What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-05-06 compared with 2025-05-07 · 27 added, 29 removed, 170 unchanged (25% of the section changed)

47 unchanged sentences

We believe our spintronic sensors are smaller, more precise, more reliable, and lower power than competing devices.

Our major market for standard sensors is the Industrial Internet of Things (IIoT) for factory automation.

Our major markets for standard sensors are the Industrial Internet of Things (IIoT) and the Artificial Intelligence of Things (AIoT) for factory automation.

Custom and medical sensors

7 unchanged sentences

Couplers are also known as “isolators” because they electrically isolate the coupled systems.

Our major coupler markets are power conversion and the IIoT.

Our couplers enable more efficient power conversion and interconnections to implement the IIoT for advanced factory automation.

Our major coupler markets are power conversion, IIoT, and AIoT.

Our couplers enable more efficient power conversion and interconnections to implement IIoT, and AIoT for advanced factory automation.

Power Products and Markets

Power products include voltage regulators, interface ICs, DC-to-DC convertors, and products that combine couplers and DC-to-DC convertors to transmit energy as well as data.

Our isolated DC-to-DC convertors transfer energy between systems without direct electrical connections and are used in energy conversion systems and industrial networks for the IIoT.

Our isolated DC-to-DC convertors transfer energy between systems without direct electrical connections and are used in energy conversion systems and industrial networks for IIoT, and AIoT.

Energy conversion applications include battery energy storage systems and hybrid/electric vehicles.

13 unchanged sentences

We build spintronics structures on wafers in our fabrication facility and do wafer-level inspection and testing.

We either dice wafers to be sold in die form, send wafers to Asia for dicing and packaging, or process wafers into Wafer-Level Chip-Scale Parts (WLCSPs).

Packaged parts are returned to us to be tested, inventoried, and shipped.

Alternatively, the process to convert wafers to WLCSPs includes attaching solder balls, electrical testing, and wafer dicing.

We either dice wafers to be sold in die form, process wafers into Wafer-Level Chip-Scale Parts (WLCSPs), or send wafers to Asia for dicing and packaging.

The process to convert wafers to WLCSPs includes attaching solder balls, electrical testing, and wafer dicing.

Alternatively, packaged parts are returned to us to be tested, inventoried, and shipped.

Our facility has been certified under the ISO 9001:2015 quality management standard and is an Approved Place of Manufacture under ECS/CIG 021-024:

6 unchanged sentences

New Product Status

In the past year, we began marketing several new and improved products, including:

· high-sensitivity ultraminiature sensors;

· a new type of rotation sensor;

· our first Wafer-Level Chip-Scale sensors;

· advanced position sensors;

· new product evaluation boards.

In the past fiscal year, we began marketing several new and improved products, including:

· new Wafer-Level Chip-Scale sensors;

· new gear-tooth rotation sensors;

· new angle rotation sensors.

Long-term product development programs in fiscal 2026 included:

· ultrahigh-sensitivity TMR sensors;

· ultrahigh-low power TMR sensors;

· next-generation sensors for hearing aids and implanted medical devices;

· wafer-level chip-scale devices;

· next-generation MRAM for antitamper applications.

19 unchanged sentences

Our principal sources of raw materials include suppliers of raw silicon and semiconductor foundry wafers that are incorporated into our products, and suppliers of device packaging services.

Our wafer sources are based around the world;

We have worldwide wafer sources;

most of our packaging services take place in Asia.

16 unchanged sentences

Government Regulations

We are subject to government regulations including, but not limited to, regulations related to environmental matters, tax matters, securities regulations, conflict minerals, ethics and foreign corrupt practices, import and export controls, tariffs and duties on incoming and outgoing goods, product safety and liability, workplace health and safety, labor and employment, and data privacy.

We are subject to government regulations including, but not limited to, federal, state, and local regulations related to environmental matters, tax matters, securities regulations, conflict minerals, ethics and foreign corrupt practices, import and export controls, tariffs and duties on incoming and outgoing goods, product safety and liability, workplace health and safety, labor and employment, and data privacy.

We incur and expect to continue to incur costs and expenses to comply with these regulations and may incur penalties for any failure to do so.

9 unchanged sentences

We had no contingent workers.

Our hiring was limited in fiscal 2025, in line with depressed industry conditions.

Workforce Demographics

7 unchanged sentences

As is the case with many technology companies, female employees are underrepresented in our workforce, particularly in engineer and technician jobs.

We provide opportunities for equipment operators (a job where female employees are well represented) to advance to technician and engineer positions, including internal equipment training, tuition reimbursement, and scheduling flexibility to attend classes.

We provide opportunities for employees to advance to technician and engineer positions, including internal training, tuition reimbursement, and scheduling flexibility to attend classes.

Racial Demographics

3 unchanged sentences

White or Caucasian

Thirty-three percent of our employees are from underrepresented groups, compared to 18% for the State.

Educational Demographics

We have a highly educated workforce.

Forty-three percent of our employees have bachelor’s or advanced degrees compared to 26% of all Minnesota workers.

Forty-eight percent of our employees have bachelor’s or advanced degrees compared to 26% of all Minnesota workers.

Employee Turnover

Our voluntary employee turnover was 4% for fiscal 2025.

Voluntary turnover is calculated as the number of regular full-time employees as of March 31, 2024 who left voluntarily in the year ended March 31, 2025 (excluding retirements), divided by the average number of employees.

We define average number of employees as the average of the employees at the beginning and at the end of the fiscal year.

Our voluntary employee turnover was 7% for fiscal 2026, which is much lower than the semiconductor industry average of 16.4%.

Voluntary turnover is calculated as the number of regular full-time employees as of March 31, 2025 who left voluntarily in the year ended March 31, 2026 (excluding retirements), divided by the average number of full-time employees.

We define average number of employees as the average of the number of full-time employees at the beginning and at the end of the fiscal year.

Executive Demographics

1 unchanged sentence

All three are male;

one identifies as African American.

one is African American.

Board of Directors Demographics

Two of our five directors are women;

one identifies as Asian.

Women and Families

We have family-friendly policies and fully comply with the Minnesota Women’s Economic Security Act (WESA) by providing reasonable accommodations to employees for health conditions related to pregnancy or childbirth and up to 12 weeks of pregnancy and parental leave.

Additionally, Minnesota’s paid family and medical leave law, which provides paid time off during or following a pregnancy, goes into effect on January 1, 2026.

We are preparing for the timely implementation of such paid leave.

Two of our five directors are women and one is Asian American.

Paid Family and Medical Leave

As required by Minnesota law, we have implemented a paid family and medical leave plan, which provides up to 20 weeks paid leave per benefit year for various reasons, including an employee’s own serious health condition, bonding with a new child, caring for a family member with a serious condition, and certain safety leaves.

We are funding the direct costs of potential paid leaves through private insurance.

The cost of the insurance is shared equally between the Company and employees.

We are exposed to costs and expenses of employee absences related to the plan.

Employee Benefits

13 unchanged sentences

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 1. Business