R F INDUSTRIES LTD

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’** EQUITY**

(In thousands, except share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’** EQUITY**

(In thousands, except share amounts)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note1 – Unaudited interim condensed consolidated financial statements

The accompanying unaudited condensed consolidated financial statements of RF Industries, Ltd., together with itsfive wholly-owned subsidiaries (collectively, hereinafter the “Company”, “we”, “us”, or “our”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form10-Q. Accordingly, they donot include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, which are normal and recurring, and other items of gain (loss) and expense required in our review under Accounting Standards Codification (“ASC”) Topic270, Interim Reporting, have been included for a fair statement of the financial position. Information included in the condensed consolidated balance sheet as of* October 31, 2025* has been derived from, and certain terms used herein are defined in, the audited consolidated financial statements of RF Industries, Ltd. as of* October 31, 2025* included in our Annual Report on Form10-K (the “Form10-K”) for the fiscal year ended* October 31, 2025* that was previously filed with the Securities and Exchange Commission (“SEC”). Operating results for thenine months ended* July 31, 2026* arenot necessarily indicative of the results that* maybe expected for the fiscal year ending October 31, 2026*. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Form10-K.

Our accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities in the ordinary course of business. The propriety of using the going concern basis is dependent upon, among other things, the achievement of future profitable operations, the ability to generate sufficient cash from operations and potential other funding sources, in addition to cash on-hand along with the current credit facility with Eclipse Business Capital (“EBC”) to meet its obligations as they become due.

For thethree andnine months ended* July 31, 2026*, we generated operating income of $1,759*,000* and $3,034*,000,* respectively, compared to operating income of $720*,000* and $882*,000* for the same periods last year. This was primarily a result of an increase in sales along with cost management and implementation of certain cost-cutting measures to improve our gross margins as well as our operating expenses, to help drive positive operating cash flow and increase liquidity. Efforts to reduce expenses included consolidating facilities and recognizing the related operating efficiencies and synergies in our production operations. The Company intends to continue to pursue additional continuous improvement and cost reduction measures, as well as organic growth in revenue and profitability.

Principles of consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of RF Industries, Ltd., and each of Cables Unlimited, Inc. (“Cables Unlimited”), Rel-Tech Electronics, Inc. (“Rel-Tech”), C Enterprises, Inc. (“C Enterprises”), Schroff Technologies International, Ltd. (“Schrofftech”), and Microlab/FXR LLC (“Microlab”), wholly-owned subsidiaries of RF Industries, Ltd. All intercompany balances and transactions have been eliminated in consolidation.

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Fair value measurement

We measure at fair value certain financial assets and liabilities. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Thesetwo types of inputs have created the following fair value hierarchy:

Level1— Quoted prices for identical instruments in active markets;

Level2— Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that arenot active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level3— Valuations derived from valuation techniques in whichone or more significant inputs or significant value drivers are unobservable.

As of* July 31, 2026* and* October 31, 2025*, the carrying amounts reflected in the accompanying condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying value due to their short-term nature.

Recent accounting standards

Recently issued accounting pronouncements adopted:

In* November 2023,the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)2023-07, Segment Reporting (Topic280*): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU2023-07 was effective for our fiscal year ended* October 31, 2025,and for interim periods within our fiscal year ending October 31, 2026,with early adoption permitted. The adoption of this ASU on a retrospective basis didnot* have a material effect on our consolidated financial statements. However, our segment disclosures have been expanded to include significant segment expenses as reviewed by our chief operating decision maker (“CODM”). Please see Note8 for more details.

