OPTICAL CABLE CORP

Previous wording

Optical Cable Corporation entered into a strategic collaboration agreement with Lightera, LLC (“Lightera”) on July 7, 2025 to expand product offerings and solutions—especially for the data center and enterprise sectors. As part of this strategic collaboration, OCC and Lightera have combined portions of the product portfolios of both companies to deliver additional integrated cabling and connectivity solution offerings, which will include certain Lightera products being offered and sold by OCC. In connection with this strategic collaboration, Lightera purchased 642,199 redeemable restricted shares of common stock from OCC, which represent approximately 7.3% of OCC’s outstanding common shares as of January 31, 2026.

Current wording

Optical Cable Corporation entered into a strategic collaboration agreement with Lightera, LLC (“Lightera”) on July 7, 2025 to expand product offerings and solutions—especially for the data center and enterprise sectors. As part of this strategic collaboration, OCC and Lightera have combined portions of the product portfolios of both companies to deliver additional integrated cabling and connectivity solution offerings, which includes certain Lightera products being offered and sold by OCC. In connection with this strategic collaboration, Lightera purchased 642,199 redeemable restricted shares of common stock from OCC, which represent approximately 7.3% of OCC’s outstanding common shares as of April 30, 2026.

Previous wording

Summary of Company Performance for First Quarter of Fiscal Year 2026

Current wording

Summary of Company Performance for Second Quarter of Fiscal Year 2026

Previous wording

Net sales to customers outside of the United States increased 18.0% and net sales to customers in the United States increased less than one percent in the first quarter of fiscal year 2026, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.

Current wording

Net sales to customers outside of the United States increased 45.3% and net sales to customers in the United States increased 21.2% in the second quarter of fiscal year 2026, compared to the same period last year. We can experience fluctuations in sales from quarter to quarter in the various markets (both industries and geographies) in which we operate for various reasons.

Previous wording

At the end of the first quarter of fiscal year 2026, our sales order backlog/forward load was $10.4 million compared to $7.3 million as of October 31, 2025.

Current wording

At the end of the second quarter of fiscal year 2026, our sales order backlog/forward load was $13.3 million compared to $10.4 million as of January 31, 2026, and when compared to $7.3 million as of October 31, 2025.

Previous wording

Our gross profit increased 16.1% to $5.4 million in the first quarter of fiscal year 2026, compared to gross profit of $4.6 million in the first quarter of fiscal year 2025. Gross profit margin, or gross profit as a percentage of net sales, increased to 32.7% in the first quarter of fiscal year 2026, compared to 29.4% in the first quarter of fiscal year 2025.

Current wording

Gross profit margin, or gross profit as a percentage of net sales, increased to 34.2% in the second quarter of fiscal year 2026, compared to 30.4% in the second quarter of fiscal year 2025, and compared to 32.7% for the first quarter of fiscal year 2026, as we benefited from our operating leverage.

Previous wording

Gross profit margin for the first quarter of fiscal 2026, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of our strong manufacturing operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.

Current wording

Gross profit margin for the second quarter of fiscal 2026, when compared to the same period last year, was positively impacted by higher volumes, as fixed charges were spread over higher sales—the impact of our strong manufacturing operating leverage. Additionally, our gross profit margin percentages are heavily dependent upon product mix on a quarterly basis and may vary based on changes in product mix.

Previous wording

The increase in SG&A expenses during the first quarter of fiscal year 2026, compared to the same period last year, was primarily the result of increases in employee and contracted sales personnel-related costs totaling $102,000 and shipping costs totaling $87,000. Both employee and contracted sales personnel-related costs, which include sales incentives, and shipping costs increased due to increases in net sales.

Current wording

The increase in SG&A expenses during the second quarter of fiscal year 2026, compared to the same period last year, was primarily the result of increases in employee and contracted sales personnel-related costs totaling $288,000 and shipping costs totaling $77,000. Included in employee and contracted sales personnel-related costs are compensation costs and sales incentives. Compensation costs increased due to new hires, net of terminations, and certain rate increases. Sales incentives and shipping costs increased primarily due to increases in net sales.

