What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-01-21 compared with 2025-10-22 · 52 added, 41 removed, 259 unchanged (26% of the section changed)

5 unchanged sentences

Cash and cash equivalents

Marketable securities, short-term (amortized cost of $ 12,597,421 as of September 30, 2025, and $ 13,730,266 as of March 31, 2025)

Marketable securities, short-term (amortized cost of $ 17,137,942 as of December 31, 2025, and $ 13,730,266 as of March 31, 2025)

Accounts receivable, net of allowance for credit losses of $15,000

5 unchanged sentences

Less accumulated depreciation and amortization

Net fixed assets

Fixed assets, net

Deferred tax assets

Marketable securities, long-term (amortized cost of $ 27,771,414 as of September 30, 2025, and $ 26,353,692 as of March 31, 2025)

Marketable securities, long-term (amortized cost of $ 23,310,800 as of December 31, 2025, and $ 26,353,692 as of March 31, 2025)

Right-of-use asset – operating lease

9 unchanged sentences

Common stock, $ 0.01 par value, 6,000,000 shares authorized;

4,837,166 issued and outstanding as of September 30, 2025 and March 31, 2025

4,837,166 issued and outstanding as of December 31, 2025 and March 31, 2025

Additional paid-in capital

7 unchanged sentences

STATEMENTS OF INCOME

Quarter Ended September 30,

Quarter Ended December 31,

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Quarter Ended September 30,

Unrealized gain from marketable securities, net of tax

Quarter Ended December 31,

Unrealized gain (loss) from marketable securities, net of tax

Comprehensive income

2 unchanged sentences

STATEMENTS OF INCOME

Six Months Ended September 30,

Nine Months Ended December 31,

Product sales

14 unchanged sentences

STATEMENTS OF COMPREHENSIVE INCOME

Six Months Ended September 30,

Nine Months Ended December 31,

Unrealized gain from marketable securities, net of tax

18 unchanged sentences

Balance as of September 30, 2025

Comprehensive income:

Unrealized gain on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends ($1.00 per share of common stock)

Balance as of December 31, 2025

* Balances as of March 31, 2025 are derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

18 unchanged sentences

Balance as of September 30, 2024

Exercise of stock options

Comprehensive income:

Unrealized loss on marketable securities, net of tax

Total comprehensive income

Stock-based compensation

Cash dividends ($1.00 per share of common stock)

Balance as of December 31, 2024

* Balances as of March 31, 2024 are derived from the audited financial statements contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

2 unchanged sentences

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,

Nine Months Ended December 31,

OPERATING ACTIVITIES

11 unchanged sentences

INVESTING ACTIVITIES

Purchases of fixed assets

Purchases of marketable securities

Proceeds from maturities of marketable securities

Purchases of fixed assets

Net cash used in investing activities

FINANCING ACTIVITIES

Payments on exercise of stock options

Payment of dividends to shareholders

Net proceeds from exercise of stock options

Net cash used in financing activities

18 unchanged sentences

A description of our significant accounting policies and estimates is provided in Note 2 to the Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

As of September 30, 2025, there were no changes to our significant accounting policies or estimates.

As of December 31, 2025, there were no changes to our significant accounting policies or estimates.

NEW ACCOUNTING STANDARDS NOT YET ADOPTED

27 unchanged sentences

The following tables show the components of diluted shares:

Quarter Ended September 30,

Quarter Ended December 31,

Weighted average common shares outstanding – basic

1 unchanged sentence

Shares used in computing net income per share – diluted

Six Months Ended September 30,

Nine Months Ended December 31,

Weighted average common shares outstanding – basic

2 unchanged sentences

MARKETABLE SECURITIES

The following table shows the major categories of our marketable securities and their contractual maturities as of September 30, 2025:

The following table shows the major categories of our marketable securities and their contractual maturities as of December 31, 2025:

Money market funds

1 unchanged sentence

Corporate bonds

Total marketable securities and money market funds represented approximately 74% of our total assets as of September 30, 2025.

Marketable securities as of September 30, 2025, had remaining maturities between 16 weeks and 43 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included in “Marketable securities, short term” and “Marketable securities, long term.” Treasury securities are included in “Marketable securities, long term.” Accrued interest receivables were $ 400,667 as of September 30, 2025, and $ 340,241 as of March 31, 2025, and are included in the balance sheets in “Prepaid expenses and other assets.”

Total marketable securities and money market funds represented approximately 73% of our total assets as of December 31, 2025.

Marketable securities as of December 31, 2025, had remaining maturities between three weeks and 40 months.

Money market funds are included on the balance sheets in “Cash and cash equivalents.” Corporate bonds are included in “Marketable securities, short term” and “Marketable securities, long term.” Treasury securities are included in “Marketable securities, long term.” Accrued interest receivables were $ 382,896 as of December 31, 2025, and $ 340,241 as of March 31, 2025, and are included in the balance sheets in “Prepaid expenses and other assets.”

We monitor the credit ratings of our marketable securities at least quarterly as reported by Standard & Poor’s.