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Recently issued accounting pronouncementsnot yet adopted:**

In* December 2023,the FASB issued ASU2023*-09, Income Taxes (Topic740): Improvements to Income Tax Disclosures, to expand the disclosure requirements for income taxes, specifically related to the effective tax rate reconciliation and income taxes paid. ASU2023-09 will be effective for our fiscal year ending* October 31, 2026,*with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

In* November 2024,the FASB issued ASU2024*-03, Expense Disaggregation Disclosures, which will require disclosure, in the notes to financial statements, of specified information about certain costs and expenses including disclosure of amounts for (i) purchases of inventory, (ii) employee compensation, (iii) depreciation and (iv) intangible asset amortization, included in each relevant expense caption such as cost of sales, selling, general and administrative expense, and research and development. In* January 2025,the FASB issued ASU2025*-01, which clarified the effective date of ASU2024-03. The standard will be effective for our annual financial statements beginning in our fiscal year ending* October 31, 2028,*with early adoption permitted. We are currently evaluating the impact of this accounting standard on our financial statement presentation and its related disclosures.

Note2 – Concentrations of credit risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. We maintain our cash and cash equivalents with high-credit quality financial institutions. At* July 31, 2026*, we had cash and cash equivalent balances in excess of federally insured limits in the amount of approximately $3.7 million.

Sales from each customer that accounted for10% or greater of net sales were as follows:

Accounts receivable from each customer that accounted for10% or greater of net accounts receivable were as follows:

Although these customers have been significant customers of the Company, the written agreements with these customers donot have any minimum purchase obligations and these customers could stop buying our products at any time and for any reason. A reduction, delay or cancellation of orders from these customers or the loss of these customers could significantly reduce our future revenues and profits.

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Note3 – Inventories and major vendors

Inventories, consisting of materials, labor and manufacturing overhead, are stated at the lower of cost or net realizable value. Cost has been determined using the weighted average cost method. Inventories consist of the following (in thousands):

For thethree andnine months ended* July 31, 2026and2025*, no single vendor accounted for10% or more of inventory purchases. We have arrangements with these vendors to purchase products based on purchase orders that we periodically issue.

Note4 – Other current assets

Other current assets consist of the following (in thousands):

Note5 – Accrued expenses

Accrued expenses consist of the following (in thousands):

Accrued receipts represent purchased inventory for which invoices havenot been received.

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Note6 – Income (loss) per share

Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the effects of assuming that other potentially dilutive securities (such as stock options) outstanding during the period had been exercised and the treasury stock method had been applied. During thethree andnine months ended* July 31, 2026*, we reported net income. In periods with a net loss, the basic loss per share equals the diluted loss per share as all common stock equivalents are excluded from the per share calculation due to their anti-dilutive effect. Potentially issuable securities that are out-of-the-money totaled 0 and 50,000 shares for thethree months ended* July 31, 2026and2025*, respectively, and 0 and 50,000 shares for thenine months ended* July 31, 2026and2025*, respectively, and were excluded from the calculation of diluted per share amounts because of their anti-dilutive effect.

The following table summarizes the computation of basic and diluted weighted average shares outstanding:

Note7 – Stock-based compensation and equity transactions

On* December 2, 2024,we granted 47,500 incentive stock options. The incentive stock options vest equally over four years as follows: (i)one-quarter of the options vested on December 2, 2025*and (ii) the remaining options shall vest inthree equal annual installments over the next three years.

On* January 13, 2025,we granted a total of 82,500 shares of restricted stock and 165,000 incentive stock options. The shares of restricted stock and incentive stock options vest over four years as follows: (i)one-quarter of the restricted shares and options vested on January 13, 2026*and (ii) the remaining restricted shares and options shall vest in 12 equal quarterly installments over the next three years.

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On* December 1, 2025,we granted 55,500 incentive stock options. The incentive stock options vest equally over four years as follows: (i)one-quarter of the options shall vest on December 1, 2026*and (ii) the remaining options shall vest inthree equal annual installments over the next three years.

On* January 7, 2026,we granted a total of 82,500 shares of restricted stock and 165,000 incentive stock options. The shares of restricted stock and incentive stock options vest over four years as follows: (i)one-quarter of the restricted shares and options shall vest on January 7, 2027*and (ii) the remaining restricted shares and options shall vest in 12 equal quarterly installments over the next three years.

