IEH Corp

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 17 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.

Previous wording

We are exposed to and impacted by macroeconomic factors and U.S., state and local government policies. Current general economic conditions, including the current levels of inflation and increased tariffs, have created uncertainties, resulting in market volatility. We have adopted particular measures to protect our employees at our manufacturing operations in Brooklyn, New York, and Allentown, Pennsylvania, and we expect to execute on our contracts through carefully designed arrangements.

Current wording

We are exposed to and impacted by macroeconomic factors and federal state and local government policies. Current general economic conditions, including the current levels of inflation, increased energy costs and evolving tariff policies, have created uncertainties, resulting in market volatility. We have adopted particular measures to protect our employees at our manufacturing operations in Brooklyn, New York, and Allentown, Pennsylvania, and we expect to execute on our contracts through carefully designed arrangements.

Previous wording

Worldwide supply chain disruptions, which were initially brought about by the impact of the COVID-19 pandemic, have persisted despite the recovery in the global economy and financial markets. The Company has experienced longer lead times for raw materials and has experienced raw material cost increases compared to prior fiscal years. These and other issues resulting from worldwide supply chain disruptions, including tariffs and the impact of trade policies from the current United States government administration, as well as the conflicts in Eastern Europe, the Middle East and South Asia, are expected to continue into fiscal 2026 and could continue to have a material adverse effect on the Company’s business, operating results and financial condition. The precise financial impact and duration, however, cannot be reasonably estimated at this time.

Current wording

Worldwide supply chain disruptions, which were initially brought about by the impact of the COVID-19 pandemic, have persisted despite the recovery in the global economy and financial markets. The Company has experienced longer lead times for raw materials and has experienced raw material cost increases compared to prior fiscal years. These and other issues resulting from worldwide supply chain disruptions, including tariffs and the impact of trade policies from the current United States government administration, as well as the conflicts in Eastern Europe and the Middle East, are expected to continue into fiscal 2027 and could continue to have a material adverse effect on the Company’s business, operating results and financial condition. The precise financial impact and duration, however, cannot be reasonably estimated at this time.

Previous wording

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition, valuation of inventories, accounting for income taxes and stock-based compensation expense.

Current wording

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition, valuation of inventories, stock-based compensation expense and provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax asset.

Previous wording

We provide engineering services as part of the relationship with its customers in developing the custom product. We are not obligated to provide such engineering service to its customers. We do not invoice its customers separately for these services.

Current wording

We provide engineering services as part of the relationship with our customers in developing the custom product. We are not obligated to provide such engineering service to our customers. We do not invoice our customers separately for these services.

Previous wording

We record a liability when receiving cash in advance of delivering goods or services to the customer. This liability is offset against the receivable recognized when those goods or services are delivered. Deposits from customers were $173,074 and $882,525, as of March 31, 2025 and 2024, respectively.

Current wording

We record a liability when receiving cash in advance of delivering goods or services to the customer. This liability is offset against the receivable recognized when those goods or services are delivered. Deposits from customers were $18,471 and $173,074, as of March 31, 2026 and 2025, respectively.

Previous wording

Our current provision for income taxes is based upon its estimated taxable income in each of the jurisdictions in which it operates, after considering the impact on taxable income of temporary and permanent differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made.

Current wording

Our current provision for income taxes is based upon our estimated taxable income in each of the jurisdictions in which we operate, after considering the impact on taxable income of temporary and permanent differences resulting from different treatment of items for tax and financial reporting purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any operating loss or tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax assets will not be realized, a valuation allowance against the deferred tax assets would be established in the period such determination was made.

Previous wording

Revenue for the fiscal year ended March 31, 2025 was $28,783,861, reflecting an increase of $7,259,317, or 33.7%, as compared to $21,524,544 for the fiscal year ended March 31, 2024. The increase in revenues was primarily due to an increase in orders from our defense customers for programs that IEH participates in. Fiscal 2025 also witnessed increases in revenue in commercial space exploration as space related programs continue to evolve and grow, offsetting the decline in revenue from commercial aerospace as the industry navigates through various production, labor and regulatory related challenges related to a major airplane producer.

Current wording

Revenue for the fiscal year ended March 31, 2026 was $29,417,600, reflecting an increase of $633,739, or 2.2%, as compared to $28,783,861 for the fiscal year ended March 31, 2025. The increase in revenues was primarily due to an increase in orders from commercial aerospace customers as the industry continues to navigate away from various production, labor and regulatory related challenges related to a major airplane producer. Our defense revenue remained mostly flat year over year as we continued to see strong demand in the sector offsetting a decline in revenue from space related programs.

Previous wording

Total interest income (expense), net for the fiscal year ended March 31, 2025 was $425,291, reflecting an increase of $298,597, as compared to $126,694 for the fiscal year ended March 31, 2024. The increase was primarily attributable to an increase in interest income earned on taxes prepaid for federal, state and municipal jurisdictions.

Current wording

Total interest income (expense), net for the fiscal year ended March 31, 2026 was $292,349, reflecting a decrease of $132,942, as compared to $425,291 for the fiscal year ended March 31, 2025. The decrease was primarily attributable to decrease in interest income earned on taxes prepaid for federal, state and municipal jurisdictions. Interest income earned on cash and cash equivalents remained relatively flat year over year.

Previous wording

The provision for income taxes for the fiscal year ended March 31, 2025 was a provision of $1,115, as compared to a benefit of $717,291 for the fiscal year ended March 31, 2024. The provision for the fiscal year ended March 31, 2025 was due to a federal provision of $64,300, offset by an adjustment of $63,185 for state and local income taxes.

