What changed in this filing

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Item 1. Business

2026-09-28 compared with 2025-09-29 · 72 added, 83 removed, 202 unchanged (43% of the section changed)

We have been a developer and manufacturer of

advanced optical instruments since 1982, and we operate primarily in two key market segments:

We have been a developer and manufacturer of advanced

optical instruments since 1982, and we operate primarily in two key market segments:

medical devices and advanced defense/aerospace products.

Within our proprietary optical and imaging technology, our unique custom designs, expert manufacturing

capabilities, and advanced engineering and development capabilities have generated traditional endoscopes and endocouplers, digital

imaging endoscopes using CMOS sensor technology, some designed and manufactured for single-use, as well as other, more advanced,

custom imaging and illumination products for our customers’ use in minimally invasive surgical procedures.

We design and

manufacture ultra-high precision endoscopes and very small Microprecision lenses, assemblies and complete medical devices to meet

the surgical community’s continuing demand for smaller, disposable, and more enhanced imaging systems for minimally invasive

We also apply our unique technologies to applications in the Defense / Aerospace markets including applications

supporting satellite network communications.

Within our proprietary optical and imaging technology, our unique custom designs, expert manufacturing capabilities, and advanced engineering

and development capabilities have generated traditional endoscopes and endocouplers, digital imaging endoscopes using CMOS sensor technology,

some designed and manufactured for single-use, as well as other, more advanced, custom imaging and illumination products for our customers’

use in minimally invasive surgical procedures.

We design and manufacture ultra-high precision endoscopes and very small Microprecision

lenses, assemblies and complete medical devices to meet the surgical community’s continuing demand for smaller, disposable, and

more enhanced imaging systems for minimally invasive surgery.

We also apply our unique technologies to applications in the Defense

/ Aerospace markets including applications supporting satellite network communications.

To support these two critical market categories,

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The acquisition represented a vertical integration of our established product development capabilities

with a team with extensive experience developing visualization systems that we believe provides our customers with single-source value-added

with a team with extensive experience developing visualization systems that we believe provide our customers with single-source value-added

development services and product offerings.

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of which includes historical POC and Lighthouse Imaging resources.

During the fiscal year ended June 30, 2025,

approximately 43% of our business was from systems manufacturing, 26% was from engineering services primarily relating to the design of

medical device optical assemblies, 20% was from Ross Optical, and 11% from our micro-optics laboratory.

During the fiscal year ended June

30, 2024, approximately 45% of our business was from engineering services primarily relating to the design of medical device optical assemblies,

19% from systems manufacturing, 22% from Ross Optical, and 14% from our micro-optics laboratory.

We generally expect revenue to increase

over time as the engineering design phase of new product programs is completed and products transition to the commercial phase, leveraging

During the fiscal year ended June 30, 2026, approximately

72% of our business was from systems manufacturing, 11% was from engineering services primarily relating to the design of medical device

optical assemblies, 15% was from Ross Optical, and 2% from our micro-optics laboratory.

During the fiscal year ended June 30, 2025, approximately

43% of our business was from systems manufacturing, 26% was from engineering services primarily relating to the design of medical device

optical assemblies, 20% was from Ross Optical, and 11% from our micro-optics laboratory.

We generally expect revenue to increase over

time as the engineering design phase of new product programs is completed and products transition to the commercial phase, leveraging

our unique manufacturing capabilities.

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as endoscopes and endocouplers since our formation in 1982.

In 1985 we introduced a proprietary product line of endocouplers.

design and manufacture custom optical medical devices to satisfy our customers’ specific requirements, incorporating various optical

technologies, servicing a variety of minimally invasive surgical and diagnostic procedures, using both reusable and single-use medical

In addition to medical devices, we also manufacture and sell components and assemblies specially designed for defense/aerospace

and industrial uses.

We design and manufacture custom optical medical devices to satisfy our customers’

specific requirements, incorporating various optical technologies, servicing a variety of minimally invasive surgical and diagnostic procedures,

using both reusable and single-use medical devices.

