9 unchanged sentences
Stock Repurchase Program
−Removed: We did not repurchase any shares in fiscal 2025 or fiscal 2024.
+Added: We did not repurchase any shares in fiscal 2026 or fiscal 2025, as we have found that dividends are a more efficient method of returning cash to our shareholders.
Our Stock Repurchase Program may be modified or discontinued at any time without notice.
29 unchanged sentences
Our inventory reserve was $215,000 as of March 31, 2026 and March 31, 2025.
−Removed: Deferred Tax Assets Estimation
+Added: Deferred Tax Estimation
In determining the carrying value of our net deferred tax assets, we must assess the likelihood of sufficient future taxable income in certain tax jurisdictions, based on estimates and assumptions to realize the benefit of these assets.
1 unchanged sentence
No valuation allowance was recorded as we believe it is more likely than not that all of the deferred tax assets will be realized.
−Removed: We had $1,867,069 of net deferred tax assets as of March 31, 2025 and $1,453,704 as of March 31, 2024.
−Removed: Net deferred tax assets include $118,810 in deferred tax assets for stock-based compensation deductions as of March 31, 2025, and $101,668 as of March 31, 2024.
+Added: We had net deferred tax liabilities of $248,284 as of March 31, 2026 and net deferred tax assets of $1,867,069 as of March 31, 2025.
+Added: Net deferred tax liabilities as of March 31, 2026 include $139,228 for stock-based compensation deductions and net deferred tax assets as of March 31, 2025 include $118,810 for stock-based compensation deductions.
Results of Operations
8 unchanged sentences
Selling, general, and administrative
−Removed: Credit loss expense
Total expenses
3 unchanged sentences
Provision for income taxes
−Removed: Total revenue for fiscal 2025 decreased 13% compared to fiscal 2024 due to a 16% decrease in product sales, partially offset by a 112% increase in contract research and development revenue.
−Removed: The decrease in product sales was primarily due to decreased purchases by existing customers.
−Removed: The increase in contract research and development revenue was due to new contracts in fiscal 2025.
−Removed: Gross profit as a percentage of revenue increased to 84% for fiscal 2025 from 77% for fiscal 2024.
−Removed: The increase in gross margin percentage was due to a more profitable product mix and a larger portion of direct rather than distributor sales.
−Removed: Total expenses increased 25% for fiscal 2025 compared to fiscal 2024 due to a 33% increase in research and development expense and a 13% increase in selling, general, and administrative expense.
−Removed: The increase in research and development expense was due to increased new product development.
−Removed: The increase in selling, general, and administrative expenses was primarily due to increased sales and marketing activities.
−Removed: Interest income for fiscal 2025 decreased 2% due to a decrease in marketable securities, partially offset by higher yields on marketable securities purchased during the past year.
−Removed: Other income for fiscal 2025 was primarily from reclaiming precious metals used in our manufacturing process.
−Removed: The 12% decrease in net income for fiscal 2025 compared to the prior year was primarily due to decreased revenue and increased operating expenses, partially offset by increased gross profit margin.
+Added: Total revenue for fiscal 2026 increased 1.8% compared to fiscal 2025 due to a 2.4% increase in product sales, partially offset by an 11% decrease in contract research and development revenue.
+Added: The increase in product sales was primarily due to price increases and increased purchases by existing customers.
+Added: The decrease in contract research and development revenue was due to the completion of certain research and development contracts.
+Added: Gross profit was 79% of revenue for fiscal 2026 compared to 84% for fiscal 2025.
+Added: The decrease in gross margin percentage was due to a less profitable product mix and increased distributor sales.
+Added: Distributor sales typically have lower gross margin than direct sales.
+Added: Total expenses decreased 15% for fiscal 2026 compared to fiscal 2025 due a 13% decrease in research and development expense and an 18% decrease in selling, general, and administrative expense.
+Added: The decrease in research and development expense was due to the completion of some of our wafer-level chip scale packaging activities and reassignment of some research and development resources to manufacturing.
+Added: The decrease in selling, general, and administrative expenses was primarily due to reassignment of some selling, general and administrative resources to manufacturing and new product development.
+Added: Other income decreased by $131,465 for fiscal 2026 compared to fiscal 2025.
+Added: Other income in fiscal 2025 was primarily from reclaiming precious metals used in our manufacturing process in the prior year.
+Added: Our effective tax rate, which is the provision for income taxes as a percentage of income before taxes, decreased to 15% for fiscal 2026 compared to 16% for fiscal 2025.
+Added: The decrease in our effective tax rate was primarily due to an increase in research and development and manufacturing tax credits, partially offset by a decrease in foreign-derived intangible income deductions.
+Added: The fiscal 2026 provision for income taxes included $1,067,993 in advanced manufacturing investment tax credits.
