What changed in this filing

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Item 1. Financial Statements

2024-02-14 compared with 2023-11-14 · 142 added, 86 removed, 243 unchanged (48% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

Current Assets:

Cash and cash equivalents

Accounts receivable, net of allowance for doubtful accounts of $ 690,097 at September 30, 2023 and $ 606,715 at June 30, 2022

Accounts receivable, net of allowance for doubtful accounts of $ 731,256 at December 31, 2023 and $ 606,715 at June 30, 2023

Prepaid expenses

23 unchanged sentences

50,000,000 shares authorized;

issued and outstanding – 6,066,518 shares at September 30, 2023 and June 30, 2023

issued and outstanding – 6,067,518 shares at December 31, 2023 and 6,066,518 at June 30, 2023

Additional paid-in capital

8 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED

SEPTEMBER 30, 2023 AND 2022

Ended September 30,

FOR THE SIX MONTHS ENDED

DECEMBER 31, 2023 AND 2022

Ended December 31,

Cost of Goods Sold

2 unchanged sentences

Total Operating Expenses

Operating Loss

Operating Income (Loss)

( 1,109,455 )

Interest Expense

Net Income (Loss)

$ ( 758,802 )

$ ( 1,223,217 )

Loss Per Share:

Basic and Fully Diluted

Income (Loss) Per Share:

Fully Diluted

Weighted Average Common Shares Outstanding:

Basic & Fully Diluted

Fully Diluted

The accompanying notes are an integral part

3 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’

FOR THE THREE MONTHS ENDED

30 , 2023 AND 2022

Three Month Period Ended September 30, 2023

FOR THE SIX MONTHS ENDED

DECEMBER 31 , 2023 AND 2022

Six Month Period Ended December 31, 2023

Stockholders’

4 unchanged sentences

( 48,703,422 )

Three Month Period Ended September 30, 2022

Stock-based compensation

Proceeds from the exercise of stock options

Balance, December 31, 2023

$ ( 49,462,224 )

Six Month Period Ended December 31, 2022

Stockholders’

4 unchanged sentences

( 48,253,118 )

Stock-based compensation

Balance, December 31, 2022

$ ( 47,744,450 )

The accompanying notes are an integral part

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED

FOR THE SIX MONTHS ENDED

31 , 2023 AND 2022

Ended September 30,

Ended December 31,

Cash Flows from Operating Activities:

$ ( 464,415 )

Net Income (Loss)

$ ( 1,223,217 )

5 unchanged sentences

Accounts receivable, net

( 1,368,650 )

Inventories, net

10 unchanged sentences

Cash Flows from Financing Activities:

Payment of capital lease obligation

Payments of capital lease obligations

Payments of long-term debt

Gross proceeds from the exercise of stock options

Net cash used in financing activities

16 unchanged sentences

prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for

a fair statement of the results of the first quarter of the Company’s fiscal year 2024.

a fair statement of the results of the first six months of the Company’s fiscal year 2024.

These consolidated financial statements

16 unchanged sentences

plus the number of potentially dilutive securities outstanding during the period such as stock options.

For the three months ended September

30, 2023 and 2022, the following potentially dilutive securities outstanding have been excluded from the computations of weighted-average

shares outstanding because such securities have an antidilutive impact due to the net loss reported during those periods.

For the three months and six months

ended December 31, 2023, potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares

outstanding because such securities have an antidilutive impact due to the net loss reported during those periods.

The number of shares

issuable upon the exercise of outstanding stock options that were excluded from the computation of fully dilutive weighted average shares

outstanding was approximately 1,256,141 for the three and six months ended December 31, 2023.

The following is the calculation of income (loss) per share for the

three months ended September 30, 2023 and 2022:

three months and six months ended December 31, 2023 and 2022:

Schedule of income (loss) per share

Ended September 30,

Ended December 31,

Net Income (Loss) Basic and Fully Diluted

2 unchanged sentences

Weighted Average Shares Outstanding

Basic and Fully Diluted

Loss Per Share - Basic and Fully Diluted

The number of shares issuable upon the exercise

of outstanding stock options that were excluded from the computation as their effect was antidilutive was approximately 1,123,140 and

904,667 for the three months ended September 30, 2023 and 2022, respectively.

Fully Diluted

Income (Loss) Per Share – Basic

Income (Loss) Per Share - Fully Diluted

Income taxes are accounted for under the asset

19 unchanged sentences

Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.

No such impairments of goodwill or patents have been estimated by management as of September 30, 2023.

No such impairments of goodwill or patents have been estimated by management as of December 31, 2023.

Inventories are stated at the lower of cost (first-in,

1 unchanged sentence

Schedule of inventories

September 30,

Raw Materials

6 unchanged sentences

Loan Agreement with Main Street Bank of Marlborough, Massachusetts, which provided for a $ 2,600,000 Term Loan and a $250,000 Revolving

Line of Credit Loan Facility, which was increased to $500,000 effective May 17, 2022 and $1,250,000 effective June 2, 2023.

