SOLITRON DEVICES INC
For the period ended Aug 31, 2025. Filed Oct 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.
Aug 31, 2025 · Filed Oct 10, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-31; filed 2025-07-11.
0001437749-25-022587
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-31; filed 2025-10-10.
0001437749-25-030857
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 38 previous paragraphs and 49 current paragraphs.
18 unchanged; 19 reworded; 7 added; 1 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 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 (7)
Current report
*Gross Profit.*Gross profit for the three months ended August 31, 2025, increased to $835,000 from $738,000 for the three months ended August 31, 2024. Expressed as a percentage of net sales, gross profit was consistent at 21% for both the three months ended August 31, 2025, and for the three months ended August 31, 2024.
Current report
*Operating Income (Loss).*The operating loss for the three months ended August 31, 2025, was ($291,000) as compared to operating income of $50,000 for the three months ended August 31, 2024. This loss is due to stock expense as noted above.
Current report
Results of Operations-Six Months Ended August 31, 2025, Compared to Six Months Ended August 31, 2024:
Current report
Net Sales. Net sales for the six months ended August 31, 2025, decreased 11% to $6,686,000 as compared to $7,548,000 for the six months ended August 31, 2024. The decrease in net sales was largely due to significantly lower sales during the first quarter of fiscal year 2026, which was the result of lower backlog during fiscal year 2025 and the delay in an expected order.
Current report
Cost of Sales. Cost of sales for the six months ended August 31, 2025, increased to $5,461,000 from $5,135,000 for the six months ended August 31, 2024. Expressed as a percentage of net sales, cost of sales increased to 82% for the six months ended August 31, 2025, from 68% for the six months ended August 31, 2024. This is due to the higher cost of materials during the period.
Current report
Other Income (Loss). Interest income increased to $42,000 for the six months ended August 31, 2025, as compared to $6,000 for the six months ended August 31, 2024, as noted above. Interest expense increased to ($140,000) for the six months ended August 31, 2025, as compared to ($127,000) for the six months ended August 31, 2024, due to the timing of the MEI property acquisition during fiscal year 2025. Dividend income increased to $59,000 for the six months ended August 31, 2025, as compared to $22,000 for the six months ended August 31, 2024. Realized gains on investments for the six months ended August 31, 2025, increased to $251,000 as compared to $33,000 for the six months ended August 31, 2024. Unrealized gains (losses) on investments for the six months ended August 31, 2025, were ($325,000) due to market price changes in the company’s common stock investments as compared to a gain of $48,000 for the six months ended August 31, 2024. Miscellaneous income for the six months ended August 31, 2025 was $5,000 as compared to $0 for the six months ended August 31, 2024.
Current report
*Net Income (Loss).*Net income (loss) for the six months ended August 31, 2025, was ($570,000) as compared to net income of $606,000 for the six months ended August 31, 2024.
Removed paragraphs (1)
Previous report
Net cash used in investing activities was ($1,864,000) for the three months ended May 31, 2024, principally reflecting ($1,750,000) in purchases of property and equipment related to the MEI facility.
Reworded paragraphs (19)
Previous wording
Net Sales. Net sales for the three months ended May 31, 2025, decreased 32% to $2,700,000 as compared to $3,967,000 for the three months ended May 31, 2024. The decrease in net sales was largely due a lower backlog during fiscal year 2025 until the fourth quarter of the year and the associated delivery dates of those orders, along with a delay of a large expected order.
Current wording
Net Sales. Net sales for the three months ended August 31, 2025, increased 11% to $3,986,000 as compared to $3,581,000 for the three months ended August 31, 2024. The increase in net sales was largely due a lower backlog during fiscal year 2025 until the fourth quarter of the year and the associated delivery dates of those orders.
Previous wording
Net bookings for the three months ended May 31, 2025, increased 37% to $2,797,000 versus $2,041,000 during the three months ended May 31, 2024 due to the variable timing on the receipt of orders. Backlog as of May 31, 2025, increased 94% to $18,256,000 as compared to a backlog of $9,413,000 as of May 31, 2024.
Current wording
Net bookings for the three months ended August 31, 2025, increased 147% to $4,324,000 versus $1,752,000 during the three months ended August 31, 2024 due to the variable timing on the receipt of orders. Backlog as of August 31, 2025, increased 146% to $18,642,000 as compared to a backlog of $7,572,000 as of August 31, 2024.
