What changed in this filing

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Item 2. Properties

2023-09-28 compared with 2022-09-27 · 26 added, 19 removed, 2 unchanged (96% of the section changed)

1 unchanged sentence

in Gardner, Massachusetts, one facility in El Paso, Texas, and one facility in Windham, Maine.

We are currently a tenant-at-will, paying

rent of $9,000 per month for our main Gardner facility.

We rent three other smaller Gardner facilities on a month-to-month basis.

Ross Optical division rents a facility in El Paso, Texas from an unrelated party pursuant to an operating lease through June 2025 at monthly

base rates beginning at $3,652 and increasing to $3,837 per month during the term of the lease.

Our Lighthouse division rents a facility

in Windham, Maine from an unrelated party pursuant to an operating lease through July 31, 2025, at a monthly base rate of $11,477 for the

remainder of the lease.

We believe these facilities are adequate for our

current operations and are adequately covered by insurance.

Significant increases in production or the addition of significant equipment

additions or manufacturing capabilities in connection with the production of our line of endoscopes and other products may, however, require

improvements to existing facilities or the acquisition or lease of additional facilities.

We may establish production facilities domestically

or overseas to produce key assemblies or components, such as lenses, for our products.

Overseas facilities may subject us to the political

and economic risks associated with overseas operations.

The loss of or inability to establish or maintain such additional domestic or

overseas facilities could materially adversely affect our competitive position and profitability.

The facilities in El Paso and Windham

are leased from unrelated parties.

The Company leases its primary facility in Gardner, Massachusetts from Equity Assets, Inc.

an entity formerly owned by the Company’s founder Richard E.

Forkey and then later owned by a trust controlled by his step-daughter,

established for the benefit of the step-daughter and four siblings (including Joseph N.

Forkey, who is Chief Executive Officer, President,

Treasurer and a Director of the Company).

The original lease for the principal facility in Gardner expired in 1999, and the Company has

since been a tenant-at-will, paying rent to EAI of $9,000 per month for that facility.

On July 19, 2023, the trust distributed the EAI

shares equally among the five beneficiaries (20% each).

Those shareholders then entered into a shareholder agreement under which all

five were elected as directors and under which Joseph N.

Forkey has been elected as president.

The shareholder agreement provides that

Forkey will be recused from any matters involving negotiations with the Company, including without limitation any lease negotiations.

Forkey is not compensated by EAI for his services as president or a director, and his present 20% interest in rents being received

from the Company is $21,600 per year.

The Company for many years has also been a tenant-at-will

at the other two Gardner facilities, paying rent to unrelated parties.

We believe these facilities in

Gardner, El Paso and Windham are adequate for our current operations and are adequately covered by insurance.

Significant increases in

production or the addition of significant equipment additions or manufacturing capabilities in connection with the production of our

line of endoscopes and other products may, however, require improvements to existing facilities or the acquisition or lease of additional

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 2. Properties