In addition to medical devices, we also manufacture and sell components and assemblies

specially designed for defense/aerospace and industrial uses.

Microprecision™ Lenses and Micro Medical

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suited for medical imaging applications, particularly single-use or disposable endoscopes.

We believe the technology developed to support

the design, fabrication and manufacturing of Microprecision™ lenses and associated assemblies can also be used to satisfy the needs

of defense and aerospace systems that require small size and weight, particularly those required for satellite network communications.

The technology developed to support the design,

fabrication and manufacturing of Microprecision™ lenses and associated assemblies is also used to satisfy the needs of defense and

aerospace systems that require small size and weight, particularly those required for satellite network communications, which has become

an important driver for our engineering and manufacturing programs

The Unity Platform .

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with a functional video pipeline early in the development process.

This accelerates their system integration efforts and allows them

to gather feedback from stakeholders much sooner, ultimately shortening the time to market and enhancing overall project efficiency.

Unity is the embodiment of our on-going improvements to the evolution and acceptance of our Microprecision™ and digital imaging

technology platforms.

This accelerates their system integration efforts and allows them to

gather feedback from stakeholders much sooner, ultimately shortening the time to market and enhancing overall project efficiency.

is the embodiment of our on-going improvements to the evolution and acceptance of our Microprecision™ and digital imaging technology

Competition and Markets

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resources than we have, may seek to produce products or services that compete directly with ours.

While our resources are more limited than those

of some of our competitors, we believe that we compete successfully in this market through product quality, price, delivery and innovation

tailored to our customers’ specifications.

Our success will depend, in part, on our ability to maintain a technological advantage

over our competitors and to effectively incorporate that technology into our custom designs.

To this end, we intend to continue to aggressively

support and augment our internal engineering, research and development resources and to pursue patent protection for existing and new

We believe that our unique technical capabilities in the areas of Microprecision™ optics, micro medical cameras, digital

imaging, and illumination represent competitive advantages for us in the minimally invasive surgical device market.

We believe that we compete successfully in this

market through product quality, price, delivery and innovation tailored to our customers’ specifications.

Our success will depend,

in part, on our ability to maintain a technological advantage over our competitors and to effectively incorporate that technology into

our custom designs.

To this end, we intend to continue to aggressively support and augment our internal engineering, research and development

resources and to pursue patent protection for existing and new technology.

We believe that our trade secrets and unique technical capabilities

in the areas of Microprecision™ optics, micro medical cameras, digital imaging, and illumination represent competitive advantages

for us in the markets we serve.

The competitive advantage of our Ross Optical

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the combined objectives of low cost, small size, range of optical specifications and high image quality required by our customer’s

precise medical device specifications.

By enabling the production of millimeter sized cameras with low manufacturing costs and high image

quality, we believe our Microprecision™ and digital imaging technologies open the possibility to replace existing re-sterilizable

endoscopes with single-use alternatives.

The small size of our Microprecision™ lenses and micro medical cameras combined with our

proprietary illumination techniques can provide visualization for existing procedures that are currently performed blind or with sub-optimal

imaging, and we believe can facilitate the development of new surgical procedures that are currently impractical without millimeter-sized

visualization instrumentation.

precise specifications.

By enabling the production of millimeter sized cameras with low manufacturing costs and high image quality, we

believe our Microprecision™ and digital imaging technologies will continue to replace existing re-sterilizable endoscopes with single-use

alternatives.

The small size of our Microprecision™ lenses and micro medical cameras combined with our proprietary illumination

techniques can provide visualization for existing procedures that are currently performed blind or with sub-optimal imaging, and we believe

can facilitate the development of new surgical procedures that are currently impractical without millimeter-sized visualization instrumentation.

We believe satellite optical communications represents

a significant market opportunity for our advanced defense and aerospace capabilities.

