IEH Corp
For the period ended Dec 31, 2024. Filed Feb 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 11, 2025
IEHCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001213900-24-095890
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-11.
0001213900-25-012199
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 39 previous paragraphs and 40 current paragraphs.
20 unchanged; 19 reworded; 1 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Net cash provided by financing activities was $0 and $56,550 for the nine months ended December 31, 2024 and 2023, respectively. The decrease in cash provided by financing activities during the nine months ended December 31, 2024 was attributable to there being no stock option exercises during the nine months ended December 31, 2024.
Reworded paragraphs (19)
Previous wording
Revenue for the three months ended September 30, 2024 was $7,341,124, reflecting an increase of $2,530,136, or 52.6%, as compared to $4,810,988 for the three months ended September 30, 2023. The increase in revenue for the period was principally on account of a 60% increase in defense revenues driven principally by recent and continuing conditions of geopolitical uncertainty. Our quarter over quarter space revenues have increased by 137%, driven principally by continued investment in commercial space related programs.
Current wording
Revenue for the three months ended December 31, 2024 was $7,217,616, reflecting an increase of $2,109,859, or 41.3%, as compared to $5,107,757 for the three months ended December 31, 2023. The increase in revenue for the period was principally on account of an 85% increase in defense revenues driven principally by continuing conditions of geopolitical uncertainty, 366% increase in space revenue, driven principally by continued investment in commercial space related programs, offset by a decline of 38% in commercial aerospace revenue, driven in part by recent challenges faced by a major aircraft manufacturer.
Previous wording
Cost of products sold for the three months ended September 30, 2024 was $5,610,080, reflecting an increase of $1,715,657 or 44.1%, as compared to $3,894,423 for the three months ended September 30, 2023. The increase in our cost of products sold is attributable to the quarterly increase in revenue, offset in part by the realization of production efficiencies associated with higher volumes of production.
Current wording
Cost of products sold for the three months ended December 31, 2024 was $5,569,467, reflecting an increase of $1,089,717 or 24.3%, as compared to $4,479,750 for the three months ended December 31, 2023. The increase in our cost of products sold is attributable to the quarterly increase in revenue, offset in part by the realization of production efficiencies associated with higher volumes of production.
Previous wording
Selling, general and administrative expenses for the three months ended September 30, 2024 was $1,371,941 reflecting a decrease of $449,473, or 24.7%, as compared to $1,821,414 for the three months ended September 30, 2023. The decrease was principally due to a decrease in accounting and consulting fees incurred in connection with catching up and meeting SEC filing obligations.
Current wording
Selling, general and administrative expenses for the three months ended December 31, 2024 was $1,594,721 reflecting an increase of $214,725, or 15.6%, as compared to $1,379,996 for the three months ended December 31, 2023. The increase was principally due to an increase in marketing costs and revenue driven sales commissions.
Previous wording
Depreciation and amortization for the three months ended September 30, 2024 was $185,907, reflecting a decrease of $29,679, or 13.8%, as compared to $215,586 for the three months ended September 30, 2023. The decrease was principally attributable to reduced amortization in the current period for certain fully amortized assets.
Current wording
Depreciation and amortization for the three months ended December 31, 2024 was $183,514, reflecting a decrease of $33,686, or 15.5%, as compared to $217,200 for the three months ended December 31, 2023. The decrease was principally attributable to reduced amortization in the current period for certain fully amortized assets.
Previous wording
Total other income for the three months ended September 30, 2024 was income of $73,247, reflecting an increase of $53,415, as compared to income of $19,832 for the three months ended September 30, 2023. The increase was attributable to an increase in interest income earned on our cash and cash equivalents.
Current wording
Total other income for the three months ended December 31, 2024 was income of $68,446, reflecting an increase of $25,310, as compared to income of $43,136 for the three months ended December 31, 2023. The increase was attributable to an increase in interest income earned on our cash and cash equivalents.
Previous wording
Provision for income taxes was $0 for the six months ended September 30, 2024 and 2023. The provision for income taxes for the six months ended September 30, 2024 was principally attributable to the utilization of net operating loss carryforwards to offset taxable income and the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net. The provision for income taxes for the six months ended September 30, 2023 was attributable to the loss before provision for income taxes incurred for the period and the impact of recording a full valuation allowance on the Company’s deferred tax assets, net.
Current wording
Provision for income taxes was $0 for the three months ended December 31, 2024 and 2023. The provision for income taxes for the three months ended December 31, 2024 was principally attributable to the loss before provision for income taxes incurred for the period, the utilization of net operating loss carryforwards to offset taxable income and the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net.
Previous wording
Revenue for the six months ended September 30, 2024 was $14,446,101, reflecting an increase of $4,955,268, or 52.2%, as compared to $9,490,833 for the six months ended September 30, 2023. The increase in revenue for the period was principally on account of a 66% increase in defense revenues as we continue to see strong orders from defense customers. Space revenues increased 44% driven principally by a robust market for commercial space projects in which we participate.