Previous wording

We recognized royalty expense, net of royalty income, totaling $7,000 during the first quarter of fiscal years 2026 and 2025. Royalty expense and/or income may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.

Current wording

We recognized royalty expense, net of royalty income, totaling $7,000 during the second quarter of fiscal years 2026 and 2025. Royalty expense and/or income may fluctuate based on sales of related licensed products and estimates of amounts for non-licensed product sales, if any.

Previous wording

We recognized $14,000 of amortization expense, associated with intangible assets, during the first quarter of fiscal years 2026 and 2025.

Current wording

We recognized $14,000 of amortization expense, associated with intangible assets, during the second quarter of fiscal years 2026 and 2025.

Previous wording

We reported a loss from operations of $208,000 for the first quarter of fiscal year 2026, compared to $852,000 for the first quarter of fiscal year 2025. The improvement was primarily due to the increase in gross profit of $743,000, partially offset by the increase in SG&A expenses of $99,000.

Current wording

We reported income from operations of $1.3 million for the second quarter of fiscal year 2026, compared to a loss from operations of $429,000 for the second quarter of fiscal year 2025. The change was primarily due to the increase in gross profit of $2.3 million, partially offset by the increase in SG&A expenses of $527,000.

Previous wording

We recognized other expense, net in the first quarter of fiscal year 2026 of $211,000, compared to $243,000 in the first quarter of fiscal year 2025. Other expense, net for the first quarter of fiscal years 2026 and 2025 is comprised primarily of interest expense and other miscellaneous items.

Current wording

We recognized other expense, net in the second quarter of fiscal year 2026 of $245,000, compared to $254,000 in the second quarter of fiscal year 2025. Other expense, net for the second quarter of fiscal years 2026 and 2025 is comprised of interest expense and other miscellaneous items.

Previous wording

We reported a loss before income taxes of $419,000 for the first quarter of fiscal year 2026, compared to $1.1 million for the first quarter of fiscal year 2025. The improvement was primarily a result of the decrease in loss from operations of $644,000.

Current wording

We reported income before income taxes of $1.1 million for the second quarter of fiscal year 2026, compared to a loss before income taxes of $683,000 for the second quarter of fiscal year 2025. The change was primarily a result of the increase in income from operations of $1.7 million.

Previous wording

Net loss for the first quarter of fiscal year 2026 was $398,000, or $0.05 per share, compared to a net loss of $1.1 million, or $0.14 per share, for the first quarter of fiscal year 2025. This improvement was primarily due to the decrease in loss before income taxes of $676,000.

Current wording

Net income for the second quarter of fiscal year 2026 was $1.1 million, or $0.12 per share, compared to a net loss of $698,000, or $0.09 per share, for the second quarter of fiscal year 2025. This change was primarily due to the increase in income before income taxes of $1.7 million.

Previous wording

Consolidated net sales for the first quarter of fiscal year 2026 increased 4.4% to $16.4 million, compared to net sales of $15.7 million for the same period last year. We experienced an increase in net sales in both our enterprise and specialty markets during the first quarter of fiscal year 2026, compared to the same period last year. We continue to see general market improvements in our industry and strength in our severe duty market.

Current wording

Consolidated net sales for the first half of fiscal year 2026 were $38.6 million, an increase of 16.1% compared to net sales of $33.3 million for the same period last year. We experienced an increase in net sales in both our enterprise and specialty markets in the first half of fiscal year 2026, compared to the same period last year.

Previous wording

SG&A expenses increased to $5.6 million, or 1.8%, during the first quarter of fiscal year 2026, when compared to $5.5 million during the first quarter of fiscal year 2025. SG&A expenses as a percentage of net sales were 33.8% in the first quarter of fiscal year 2026, compared to 34.7% in the first quarter of fiscal year 2025.

Current wording

SG&A expenses increased 5.6% to $11.8 million during the first half of fiscal year 2026, compared to $11.2 million for the same period last year. SG&A expenses as a percentage of net sales were 30.6% in the first half of fiscal year 2026 compared to 33.6% for the first half of fiscal year 2025—the impact of our SG&A operating leverage.