Optical Communication Terminals used in emerging

satellite constellations require compact, lightweight and high-performance optical assemblies, creating a strong fit with our Microprecision™

optics, opto-mechanical design, precision alignment and scalable manufacturing capabilities.

Sales and Marketing

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Raw Materials and Principal Suppliers

A key raw material component for our products

is precision-grade optical glass, which we obtain from a few suppliers, principally SCHOTT North America, Inc.

and Ohara Corporation.

obtain CMOS sensors used in the development and manufacture of endoscope products for our customers from various suppliers such as OmniVision

Technologies, Inc.

We believe that while the number of sources of supply is limited for the precision-grade optical glass and CMOS sensors

with the specifications used in the products we produce, the manufacturing capacities of those suppliers are adequate to meet our demand

in the next twelve months.

A key raw material component for our

products is precision-grade optical glass, which we obtain from a few suppliers, principally SCHOTT North America, Inc.

Ohara Corporation.

We obtain CMOS sensors used in the development and manufacture of endoscope products for our customers from

various suppliers such as OmniVision Technologies, Inc.

We believe that while the number of sources of supply is limited for the

precision-grade optical glass and CMOS sensors with the specifications used in the products we produce, the manufacturing capacities

of those suppliers are adequate to meet our demand in the next twelve months.

Patents and Trademarks

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and in other appropriate countries to protect our intellectual property rights to the greatest extent practicable.

We currently hold rights

to various United States patents, and have patent applications pending, including applications for our new generation of micro medical

Our current patent portfolio includes patents, rights to patents and patent applications that cover various aspects of our technology

in the following areas:

Our current patent

portfolio includes patents and rights to patents that cover various aspects of our technology in the following areas:

Medical devices;

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Microprecision™ lenses and micro medical cameras;

Defense/aerospace products.

The patents contained in our current patent portfolio

have various expiration dates through March 2043.

have various expiration dates through January 2041.

We are not aware of any infringements of these patents.

While we believe that our pending

applications relate to patentable devices or concepts, these patents may not ultimately be issued, and we may not be able to successfully

defend these patents or effectively limit the development of competitive products and services.

We intend to continue to innovate and

extend our technological capabilities in the areas of Microprecision™ optics, digital imaging, micro medical cameras, related illumination

techniques, and associated design and manufacturing technology and to aggressively pursue patent protection for such developments.

We intend to continue to innovate

and extend our technological capabilities in the areas of Microprecision™ optics, digital imaging, micro medical cameras, related

illumination techniques, and associated design and manufacturing technology and to aggressively pursue patent protection for such developments.

As of June 30, 2026, we had 108 employees, all

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For the fiscal year

ended June 30, 2024, we sold products and services to 325 customers with one product development customer accounting for approximately

19% of total revenues and another customer accounting for approximately 14% of our total revenues for that year.

ended June 30, 2025, we sold products and services to 278 customers with one customer accounting for approximately 22% of total revenues

and another customer accounting for 20% of our total revenues.

Two customer accounts receivable balances accounted

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and EU regulatory standards.

ISO 13485 is an internationally recognized standard that emphasizes risk management throughout the product

lifecycle, from design to post-market surveillance, and aligns with the European Union Medical Device Regulation (“EU MDR”)

focus on ensuring the safety and performance of medical devices.

ISO 13485 provides a solid foundation for meeting the QMS requirements

of the EU MDR.

It ensures that manufacturers maintain detailed documentation and traceability of their devices, which is required for

compliance with the EU MDR’s requirements.

Conformity with ISO 13485 conveys our commitment to maintaining a robust QMS specifically

for medical device manufacturing, and consistent quality and regulatory compliance, which is essential to helping our customers achieve

compliance with the EU MDR and other international regulatory standards.

Our failure to comply with ISO 13485 or other applicable regulatory

requirements would jeopardize our ability to sell our products to certain customers who place their product on the EU and other international

Our failure to comply with ISO 13485 or other applicable regulatory requirements would jeopardize our ability

to sell our products to certain customers who place their product on the EU and other international markets.

Available Information

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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