The $ 1,250,000

line of credit is due on demand and had no borrowings outstanding at September 30, 2023.

Borrowings under the line of credit would bear

interest payable monthly at the prime lending rate plus 1.5% per annum and shall not be less than 4.75% per annum.

Borrowings under the

line of credit would be limited to the borrowing base comprised of a percentage of accounts receivable and inventory and are secured by

all the assets of the Company.

Line of Credit Loan Facility (the “Revolver”), which was increased to $500,000 effective May 17, 2022 and $ 1,250,000 effective

June 2, 2023.

Borrowings under the Revolver are limited by the borrowing base comprised of a percentage of accounts receivable and inventory

and secured by all assets of the Company.

Borrowings under the Revolver will bear interest payable monthly at the prime lending rate plus

1.5% per annum and shall not be less than 4.75% per annum.

Borrowings under the Revolver are due upon demand.

At December 31, 2023 the

Revolver was unutilized and fully available to the Company.

Long-Term Debt

Long-term debt consists of the following at September

Long-term debt consists of the following at December

Schedule of long-term debt

8 unchanged sentences

Long-term debt, net of current maturities and debt issuance costs

At September 30, 2023 principal payments due on the Term Loan Note

payable are as follows:

At December 31, 2023 principal payments due on the Term Loan Note payable

are as follows:

Schedule of principal payments due on the term loan note

Fiscal Year Ending June 30:

long term debt

Total long term debt

LEASE OBLIGATIONS

3 unchanged sentences

manufacturing equipment.

The net book value of fixed assets under capital lease obligations as of September 30, 2023 is $ 42,572 .

The net book value of fixed assets under capital lease obligations as of December 31, 2023 is $ 83,535 .

On July 1, 2019, the Company entered into a three-year

1 unchanged sentence

three years through June 2025.

Remaining minimum lease payments at September 30, 2023 total $ 79,740 .

Remaining minimum lease payments at December 31, 2023 total $ 66,087 .

Total rent expense including base

rent and common area expenses was $ 15,973 and $ 11,630 during the fiscal quarters ended September 30, 2023 and 2022, respectively.

rent and common area expenses was $ 36,288 and $ 35,589 during the six months ended December 31, 2023 and 2022, respectively.

4, 2021, the Company assumed the remaining term of the Windham, Maine lease as part of the Lighthouse acquisition.

1 unchanged sentence

July 31, 2025.

Remaining minimum lease payments on September 30, 2023 total $ 252,501 .

Remaining minimum lease payments on December 31, 2023 total $ 209,242 .

Total rent expense including base rent and common

area expenses was $ 34,432 during the fiscal quarter ended September 30, 2023.

Included in the accompanying balance sheet at September

30, 2023 is a right-of-use asset of $ 317,083 and current and long-term right-of-use operating lease liabilities of $ 171,075 and $ 146,008 ,

respectively.

At September 30, 2023 future minimum lease payments

area expenses was $ 68,864 and 70,034 during the six months ended December 31, 2023 and 2022, respectively.

Included in the accompanying

balance sheet at December 31, 2023 is a right-of-use asset of $ 275,329 and current and long-term right-of-use operating lease liabilities

of $ 173,503 and $ 101,826 , respectively.

At December 31, 2023 future minimum lease payments

under the capital lease and operating lease obligations are as follows:

Schedule of minimum lease payments

Schedule of future minimum lease payments

Fiscal Year Ending June 30:

8 unchanged sentences

Massachusetts office, production and storage spaces plus an equipment lease have expired and continue on a month-to-month tenant-at-will

Rent expense on these operating leases was $ 48,799 and $ 50,826 for the fiscal quarter ended September 30, 2023 and 2022, respectively.

Rent expense on these operating leases was $ 97,581 and $ 95,511 for the six months ended December 31, 2023 and 2022, respectively.

STOCK-BASED COMPENSATION

1 unchanged sentence

The following table summarizes stock-based compensation

expense for the three months ended September 30, 2023 and 2022.

expense for the three months ended December 31, 2023 and 2022.

The share amounts and prices shown below reflect adjustment for a 1-for-3

reverse stock split that took effect after the close of business on November 1, 2022.

