What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-05-13 compared with 2026-02-17 · 179 added, 125 removed, 370 unchanged (45% of the section changed)

4 unchanged sentences

Cash and cash equivalents

Accounts receivable, net of allowance for credit losses of $ 99,258 at December 31, 2025 and $ 80,192 at June 30, 2025

Accounts receivable, net of allowance for credit losses of $ 134,313 at March 31, 2026 and $ 80,192 at June 30, 2025

Inventories, net

25 unchanged sentences

50,000,000 shares authorized;

issued and outstanding – 7,720,229 shares at December 31, 2025 and 7,714,701 at June 30, 2025

issued and outstanding – 10,929,869 shares at March 31, 2026 and 7,714,701 at June 30, 2025

Additional paid-in capital

8 unchanged sentences

STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED

DECEMBER 31, 2025 AND 2024

Ended December 31,

FOR THE THREE AND NINE MONTHS ENDED

MARCH 31, 2026 AND 2025

Ended March 31,

Cost of Goods Sold

2 unchanged sentences

Total Operating Expenses

Operating Income (Loss)

Operating Income

( 2,038,285 )

2 unchanged sentences

Interest Expense

Net Income (Loss)

Income before provision for income taxes

( 2,096,761 )

1 unchanged sentence

( 4,377,689 )

Provision for income taxes

$ ( 108,283 )

Income (Loss) Per Share:

$ ( 2,096,761 )

$ ( 3,526,104 )

$ ( 4,377,689 )

Loss Per Share:

Basic and Fully Diluted

5 unchanged sentences

STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED

FOR THE THREE AND NINE MONTHS ENDED

2026 AND 2025

Six Month Period Ended December 31, 2025

Nine Month Period Ended March 31, 2026

Stockholders’

12 unchanged sentences

( 60,388,451 )

Six Month Period Ended December 31, 2024

Issuance of common stock in public offering

Proceeds from exercise of stock option

Stock-based compensation

Issuance of common stock for employee services

Balance, March 31, 2026

$ ( 60,496,734 )

Nine Month Period Ended March 31, 2025

Stockholders’

12 unchanged sentences

( 53,471,312 )

Issuance of common stock in registered direct offering

Proceeds from exercise of stock option

Stock-based compensation

Issuance of common stock for consulting services and employees

( 2,096,761 )

Balance, March 31, 2025

$ ( 55,568,073 )

The accompanying notes are an integral part of these

2 unchanged sentences

STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED

FOR THE NINE MONTHS ENDED

2026 AND 2025

Ended December 31,

Ended March 31,

Cash Flows from Operating Activities:

9 unchanged sentences

Accounts receivable, net

( 2,241,136 )

Inventories, net

8 unchanged sentences

Proceeds from sale of fixed assets

Additional patent costs

Additional/reclassification patent costs

Net cash used in investing activities

4 unchanged sentences

Payment on revolving line of credit

( 1,000,000 )

Proceeds from registered direct sale of common stock, net

Proceeds from public offering of common stock, net

Stock issued for services

Gross proceeds from the exercise of stock options

Net cash provided by (used in) financing activities

Net decrease in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

12 unchanged sentences

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 six months of the Company’s fiscal year 2026.

of the results of the first nine months of the Company’s fiscal year 2026.

These financial statements do not include all disclosures

4 unchanged sentences

1 on Form 10-K/A filed with the Securities and Exchange Commission on October 28,

Going Concern and Liquidity

These financial statements have been prepared on a going concern

basis, which assumes the Company will continue to realize its assets and discharge its liabilities in the normal course of business.

continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue

operations and the attainment of profitable operations.

Management anticipates that its cash on hand of $ 0.9 million as of December 31,

2025 is insufficient to fund its planned operations for a period of at least one year from when these consolidated financial statements

These factors raise substantial doubt regarding the Company's ability to continue as a going concern.

These unaudited financial

statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities

that might be necessary should the Company be unable to continue as a going concern.

During fiscal 2026 through the issuance date, the Company has taken

the following actions, and implemented the following plans, to improve its operational and financial performance and enhance its liquidity

and financial condition:

· Through new leadership and improved accountability and process disciplines

implemented throughout the organization, improve manufacturing yields and increase production throughput;

· Renegotiated pricing and added tariff reimbursement with some of its major

manufacturing customers

· Improved the quality and depth of its product development pipeline;

· Planned increased utilization of engineering resources and the capabilities

of its MicroOptics Laboratory;

· Planned launch of several maturing development projects into manufacturing

in the coming twelve months;

· Planned reductions in its cost structure to better align operating expenses

with revenue expectations, including headcount rationalization and optimization.