The following table summarizes the fair values of our marketable securities as of September 30, 2025, aggregated by credit rating:

The following table summarizes the fair values of our marketable securities as of December 31, 2025, aggregated by credit rating:

Credit Rating

The following table shows the estimated fair value of our marketable securities, aggregated by fair value hierarchy inputs used in estimating their fair values:

As of September 30, 2025

As of December 31, 2025

As of March 31, 2025

2 unchanged sentences

Corporate bonds

Our available-for-sales securities as of September 30 and March 31, 2025, aggregated into classes of securities, were as follows:

As of September 30, 2025

Our available-for-sale securities as of December 31 and March 31, 2025, aggregated into classes of securities, were as follows:

As of December 31, 2025

As of March 31, 2025

2 unchanged sentences

Corporate bonds

The following table shows the gross unrealized holding losses and estimated fair value of our marketable securities, aggregated by category of securities and length of time that individual securities had been in a continuous unrealized loss position as of September 30 and March 31, 2025.

Less Than 12 Months

12 Months or Greater

As of September 30, 2025

As of December 31, 2025

Corporate bonds

5 unchanged sentences

Unrealized gains on our marketable securities and their tax effects are as follows:

Quarter Ended September 30,

Quarter Ended December 31,

Unrealized gain on marketable securities

Unrealized gain on marketable securities, net of tax

Six Months Ended September 30,

Unrealized gain (loss) on marketable securities, net of tax

Nine Months Ended December 31,

Unrealized gain on marketable securities

7 unchanged sentences

STOCK-BASED COMPENSATION

Stock-based compensation expense was $ 66,312 for the second quarter of fiscal 2026, $ 105,203 for the second quarter of fiscal 2025, $ 73,150 for the first six months of fiscal 2026, and $ 123,645 for the first six months of fiscal 2025.

Stock-based compensation expense was $ 10,257 for the third quarter of fiscal 2026, $ 14,261 for the third quarter of fiscal 2025, $ 83,407 for the first nine months of fiscal 2026, and $ 137,906 for the first nine months of fiscal 2025.

We calculate share-based compensation expense using the Black-Scholes-Merton standard option-pricing model .

Quarter Ended

September 30,

Six Months Ended

September 30,

Nine Months Ended

Stock options grant

1 unchanged sentence

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

As of September 30, 2025, federal and state estimated tax overpayments of $ 462,533 were included in the balance sheet in “Prepaid expenses and other assets.”

We had no unrecognized tax benefits as of September 30, 2025, and we do no t expect any significant unrecognized tax benefits within 12 months of the reporting date.

As of December 31, 2025, federal estimated tax overpayments of $ 181,860 were included in the balance sheet in “Prepaid expenses and other assets” and a state tax balance due of $809 was included in “Accrued payroll and other.”

We had no unrecognized tax benefits as of December 31, 2025 and March 31, 2025, and we do no t expect any significant unrecognized tax benefits within 12 months of the reporting date.

We recognize interest and penalties related to income tax matters in income tax expense.

As of September 30, 2025, we had no accrued interest related to uncertain tax positions.

As of December 31, 2025, we had no accrued interest related to uncertain tax positions.

The tax years ended March 31, 2021 through March 31, 2025 remain open to examination by the major taxing jurisdictions to which we are subject.

4 unchanged sentences

Details of our lease are as follows:

Quarter Ended Sept.

Six Months Ended Sept.

Quarter Ended Dec.

Nine Months Ended Dec.

Operating lease cost

6 unchanged sentences

Discount rate

The following table shows the maturities of lease liabilities as of September 30, 2025:

The following table shows the maturities of lease liabilities as of December 31, 2025:

Year Ending March 31,

10 unchanged sentences

We intend to finance any stock repurchases with cash provided by operating activities or maturing marketable securities.

The remaining authorization was $ 3,520,369 as of September 30, 2025.

The remaining authorization was $ 3,520,369 as of December 31, 2025.

We have no t repurchased any of our Common Stock during fiscal 2026.

3 unchanged sentences

We make matching contributions of 100 % of the first 3 % of participants’ salary deferral contributions.

Our matching contributions were $ 23,742 for the second quarter of fiscal 2026, $ 21,300 for the second quarter of fiscal 2025, $ 52,575 for the first six months of fiscal 2026, and $ 50,067 for the first six months of fiscal 2025.

Our matching contributions were $ 24,462 for the third quarter of fiscal 2026, $ 22,375 for the third quarter of fiscal 2025, $ 77,037 for the first nine months of fiscal 2026, and $ 72,442 for the first nine months of fiscal 2025.

SUBSEQUENT EVENTS

On October 22, 2025 , we announced that our Board of Directors had declared a quarterly cash dividend of $ 1.00 per share of Common Stock to be paid November 28, 2025 , to shareholders of record as of the close of business on November 3, 2025 .

On January 21, 2026 , we announced that our Board of Directors had declared a cash dividend of $ 1.00 per share of Common Stock, to be paid on February 27, 2026 , to shareholders of record as of the close of business on February 2, 2026 .

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

What changed 10-Q

Item 1. Financial Statements