LANTRONIX INC
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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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.
Sep 30, 2026 · Filed Nov 9, 2026
LTRX$5.45+5.5%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001683168-26-003564
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001683168-26-008447
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 97 previous paragraphs and 83 current paragraphs.
43 unchanged; 24 reworded; 16 added; 26 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 8 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 (16)
Current report
Nero Acquisition
Current report
On July 7, 2026, we entered into an asset purchase agreement to acquire the industrial IoT business of Vecima, including its Nero platform, for aggregate consideration of approximately $11.6 million, excluding working capital adjustments and other customary purchase price adjustments. The acquired business provides GPS-based fleet and asset tracking solutions and serves customers across the fleet, municipal, restoration and industrial asset-tracking markets in North America. We closed the transaction on August 1, 2026.
Current report
Refer toNote 3 of Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Report, which are incorporated herein by reference, for additional information regarding the acquisition.
Current report
Software and Services
Current report
Gross profit as a percentage of revenue (referred to as “gross margin”) remained consistent for both periods in the table above. Our revenue mix in the current quarter was more heavily weighted toward certain lower-margin embedded compute products compared to the prior year period. The impact on our gross margin in the current quarter was positively offset by additional SaaS revenue from Nero, along with lower inventory charges and overhead costs compared to the prior year.
Current report
Selling, general and administrative expenses increased primarily due to (i) higher personnel-related expenses related to increased headcount, including employees added from the Nero acquisition, and (ii) higher advertising and marketing costs related to certain promotional and trade show spending.
Current report
During the three months ended September 30, 2026, we incurred charges of $89,000 related primarily to certain headcount and lease reductions.
Current report
Interest Income (Expense), Net
Current report
Our marketable securities consist of U.S. Treasury Securities recorded at fair value. All of our marketable securities are less than one year from maturity.
Current report
Our future working capital requirements will depend on many factors, including the following: timing and amount of our net revenue; our product mix and the resulting gross margins; research and development expenses; selling, general and administrative expenses; and expenses associated with any strategic partnerships, acquisitions or infrastructure investments.
Current report
During the fiscal year ended June 30, 2026, we entered into a sales agreement with sales agents, with respect to an at-the-market offering program under which we may offer and sell, from time to time at our sole discretion, shares of our common stock, with an aggregate offering price of up to $30,000,000. As of September 30, 2026, approximately $17,000,000 of the aggregate offering capacity remained available.
Current report
Accounts receivable increased by $3,577,000, or 14.1%, from June 30, 2026 to September 30, 2026. The increase was primarily due to the higher volume of shipments in the current quarter, as well as the timing of payments from certain customers near quarter-end.
Current report
Inventories increased by $5,357,000, or 20.8% from June 30, 2026 to September 30, 2026. The increase was primarily due to (i) higher finished goods to support the timely fulfillment of customer orders and (ii) purchases of memory components to help meet forecasted demand and support continuity of future production.
Current report
Accounts payable increased by $6,018,000, or 35.5%, from June 30, 2026 to September 30, 2026, primarily due to the increase in inventory as well as the timing of payments made to our vendors.
Current report
Accrued payroll and related expenses decreased by $1,021,000, or 21.2%, from June 30, 2026 to September 30, 2026 as we disbursed certain accrued variable compensation in the current quarter.
Current report
Net cash used in investing activities for the three months ended September 30, 2026 includes (i) $10,343,000 for the Nero acquisition, (ii) the purchase of marketable securities of $13,800,000, and (iii) purchases of property and equipment totaling $110,000, primarily consisting of computer software.
Removed paragraphs (26)
Previous report
In March 2026, the U.S. Court of International Trade issued a ruling indicating that importers that paid tariffs under the International Emergency Economic Powers Act (“IEEPA”) may be entitled to refunds. The Company has paid tariffs on certain imported products and materials that were subject to IEEPA-based duties. The nature, timing, and extent of any such refunds remain uncertain. As of March 31, 2026, the Company has not recognized any amounts related to the potential recovery of such tariff-related costs.
Previous report
Software & Services
Previous report
Gross profit as a percentage of revenue (referred to as “gross margin”) decreased primarily as a result of our sales mix, and certain inventory and overhead costs that were higher than the prior year.