+Added: We expect such credits to decrease significantly in fiscal 2027 since we expect manufacturing equipment purchases to decrease significantly with the completion of our expansion.
+Added: Net income increased 1% to $15,199,195 for fiscal 2026 compared to $15,064,516 the prior year.
+Added: The increase was primarily due to increased revenue, decreased expenses, and decreased taxes, partially offset by decreased gross profit margin and decreased other income.
Liquidity and Capital Resources
1 unchanged sentence
Cash and cash equivalents were $1,714,040 as of March 31, 2026, compared to $8,036,564 as of March 31, 2025.
−Removed: The $2,246,986 decrease in cash and cash equivalents was due to $19,225,522 of net cash used in financing activities, partially offset by $14,310,418 of cash provided by operating activities and $2,668,118 of net cash provided by investing activities.
+Added: The $6,322,524 decrease in cash and cash equivalents was due to $19,348,664 of cash used in financing activities and $3,631,857 of net cash used in investing activities, partially offset by $16,657,997 of cash provided by operating activities.
Operating Activities
Net cash provided by operating activities related to product sales and research and development contract revenue was our primary source of working capital for fiscal 2026 and 2025.
−Removed: Net cash provided by operating activities was $14,310,418 for fiscal 2025 compared to $18,247,411 for fiscal 2024.
−Removed: Accounts receivable increased $444,435 during fiscal 2025 due to increased revenue in the fourth quarter of fiscal 2025 compared to the prior-year quarter and the timing of customer payments.
−Removed: Inventory increased $290,498 during fiscal 2025 due to increased costs and our decisions to maintain inventories as a buffer against supply-chain disruptions or other disruptions such as tariffs.
−Removed: Prepaid expenses and other assets decreased $255,935 primarily due to the differences in Federal and State taxes compared to estimated taxes paid.
+Added: Net cash provided by operating activities increased to $16,657,997 for fiscal 2026 compared to $14,310,418 for fiscal 2025.
+Added: Non-cash operating lease expenses decreased $107,863 primarily due to our receipt of a $100,000 leasehold improvement allowance.
+Added: Accounts receivable decreased $180,327 primarily due to the timing of customer payments.
+Added: Inventories decreased $366,262 primarily due to increased product sales and conversion of raw materials and work-in-process inventories to finished goods to support increased product demand.
+Added: Prepaid expenses and other assets increased $1,427,001 primarily due to increased accrued bond interest and overpayment of Federal estimated taxes for fiscal 2026.
+Added: Accrued payroll and other current liabilities decreased $173,557 primarily due to the payment of federal and state taxes balance due as of March 31, 2025 in the first quarter of fiscal 2026.
Investing Activities
−Removed: Net cash provided by investing activities in fiscal 2025 consisted of $15,205,000 in proceeds from maturities of marketable securities, partially offset by $1,257,109 of fixed asset purchases and $11,279,773 of marketable securities purchases.
−Removed: Fixed asset purchases consist primarily of a $1,125,437 downpayment on production equipment that has not been placed into service, and is expected to be delivered in fiscal 2026.
−Removed: We plan to significantly increase fixed asset purchases in fiscal 2026 compared to fiscal 2025 to between $2,000,000 and $3,000,000 to support increases in production capacity and new product development.
−Removed: These plans are subject to change.
−Removed: We expect to finance future capital equipment purchases with a combination of cash provided by operating activities and marketable security maturities.
+Added: Net cash used in investing activities for fiscal 2026 consisted of $15,242,719 of marketable securities purchases and $2,189,138 of fixed asset purchases, partially offset by $13,800,000 in proceeds from maturities of marketable securities.
+Added: Fixed asset purchases were primarily of production equipment.
+Added: We expect fixed asset purchases to decrease significantly in fiscal 2027 with the completion of our expansion.
Financing Activities
−Removed: Net cash used in financing activities in fiscal 2025 consisted of $19,339,684 of cash dividends paid to shareholders, partially offset by $114,162 in proceeds from the exercise of stock options.
+Added: Net cash used in financing activities in fiscal 2026 consisted of $19,348,664 of cash dividends paid to shareholders.
In addition to cash dividends to shareholders paid in fiscal 2026, on May 6, 2026, we announced that our Board had declared a cash dividend of $1.00 per share of Common Stock, or $4,837,166 based on shares outstanding as of March 31, 2026, to be paid May 29, 2026.
We plan to fund dividends through cash provided by operating activities and proceeds from maturities of marketable securities.
−Removed: All future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, estimates of future cash requirements, the impacts of supply-chain shortages, the impacts of cost inflation, and other factors the Board may deem relevant.
+Added: All future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, estimates of future cash requirements, and other factors the Board may deem relevant.
Furthermore, dividends may be modified or discontinued at any time without notice.
3 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.