No other shares or options were granted to Company employees during thethree andnine months ended* July 31, 2026and2025*.

The fair value of each option granted during thenine months ended* July 31, 2026and2025* was estimated on the grant date using the Black-Scholes option pricing model with the following assumptions:

Expected volatilities are based on historical volatility of our stock price and other factors. We used the historical method to calculate the expected life of the2026 and2025 option grants. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free rate is based on the U.S. Treasury rate with a maturity date corresponding to the options’ expected life. The expected dividend yield is based upon the historical dividend yield.

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Company stock option plans

Descriptions of our stock option plans are set forth in Note8 to our audited financial statements included in our Form10-K for the fiscal year ended* October 31, 2025*. A summary of the status of the options granted under our stock option plans as of* July 31, 2026* and the changes in options outstanding during thenine months then ended is presented in the table that follows:

Weighted average remaining contractual life of options outstanding as of* July 31, 2026*:6.64 years

Weighted average remaining contractual life of options exercisable as of* July 31, 2026*:5.35 years

Weighted average remaining contractual life of options vested and expected to vest as of* July 31, 2026*:6.64 years

Aggregate intrinsic value of options outstanding at* July 31, 2026*: $8,524,000

Aggregate intrinsic value of options exercisable at* July 31, 2026*: $4,913,000

Aggregate intrinsic value of options vested and expected to vest at* July 31, 2026*: $8,524,000

As of* July 31, 2026*, $1,193,000 and $921,000 of expenses with respect to nonvested stock options and restricted shares, respectively, have yet to be recognized but are expected to be recognized over a weighted average period of 1.3 and 1.3 years, respectively.

Stock option expense

During thethree months ended* July 31, 2026and2025*, stock-based compensation expense totaled $283*,000* and $219*,000* respectively, and was classified in selling and general expense. During thenine months ended* July 31, 2026and2025*, stock-based compensation expense totaled $824*,000* and $640*,000,* respectively, and was classified in selling and general expense.

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Note8 – Segment information

We previously managed our business astwo reportable segments, the RF Connector and Cable Assembly segment and the Custom Cabling Manufacturing and Assembly segment. During thefourth quarter of the fiscal year ended* October 31, 2025*, we completed changes to the structure of our organization in connection with broader restructuring initiatives, including consolidation of manufacturing operations, headcount reductions, and the transition of our sales organization to a unified, customer‑centric model. As a result of these changes, we now operate as asingle reportable segment. Comparative prior‑period segment disclosures that reflected the previoustwo segments have been revised to conform to this change in our reportable segment.

Our CODM, which is our Chief Executive Officer, evaluates our financial information such as revenue, margins, operating expenses, net income or loss, and other non-GAAP financial measures on a consolidated basis to allocate resources and assess performance. However, while our CODM uses more thanone measure to assess performance, the Company’s segment disclosures donot include non-GAAP disclosures. The Company has determined that the disclosures below correspond with the amounts in the consolidated financial statements and are most consistent with GAAP.

The following table presents our single segment revenue, gross profit, significant expenses, and net income (loss) for thethree andnine months ended* July 31, 2026and2025* (in thousands):

The Company’s single reportable segment total assets equal consolidated total assets.

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The following table presents revenue for the products and solutions that we offer as of thethree andnine months ended* July 31, 2026and2025* (in thousands):

All of our operations are conducted in the United States; however, we derive a portion of our revenue from export sales. We attribute sales to geographic areas based on the location of the customers. The following table presents the sales by geographic area for thethree andnine months ended* July 31, 2026and2025* (in thousands):

Note9 – Income taxes

In accordance with applicable accounting guidance, the Company is required to use an estimated annual effective tax rate to compute its tax provision during an interim period. However, there is an exception to the use of this method when a reliable estimate of the annual effective tax rate cannot be made due to the sensitivity of changes in estimates of ordinary income (loss). In that case, an entity* mayreport the actual tax provision or benefit applicable when annual income (loss) cannot be estimated as a discrete item in the interim period. This exception was used in determining the tax provision for thenine* months ended* July 31, 2026*.