Previous report
Selling, general and administrative expenses increased primarily due to (i) higher personnel-related expenses, mostly variable compensation accruals, (ii) increased share-based compensation costs driven by new stock awards granted during the current fiscal year, and (iii) higher advertising and marketing related to promotional and trade show spending. These increases were partially offset by a decrease in professional fees, particularly legal expenditures.
Previous report
Results of Operations – Nine Months Ended March 31, 2026 Compared to the Nine Months Ended March 31, 2025
Previous report
Summary
Previous report
In the nine months ended March 31, 2026, our net revenue decreased by $4,339,000, or 4.6%, compared to the nine months ended March 31, 2025. The decrease in net revenue was driven by a 17.5% decrease in our IoT System Solutions product line, partially offset by a 10.5% increase in net revenue in our Embedded IoT Solutions product line and a 16.9% increase in our Software and Services product line. We had a net loss of $3,912,000 for the nine months ended March 31, 2026, compared to a net loss of $8,742,000 for the nine months ended March 31, 2025. The improvement in net loss was primarily driven by a decrease in operating expenses of $4,982,000 for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025, partially offset by the decrease in gross profit over the same period.
Previous report
Net Revenue
Previous report
Embedded IoT Solutions
Previous report
Net revenue increased primarily due to higher unit sales of (i) our embedded compute product line in the Americas and EMEA regions and (ii) our legacy embedded ethernet connectivity products across all regions. This increase was partially offset by lower unit sales of (i) our network interface cards and optics products in the Americas and EMEA regions and (ii) our embedded GNSS modules in the EMEA region.
Previous report
IoT System Solutions
Previous report
Net revenue decreased primarily due to reduced sales to Gridspertise. We did not recognize any revenue from this customer during the nine months ended March 31, 2026, as compared to just over $11 million of revenue in the prior-year period. The year-over-year decrease in net revenue from this customer was partially offset by (i) increased unit sales of our network switches in the Americas and APJ regions and (ii) higher unit sales of our gateways in the Americas and EMEA regions.
Previous report
Software & Services
Previous report
Net revenue increased primarily due to higher SaaS solutions in the Americas and EMEA regions, as well as higher design services revenue in the EMEA region. This increase was partially offset by a decrease in our extended warranty services in the Americas region.
Previous report
Gross Profit
Previous report
Gross margin increased primarily because of lower overhead costs and our product sales mix. This was primarily driven by the absence of lower-margin revenue from Gridspertise in the current period, and also a slightly higher percentage of our current period revenue derived from software and services.
Previous report
Selling, General and Administrative
Previous report
Selling, general and administrative expenses increased primarily due to (i) higher share-based compensation costs, primarily based on the value of new and outstanding awards, (ii) higher personnel-related expenses due to an increase in variable compensation costs, and (iii) increased spending on advertising and marketing activities. These increases were partially offset by (i) lower professional fees and outside services related to legal and accounting activities, and (ii) the recovery of certain previously written-off receivables, the benefit of which is included in the “other” category in the table above.
Previous report
Research and Development
Previous report
Research and development expenses decreased primarily due to (i) lower personnel-related expenses in our engineering groups resulting from restructuring activities during the current and prior fiscal years, (ii) reduced share-based compensation costs based on stock award activity in the current fiscal year, and (iii) lower facilities-related equipment and software costs. These decreases were partially offset by (i) higher spending on outside services, primarily related to outsourced product development and contractor costs.
Previous report
During the three and nine months ended March 31, 2026, we incurred charges of $288,000 and $424,000, respectively, related to headcount reductions. During the three and nine months ended March 31, 2025, we incurred $1,581,000 and $2,674,000, respectively, of restructuring, severance and related charges.
Previous report
During the three and nine months ended March 31, 2025, we incurred approximately $100,000 and $337,000 of costs primarily in connection with the acquisition of Netcomm Wireless Pty Ltd (“Netcomm”). These costs were mainly comprised of banking, legal and other professional fees.
