IEH Corp
For the period ended Sep 30, 2025. Filed Nov 10, 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.
Sep 30, 2025 · Filed Nov 10, 2025
IEHCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001213900-25-075007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001213900-25-108184
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 34 previous paragraphs and 44 current paragraphs.
20 unchanged; 14 reworded; 8 added; 0 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 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 (8)
Current report
Cost of products sold for the three months ended September 30, 2025 was $5,459,638, reflecting a decrease of $150,442, or 2.7%, as compared to $5,610,080 for the three months ended September 30, 2024. The decrease in our cost of products sold is principally attributable to a 3.6% decrease in revenue, which offset tariff charges we faced from European imports.
Current report
Revenue for the six months ended September 30, 2025 was $13,385,747, reflecting a decrease of $1,060,354, or 7.3%, as compared to $14,446,101 for the six months ended September 30, 2024. The decrease in revenue for the period was principally on account of a 20% decrease in defense revenue as a few key orders from defense customers were executed later than expected offsetting a 52% increase in commercial aerospace revenue as we continue to witness gradual recovery in that sector.
Current report
Selling, general and administrative expenses for the six months ended September 30, 2025 was $3,229,979 reflecting an increase of $168,828, or 5.5%, as compared to $3,061,151 for the six months ended September 30, 2024. The increase was principally due to an increase in stock compensation expense for stock options granted, an increase in sales personnel dedicated to international markets and an increase in legal fees, offset by a decrease in consulting and audit fees.
Current report
Depreciation and amortization for the six months ended September 30, 2025 was $376,965, reflecting a increase of $2,788, or 0.8%, as compared to $374,177 for the six months ended September 30, 2024. The decrease was principally attributable to reduced amortization in the current period for certain fully amortized assets as the company continues to monitor fixed assets investment.
Current report
Revolving Line of Credit
Current report
On August 26, 2025, the Company entered into a revolving line of credit agreement with Chase Bank for up to $1.0 million, bearing interest at the SOFR plus a margin of 2.15%. The Revolving Line of Credit contains certain financial covenants, including a fixed charge coverage ratio of at least 1.20 to 1.00, tested annually, and matures on July 31, 2026. As of September 30, 2025, there was no outstanding borrowing under Revolving Line of Credit. The Revolving Line of Credit is collateralized by a first-priority security interest in all property of the Company.
Current report
Equipment Financing Line of Credit
Current report
On September 8, 2025, the Company entered into a $450,000 Equipment Financing Line of Credit with Chase Bank, bearing interest at a fixed rate of 5.51%, to be repaid over a 60-month period. The Equipment Financing Line of Credit, which is expected to be utilized to purchase machine tools for production, has a draw period of four months with a final advance date of December 31, 2025. The last day of the draw period is defined as the draw principal repayment date. If the outstanding principal balance is not paid in full as of the end of the draw period, the balance shall be repaid by the execution of a term note payable to Chase Bank. The Equipment Financing Line of Credit contains certain financial covenants, consistent with the requirements under the Revolving Line of Credit. As of September 30, 2025, the Company had an outstanding draw of $84,360, which is reflected within equipment financing line of credit on the condensed balance sheet. The borrowings under the Equipment Financing Line of Credit are collateralized by a first lien on the related equipment financed under the arrangement.
Reworded paragraphs (14)
Previous wording
Our customers consist of OEMs and distributors who resell our products to OEMs. We sell our products directly and through 21 independent sales representatives and distributors located in all regions of the United States, Canada, the European Union, Southeast Asia, Central Asia and the Middle East.
Current wording
Our customers consist of OEMs and distributors who resell our products to OEMs. We sell our products directly and through 20 independent sales representatives and distributors located in all regions of the United States, Canada, Europe, Southeast Asia, Central Asia and the Middle East.
Previous wording
Revenue for the three months ended June 30, 2025 was $6,308,155, reflecting a decrease of $796,822, or 11.2%, as compared to $7,104,977 for the three months ended June 30, 2024. The decrease in revenue for the period was principally on account of a 28% decrease in defense revenues, impacted by changes in customer delivery schedules. Our quarter over quarter commercial aerospace revenues have increased 61% driven principally by recoveries in commercial aviation in general and gradual uptick in aircraft production by a major producer.
Current wording
Revenue for the three months ended September 30, 2025 was $7,077,592, reflecting a decrease of $263,532, or 3.6%, as compared to $7,341,124 for the three months ended September 30, 2024. The decrease in revenue for the period was principally on account of an 11% decrease in defense revenue and 35% decrease in space revenue which continue to be impacted by changes in customer delivery schedules. Our quarter over quarter commercial aerospace revenues have increased 43% driven principally by a gradual uptick in aircraft production by a major producer.
Previous wording
Selling, general and administrative expenses for the three months ended June 30, 2025 was $1,693,938, reflecting an increase of $4,728, or 0.3%, as compared to $1,689,210 for the three months ended June 30, 2024.
Current wording
Selling, general and administrative expenses for the three months ended September 30, 2025 was $1,536,041, reflecting an increase of $164,100, or 12.0%, as compared to $1,371,941 for the three months ended September 30, 2024. The increase was attributable to the hiring of sales personnel specifically focused on international markets and an increase in legal consulting fees.
Previous wording
Depreciation and amortization for the three months ended June 30, 2025 was $190,672, reflecting an increase of $2,402, or 1.3%, as compared to $188,270 for the three months ended June 30, 2024.