We recorded income tax provisions of $84,000 and $88,000 for thethree months ended* July 31, 2026and2025*, respectively. The effective tax rate for thethree months ended* July 31, 2026and2025* was 5.5% and 18.3%, respectively. For thenine months ended* July 31, 2026and2025*, we recorded income tax provisions of $178,000 and $259,000, respectively. The effective tax rate for thenine months ended* July 31, 2026and2025* was 7.3% and 160.9%, respectively. The effective tax rate for thethree months andnine months ended* July 31, 2026* differed from the U.S. statutory tax rate of 21% primarily due to state taxes, various permanent differences, research and development tax credits, unrecognized tax benefits and change in valuation allowance.

We had $295,000 and $217,000 of unrecognized tax benefits, as of* July 31, 2026* and* October 31, 2025*, respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of $192,000 as of* July 31, 2026*.

The Company assesses all positive and negative evidence in determining if, based on the weight of such evidence, a valuation allowance is required to be recorded against the deferred tax assets as of* July 31, 2026.The Company has evaluated future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In making such judgments, significant weight is given to evidence that can be objectively verified. After analyzing all available evidence, including the Company's cumulative losses, the Company continues to maintain that it isnot* more likely thannot that all of its deferred tax assets will be realized, and therefore, has maintained a partial valuation allowance against its federal and state deferred tax assets. The Company's valuation allowance was $4,200,000 and $4,716,000 as of* July 31, 2026* and* October 31, 2025*, respectively.

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Note10 – Intangible assets

Intangible assets consist of the following as of* July 31, 2026* and* October 31, 2025* (in thousands):

Amortization expense for thenine months ended* July 31, 2026* and the fiscal year ended* October 31, 2025* was $1,233,000 and $1,643,000, respectively. As of* July 31, 2026*, the weighted-average amortization period for the amortizable intangible assets was 5.99 years.

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Note11 – Commitments

We have operating leases for corporate offices, manufacturing facilities, and certain storage units. Our leases have remaining lease terms ofone year tofive years. A portion of our operating leases are leased from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited, to whom we make rent payments of $18,540 per month.

We also have other operating leases for certain equipment. The components of our facilities and equipment operating lease expenses for the periods ended* July 31, 2026and2025* were as follows (in thousands):

As of* July 31, 2026*, operating lease right-of-use assets were $12.9 million and operating lease liabilities totaled $17.5 million, of which $2.3 million is classified as current. There wereno finance leases as of* July 31, 2026*. Future minimum lease payments under non-cancellable leases as of* July 31, 2026* are a total of $22.2 million.

Note12 – Term Loan and Line of credit

On* March 15, 2024,we entered into a loan and security agreement (the “EBC Credit Agreement”) with EBC, as administrative agent, and used proceeds from the initial drawings under the EBC Credit Facilities (as defined below) to repay in full outstanding obligations under the loan agreement we had entered into in February 2022with Bank of America, N.A. (the “BofA Loan Agreement”) and to pay fees, premiums, costs and expenses, including fees payable in connection with the EBC Credit Agreement. The BofA Loan Agreement was terminated upon entry into the EBC Credit Agreement and isno* longer in effect.

The EBC Credit Agreement provides for (i) a senior secured revolving loan facility of up to $15.0 million (the “EBC Revolving Loan Facility”) and (ii) a senior secured revolving credit facility of up to $1.0 million (the “EBC Additional Line” and, together with the EBC Revolving Loan Facility, as amended, the “EBC Credit Facilities”) (with a $3.0 million swingline loan sublimit). On* June 14, 2024,the parties entered into the First Amendment to the EBC Credit Agreement (the “First Amendment”), which provided for a modified EBC Additional Line of $1.0 million through July 12, 2024,$666,667 from July 13, 2024through August 11, 2024and $333,333 from August 12, 2024through September 10, 2024.*Availability of borrowings under the EBC Credit Facilities is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable and inventories, as reduced by certain reserves, if any.

