases, management assumed a discount rate of 4.0 % to 9.5 % .

The weighted average discount rate is disclosed in the tables below.

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2029 4,468 1,534

2030 3,963 50

Thereafter 10,541 —

2 unchanged sentences

Total lease liabilities $ 26,550 $ 7,620

As of June 28, 2025, we have additional operating and finance leases for commercial properties and equipment that have not yet commenced with future lease payments of approximately $ 28.6 million and $ 5.1 million, respectively.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

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-K

Item 8. Financial Statements and Supplementary Data