Previous wording
Cost of Sales. Cost of sales for the three months ended May 31, 2025, increased to $2,310,000 from $2,292,000 for the three months ended May 31, 2024. Expressed as a percentage of net sales, cost of sales increased to 86% for the three months ended May 31, 2025, from 58% for the three months ended May 31, 2024.
Current wording
Cost of Sales. Cost of sales for the three months ended August 31, 2025, increased to $3,151,000 from $2,843,000 for the three months ended August 31, 2024. However, expressed as a percentage of net sales, cost of sales was consistent at 79% for the three months ended August 31, 2025, and for the three months ended August 31, 2024.
Previous wording
For the three months ended May 31, 2025, we shipped 15,035 units as compared to 22,777 units shipped during the same period of the prior year. It should be noted that since we manufacture a wide variety of products with an average sales price ranging from a few dollars to several hundred dollars, such periodic variations in our volume of units shipped should not be regarded as a reliable indicator of our performance.
Current wording
For the three months ended August 31, 2025, we shipped 20,805 units as compared to 16,120 units shipped during the same period of the prior year. It should be noted that since we manufacture a wide variety of products with an average sales price ranging from a few dollars to several hundred dollars, such periodic variations in our volume of units shipped should not be regarded as a reliable indicator of our performance.
Previous wording
Selling, General & Administrative Expenses. Selling, general, and administrative expenses decreased slightly to $768,000 for the three months ended May 31, 2025 from $883,000 for the same period in the prior year. However, expressed as a percentage of net sales, selling, general and administrative expenses during the three months ended May 31, 2025, was 28% as compared to 22% for the three months ended May 31, 2024. The Company experienced higher administration expenses during the first quarter of fiscal year 2025 due to the acquisition of MEI along with increased sales expenses related to greater net sales during the period.
Current wording
Selling, General & Administrative Expenses. Selling, general, and administrative expenses increased to $1,126,000 for the three months ended August 31, 2025 from $688,000 for the three months ended August 31, 2024. Expressed as a percentage of net sales, selling, general and administrative expenses during the three months ended August 31, 2025, was 28% as compared to 19% for the three months ended August 31, 2024. The Company experienced higher administration expenses during the second quarter of fiscal year 2026 due to stock awards and stock options to senior management and directors of $331,000, along with increased sales expenses related to greater net sales during the period.
Previous wording
Other Income (Loss). Interest income decreased to $0 for the three months ended May 31, 2025, as compared to $5,000 for the three months ended May 31, 2024. Interest expense increased to ($74,000) for the three months ended May 31, 2025, as compared to ($50,000) for the three months ended May 31, 2024, due to the acquisition of the MEI property during fiscal year 2025. Dividend income increased to $41,000 for the three months ended May 31, 2025, as compared to $16,000 for the three months ended May 31, 2024. Realized gains on investments for the three months ended May 31, 2025, increased to $81,000 as compared to $11,000 for the three months ended May 31, 2024. Unrealized gains (losses) on investments for the three months ended May 31, 2025, were ($127,000) due to market price changes in the company’s common stock investments as compared to a gain of $27,000 for the three months ended May 31, 2024.
Current wording
Other Income (Loss). Interest income increased to $42,000 for the three months ended August 31, 2025, as compared to $1,000 for the three months ended August 31, 2024. This increase was due to interest received on the Company's long-term investment. Interest expense decreased to ($66,000) for the three months ended August 31, 2025, as compared to ($77,000) for the three months ended August 31, 2024, due to the timing of the MEI property acquisition during fiscal year 2025. Dividend income increased to $18,000 for the three months ended August 31, 2025, as compared to $6,000 for the three months ended August 31, 2024. Realized gains on investments for the three months ended August 31, 2025, increased to $170,000 as compared to $22,000 for the three months ended August 31, 2024. Unrealized gains (losses) on investments for the three months ended August 31, 2025, were ($198,000) due to market price changes in the company’s common stock investments as compared to a gain of $21,000 for the three months ended August 31, 2024.
Previous wording
*Income Taxes.*Income taxes for the three months ended May 31, 2025, was a benefit of $121,000 as compared to an expense of ($212,000) for the three months ended May 31, 2024. This change in income tax is due to the company's loss during the current quarter ended May 31, 2025 compared to the net income recorded for the three months ended May 31, 2024.