Previous wording

Income tax benefit totaled $21,000 in the first quarter of fiscal year 2026, compared to income tax expense of $12,000 in the first quarter of fiscal year 2025. Our effective tax rate was 5.1% for the first quarter of fiscal year 2026 and negative 1.1% for the first quarter of fiscal year 2025.

Current wording

Income tax benefit totaled $17,000 in the first half of fiscal year 2026, compared to income tax expense of $27,000 in the first half of fiscal year 2025. Our effective tax rate was negative 2.7% for the first half of fiscal year 2026 and negative 1.5% for the first half of fiscal year 2025.

Previous wording

Total assets decreased $1.3 million, or 3.2%, to $38.8 million at January 31, 2026, from $40.1 million at October 31, 2025. This decrease was primarily due to a $2.2 million decrease in trade accounts receivable net, partially offset by an increase in inventories of $1.1 million. The decrease in trade accounts receivable, net resulted primarily from the decrease in net sales in the first quarter of fiscal year 2026 when compared to the fourth quarter of fiscal year 2025. Inventories increased largely as a result of the timing of certain raw material purchases and the replenishment and timing of sales of stock inventory.

Current wording

Total assets increased $2.4 million, or 5.9%, to $42.4 million at April 30, 2026, from $40.1 million at October 31, 2025. This increase was primarily due to a $798,000 increase in trade accounts receivable, net and an increase in inventories of $1.5 million. The increase in trade accounts receivable, net resulted primarily from the increase in net sales in the second quarter of fiscal year 2026 when compared to the fourth quarter of fiscal year 2025. Inventories increased largely as a result of the timing of certain raw material purchases and the replenishment and timing of sales of stock inventory.

Previous wording

Total liabilities decreased $820,000, or 4.4%, to $17.7 million at January 31, 2026, from $18.5 million at October 31, 2025. The decrease in total liabilities was primarily due to a decrease in note payable, revolver - current totaling $1.1 million, resulting from net repayments on our Revolver, partially offset by an increase in accounts payable and accrued expenses, including accrued compensation and payroll taxes, totaling $401,000, resulting from the timing of certain payments.

Current wording

Total liabilities increased $1.7 million, or 9.1%, to $20.2 million at April 30, 2026, from $18.5 million at October 31, 2025. The increase in total liabilities was primarily due to an increase in note payable, revolver - current totaling $1.7 million, resulting from net proceeds on our Revolver.

Previous wording

As of January 31, 2026, the aggregate redemption value of the redeemable restricted common stock decreased to $3.0 million. The Company records the value of the redeemable restricted common stock at the average stock closing price for the ten days preceding the balance sheet date multiplied by the total number of the redeemable shares.

Current wording

As of April 30, 2026, the aggregate redemption value of the redeemable restricted common stock increased to $7.0 million. The Company records the value of the redeemable restricted common stock at the average stock closing price for the ten days preceding the balance sheet date multiplied by the total number of the redeemable shares.

Previous wording

Total shareholders’ equity at January 31, 2026 increased $1.6 million in the first quarter of fiscal year 2026 resulting primarily from the $2.1 million decrease in the aggregate redemption value of the redeemable restricted common stock as of January 31, 2026, partially offset by a net loss of $398,000.

Current wording

Total shareholders’ equity at April 30, 2026 decreased $1.3 million in the first half of fiscal year 2026 resulting primarily from the reduction in retained earnings caused by the $1.9 million increase in the aggregate redemption value of the redeemable restricted common stock as of April 30, 2026, partially offset by net income of $657,000.

Previous wording

Our cash totaled $126,000 as of January 31, 2026, a decrease of $112,000 compared to $238,000 as of October 31, 2025. The decrease in cash for the three months ended January 31, 2026 primarily resulted from capital expenditures of $138,000 and net cash used in financing activities of $1.1 million, partially offset by net cash provided by operating activities of $1.2 million.

Current wording

Our cash totaled $146,000 as of April 30, 2026, a decrease of $92,000 compared to $238,000 as of October 31, 2025. The decrease in cash for the six months ended April 30, 2026 primarily resulted from net cash used in operating activities of $1.4 million and capital expenditures of $211,000, partially offset by net cash provided by financing activities of $1.5 million.