Previous report
Interest Expense, Net
Previous report
As of the date of this Report, we have full access to and control of our cash and cash equivalents balance at Silicon Valley Bank and our other banking institutions. Our emphasis is primarily on safety of principal and secondarily on maximizing yield on those funds.
Previous report
Accounts receivable decreased by $1,582,000 from June 30, 2025 to March 31, 2026, primarily due to the timing of customer collections.
Previous report
Contract manufacturers’ receivables decreased by $2,187,000, primarily related to timing differences between inventory purchases and payments to suppliers.
Reworded paragraphs (24)
Previous wording
Lantronix, Inc. is a global leader in Edge AI and Industrial IoT solutions, delivering intelligent computing, secure connectivity, and remote management for mission-critical applications. Serving high-growth markets, including smart cities, enterprise IT, and commercial and defense unmanned systems (including drones), we enable customers to optimize operations and accelerate digital transformation. Our comprehensive portfolio of hardware, software, and services powers applications from secure video surveillance and intelligent utility infrastructure to resilient out-of-band network management. By bringing intelligence to the network edge, we help organizations achieve efficiency, security, and a competitive edge in today’s AI-driven world.
Current wording
Lantronix, Inc. is a global leader in Edge AI and Industrial IoT solutions that power NDAA-compliant unmanned systems, critical infrastructure and resilient enterprise networks. We deliver intelligent computing, secure connectivity, and remote management for mission-critical applications, enabling customers to optimize operations, enhance security and accelerate digital transformation. Our comprehensive portfolio of hardware, software, and services powers applications ranging from mission-critical autonomous platforms and edge analytics for critical infrastructure to intelligent surveillance and secure network management. By bringing intelligence to the network edge, we help organizations achieve efficiency, security, and a competitive edge in today’s AI-driven world.
Previous wording
We organize our portfolio services and products into the following product lines: Embedded IoT Solutions, IoT Systems Solutions, and Software and Services.
Current wording
We organize our portfolio of products and services into the following product lines: Embedded IoT Solutions, IoT System Solutions, and Software and Services.
Previous wording
Our embedded product portfolio includes a broad range of Compute System-on-Modules (“SoM”) and System-in-Package (“SiP”) solutions, together with wired and wireless connectivity products. As semiconductor technology continues to evolve and integrate more functionality, our compute modules now provide not only processing power but also the ability to run advanced AI and machine learning applications. This enables our customers to process and analyze digital inputs such as video, audio, and sensor data, directly at the device level, reducing latency, enhancing security, and enabling real-time decision making.
Current wording
Our embedded product portfolio includes a broad range of compute system-on-module (“SoM”) and System-in-Package (“SiP”) solutions, together with wired and wireless connectivity products. As semiconductor technology continues to evolve and integrate more functionality, our compute modules now provide not only processing power but also the ability to run advanced AI and machine learning applications. This enables our customers to process and analyze digital inputs such as video, audio, and sensor data, directly at the device level, reducing latency, enhancing security, and enabling real-time decision making.
Previous wording
Our Software as a Service (“SaaS”) platform offers comprehensive single-pane-of-glass management for Out-of-Band (“OOB”) and IoT deployments. Our platform enables customers to easily deploy, monitor, manage and automate across their global deployments, all from a single platform login, virtually and seamlessly connected as if located directly on each device. Our platform eliminates the need to have 24/7 personnel on site and makes it easy to observe and address issues quickly, even in large-scale deployments.
Current wording
Our Software and Services offerings are central to our strategy of increasing recurring, higher margin revenue across each of our vertical markets. Our Percepxion™ Software as a Service (“SaaS”) platform offers comprehensive single-pane-of-glass management for our Out-Of-Band (“OOB”) and Industrial IoT deployments, enabling customers to easily deploy, monitor, manage and automate across their global deployments, all from a single platform login, virtually and seamlessly connected as if located directly on each device. Our platform eliminates the need for 24/7 personnel on site and makes it easy to observe and address issues quickly, even in large-scale deployments. Following our August 2026 acquisition of Nero, our Software and Services portfolio also includes GPS-based vehicle and asset tracking capabilities for fleet, municipal, and industrial asset tracking customers, further broadening our recurring revenue base.