Current wording
*Income Taxes.*Income taxes for the three months ended August 31, 2025, was a benefit of $86,000 as compared to an expense of ($6,000) for the three months ended August 31, 2024. This change in income tax is due to the company's loss during the current quarter ended August 31, 2025 compared to the net income recorded for the three months ended August 31, 2024.
Previous wording
*Net Income (Loss).*Net income (loss) for the three months ended May 31, 2025, was ($336,000) as compared to net income of $589,000 for the three months ended May 31, 2024.
Current wording
*Net Income (Loss).*Net income (loss) for the three months ended August 31, 2025, was ($234,000) as compared to net income of $17,000 for the three months ended August 31, 2024.
Previous wording
*Gross Profit.*Gross profit for the three months ended May 31, 2025, decreased to $390,000 from $1,675,000 for the three months ended May 31, 2024. Expressed as a percentage of net sales, gross profit decreased to 14% for the three months ended May 31, 2025, as compared to 42% for the three months ended May 31, 2024. This was due to delay in orders during fiscal year 2025, as mentioned above.
Current wording
*Gross Profit.*Gross profit for the six months ended August 31, 2025, decreased to $1,225,000 from $2,413,000 for the six months ended August 31, 2024. Expressed as a percentage of net sales, gross profit decreased to 18% for the six months ended August 31, 2025, as compared to 32% for the six months ended August 31, 2024. This was due to the higher cost of materials, as mentioned above.
Previous wording
*Operating Income.*The operating loss for the three months ended May 31, 2025, was ($378,000) as compared to operating income of $792,000 for the three months ended May 31, 2024. This loss is due to the reduction in net sales as noted above.
Current wording
*Operating Income (Loss).*The operating loss for the six months ended August 31, 2025, was ($669,000) as compared to operating income of $842,000 for the six months ended August 31, 2024. This loss is due to the reduction in net sales and increased expenses as noted above.
Previous wording
Net cash provided by operating activities was$391,000 for thethree months ended May 31, 2025, primarily reflecting a net loss of ($336,000), a decrease in accounts receivable of $379,000, an increase in accounts payable of $293,000, depreciation of $141,000, an increase in other non-current assets of $127,000 and an increase in net deferred taxes of $121,000, partially offset by an increase in inventories of $151,000.
Current wording
Net cash provided by operating activities was$777,000 for thesix months ended August 31, 2025, primarily reflecting a net loss of ($570,000), an increase in customer deposits of $427,000, an increase in accounts payable of $372,000, stock compensation of $330,000, depreciation of $285,000, a decrease in inventories of $142,000, an increase in other non-current assets of $130,000, amortization of intangibles of $105,000 partially offset by an increase in accounts receivable of $299,000, change in net deferred taxes of $205,000 and an increase in other current assets of $152,000.
Previous wording
Net cash provided by operating activities was $714,000 for the three months ended May 31, 2024, primarily reflecting net income of $589,000, an increase in accounts payable of $397,000, a decrease in accounts receivable of $335,000, a decrease in net deferred taxes of $146,000, depreciation of $135,000, partially offset by a decrease in customer deposits of $475,000 and an increase in inventories of $360,000.
Current wording
Net cash provided by operating activities was $1,549,000 for the six months ended August 31, 2024, primarily reflecting net income of $606,000, an decrease in accounts receivable of $629,000, an increase in accounts payable of $380,000, depreciation of $277,000, a change in net deferred taxes of $152,000, and amortization of intangibles of $105,000 partially offset by a decrease in customer deposits of $287,000, a decrease in accrued expenses of $90,000 and an increase in inventories of $89,000.
Previous wording
Net cash used in investing activities was ($1,883,000) for the three months ended May 31, 2025, principally reflecting ($1,650,000) in purchases of a long-term investment, and ($409,000) of cash paid for acquisition, contingent consideration, partially offset by proceeds from the sale of marketable securities of $296,000.
Current wording
Net cash used in investing activities was ($1,887,000) for the six months ended August 31, 2025, principally reflecting $1,650,000 in purchases of a long-term investment, $409,000 of cash paid for acquisition, contingent consideration, partially offset by proceeds from the sale of marketable securities of $783,000 less the purchase of marketable securities of $533,000.
Previous wording
Net cash used in financing activities was ($37,000) for the three months ended May 31, 2025, reflecting ($37,000) in principal payments on the mortgage loans.
Current wording
Net cash used in financing activities was ($139,000) for the six months ended August 31, 2025, reflecting $76,000 in principal payments on the mortgage loans and $63,000 for the repurchase of the Company's common stock.
