What changed in this filing

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Item 1A. Risk Factors

2026-09-28 compared with 2025-09-29 · 73 added, 62 removed, 441 unchanged (23% of the section changed)

15 unchanged sentences

may not consistently purchase our products in the future and if we lose any one of these customers, our revenues may decline.

A small number of customers may continue to represent

a significant portion of our total revenues in any given period.

These customers may not consistently purchase our products at a particular

rate over any subsequent period.

A loss of any of these customers could adversely affect our revenues.

During the fiscal year ending June 30, 2026, one

customer accounted for approximately 41% of total revenues and another customer accounted for 27% of our total revenues, representing

a significant increase in customer concentration compared to prior years.

For the fiscal year ended June 30, 2025, one customer accounted

for approximately 22% of total revenues and another customer accounted for 20% of our total revenues.

A small number of customers may

continue to represent a significant portion of our total revenues in any given period.

These customers may not consistently purchase our

products at a particular rate over any subsequent period.

A loss of any of these customers could materially and adversely affect our revenues.

We could suffer unrecoverable losses on

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commitments, which could also have a material adverse effect on our revenues and liquidity.

Additionally, our customers could become unable

or unwilling to pay amounts owed to us.

Over the past three years, we have not had significant accounts receivable write-offs or significant

additions to our accounts receivable reserve and.

we have not purchased insurance on our accounts receivable balances.

Nonetheless, large

uncollectible accounts receivable balances could arise in the future and could have a material adverse effect on our financial condition.

Two customer accounts receivable balances

accounted for 34.4% and 22.8% of total receivables on June 30, 2026.

Two customer accounts receivable balances accounted for 32.1% and

17.9% of total receivables on June 30, 2025.

Additionally, our customers could become unable or unwilling to pay amounts owed to us.

the past three years, we have not had significant accounts receivable write-offs or significant additions to our accounts receivable reserve

and we have not purchased insurance on our accounts receivable balances.

Nonetheless, large uncollectible accounts receivable balances

could arise in the future and could have a material adverse effect on our financial condition.

We rely heavily upon the talents of our

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We require certain key supplies to develop and

manufacture our products, particularly our precision grade optical glass, which is available from only a few sources, most which are located

outside of the United States.

Additionally, we rely on outside vendors to grind and polish certain of our lenses and other optical components,

such as prisms and windows.

We also rely on a limited number of suppliers for specialized CMOS sensors and the electronic wiring of those

Based upon our ordering experience to date, we believe the materials and services required for the production of our products

are currently available in sufficient quantities to meet our needs.

Our requirements are small relative to the total supply, and we are

not currently encountering problems with availability.

However, this does not mean that we will continue to have timely access to adequate

supplies of essential materials and services in the future or that supplies of these materials and services will be available on satisfactory

terms when the need arises.

Our business could be severely damaged if we become unable to procure these essential materials and services

in adequate quantities and at acceptable prices.

manufacture our products, particularly our precision grade optical glass, which is available from only a few sources, most of which are

located outside of the United States.

Additionally, we rely on outside vendors to grind and polish certain of our lenses and other optical

components, such as prisms and windows.

We also rely on a limited number of suppliers for specialized CMOS sensors and the electronic

wiring of those sensors.

Based upon our ordering experience to date, we believe the materials and services required for the production

of our products are currently available in sufficient quantities to meet our needs.

Our requirements are small relative to the total supply,

and we are not currently encountering problems with availability.

However, this does not mean that we will continue to have timely access

to adequate supplies of essential materials and services in the future or that supplies of these materials and services will be available

on satisfactory terms when the need arises.

Our business could be severely damaged if we become unable to procure these essential materials

and services in adequate quantities and at acceptable prices.

From time to time, subcontractors may produce

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and services.

Ross Optical is subject to tariffs and

regulatory scrutiny, and it faces the risk of changes to this regulatory environment and business in the future.

Ross Optical is subject to tariffs and regulatory

scrutiny, and it faces the risk of changes to this regulatory environment and business in the future.

Ross Optical is ISO and ITAR registered and currently

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Departments of State and Commerce.

If we fail to comply with the terms of these regulations and registrations, it may lose

its ITAR registration or suffer other consequences, such as the withdrawal or suspension of approvals, suspension of imports, exports

If we fail to comply with the terms of these regulations and registrations, we may lose

our ITAR registration or suffer other consequences, such as the withdrawal or suspension of approvals, suspension of imports, exports

or production, or the imposition of fines or other penalties.