The Company’s ability to meet future anticipated liquidity

needs over the next year beyond the issuance date will largely depend on its ability to execute its operational strategy, generate positive

cash inflows from operations, maximize its borrowing capacity and secure additional capital.

The Company intends to seek additional funding through

one or more of the following:

equity offerings, debt financings, government funding, and delay of planned cash outlays.

However, the Company’s

ability to do so, and on favorable terms, may be affected by general economic, financial and other factors which are beyond its control.

There can be no assurance that such events or a combination thereof can be achieved or achieved on favorable terms.

Use of Estimates

11 unchanged sentences

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

For the three months and six months

ended December 31, 2025, 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 1,727,069 for the three and six months ended December 31, 2025.

For the three months and nine

months ended March 31, 2026, 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 and warrants that were excluded from the computation of fully dilutive

weighted average shares outstanding was approximately 1,826,791 for the three and nine months ended March 31, 2026.

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

months and six months ended December 31, 2025 and 2024:

months and nine months ended March 31, 2026 and 2025:

Schedule of income (loss) per share

Ended December 31,

Net Income (Loss) Basic and Fully Diluted

Ended March 31,

Net Loss Basic and Fully Diluted

$ ( 108,283 )

11 unchanged sentences

The Company has not experienced any losses on these investments to date.

The allowance for credit losses was $ 99,258 at December

31, 2025, and $ 121,901 at December 31, 2024.

The allowance for credit losses was $ 134,313 at March

31, 2026, and $ 66,833 at March 31, 2025.

Schedule of allowance for credit losses

Six Months Ended December 31,

Nine Months Ended March 31,

Allowance for credit losses, beginning of period

Change in the provision for expected credit losses

Writeoffs charged against the allowance

Write-offs charged against the allowance

Allowance for credit losses, end of period

During the six months ended December 31, 2025, the

Company increased the credit loss reserve by approximately $ 19,000 .

During the nine months ended March 31, 2026, the Company

increased the credit loss reserve by approximately $ 54,000 .

Management believes the allowance for credit losses, which is established

based upon review of specific account balances and historical experience, is adequate at December 31, 2025.

based upon review of specific account balances and historical experience, is adequate at March 31, 2026.

Income taxes are accounted for under the asset and

21 unchanged sentences

measure of segment assets is reported on the balance sheet as total assets.

Recent Accounting Pronouncements

In December 2025, the FASB issued ASU 2025-10, Government

Grants (Topic 832):

Accounting for Government Grants Received by Business Entities (“ASU 2025-10”).

ASU 2025-10 adds guidance

on the recognition, measurement and presentation of government grants.

ASU 2025-10 is effective for fiscal years beginning after December

15, 2028, including interim periods within those fiscal years, and permits modified prospective, modified retrospective, or full retrospective

The Company has elected to early adopt the guidance effective for the fiscal year ended June 30, 2026.

Government Grants

The Company recognizes grants or subsidies from governments

and other organizations as a receivable when it is probable that the Company will comply with any conditions associated with the grant

arrangement and the grant will be received.

The Company evaluates the conditions of each grant as of each reporting period to determine

whether it is probable that the Company has met the conditions of each grant arrangement.

Grants are recognized in the statements of operations

on a systematic basis over the periods in which the Company recognized the related costs for which the grant is intended to compensate.

The Company records grant receivables in the balance sheets in accounts receivable or other non-current assets, depending on when the

amounts are expected to be received from the government agency.

During the quarter ended March 31, 2026, the Company

recognized a reduction to expense of $ 224,544 related to grants within the statements of operations, all in cost of goods sold.

March 31, 2026, the Company has $ 224,544 recorded as a government receivable, included in accounts receivable, which relates to personnel,

direct costs and operating expenses to be reimbursed and received as cash.

As of March 31, 2025, the Company had no government receivable.

Derivative Financial Instruments

The Company evaluates warrants and other financial instruments to

determine whether such instruments or embedded features qualify as derivatives to be accounted for separately in accordance with ASC 480,

Distinguishing Liabilities from Equity , and ASC 815, Derivatives and Hedging .

Warrants that do not meet the criteria for

equity classification are recorded as liabilities at fair value and are remeasured at each reporting date until exercised, expired, modified,

or otherwise settled.

Changes in the fair value of warrant liabilities are recognized in other income (expense), net in the statements

of operations.

Warrants that meet the criteria for equity classification, including

the scope exception under ASC 815-10-15-74(a), are classified within stockholders’ equity and are not subsequently remeasured as

long as the conditions for equity classification continue to be met.

The Company reassesses the classification of warrants at each reporting

As of March 31, 2026, the Company determined that all outstanding warrants qualified for equity classification.

Goodwill and Patents

7 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 December 31, 2025.