Current wording
Revenue for the nine months ended December 31, 2024 was $21,663,717, reflecting an increase of $7,065,127, or 48.4%, as compared to $14,598,590 for the nine months ended December 31, 2023. The increase in revenue for the period was principally on account of a 71.3% increase in defense revenues, driven by continuing conditions of geopolitical uncertainty, as we continue to see strong orders from defense customers. Space revenues increased 118.1% driven principally by a robust market for commercial space projects in which we participate.
Previous wording
Cost of products sold for the six months ended September 30, 2024 was $10,504,598, reflecting an increase of $2,368,743, or 29.1%, as compared to $8,135,855 for the six months ended September 30, 2023. The increase in our cost of products sold is attributable to the quarterly increase in order volume, offset in part by production efficiencies achieved with higher levels of production.
Current wording
Cost of products sold for the nine months ended December 31, 2024 was $16,074,065, reflecting an increase of $3,458,460, or 27.4%, as compared to $12,615,605 for the nine months ended December 31, 2023. The increase in our cost of products sold is attributable to an increase in order volume, offset in part by production efficiencies achieved with higher levels of production.
Previous wording
Selling, general and administrative expenses for the six months ended September 30, 2024 was $3,061,151 reflecting a decrease of $317,832, or 9.4%, as compared to $3,378,983 for the six months ended September 30, 2023. The decrease was principally due to a decrease in accounting and consulting fees offset by an increase in marketing and costs of additional sales personnel.
Current wording
Selling, general and administrative expenses for the nine months ended December 31, 2024 was $4,655,872 reflecting a decrease of $103,107, or 2.2%, as compared to $4,758,979 for the nine months ended December 31, 2023. The decrease was principally due to a decrease in accounting and consulting fees offset by an increase in marketing and costs of additional sales personnel.
Previous wording
Depreciation and amortization for the six months ended September 30, 2024 was $374,177, reflecting a decrease of $56,645, or 13.1%, as compared to $430,822 for the six months ended September 30, 2023. The decrease was principally attributable to reduced amortization in the current period for certain fully amortized assets while the company continues to monitor fixed assets investment.
Current wording
Depreciation and amortization for the nine months ended December 31, 2024 was $557,691, reflecting a decrease of $90,331, or 13.9%, as compared to $648,022 for the nine months ended December 31, 2023. The decrease was principally attributable to reduced amortization in the current period for certain fully amortized assets while the company continues to monitor fixed assets investment.
Previous wording
Total other income for the six months ended September 30, 2024 was income of $133,055, reflecting an increase of $94,733, as compared to income of $38,322 for the six months ended September 30, 2023. The increase was attributable to an increase in interest income earned on our cash and cash equivalents.
Current wording
Total other income for the nine months ended December 31, 2024 was income of $201,501, reflecting an increase of $120,043, as compared to income of $81,458 for the nine months ended December 31, 2023. The increase was attributable to an increase in interest income earned on our cash and cash equivalents.
Previous wording
Provision for income taxes was $0 for the three months ended September 30, 2024 and 2023. The provision for income taxes for the three months ended September 30, 2024 was principally attributable to the utilization of net operating loss carryforwards to offset taxable income and the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net. The provision for income taxes for the three months ended September 30, 2023 was attributable to the loss before provision for income taxes incurred for the period and the impact of recording a full valuation allowance on the Company’s deferred tax assets, net.
Current wording
Provision for income taxes was $0 for the nine months ended December 31, 2024 and 2023. The provision for income taxes for the nine months ended December 31, 2024 was principally attributable to the utilization of net operating loss carryforwards to offset taxable income and the impact of maintaining a full valuation allowance on the Company’s deferred tax assets, net. The provision for income taxes for the nine months ended December 31, 2023 was attributable to the loss before provision for income taxes incurred for the period and the impact of recording a full valuation allowance on the Company’s deferred tax assets, net.
Previous wording
Our primary requirements for liquidity and capital are working capital, inventory, capital expenditures, public company costs and general corporate needs. We expect these needs to continue as we further develop and grow our business. For the six months ended September 30, 2024, our primary sources of liquidity came from existing cash. Based on our current plans and business conditions, we believe that existing cash, together with cash generated from operations will be sufficient to satisfy our anticipated cash requirements in fiscal year 2025 and into fiscal year 2026, and we are not aware of any trends or demands, commitments, events or uncertainties that are reasonably likely to result in a decrease in liquidity of our assets. We may require additional capital to respond to technological advancements, competitive dynamics or technologies, business opportunities, challenges, acquisitions or unforeseen circumstances and in either the short-term or long-term may determine to engage in equity or debt financings or enter into credit facilities for other reasons. If we are unable to obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to continue to grow or support our business and to respond to business challenges could be significantly limited. In particular, inflationary pressures and increased interest rates, and the conflicts between Russia and Ukraine and in the Middle East have resulted in, and may continue to result in, significant disruption and volatility in the global financial markets, reducing our ability to access capital. If we are unable to raise additional funds when or on the terms desired, our business, financial condition and results of operations could be adversely affected.