Previous wording
Net cash provided by financing activities was $1,337,000 for the three months ended May 31, 2024, principally reflecting $1,400,000 in proceeds from mortgage loan offset.
Current wording
Net cash provided by financing activities was $1,304,000 for the six months ended August 31, 2024, principally reflecting $1,400,000 in proceeds from mortgage loan offset by $61,000 in principal payments on the mortgage loans and $3,000 in payments on finance lease liabilities.
Previous wording
We expect our sole sources of liquidity over the next twelve months to be cash from operations and cash and cash equivalents, if necessary. We anticipate that our capital expenditures required to sustain operations will be approximately$250,000 during the next twelve months and that our cash from operations and cash and cash equivalents, if necessary, will be sufficient to fund these needs for the next twelve months. Available cash and cash equivalents as of June 30, 2025 was approximately $2.4 million.
Current wording
We expect our sole sources of liquidity over the next twelve months to be cash from operations and cash and cash equivalents, if necessary. We anticipate that our capital expenditures required to sustain operations will be approximately$250,000 during the next twelve months and that our cash from operations and cash and cash equivalents, if necessary, will be sufficient to fund these needs for the next twelve months. Available cash and cash equivalents as of September 30, 2025 was approximately $2.3 million.
Previous wording
At May 31, 2025 and February 28, 2025, we had cash and cash equivalents of approximately $2,570,000 and $4,099,000, respectively. The decrease for the three months ended May 31, 2025, was primarily due to the cash used in investing activities to purchase a long-term investment.
Current wording
At August 31, 2025 and February 28, 2025, we had cash and cash equivalents of approximately $2,850,000 and $4,099,000, respectively. The decrease for the six months ended August 31, 2025, was primarily due to the cash used in investing activities to purchase a long-term investment.
Previous wording
At May 31, 2025 and February 28, 2025, we had investments in securities of approximately $659,000 and $919,000, respectively.
Current wording
At August 31, 2025 and February 28, 2025, we had investments in securities of approximately $595,000 and $919,000, respectively.
Previous wording
At May 31, 2025 and February 28, 2025, we had working capital of $6,321,000 and $8,594,000, respectively. The decrease for the three months ended May 31, 2025 was due primarily to the cash used in investing activities to purchase the long-term investment and cash paid for acquisition, contingent consideration.
Current wording
At August 31, 2025 and February 28, 2025, we had working capital of $6,390,000 and $8,594,000, respectively. The decrease for the six months ended August 31, 2025 was due primarily to the cash used in investing activities to purchase the long-term investment and cash paid for acquisition, contingent consideration.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Net bookings for the six months ended August 31, 2025, increased 88% to $7,121,000 versus $3,793,000 during the six months ended August 31, 2024 due to the variable timing on the receipt of orders. Backlog as of August 31, 2025, increased 146% to $18,642,000 as compared to a backlog of $7,572,000 as of August 31, 2024.
Current report — wording carried from elsewhere
For the six months ended August 31, 2025, we shipped 35,840 units as compared to 38,897 units shipped during the same period of the prior year. It should be noted that since we manufacture a wide variety of products with an average sales price ranging from a few dollars to several hundred dollars, such periodic variations in our volume of units shipped should not be regarded as a reliable indicator of our performance.
Current report — wording carried from elsewhere
Selling, General & Administrative Expenses. Selling, general, and administrative expenses increased to $1,894,000 for the six months ended August 31, 2025 from $1,571,000 for the same period in the prior year. Expressed as a percentage of net sales, selling, general and administrative expenses during the six months ended August 31, 2025, was 28% as compared to 21% for the six months ended August 31, 2024. The Company experienced higher administration expenses during fiscal year 2026 as noted above.
Current report — wording carried from elsewhere
*Income Taxes.*Income taxes for the six months ended August 31, 2025, was a benefit of $207,000 as compared to an expense of ($218,000) for the six months ended August 31, 2024. This change in income tax is due to the company's loss during the six months ended August 31, 2025 compared to the net income recorded for the six months ended August 31, 2024.
Current report — wording carried from elsewhere
Net cash used in investing activities was ($1,767,000) for the six months ended August 31, 2024, principally reflecting $1,762,000 in purchases of property and equipment, $416,000 in purchases of marketable securities, and $89,000 of cash paid for acquisition, contingent consideration, partially offset by proceeds from the sale of marketable securities of $500,000.