Previous wording

On January 31, 2026, we had working capital of $13.5 million compared to $13.9 million on October 31, 2025. The ratio of current assets to current liabilities as of January 31, 2026 and October 31, 2025 was 1.8 to 1.0. The decrease in working capital was primarily due to the decrease in trade accounts receivable, net of $2.2 million and the increase in accounts payable and accrued expenses, including accrued compensation and payroll taxes, totaling $401,000, partially offset by the increase in inventories totaling $1.1 million and the decrease in note payable, revolver – current totaling $1.1 million, resulting from net repayments on our Revolver.

Current wording

On April 30, 2026, we had working capital of $17.1 million compared to $13.9 million on October 31, 2025. The ratio of current assets to current liabilities as of April 30, 2026 was 2.1 to 1.0, compared to 1.8 to 1.0 as of October 31, 2025. The increase in working capital and in the current ratio was primarily due to the increase in trade accounts receivable, net of $798,000, the increase in inventories totaling $1.5 million and the decrease in current installments of long-term debt totaling $2.5 million, resulting from the reclassification of the long-term portion of the refinanced term loan, partially offset by the increase in note payable, revolver – current totaling $1.7 million, resulting from net proceeds on our Revolver.

Previous wording

As of January 31, 2026 and October 31, 2025, we had outstanding loan balances under our Revolver totaling $4.6 million and $5.6 million, respectively. As of January 31, 2026 and October 31, 2025, we had other outstanding bank loan balances, excluding our Revolver, totaling $2.6 million.

Current wording

As of April 30, 2026 and October 31, 2025, we had outstanding loan balances under our Revolver totaling $7.3 million and $5.6 million, respectively. As of April 30, 2026 and October 31, 2025, we had other outstanding bank loan balances, excluding our Revolver, totaling $2.7 million and $2.6 million, respectively.

Previous wording

Net cash provided by operating activities was $1.2 million in the first quarter of fiscal year 2026, compared to $2.7 million for the first quarter of fiscal year 2025. Net cash provided by operating activities during the first quarter of fiscal year 2026 primarily resulted from certain adjustments to reconcile a net loss of $398,000 to net cash provided by operating activities including depreciation and amortization of $197,000 and share-based compensation expense of $89,000. Additionally, the cash flow impact of the decrease in trade accounts receivable, net of $2.2 million and the cash flow impact of the increase in accounts payable and accrued expenses, including accrued compensation and payroll taxes, of $275,000 further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by the increase in inventories totaling $1.1 million.

Current wording

Net cash used in operating activities was $1.4 million in the first half of fiscal year 2026, compared to net cash provided by operating activities of $2.8 million for the first half of fiscal year 2025. Net cash used in operating activities during the first half of fiscal year 2026 primarily resulted from an increase in inventories totaling $1.5 million, the cash flow impact of increases in trade accounts receivable, net totaling $807,000 and the cash flow impact of decreases in accounts payable and accrued expenses, including accrued compensation and payroll taxes, totaling $297,000, partially offset by certain adjustments to reconcile net income of $657,000 to net cash used in operating activities including depreciation and amortization of $389,000 and share-based compensation expense of $163,000.

Previous wording

Net cash provided by operating activities during the first quarter of fiscal year 2025 primarily resulted from certain adjustments to reconcile a net loss of $1.1 million to net cash provided by operating activities including depreciation and amortization of $212,000 and share-based compensation expense of $114,000. Additionally, the cash flow impact of the decrease in trade accounts receivable, net of $2.8 million and the cash flow impact of the increase in accounts payable and accrued expenses of $918,000 further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by the increase in inventories totaling $373,000.

Current wording

Net cash provided by operating activities during the first half of fiscal year 2025 primarily resulted from certain adjustments to reconcile a net loss of $1.8 million to net cash provided by operating activities including depreciation and amortization of $424,000 and share-based compensation expense of $186,000. Additionally, the cash flow impact of decreases in trade accounts receivable, net of $1.9 million and the cash flow impact of increases in accounts payable and accrued expenses of $2.1 million further contributed to net cash provided by operating activities. All of the aforementioned factors positively affecting cash provided by operating activities were partially offset by increases in inventories totaling $332,000.