The following table summarizes stock-based compensation

expense for the three and six months ended December 31, 2022 and 2021:

Schedule of stock-based compensation

Ended September 30,

Ended December 31,

Cost of Goods Sold

Research and Development Expenses

Selling, General and Administrative Expenses

Research and Development

Selling, General and Administrative

Stock Based Compensation Expense

No compensation has been capitalized because such

1 unchanged sentence

The following tables summarize stock option activity

for the three months ended September 30, 2023:

for the three months ended December 31, 2023:

Schedule of stock option activity

5 unchanged sentences

Outstanding at June 30, 2023

Exercised, Granted and Cancelled

Outstanding at September 30, 2023

Cancelled, forfeited, or expired

Outstanding at December 31, 2023

Information related to the stock options outstanding

as of September 30, 2023 is as follows:

as of December 31, 2023 is as follows:

The aggregate intrinsic value of the Company’s

in-the-money outstanding and exercisable options as of September 30, 2023 was $ 1,810,767 and $ 1,810,242 , respectively.

in-the-money outstanding and exercisable options as of December 31, 2023 was $ 1,874,731 and $ 1,872,040 , respectively.

REVENUE RECOGNITION

Revenues are recognized as the performance obligations

to deliver products or services are satisfied and are recorded based on the amount of consideration the Company expects to receive in

exchange for satisfying the performance obligations.

Products and services are primarily transferred to customers at a point in time based

upon when services are performed or product is shipped.

Other selling costs to obtain and fulfill contracts are expensed as incurred due

to the short-term nature of a majority of its contracts.

The Company extends terms of payment to its customers based on commercially reasonable

terms for the markets of its customers, while also considering their credit quality.

Shipping and handling costs charged to customers

are included in revenues.

The Company disaggregates revenues by product

and service types as it believes it best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected

by economic factors.

Revenues are comprised of the following for the three months ended September 30, 2023 and 2022:

Schedule of disaggregation of revenues

Ended September 30,

The Company determines revenue recognition for arrangements that we

determine are within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” or

ASC 606, by performing the following five steps:

(i) identify the contract with a customer;

(ii) identify the performance obligations

in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract;

and (v) recognize revenue when, or as, we satisfy the performance obligations.

At contract inception, once the contract is determined

to be within the scope of ASC 606, we assess the goods or services promised within the contract and determine those that are performance

obligations and assess whether each promised good or service is distinct based on the contract.

The Company disaggregates revenues by product and service types as

it believes best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors.

are comprised of the following for the three and six months ended December 31, 2023 and 2022:

Schedule of disaggregation revenues

Ended December 31,

Engineering Design Services

Optical Components

Medical Device Products & Assemblies

Medical Device Products and Assemblies

Technology Rights

Total Revenues

Other selling costs to obtain and fulfill contracts are expensed as

incurred due to the short-term nature of a majority of contracts.

The Company extends terms of payment to its customers based on commercially

reasonable terms for the markets of its customers, while also considering their credit quality.

Shipping and handling costs charged to

customers are included in revenue.

Revenue recognition policies for each of the four product and service

types appear below.

Engineering Design Services

The Company enters into contractual agreements

with our customers, including design services agreements, statements of work and receive purchase orders for development projects.

agreements provide costs on an estimated basis for the services we have agreed to provide.

Engineering Design Services are rendered on

a time and materials basis.

The Company recognizes revenue as customers are invoiced for the actual engineering services provided in the

Revenue is also recognized on materials purchased for development projects at the time of receipt.

Engineering Design Services

are provided on a best-efforts basis;

no warranty is provided as there is no guarantee that the work will result in the attainment of

the customer’s project objectives.

The Company may obtain customer deposits in advance of rendering engineering design services.

Customer deposits are treated as contractual liabilities until the terms of customer agreements are satisfied and are not a component

Optical Components, Finished Products and Assemblies

The Company provides fixed price quotations to

our customers and requires purchase orders for all purchased optical components, medical devices and assemblies.

Revenue is recognized

at the time title passes to our customer based on our review of the customer contract, generally at the time of shipment from our facilities.

Occasionally the Company may enter into “bill and hold” contractual arrangements where title is held by our customers while

goods are stored at our facilities for their convenience.

Technology Rights and Royalties

The Company may recognize

revenue for the sale of technology rights and through the receipt of royalties obtained under a license of our intellectual property.

These revenues are recognized in the period in which, in our judgment, they are earned and no longer contingent under the terms and conditions

of the relevant customer contract.

Contract Assets and Liabilities

6 unchanged sentences

These costs have been recorded in selling, general and administrative expenses.

As of September

As of December 31,

2023, there were no contract assets recorded in the Company’s Consolidated Balance Sheets.

2 unchanged sentences

of our performance obligations.

The Company generally satisfies performance obligations within one year from the contract inception date.

Contract liabilities, which were recorded as customer

advances in the Company’s Consolidated Balance Sheets, and unearned revenue are comprised of the following:

The Company generally satisfies performance obligations within one year from the contract’s inception

Contract liabilities, which were recorded as

customer advances in the Company’s Consolidated Balance Sheets, and unearned revenue are comprised of the following:

Schedule of contract liabilities

Ended September 30,

Ended December 31,

Contract liabilities, beginning of period

1 unchanged sentence

Revenue recognized

( 1,007,238 )

Contract liabilities, end of period

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