Previous wording
We leverage our deep engineering expertise and product development best practices to deliver high-quality, innovative products cost-effectively and on schedule. Our engineering services model is flexible, offering either turnkey product development or team augmentation to accelerate complex product development challenges, such as camera tuning, voice control, machine learning, AI, computer vision, augmented/virtual reality, and more.
Current wording
We leverage our deep engineering expertise and product development best practices to deliver high-quality, innovative products cost-effectively and on schedule across each of our three vertical markets. Our engineering services model is flexible, offering either turnkey product development or team augmentation to accelerate complex product development challenges, including camera tuning and computer vision for unmanned aerial systems (“UAS” or “drones”) and public safety applications, machine learning and AI model integration for edge compute deployments supporting critical infrastructure and defense customers, and voice control, augmented/virtual reality, and other advanced feature development for enterprise and OEM customers.
Previous wording
We also provide extended warranty, support and maintenance services related to our OOB and certain other product families.
Current wording
We also provide extended warranty, support and maintenance services related to our OOB and certain other product families, which, together with our SaaS offerings, further support our recurring revenue model.
Previous wording
The accounting policies that have the greatest impact on our financial condition and results of operations and that require the most judgments are those relating to revenue recognition, sales returns and allowances, inventory valuation, valuation of deferred income taxes, and valuation of goodwill and long-lived and intangible assets. These policies are described in further detail in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025 and filed with the SEC on August 29, 2025 (the “Form 10-K”) and have not changed significantly during the nine months ended March 31, 2026 as compared to what was previously disclosed in the Form 10-K.
Current wording
The accounting policies that have the greatest impact on our financial condition and results of operations and that require the most judgments are those relating to revenue recognition, sales returns and allowances, inventory valuation, valuation of deferred income taxes, and valuation of goodwill and long-lived and intangible assets. These policies are described in further detail in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026 and filed with the SEC on August 27, 2026 (the “Form 10-K”) and have not changed significantly during the three months ended September 30, 2026 as compared to what was previously disclosed in the Form 10-K.
Previous wording
In the three months ended March 31, 2026, our net revenue increased by $1,677,000 or 5.9%, compared to the three months ended March 31, 2025. The increase in net revenue was driven by a 21.9% increase in net revenue in our Embedded IoT Solutions product line and a 31.0% increase in our Software and Services product line, and was partially offset by a 10.2% decrease in net revenue in our IoT System Solutions product line. We had a net loss of $1,181,000 for the three months ended March 31, 2026 compared to a net loss of $3,868,000 for the three months ended March 31, 2025. The decrease in net loss was primarily driven by the increase in revenues and reduction in operating expenses of $1,849,000 for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.******
Current wording
In the three months ended September 30, 2026, our net revenue increased by $2,575,000 or 8.6%, compared to the three months ended September 30, 2025. The increase in net revenue was driven by a 36.7% increase in net revenue in our Embedded IoT Solutions product line and a 40.0% increase in our Software and Services product line and was partially offset by a 14.5% decrease in net revenue in our IoT System Solutions product line. We had a net loss of $463,000 for the three months ended September 30, 2026 compared to a net loss of $1,401,000 for the three months ended September 30, 2025. The decrease in net loss was primarily driven by the increase in revenues for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
Net revenue increased primarily due to (i) higher unit sales of our embedded compute products, which includes our drone and aerospace and defense products, in the Americas and EMEA regions, and (ii) higher unit sales of our embedded wired connectivity products across all regions, reflecting continued customer demand for embedded ethernet and compute solutions. These increases were partially offset by lower unit sales of certain legacy products, including our network interface cards and optics, primarily in the Americas and EMEA regions.
Current wording
Net revenue increased primarily due to (i) higher unit sales of our embedded compute products across all regions, which include our drone and aerospace and defense products, and (ii) higher unit sales of our embedded wired connectivity products in the Americas region.
Previous wording
Net revenue decreased mainly due to (i) reduced unit sales in our media converters product family across all regions, (ii) decreased unit sales of our gateways, routers, and modems, particularly in the APJ region, and (iii) decreased unit sales of our telematics gateways in the Americas region, as revenues from these products can be dependent on project-based capital spending and customer deployment schedules. These decreases were partially offset by higher unit sales of our network switches across all regions.