Previous wording

Net cash used in investing activities totaled $164,000 in the first quarter of fiscal year 2026, compared to $75,000 in the first quarter of fiscal year 2025. Net cash used in investing activities during the first quarter of fiscal years 2026 and 2025 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment.

Current wording

Net cash used in investing activities totaled $237,000 in the first half of fiscal year 2026, compared to $143,000 in the first half of fiscal year 2025. Net cash used in investing activities during the first half of fiscal years 2026 and 2025 resulted primarily from purchases of property and equipment and deposits for the purchase of property and equipment.

Previous wording

Net cash used in financing activities totaled $1.1 million for the first quarter of fiscal year 2026, compared to $2.7 million in the first quarter of fiscal year 2025. Net cash used in financing activities in the first quarter of fiscal years 2026 resulted from repayments on our revolving line of credit totaling $1.1 million. Net cash used in financing activities in the first quarter of fiscal years 2025 resulted primarily from net repayments on our revolving line of credit totaling $2.7 million.

Current wording

Net cash provided by financing activities totaled $1.5 million for the first half of fiscal year 2026, compared to net cash used in financing activities of $2.0 million in the first half of fiscal year 2025. Net cash provided by financing activities in the first half of fiscal years 2026 resulted primarily from net proceeds from our revolving line of credit totaling $1.7 million. Net cash used in financing activities in the first half of fiscal year 2025 resulted primarily from net repayments on our revolving line of credit totaling $1.8 million.

Previous wording

We have credit facilities consisting of a real estate term loan, as amended and restated (the “Virginia Real Estate Loan”) and a Revolving Credit Master Promissory Note and related Loan and Security Agreement (collectively, the “Revolver”).

Current wording

We have credit facilities consisting of a term loan (the “Term Loan”) and a Revolving Credit Master Promissory Note and related Loan and Security Agreement (collectively, the “Revolver”).

Previous wording

The Virginia Real Estate Loan is with Northeast Bank and is payable in monthly installments of principal and interest. Principal is calculated using the unpaid balance of the loan and a two hundred forty (240) month amortization schedule. Interest is computed on the aggregate principal balance outstanding at a rate equal to the Prime Rate, adjusted monthly on the fifth day of each calendar month in accordance with changes to the Prime Rate, provided, however, that the interest rate is never less than 8.5% per annum on the basis of a 360-day year times the actual number of days elapsed. The Prime Rate was 6.75% per annum at January 31, 2026 and 7.0% at October 31, 2025. The maturity date of the Virginia Real Estate Loan is May 5, 2026. The Company intends to refinance the obligation prior to maturity.

Current wording

The Term Loan is payable in monthly installments of principal and interest beginning June 1, 2026. Principal is calculated using the unpaid balance of the loan and a two hundred forty (240) month amortization schedule. Interest is computed on the aggregate principal balance outstanding at a rate of 6.5% per annum for 60 months. Effective June 1, 2031, the interest rate will change to the monthly average yield on U.S. Treasury Securities, adjusted to a constant maturity of five years, plus 2.5%, for years six through ten. Notwithstanding any other provision, the interest rate on the Promissory Note shall at no time be less than 4.5% per annum. The maturity date of the Term loan is May 1, 2036.

Previous wording

The Virginia Real Estate Loan is secured by a first lien deed of trust on the land and buildings at our headquarters and manufacturing facilities located in Roanoke, Virginia.

Current wording

The Term Loan is secured by a first lien deed of trust on the land and building at the Company’s headquarters and manufacturing facilities located in Roanoke, Virginia.

Previous wording

As of January 31, 2026 and October 31, 2025, the Company had an outstanding balance on its Virginia Real Estate Loan of $2.6 million.

Current wording

As of April 30, 2026 we had an outstanding balance on our Term Loan of $2.7 million. As of October 31, 2025, we had an outstanding balance on our Virginia Real Estate Loan of $2.6 million.