Amortization expense for the six

months ended December 31, 2025 and 2024 was $ 12,584 and $ 0 , respectively.

No such impairments of goodwill or patents have been estimated by management as of March 31, 2026.

Amortization expense for the nine months

ended March 31, 2026 and 2025 was $ 18,875 and $ 0 , respectively.

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

5 unchanged sentences

Total Inventories (Net)

The inventory reserve was $ 311,781 and $ 272,894 at December 31, 2025 and

June 2025, respectively.

The inventory reserve was $ 409,999 and $ 272,894 at March 31, 2026 and June

30, 2025, respectively.

BANK FINANCING ACTIVITIES

9 unchanged sentences

Borrowings under the Revolver are due upon demand.

There were no borrowings under the Revolver at December 31, 2025.

There were no borrowings under the Revolver at March 31, 2026.

The Company’s Loan Agreement with the Lender

15 unchanged sentences

Any future advances are contingent on the Company achieving a minimum Debt Service Coverage ratio of 1.20x based

on quarterly testing, which the Company was not in compliance with as of December 31, 2025.

on quarterly testing, which the Company was not in compliance with as of March 31, 2026.

There were no other changes to or modifications to

1 unchanged sentence

Long-Term Debt

Long-term debt consists of the following at December

Long-term debt consists of the following at March

Schedule of long-term debt

8 unchanged sentences

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

At December 31, 2025 principal payments due on the Term Loan Notes payable

At March 31, 2026 principal payments due on the Term Loan Notes payable

are as follows:

6 unchanged sentences

manufacturing equipment.

The net book value of fixed assets under capital lease obligations as of December 31, 2025 is $ 9,268 .

The fixed assets under capital lease obligations have been fully paid as of March 31, 2026.

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

3 unchanged sentences

Remaining minimum

lease payments at December 31, 2025 total $ 123,419 .

lease payments at March 31, 2026 total $ 111,115 .

Total lease costs including base rent and common area expenses was $ 59,506 and $ 49,808

during the six months ending December 31, 2025 and 2024, respectively.

Included in the accompanying balance sheet at December 31, 2025

is a right-of-use asset of $ 110,371 and current and long-term operating lease liabilities of $ 42,138 and $ 69,103 , respectively.

On May 15, 2025 the Company entered into a eight-year

during the nine months ending March 31, 2026 and 2025, respectively.

Included in the accompanying balance sheet at March 31, 2026 is a

right-of-use asset of $ 100,030 and current and long-term operating lease liabilities of $ 43,468 and $ 57,805 , respectively.

On May 15, 2025 the Company entered into an eight-year

lease in South Portland, Maine with two five-year extension options.

Remaining minimum lease payments at December 31, 2025 total $ 1,112,388 .

Total lease costs including base rent and common area expenses was $ 81,653 during the six months ending December 31, 2025.

of variable lease payments is immaterial.

Included in the accompanying balance sheet at December 31, 2025 is a right-of-use asset of $ 544,254

Remaining minimum lease payments at March 31, 2026 total $ 1,079,575 .

Total lease costs including base rent and common area expenses was $ 130,645 during the nine months ending March 31, 2026.

The amount of

variable lease payments is immaterial.

Included in the accompanying balance sheet at March 31, 2026 is a right-of-use asset of $ 533,254

and current and long-term operating lease liabilities of $ 68,798 and $ 724,863 , respectively.

3 unchanged sentences

operating lease in Littleton, Massachusetts with two five-year extension options.

Remaining minimum lease payments at December 31, 2025

Remaining minimum lease payments at March 31, 2026

total $ 2,588,721 .

Total lease costs including base rent and common area expenses was $ 121,823 during the six months ending December 31,

Total lease costs including base rent and common area expenses was $ 213,189 during the nine months ending March 31,

The amount of variable lease payments is immaterial.

Included in the accompanying balance sheet at December 31, 2025 is a right-of-use

Included in the accompanying balance sheet at March 31, 2026 is a right-of-use

asset of $ 1,737,807 and current and long-term operating lease liabilities of $ 202,063 and $ 1,748,933 , respectively.

1 unchanged sentence

rate utilized for this lease at commencement was 9.0 %.

At December 31, 2025 future minimum lease payments

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

Schedule of future minimum lease payments under capital lease and operating lease obligations

At March 31, 2026 future minimum lease payments under

operating lease obligations are as follows:

Schedule of future minimum lease payments under operating lease obligations

Fiscal Year Ending June 30:

Capital Leases

Operating Leases

2031 and thereafter

7 unchanged sentences

Rent expense on these operating

leases was $ 101,918 and $ 102,540 for the six months ended December 31, 2025, and 2024, respectively.

leases was $ 158,270 and $ 156,143 for the nine months ended March 31, 2026, and 2025, respectively.