Current wording
Net revenue decreased mainly due to (i) reduced unit sales in our media converters product family across all regions, and (ii) decreased unit sales of our telematics gateways in the Americas and EMEA regions; revenues from these products can be dependent on project-based capital spending, customer deployment schedules, and federal and other government agency funding patterns. These decreases were partially offset by (i) higher unit sales of our network switches in the Americas region, and (ii) higher unit sales of our gateways, routers and modems in the Americas and EMEA regions.
Previous wording
Net revenue increased primarily due to higher SaaS solutions revenue in the Americas and increased engineering services in the EMEA region.
Current wording
Net revenue increased primarily due to higher SaaS solutions revenue across all regions, particularly the Americas region, driven by revenue from the Nero acquisition.
Previous wording
We currently expect that gross margin will fluctuate in the future, from period-to-period, based on changes in our product mix, average selling prices, and average manufacturing costs.
Current wording
We currently expect that gross margin will fluctuate in future periods based on, among other factors, changes in our product mix, average selling prices, and average manufacturing costs.
Previous wording
Research and development expenses decreased primarily due to (i) lower personnel-related expenses in our engineering team resulting from restructuring activities during the current and prior fiscal years, (ii) reduced share-based compensation costs based on the value of new and outstanding awards, and (iii) lower facilities-related equipment and software costs.
Current wording
Research and development expenses decreased primarily due to (i) lower spending on outside services, including outsourced product development and contractor costs, and (ii) lower personnel-related expenses in our engineering team resulting from restructuring activities during the prior fiscal year.
Previous wording
During the three and nine months ended March 31, 2026, we incurred approximately $48,000 and $131,000 of acquisition costs. These costs were mainly comprised of legal and other professional fees.
Current wording
During the three months ended September 30, 2026, we incurred approximately $245,000 of acquisition costs, primarily related to the Nero acquisition. These costs were mainly comprised of legal and other professional fees.
Previous wording
For the three and nine months ended March 31, 2026 and March 31, 2025, we incurred net interest expense related to borrowings on our credit facilities. We also earn interest income on our domestic cash balance.
Current wording
For the three months ended September 30, 2026 and 2025, we earned interest income on our domestic cash balances and marketable securities, and incurred interest expense on borrowings under our Loan Agreement.******
Previous wording
Refer toNote 7of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report, which is incorporated herein by reference, for a discussion regarding our provision for income taxes.
Current wording
Refer toNote 9of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report, which is incorporated herein by reference, for a discussion regarding our provision for income taxes.
Previous wording
The following table presents details of our working capital and cash and cash equivalents:
Current wording
The following table presents details of our working capital, cash and cash equivalents, and marketable securities:
Previous wording
Our principal sources of cash and liquidity include our existing cash and cash equivalents, borrowings and amounts available under our Loan Agreement (as defined inNote 5 of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report), and cash generated from operations. We are subject to a variable amount of interest on the principal balance of our borrowings and could be adversely impacted by rising interest rates in the future. We believe that our current cash holdings, net cash provided by operating activities, and expected availability under our Loan Agreement will be sufficient to fund our material requirements for working capital, capital expenditures and other financial commitments for at least the next 12 months and beyond. We anticipate that the primary factors affecting our cash and liquidity are net revenue, working capital requirements, payments of principal and interest on our borrowings, payments to satisfy employees’ tax withholding obligations for restricted shares, and capital expenditures.
Current wording
Our principal sources of cash and liquidity include our existing cash and cash equivalents, marketable securities, borrowings and amounts available under our Loan Agreement (as defined inNote 7 of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report), and cash generated from operations. We are subject to a variable amount of interest on the principal balance of our borrowings and could be adversely impacted by rising interest rates in the future. We believe that our current cash and marketable securities holdings, cash provided by operating activities, and the expected availability under our Loan Agreement will be sufficient to fund our material requirements for working capital, capital expenditures and other financial commitments for at least the next 12 months and beyond. We anticipate that the primary factors affecting our cash and liquidity are net revenue, working capital requirements, payments of principal and interest on our borrowings, payments to satisfy employees’ tax withholding obligations for restricted shares, and capital expenditures.