Current wording

The provision for income taxes for the fiscal year ended March 31, 2026, was a tax benefit of $42,746, as compared to a provision of $1,115 for the fiscal year ended March 31, 2025. The benefit for the fiscal year ended March 31, 2026 was principally attributable to adjustments to prior years’ federal, state and local income taxes. The provision for the fiscal year ended March 31, 2025 was due to a federal provision of $64,300, offset by an adjustment of $63,185 for state and local income taxes.

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 fiscal year ended March 31, 2025, our primary sources of liquidity came from cash flows generated by operating activities and cash reserves. 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 the conflicts in Eastern Europe, Middle East and South Asia, 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 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 fiscal year ended March 31, 2026, our primary sources of liquidity came from cash flows generated by operating activities and cash reserves. Based on our current plans and business conditions, we believe that existing cash and cash equivalents, together with cash generated from operations will be sufficient to satisfy our anticipated cash requirements in fiscal year 2027 and into fiscal year 2028, 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 the conflicts in Eastern Europe and the Middle East, any economic uncertainty as a result of the current administration in the U.S. may result in significant disruption and volatility in the global financial markets, reducing our ability to access capital 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.

Previous wording

As of March 31, 2025, our cash balance was $10,539,828. For the fiscal year ended March 31, 2025, we recorded net income of $999,038. As of March 31, 2025, we had working capital of $19,784,214.

Current wording

As of March 31, 2026, our cash and cash equivalents balance was $9,647,698. For the fiscal year ended March 31, 2026, we recorded net loss of $1,296,784. As of March 31, 2026, we had working capital of $18,937,744.

Previous wording

Net cash provided by operating activities was $4,883,619 for the fiscal year ended March 31, 2025, as compared to net cash used in operating activities of $1,914,265 for the fiscal year ended March 31, 2024. The period over period improvement in cash from operating activities of $6,797,884 was primarily due to the improvement in net income of $3,915,940, decrease in inventory purchases of $1,154,803, decrease in accounts receivable of $1,624,952, decrease in corporate tax receivable of $1,861,462, offset by the decrease in customer advance payments of $1,571,337.

Current wording

Net cash used in operating activities was $631,130 for the fiscal year ended March 31, 2026, as compared to net cash provided by operating activities of $4,883,619 for the fiscal year ended March 31, 2025. The increase in cash used in operating activities of $5,514,749 was primarily due to the increase in net loss of $2,295,822, increase in accounts receivable of $2,205,540, increase in corporate tax receivable of $1,040, 342, increase in inventory purchases of $1,371,313 offset by decrease in customer advance payments of $554,848 and decrease in accounts payable of $453,689.

Previous wording

Net cash used in investing activities was $532,364 for the fiscal year ended March 31, 2025, an increase of $185,196, as compared to use of $347,168 for the fiscal year ended March 31, 2024. The increase in cash used in investing activities during the fiscal year ended March 31, 2025 was primarily attributable to investment in machinery for product designs.

Current wording

Net cash used in investing activities was $953,094 for the fiscal year ended March 31, 2026, an increase of $420,730, as compared to use of $532,364 for the fiscal year ended March 31, 2025. The increase in cash used in investing activities during the fiscal year ended March 31, 2026 was primarily attributable to an increase in investments in machinery for assembly parts.

Previous wording

Net cash provided by financing activities was $48,750 for the fiscal year ended March 31, 2025, a decrease of $7,800, as compared to $56,550 for the fiscal year ended March 31, 2024. This decrease is attributable to a reduction in the proceeds from the exercise of stock options.

Current wording

Net cash provided by financing activities was $692,094 for the fiscal year ended March 31, 2026, an increase of $643,344, as compared to $48,750 for the fiscal year ended March 31, 2025. This increase was attributable to financing proceeds received under our equipment line of credit facility and proceeds from the exercise of stock options.

Previous wording

Our customers typically enter into supply arrangements for the purchase of our products which we will produce and deliver over time. On an as-needed basis, our customers place specific production orders, and these orders are generally filled and shipped within twelve weeks. Our backlog consists of supply arrangements where the anticipated unfulfilled shipping dates are within approximately twelve months. Because of the possibility of customer changes in delivery schedules or the cancellation of orders, our backlog as of any particular date may not be indicative of revenue in any future period. The backlog amounted to approximately $12,445,000 at March 31, 2025 as compared to $18,285,600 at March 31, 2024. The decrease in total backlog as of March 31, 2025 compared with the previous year is primarily due to decreases in defense orders as the company awaits several key customer contracts to be executed and due to sluggish recovery in commercial aerospace as the industry navigates through production, labor and regulatory issues related to a major airplane producer.

Current wording

Our customers typically enter into supply arrangements for the purchase of our products which we will produce and deliver over time. On an as-needed basis, our customers place specific production orders, and these orders are generally filled and shipped within twelve weeks. Our backlog consists of supply arrangements where the anticipated unfulfilled shipping dates are within approximately twelve months. Because of the possibility of customer changes in delivery schedules or the cancellation of orders, our backlog as of any particular date may not be indicative of revenue in any future period. The backlog amounted to approximately $27,782,000 at March 31, 2026 as compared to $12,445,000 at March 31, 2025. The increase in total backlog as of March 31, 2026 compared with the previous year is primarily due to increase in defense orders as the Company sees strong growth in this sector in light of continuing geopolitical uncertainty and the continuing recovery in the commercial aerospace industry.