STOCK-BASED COMPENSATION

1 unchanged sentence

The following table summarizes stock-based compensation

expense for the three and six months ended December 31, 2025 and 2024:

expense for the three and nine months ended March 31, 2026 and 2025:

Schedule of stock-based compensation expense

Ended December 31,

Ended March 31,

Cost of Goods Sold

3 unchanged sentences

amounts would have been immaterial.

There was $ 25,000 in common stock issued for employee services in the quarter ended December 31, 2025.

There was $ 6,250 in common stock issued for employee services for the three months ended March 31,

2026 and $ 31,250 for the nine months ended March 31, 2026, respectively.

The following tables summarize stock option activity

for the six months ended December 31, 2025:

for the nine months ended March 31, 2026:

Schedule of stock option activity

6 unchanged sentences

Cancelled, forfeited, or expired

Outstanding at December 31, 2025

Outstanding at March 31, 2026

The aggregate intrinsic value of the Company’s

in-the-money outstanding and exercisable options as of December 31, 2025 were both $ 485,181 .

in-the-money outstanding and exercisable options as of March 31, 2026 were both $ 509,147 .

CAPITAL STOCK

On March 27, 2026, the Company entered into an underwriting agreement

for a public offering of 2,777,777 shares of common stock at a price of $ 3.60 per share.

The underwriter exercised its over-allotment

option in full at closing, resulting in 3,194,444 total shares issued.

The offering closed on March 30, 2026.

Net proceeds after underwriting

discounts, commissions, and offering expenses were $ 10,630,678 .

The Company intends to use the net proceeds for working capital and general

corporate purposes.

STOCK WARRANTS

In connection with the public offering that closed on March 30, 2026,

the Company issued to the underwriter warrants to purchase 159,722 shares of common stock at an exercise price of $ 4.21 per share.

warrants are immediately exercisable and expire on March 27, 2031 .

Each warrant is exercisable for one share of common stock.

The warrants were classified as equity instruments under ASC 815-40,

as the warrants are indexed to the Company's own common stock and may be settled in shares at the Company's option without any obligation

to net cash settle under any circumstances.

The fair value of the warrants on the issuance date of March 30,

2026 was approximately $ 342,687 , determined using a Black-Scholes option pricing model with the following assumptions:

stock price $ 4.20 ,

exercise price $ 4.21 , expected term of approximately 5 years, expected volatility of 54.8 %, risk-free interest rate of 3.9 %, and dividend

yield of 0 %.

The fair value was recorded as an additional issuance cost and recognized as a reduction to additional paid-in capital, with

an offsetting credit to additional paid-in capital — warrants outstanding.

The net impact on total stockholders' equity was zero.

As of March 31, 2026, all 159,722 warrants remain outstanding and

REVENUE RECOGNITION

12 unchanged sentences

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.

comprised of the following for the three and six months ended December 31, 2025 and 2024:

this 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 nine months ended March 31, 2026 and 2025:

Schedule of disaggregation of revenues

Ended December 31,

Ended March 31,

Engineering Design Services

12 unchanged sentences

Engineering Design Services

The Company enters into contractual

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

These agreements provide costs on an estimated basis for the services the Company has 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 period.

The Company enters into contractual agreements with

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

These agreements

provide costs on an estimated basis for the services the Company has 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.

7 unchanged sentences

Ross Optical Industries

The Company provides fixed price

quotations to its customers and requires purchase orders for items manufactured and distributed through the Systems Manufacturing, Micro

Optics Laboratory and Ross Optical Industries business units.

Revenue is recognized at the time title passes to the customer based on

the Company’s review of the customer contract, generally at the time of shipment from the Company’s facilities.

the Company may enter into “bill and hold” contractual arrangements where title is held by its customers while goods are stored

at the Company’s facilities for the customer’s convenience.

The Company provides fixed price quotations to its

customers and requires purchase orders for items manufactured and distributed through the Systems Manufacturing, Micro Optics Laboratory

and Ross Optical Industries business units.

Revenue is recognized at the time title passes to the customer based on the Company’s

review of the customer contract, generally at the time of shipment from the Company’s facilities.

Occasionally the Company may enter

into “bill and hold” contractual arrangements where title is held by its customers while goods are stored at the Company’s

facilities for the customer’s convenience.

Contract Assets and Liabilities

6 unchanged sentences

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

As of December 31, 2025, there

were no contract assets recorded in the Company’s Balance Sheets.

As of March 31, 2026, there were

no contract assets recorded in the Company’s Balance Sheets.

The Company’s contract liabilities arise from

5 unchanged sentences

Schedule of contract liabilities

Ended December 31,

Ended March 31,

Contract liabilities, beginning of period

4 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-Q

Item 1. Financial Statements