Current wording
Depreciation and amortization for the three months ended September 30, 2025 was $186,293, reflecting an increase of $386, or 0.2%, as compared to $185,907 for the three months ended September 30, 2024.
Previous wording
Total other income for the three months ended June 30, 2025 was income of $100,688, reflecting an increase of $40,880, as compared to income of $59,808 for the three months ended June 30, 2024. The increase was principally attributable to an increase in interest income earned on our cash and cash equivalents and interest earned on prepaid tax payments.
Current wording
Total other income for the three months ended September 30, 2025 was income of $77,519, reflecting an increase of $4,272, as compared to income of $73,247 for the three months ended September 30, 2024. The increase was principally attributable to an increase in interest income earned on our cash.
Previous wording
Cost of products sold for the three months ended June 30, 2025 was $5,178,851, reflecting an increase of $284,333, or 5.8%, as compared to $4,894,518 for the three months ended June 30, 2024. The increase in our cost of products sold is attributable to the lower order volume compared to 1 st quarter of FY2025 as certain costs are spread over lower production volume and the impact of higher material costs in the form of primarily gold.
Current wording
Cost of products sold for the six months ended September 30, 2025 was $10,638,489, reflecting an increase of $133,891, or 1.3%, as compared to $10,504,598 for the six months ended September 30, 2024. The increase in our cost of products sold is attributable to higher material costs we continue to be impacted by primarily in the form of gold and tariff charges on European imports.
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 three months ended June 30, 2025 our primary source 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 2026 and into fiscal year 2027, 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.
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 six months ended September 30, 2025 our primary source 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 2026 and into fiscal year 2027, 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 continuing 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 June 30, 2025, and March 31, 2025, the Company’s cash was $10,255,005 and $10,539,828, respectively. The Company has recorded net loss of $654,618 and net income of $392,787 for the three months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, and March 31, 2025, the Company had working capital of $19,709,459 and $19,784,214 and stockholders’ equity of $22,880,988 and $23,113,906, respectively.
Current wording
As of September 30, 2025, and March 31, 2025, the Company’s cash was $9,343,032 and $10,539,828, respectively. The Company has recorded a net loss of $681,479 and net income of $639,230 for the six months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, and March 31, 2025, the Company had working capital of $19,804,830 and $19,784,214 and stockholders’ equity of $22,854,127 and $23,113,906, respectively.
Previous wording
Cash Flow Activities for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024
Current wording
Cash Flow Activities for the Six Months Ended September 30, 2025 Compared to the Six Months Ended September 30, 2024
Previous wording
The following table summarizes our sources and uses of cash for the three months ended June 30, 2025 and 2024:
Current wording
The following table summarizes our sources and uses of cash for six months ended September 30, 2025 and 2024:
Previous wording
Net cash used in operating activities was $424,024 for the three months ended June 30, 2025 and net cash provided by operating activities was $1,070,656 for the three months ended June 30, 2024. The period over period decrease in cash provided by operating activities of $1,494,680 was primarily due to the $1,047,405 decrease in net income, $618,394 increase in accounts receivable, $526,765 increase in inventory purchases, decrease in customer advance payments of $412,739 offset by $417,998 decrease in corporate tax receivable and $396,297 increase in accounts payable.
Current wording
Net cash (used in) provided by operating activities was ($1,372,909) and $2,588,997 for the six months ended September 30, 2025 and 2024 respectively. The period over period decrease in cash provided by operating activities of $3,961,906 was primarily due to the $1,320,709 decrease in net income, $1,389,016 reduction in cash received from customers and $838,881 increase in inventories purchased.
Previous wording
Net cash used in investing activities was $17,299 and $63,551 for the three months ended June 30, 2025 and 2024, respectively. The decrease in cash used in investing activities during the three months ended June 30, 2025 was principally due to decreases in purchases of equipment.
Current wording
Net cash used in investing activities was $64,747 and $141,205 for the six months ended September 30, 2025 and 2024, respectively. The decrease in cash used in investing activities during the six months ended September 30, 2025 was principally due to decreases in purchases of property and equipment.
Previous wording
Net cash provided by financing activities was $156,500 and $0 for the three months ended June 30, 2025 and 2024, respectively. This increase is attributable to the proceeds from the exercise of stock options.
Current wording
Net cash provided by financing activities was $240,860 and $0 for the six months ended September 30, 2025 and 2024, respectively. This increase is attributable to the proceeds from the exercise of stock options and proceeds from the equipment financing line of credit.
Previous wording
The backlog of orders for the Company’s products amounted to approximately $13,023,000 at June 30, 2025 as compared to approximately $17,290,000 at June 30, 2024. The orders in backlog at June 30, 2025 are expected to ship over the next 12 – 18 months depending on customer requirements and product availability.
Current wording
The backlog of orders for the Company’s products amounted to approximately $18,400,810 at September 30, 2025 as compared to approximately $14,298,000 at September 30, 2024. The orders in backlog at September 30, 2025 are expected to ship over the next 12 – 18 months depending on customer requirements and product availability.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Total other income for the six months ended September 30, 2025 was income of $178,207, reflecting an increase of $45,152, as compared to income of $133,055 for the six months ended September 30, 2024. The increase was attributable to an increase in interest income earned on our cash.
Current report — wording carried from elsewhere
Provision for income taxes was $0 for the six months ended September 30, 2025 and 2024. The provision for income taxes for the six months ended September 30, 2025 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. 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.