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or changes in enforcement practices applicable to our business could be imposed, which may adversely affect our ability to compete effectively

with other institutions that are not affected in the same way, or which may impact its supplier and customers.

with other institutions that are not affected in the same way, or which may impact their suppliers and customers.

In addition, regulations

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able to protect our intellectual property rights throughout the world.

Our business relies on

Filing, prosecuting and defending patents in all countries throughout the world would be prohibitively expensive, and we

do not have patent protection outside of the United States.

In addition, the laws of some foreign countries do not protect intellectual

property rights to the same extent as federal and state laws in the United States.

Consequently, we may not be able to prevent third parties

from practicing our inventions in all countries outside the United States or from selling or importing products made using our inventions

in and into the United States or other jurisdictions.

Competitors may use our technologies in jurisdictions where we have not obtained

patent protection to develop their own products and, further, may export otherwise infringing products to territories where we have patent

protection, but enforcement is not as strong as that in the United States.

These infringing products may compete with the product we develop,

without any available recourse.

Our business relies,

in part, on our patents.

Filing, prosecuting and defending patents in all countries throughout the world would be prohibitively expensive,

and we have only limited patent protection outside of the United States.

In addition, the laws of some foreign countries do not protect

intellectual property rights to the same extent as federal and state laws in the United States.

Consequently, we may not be able to prevent

third parties from practicing our inventions in all countries outside the United States or from selling or importing products made using

our inventions in and into the United States or other jurisdictions.

Competitors may use our technologies in jurisdictions where we have

not obtained patent protection to develop their own products and, further, may export otherwise infringing products to territories where

we have patent protection, but enforcement is not as strong as that in the United States.

These infringing products may compete with the

product we develop, without any available recourse.

The laws of some other

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If we fail to meet the expectations of analysts

for our operating results, or if the analysts who covers us downgrade our stock, our stock price would likely decline.

If one or more

of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our stock could decrease, which could

cause our stock price and trading volume to decline.

for our operating results, or if the analysts who cover us downgrade our stock, our stock price would likely decline.

If one or more of

these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our stock could decrease, which could cause

our stock price and trading volume to decline.

Claims for indemnification by our directors

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to our business operations.

As with many technological innovations, artificial intelligence presents risks and challenges that could

impact our business.

We may adopt and integrate generative artificial intelligence tools into our systems for specific use cases reviewed

by legal and information security.

Our vendors may incorporate generative artificial intelligence tools into their offerings without

disclosing this use to us, and the providers of these generative artificial intelligence tools may not meet existing or rapidly evolving

regulatory or industry standards with respect to privacy and data protection and may inhibit our or our vendors’ ability to maintain

an adequate level of service and experience.

If we, our vendors, or our third-party partners experience an actual or perceived breach

or privacy or security incident because of the use of generative artificial intelligence, we may lose valuable intellectual property

and confidential information and our reputation and the public perception of the effectiveness of our security measures could be harmed.

Further, bad actors around the world use increasingly sophisticated methods, including the use of artificial intelligence, to engage

in illegal activities involving the theft and misuse of personal information, confidential information, and intellectual property.

of these outcomes could damage our reputation, result in the loss of valuable property and information, and adversely impact our business.

As with many technological innovations, artificial intelligence presents risks and challenges that could impact

our business.

We may adopt and integrate generative artificial intelligence tools into our systems for specific use cases reviewed by

legal and information security.

Our vendors may incorporate generative artificial intelligence tools into their offerings without disclosing

this use to us, and the providers of these generative artificial intelligence tools may not meet existing or rapidly evolving regulatory

or industry standards with respect to privacy and data protection and may inhibit our or our vendors’ ability to maintain an adequate

level of service and experience.

If we, our vendors, or our third-party partners experience an actual or perceived breach or privacy or

security incident because of the use of generative artificial intelligence, we may lose valuable intellectual property and confidential

information and our reputation and the public perception of the effectiveness of our security measures could be harmed.

Further, bad actors

around the world use increasingly sophisticated methods, including the use of artificial intelligence, to engage in illegal activities

involving the theft and misuse of personal information, confidential information, and intellectual property.

Any of these outcomes could

damage our reputation, result in the loss of valuable property and information, and adversely impact our business.

Changes in U.S.

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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 1A. Risk Factors