Previous wording

As of January 31, 2026, we had $4.6 million of outstanding borrowings on our Revolver and $4.7 million in available credit.

Current wording

As of April 30, 2026, we had $7.3 million of outstanding borrowings on our Revolver and $4.6 million in available credit.

Previous wording

In November 2023, the FASB issued Accounting Standards Update 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”), as described in accordance with U.S. GAAP. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosure requirement in ASC 280,Segment Reporting, on an interim and annual basis. The guidance in ASU 2023-07 is effective for annual reporting periods in fiscal years beginning after December 15, 2023 and interim reporting periods in fiscal years beginning after December 31, 2024. We adopted ASU 2023-07 on a retrospective basis for the annual period ended October 31, 2025 and for interim reporting periods beginning with the fiscal quarter ended January 31, 2026. See note 11 for further information regarding the Company’s single reportable segment disclosures.

Current wording

In November 2023, the FASB issued Accounting Standards Update 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires public entities to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”), as described in accordance with U.S. GAAP. Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosure requirement in ASU 280,Segment Reporting, on an interim and annual basis. The guidance in ASU 2023-07 is effective for annual reporting periods in fiscal years beginning after December 15, 2023 and interim reporting periods in fiscal years beginning after December 31, 2024. We adopted ASU 2023-07 on a retrospective basis for the annual period ended October 31, 2025 and for interim reporting periods beginning with the fiscal quarter ended January 31, 2026. See note 11 for further information regarding the Company’s single reportable segment disclosures.

Previous wording

In July 2025, the FASB issued Accounting Standards Update 2025-05,Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606,Revenue from Contracts with Customers (“ASC 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim periods within those annual reporting periods, with early adoption permitted. The adoption of ASU 2025-05 is not expected to have a material impact on our results of operations, financial position or liquidity or our related financial statement disclosures.

Current wording

In July 2025, the FASB issued Accounting Standards Update 2025-05,Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASU 606,Revenue from Contracts with Customers (“ASU 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025 and interim periods within those annual reporting periods, with early adoption permitted. The adoption of ASU 2025-05 is not expected to have a material impact on our results of operations, financial position or liquidity or our related financial statement disclosures.

Previous wording

In December 2025, the FASB issued Accounting Standards Update 2025-11,Interim Reporting (Topic 270): Narrow-Scope Improvements(“ASU 2025-11”). This update clarifies the applicability, form and content, and interim disclosure requirements in ASC Topic 270 and enhances navigability of the interim reporting guidance. ASC 2025-11 also establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact ASU 2025-11 will have on our financial statement disclosures.

Current wording

In December 2025, the FASB issued Accounting Standards Update 2025-11,Interim Reporting (Topic 270): Narrow-Scope Improvements(“ASU 2025-11”). This update clarifies the applicability, form and content, and interim disclosure requirements in ASU Topic 270 and enhances navigability of the interim reporting guidance. ASU 2025-11 also establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact ASU 2025-11 will have on our financial statement disclosures.

Previous wording

In December 2025, the FASB issued Accounting Standards Update 2025-12,Codification Improvements, (“ASU 2025-12”). ASC 2025-12 includes changes that clarify, correct, or otherwise improve certain components of the Accounting Standards Codification. The improvements consist of narrow-scope amendments, technical corrections, clarification of existing guidance, and updates to clarify the appropriate scope and application of certain disclosure requirements. ASU 2025-12 is effective for annual periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact ASC 2025-12 will have on our results of operations, financial position or liquidity or our related financial statement disclosures.

Current wording

In December 2025, the FASB issued Accounting Standards Update 2025-12,Codification Improvements, (“ASU 2025-12”). ASU 2025-12 includes changes that clarify, correct, or otherwise improve certain components of the Accounting Standards Codification. The improvements consist of narrow-scope amendments, technical corrections, clarification of existing guidance, and updates to clarify the appropriate scope and application of certain disclosure requirements. ASU 2025-12 is effective for annual periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact ASU 2025-12 will have on our results of operations, financial position or liquidity or our related financial statement disclosures.