Current wording
Our primary requirements for liquidity and capital are working capital, inventory, capital expenditures, public company costs and general corporate needs. We expect these needs to continue as we further develop and grow our business. For the nine months ended December 31, 2024, our primary sources of liquidity came from existing cash. Based on our current plans and business conditions, we believe that existing cash, together with cash generated from operations will be sufficient to satisfy our anticipated cash requirements in fiscal year 2025 and into fiscal year 2026, and we are not aware of any trends or demands, commitments, events or uncertainties that are reasonably likely to result in a decrease in liquidity of our assets. We may require additional capital to respond to technological advancements, competitive dynamics or technologies, business opportunities, challenges, acquisitions or unforeseen circumstances and in either the short-term or long-term may determine to engage in equity or debt financings or enter into credit facilities for other reasons. If we are unable to obtain adequate financing or financing on terms satisfactory to us, when we require it, our ability to continue to grow or support our business and to respond to business challenges could be significantly limited. In particular, inflationary pressures and elevated interest rates, the conflicts between Russia and Ukraine and in the Middle East, and any economic uncertainty as a result of the change in presidential administration in the U.S. may result in significant disruption and volatility in the global financial markets, reducing our ability to access capital. If we are unable to raise additional funds when or on the terms desired, our business, financial condition and results of operations could be adversely affected.
Previous wording
As of September 30, 2024, and March 31, 2024, the Company’s cash and cash equivalents was $8,587,615 and $6,139,823, respectively. The Company has recorded net income of $639,230 and net loss of $2,416,505 for the six months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, and March 31, 2024, the Company had working capital of $19,279,893 and $18,295,711 and shareholders’ equity of $22,563,848 and $21,799,518, respectively.
Current wording
As of December 31, 2024, and March 31, 2024, the Company’s cash and cash equivalents were $9,041,167 and $6,139,823, respectively. The Company has recorded net income of $577,590 and net loss of $3,342,558 for the nine months ended December 31, 2024 and 2023, respectively. As of December 31, 2024, and March 31, 2024, the Company had working capital of $19,460,819 and $18,295,711 and shareholders’ equity of $22,643,708 and $21,799,518, respectively.
Previous wording
Cash Flow Activities for the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023
Current wording
Cash Flow Activities for the Nine Months Ended December 31, 2024 Compared to the Nine Months Ended December 31, 2023
Previous wording
The following table summarizes our sources and uses of cash for the three months ended September 30, 2024 and 2023:
Current wording
The following table summarizes our sources and uses of cash for the nine months ended December 31, 2024 and 2023:
Previous wording
Net cash provided by operating activities was $2,588,997 for the six months ended September 30, 2024 and net cash used in operating activities was $2,259,791 for the six months ended September 30, 2023. The period over period increase in cash provided by operating activities of $4,848,788 was primarily due to the $3,055,735 improvement in net income (loss), $750,465 reduction in inventories, $467,758 reduction in accounts receivable and increase in accounts payable of $437,974.
Current wording
Net cash provided by operating activities was $3,114,787 for the nine months ended December 31, 2024 and net cash used in operating activities was $3,332,087 for the nine months ended December 31, 2023. The period over period increase in cash provided by operating activities of $6,446,874 was primarily due to the $3,920,148 improvement in net income, $1,282,261 reduction in cash required for inventories and an increase in cash received from customers of $625,877.
Previous wording
Net cash used in investing activities was $141,205 and $100,695 for the six months ended September 30, 2024 and 2023, respectively. The increase in cash used in investing activities during the six months ended September 30, 2024 was principally due to increases in purchases of property and equipment.
Current wording
Net cash used in investing activities was $213,443 and $129,186 for the nine months ended December 31, 2024 and 2023, respectively. The increase in cash used in investing activities during the nine months ended December 31, 2024 was principally due to increases in purchases of property and equipment.
Previous wording
The backlog of orders for the Company’s products amounted to approximately $14,298,000 at September 30, 2024 as compared to approximately $17,571,000 at September 30, 2023. The orders in backlog at September 30, 2024 are expected to ship over the next 12 months depending on customer requirements and product availability.
Current wording
The backlog of orders for the Company’s products amounted to approximately $12,830,000 at December 31, 2024 as compared to approximately $16,990,000 at December 31, 2023. The orders in backlog at December 31, 2024 are expected to ship over the next 12 months depending on customer requirements and product availability.