IEH Corp

Previous wording

All of our connectors utilize the Hyperboloid contact design, a rugged, high-reliability contact system ideally suited for high-stress environments. We believe we are the only independent producer of Hyperboloid printed circuit board connectors in the United States.

Current wording

All of our connectors utilize the Hyperboloid contact design, a rugged, high-reliability contact system ideally suited for high-stress environments.

Previous wording

Revenue for the three months ended December 31, 2025 was $7,497,879, reflecting an increase of $280,263, or 3.9%, as compared to $7,217,616 for the three months ended December 31, 2024. The increase in revenue for the period was principally on account of a 28% increase in commercial aerospace revenue and a 9% increase in defense revenues. Our quarter over quarter space revenues have decreased by 58%, driven principally by shifting customer delivery schedules.

Current wording

Revenue for the three months ended June 30, 2026 was $10,021,446, reflecting an increase of $3,713,291, or 58.9%, as compared to $6,308,155 for the three months ended June 30, 2025. The increase in revenue for the period was principally on account of a 116% increase in defense revenues as we continue to witness unprecedented level of demand for parts in this industry. Our quarter over quarter commercial aerospace revenues decreased 11% driven principally by changes in customer delivery schedules, however we continue to see robust demand from the commercial aerospace sector as well.

Previous wording

Cost of products sold for the three months ended December 31, 2025 was $6,479,634, reflecting an increase of $910,167, or 16.3%, as compared to $5,569,467 for the three months ended December 31, 2024. The increase in our cost of products sold is principally attributable to tariff charges we faced from European imports and a continuous increase in gold prices.

Current wording

Cost of products sold for the three months ended June 30, 2026 was $6,704,857, reflecting an increase of $1,526,006, or 29.5%, as compared to $5,178,851 for the three months ended June 30, 2025. The increase in our cost of products sold is attributable to the increase in revenue offset by more effective absorption of overhead in production on account of the increase in units sold and steady decrease in the cost of gold.

Previous wording

Depreciation and amortization for the three months ended December 31, 2025 was $193,139, reflecting an increase of $9,625, or 5.2%, as compared to $183,514 for the three months ended December 31, 2024.

Current wording

Depreciation and amortization for the three months ended June 30, 2026 was $207,450, reflecting an increase of $16,778, or 8.8%, as compared to $190,672 for the three months ended June 30, 2025, reflecting additional investments in machinery.

Previous wording

Total other income (expense), net for the three months ended December 31, 2025 was income of $63,158, reflecting a decrease of $5,288, as compared to income of $68,446 for the three months ended December 31, 2024. The decrease was principally attributable to a decrease in interest income earned on our cash.

Current wording

Total other income, net for the three months ended June 30, 2026 was income of $53,868, reflecting a decrease of $46,820, as compared to income of $100,688 for the three months ended June 30, 2025. The decrease was principally attributable to a decrease in interest income earned on our cash and cash equivalents.

Previous wording

Provision for income taxes was $0 for the three months ended December 31, 2025 and 2024. The provision for income taxes for the three months ended December 31, 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 three 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.

Current wording

Provision for income taxes was $64,204 and $0 for the three months ended June 30, 2026 and 2025. The provision for income taxes for the three months ended June 30, 2026 was principally attributable to the utilization of net operating loss and general business credit 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 June 30, 2025 was principally 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, 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, 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 and 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 additional 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 and geopolitical 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, 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, 2026, 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 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 additional 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, 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 December 31, 2025, and March 31, 2025, the Company’s cash was $9,042,923 and $10,539,828, respectively. The Company has recorded a net loss of $1,341,765 and net income of $577,590 for the nine months ended December 31, 2025 and 2024, respectively. As of December 31, 2025, and March 31, 2025, the Company had working capital of $18,896,884 and $19,784,214 and stockholders’ equity of $22,193,841 and $23,113,906, respectively.

Current wording

As of June 30, 2026, and March 31, 2026, the Company’s cash and cash equivalents was $9,360,045 and $9,647,698, respectively. The Company has recorded net income of $654,466 and net loss of $654,618 for the three months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, and March 31, 2026, the Company had working capital of $20,406,113 and $ 18,937,744 and stockholders’ equity of $23,534,458and $22,358,492, respectively.

