What changed in this filing

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Item 1. Business

2024-09-05 compared with 2023-10-13 · 34 added, 22 removed, 217 unchanged (21% of the section changed)

91 unchanged sentences

torque-limiting software has been very well received in the CMF and thoracic markets.

Additionally, we have other significant engineering

projects under way described more fully below under “Results of Operations.”

The majority of the raw materials

7 unchanged sentences

in the supply chain.

We consider our relationships with our suppliers and manufacturers to be good, however, during fiscal 2022 and continuing

into fiscal 2023, many of our suppliers have increased lead times, experienced delays in shipments and raised prices or temporarily added

We do not intend to terminate any such relationship at this time, nor does management have knowledge that any supplier or

manufacturer intends to terminate its relationship with us.

We consider our relationships with our suppliers and manufacturers to be good, however, since fiscal 2022 and continuing

through fiscal 2024, many of our suppliers have increased lead times, experienced delays in shipments and raised prices or temporarily

added surcharges.

We do not intend to terminate any such relationship at this time, nor does management have knowledge that any supplier

or manufacturer intends to terminate its relationship with us.

Our commitment to product

8 unchanged sentences

received and acknowledged from our customers and does not include all revenue expected to be generated from existing customer contracts.

Of our backlog at June 30, 2023, $31.4 million, as well as certain purchase orders received subsequent to June 30, 2023, are expected

to be delivered during fiscal 2024 and the balance of $10.2 million is expected to be delivered in fiscal 2025.

We have experienced, and

may continue to experience, variability in our new order bookings due to, among other reasons, the launch of new products, the timing

of customer orders based on end-user demand, and customer inventory levels.

We do not typically experience seasonal fluctuations in our

shipments and revenues.

Substantially all of our backlog at June 30, 2024, as well as certain purchase orders received subsequent to June 30, 2024, are expected

to be delivered during fiscal 2025.

We have experienced, and may continue to experience, variability in our new order bookings due to,

among other reasons, the launch of new products, the timing of customer orders based on end-user demand, and customer inventory levels.

We do not expect a reduction in fiscal 2025 revenue as compared to fiscal 2024 revenue and believe that the decline in backlog at June

30, 2024 compared to June 30, 2023 is related to timing of customer orders, although there can be no assurance that there will not be

a decline in future revenue.

Additionally, $10.2 million of our backlog at June 30, 2023 related to orders expected to be delivered in

We do not typically experience seasonal fluctuations in our shipments and revenues.

We have only one operating

segment as our business is currently operated.

We have reached this conclusion because the our Chief Executive Officer (“CEO”)

allocates resources, assesses performance, and manages our business as one segment.

Additionally, 99% of our business relates to designing,

manufacturing, and repairing medical devices.

We primarily design, sell, and repair handheld medical devices and accessories.

medical devices, NRE and proto-type services, as well as repairs to all our customers and we utilize one machine shop and purchasing team

to procure and manufacture all the products that we sell.

The CEO utilizes consolidated operating income to analyze our business operations.

The markets for products in the

24 unchanged sentences

In certain instances, we may share

research and development costs with our customers by billing for non-recurring engineering services often provided for under development

portions of certain contracts.

Revenue recognized for non-recurring engineering services represented 6% of our revenue in fiscal 2023

research and development costs with our customers by billing for non-recurring engineering (“NRE”) services often provided

for under development portions of certain contracts.

Revenue recognized for NRE services represented 1% of our revenue in fiscal 2024

and 6% of our revenue in fiscal 2023.

2 unchanged sentences

which costs exclude labor and related expenses of approximately $224,000 and $724,000 in fiscal 2024 and 2023, respectively, that were

reimbursed by our customers through billings for non-recurring engineering services.

reimbursed by our customers through billings for NRE services.

Human Capital Management

17 unchanged sentences

At June 30, 2024, we had

146 employees, one of whom was part time, working at our two office locations in California and one employee working remotely out of state.

At June 30, 2022, we had 135 employees, one of whom was part-time, working at either our corporate office in Irvine, California or our

Franklin office in Tustin, California and one employee working remotely out of state.

None of our employees are a party to any collective

bargaining agreements with us.

148 employees, two of whom were part time, and all of our employees were working at one or both of our facilities in Irvine, California

and Tustin, California.

At June 30, 2023, we had 146 employees, one of whom was part-time, and all were working at either our Irvine,

California facility or our Tustin, California facility, except for one employee who worked remotely out of state.

None of our employees

are a party to any collective bargaining agreements with us.

We consider our relationships with our employees to be good.

24 unchanged sentences

markets, including the United States, which are faced with significant pressure to lower health care costs.

Downward pressure on health

care costs could result in reduced pricing or demand for our products.

We believe that our business

28 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