In the absence of an Event of Default (as defined in the EBC Credit Agreement) or certain other events (including the inability of EBC to determine the Secured Overnight Financing Rate (“SOFR”)), borrowings under (a) the EBC Revolving Loan Facility accrue interest at a rate of theone-month term SOFR reference rate plus an adjustment of 0.11448% (“Adjusted Term SOFR”) plus 5.00%, and (b) the EBC Additional Line accrue interest at a rate of Adjusted Term SOFR plus 6.50%, in each case subject to a floor of 2.00% for Adjusted Term SOFR. We are required to pay a commitment fee of 0.50% per annum for the unused portion of the EBC Revolving Loan Facility. In addition to the foregoing unused commitment fee, we are required to pay certain other administrative fees pursuant to the terms of the EBC Credit Agreement.

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Borrowings under the EBC Credit Agreement are secured by a security interest in certain assets of the Company and are subject to certain loan covenants. The EBC Credit Facilities require the maintenance of certain financial covenants, including (i) Excess Availability (as defined in the EBC Credit Agreement) of at least, as of any date of determination, an amount equal to the greater of (a) $1.0 million and (b)10% of the Adjusted Borrowing Base (as defined in the EBC Credit Agreement), unless as of the last day of the most recent month for which the monthly financial statements and the related compliance certificate have been or are required to have been delivered to EBC, the Fixed Charge Coverage Ratio (as defined in the EBC Credit Agreement) for the12 consecutive calendar month period then ended is greater than 1.10 to1.00; and (ii) a capital expenditure limitation limiting the aggregate cost of all Capital Expenditure (as defined in the EBC Credit Agreement) to $2.5 million during any fiscal year. In addition, the EBC Credit Facilities contain customary affirmative and negative covenants.

On* November 5, 2025,the parties entered into the Second Amendment to the EBC Credit Agreement (the “Second Amendment”). The Second Amendment amended the EBC Credit Agreement to, among other things, (i) extend the maturity date of the EBC Revolving Loan Facility to March 15, 2029, (ii) decrease the minimum EBC Revolving Loan Facility outstanding principal amount to $4.0 million and (iii) decrease the interest rate for the EBC Revolving Loan Facility to Adjusted Term SOFR or the base rate, as applicable, plus the Applicable Margin (as defined in the EBC Credit Agreement). The Applicable Margin is determined quarterly under atwo*-prong pricing grid based on both the Average Excess Availability (as defined in the EBC Credit Agreement) and Fixed Charge Coverage Ratio for the most recently ended fiscal quarter, as set forth on Annex IV to the EBC Credit Agreement, as amended.

We filed the EBC Credit Agreement as Exhibit10.3 to our Quarterly Report on Form10-Q for the quarter ended* January 31, 2024,the First Amendment as Exhibit10.1* to our Quarterly Report on Form10-Q for the quarter ended* July 31, 2024and the Second Amendment as Exhibit10.1* to our Current Report on Form8-K filed on* November 6, 2025.*

Debt issuance costs related to the EBC Credit Agreement totaled $249,000 as of* July 31, 2026* and were included as part of our other long-term assets balance.

As of* July 31, 2026*, our outstanding borrowings under the EBC Credit Agreement were $5,718*,000.* In accordance with ASC470-10-45, Other Presentation Matters - General, we have classified the outstanding borrowings as part of current liabilities in the condensed consolidated balance sheet.

Note13 – Cash dividends and declared dividends

We didnot pay or declare any dividends during thethree ornine months ended* July 31, 2026*, nor during thethree ornine months ended* July 31, 2025*.

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