Previous wording

Cash Flow Activities for the Nine Months Ended December 31, 2025 Compared to the Nine Months Ended December 31, 2024

Current wording

Cash Flow Activities for the Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Previous wording

The following table summarizes our sources and uses of cash for nine months ended December 31, 2025 and 2024:

Current wording

The following table summarizes our sources and uses of cash for the three months ended June 30, 2026 and 2025:

Previous wording

Net cash used in investing activities was $487,360 and $213,443 for the nine months ended December 31, 2025 and 2024, respectively. The increase in cash used in investing activities during the nine months ended December 31, 2025 was principally due to an increase in purchases of equipment.

Current wording

Net cash used in investing activities was $59,616 and $17,299 for the three months ended June 30, 2026 and 2025, respectively. The increase in cash used in investing activities during the three months ended June 30, 2026 was principally due to increase in purchases of machinery to reduce reliance on foreign vendors for input materials.

Previous wording

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, tested annually, and matures on July 31, 2026. As of December 31, 2025, there was no outstanding borrowing under the Revolving Line of Credit. The Revolving Line of Credit is collateralized by a first-priority security interest in all property of the Company.

Current wording

On August 26, 2025, the Company entered into a revolving line of credit agreement (“Revolving Line of Credit”) with JPMorgan Chase Bank, N.A. (“Chase Bank”) for up to $1.0 million, bearing interest at the Secured Overnight Financing Rate (“SOFR”) plus a margin of 2.15%. The Revolving Line of Credit contains certain financial covenants, including a fixed charge coverage ratio (the “FCCR”) of at least 1.20, tested annually, and matures on July 31, 2026. As of March 31, 2026, the Company’s FCCR was below the covenant requirement. Effective for the fiscal year ended March 31, 2026, Chase Bank waived the covenant exception. As of June 30, 2026, there was no outstanding borrowing under the Revolving Line of Credit. The Revolving Line of Credit is collateralized by a first-priority security interest in all property of the Company.

Previous wording

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 is expected to be utilized to purchase machine tools for production. Funding is on an equipment project basis, and once a project is fully funded, the obligation for that project is to be repaid by the execution of 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 December 31, 2025, the Company had an outstanding draw of $245,920, 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.

Current wording

On September 8, 2025, the Company entered into a $450,000 equipment financing arrangement with Chase Bank, bearing interest at a fixed rate of 5.51%, to be repaid over a 60-month period (“Equipment Financing Line of Credit”). The Equipment Financing Line of Credit is expected to be utilized to purchase machine tools for production. Funding is on an equipment project basis, and once a project is fully funded, the obligation for that project is to be repaid by the execution of term note payable to Chase Bank. The Equipment Financing Line of Credit contains certain financial covenants, tested annually, consistent with the requirements under the Revolving Line of Credit. As of March 31, 2026, the Company’s FCCR was below the covenant requirement for the Equipment Financing Line of Credit. Effective for the fiscal year ended March 31, 2026, Chase Bank waived the covenant exception. As of June 30, 2026 and March 31, 2026, the Company had an outstanding draw of $400,650 and $415,924, respectively, of which $76,370 and $256,257, respectively is reflected within equipment financing line of credit on the balance sheet and $324,280 and $159,667, respectively is reflected within equipment financing line of credit, net of current on the 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.

Previous wording

The backlog of orders for the Company’s products amounted to approximately $18,360,000 at December 31, 2025 as compared to approximately $12,830,000 at December 31, 2024. The orders in backlog at December 31, 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 $38,561,000 on June 30, 2026 as compared to approximately $13,023,000 on June 30, 2025. The orders in backlog on June 30, 2026 are expected to ship over the next 6 - 24 months depending on customer requirements and product availability.

Previous wording

In the opinion of management, inflation has continued to impact the costs of our operations and depending upon the current duration and degree of inflation levels, is expected to have an impact upon our operations in the future. Management will continue to monitor inflation as well as tariffs developments and evaluate the possible future effects on our business and operations.

Current wording

In the opinion of management, inflation has continued to impact the costs of our operations and depending upon the current duration and degree of higher inflation levels, is expected to have an impact upon our operations in the future. Management will continue to monitor inflation and evaluate the possible future effects of inflation on our business and operations.