Previous wording
From time to time, we may seek additional capital from public or private offerings of our capital stock, borrowings under our existing or future credit lines or other sources in order to (i) develop or enhance our products, (ii) take advantage of strategic opportunities, (iii) respond to competition or (iv) continue to operate our business. We currently have a Form S-3 shelf registration statement on file with the SEC. If we issue equity securities to raise additional funds, our existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of our existing stockholders. If we issue debt securities to raise additional funds, we may incur debt service obligations, become subject to additional restrictions that limit or restrict our ability to operate our business, or be required to further encumber our assets. There can be no assurance that we will be able to raise any such capital on terms acceptable to us, if at all.
Current wording
From time to time, we may seek additional capital from public or private offerings of our capital stock, borrowings under our existing or future credit lines or other sources in order to (i) develop or enhance our products, (ii) take advantage of strategic opportunities, (iii) respond to competition or (iv) continue to operate our business. We currently have a Form S-3 shelf registration statement on file with the SEC. If we issue equity securities to raise additional funds, our existing stockholders would likely experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of our existing stockholders. If we issue debt securities to raise additional funds, we may incur debt service obligations, become subject to additional restrictions that limit or restrict our ability to operate our business, or be required to further encumber our assets. There can be no assurance that we will be able to raise any such capital on terms acceptable to us, if at all.
Previous wording
Refer toNote 5of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report, which is incorporated herein by reference, for a discussion of our Loan Agreement.
Current wording
Refer toNote 7of Notes to Unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1 of this Report, which is incorporated herein by reference, for a discussion of our Loan Agreement.
Previous wording
Cash provided by operating activities during the nine months ended March 31, 2026 increased compared to the prior year period primarily as a result of the timing of our collections on accounts receivable, payments on accounts payable, and a reduction in our net loss in the current period. For the nine months ended March 31, 2026, our net loss included $7,647,000 of non-cash charges, while the changes in operating assets and liabilities provided net cash of $4,215,000.
Current wording
For the three months ended September 30, 2026, our net loss included $2,336,000 of non-cash charges, while the changes in operating assets and liabilities used net cash of $4,378,000. We used cash in operating activities during the current quarter primarily as a result of an increase in our inventory balances and the payment of variable accrued compensation, along with the timing of our collections on accounts receivable, payments of accounts payable.
Previous wording
Net cash used in investing activities for the nine months ended March 31, 2026 and 2025 consisted of purchases of equipment totaling $403,000 and $362,000, respectively, primarily for computer hardware and tooling at our contract manufacturers, business analysis tools, and certain research and development equipment. Net cash used in investing activities for the nine months ended March 31, 2025 also includes the acquisition of Netcomm, which used cash of $6,458,000.
Current wording
Net cash used in investing activities for the three months ended September 30, 2025 consisted of purchases of equipment totaling $74,000, primarily for computer hardware and tooling at our contract manufacturers, business analysis tools, and certain research and development equipment.
Previous wording
Net cash used in financing activities during the nine months ended March 31, 2025 resulted primarily from tax withholdings paid on behalf of employees for restricted shares as well as principal payments on our previous term loan borrowings.
Current wording
Net cash provided by financing activities during the three months ended September 30, 2026 resulted primarily from $4,895,000 of net borrowings under our Loan Agreement, partially offset by cash used of $979,000 for tax withholdings paid on behalf of employees for restricted shares.
Previous wording
Net cash used in financing activities during the nine months ended March 31, 2026 resulted primarily from net principal payments and borrowings on our Loan Agreement, as well as from tax withholdings paid on behalf of employees for restricted shares.
Current wording
Net cash used in financing activities during the three months ended September 30, 2025 resulted primarily from $1,106,000 of net payments under our Prior Loan Agreement, and $300,000 of tax withholdings paid on behalf of employees for restricted shares.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
The following tables present our net revenue by product line and by geographic region:
Previous report — wording carried elsewhere
The following table presents our gross profit:
Previous report — wording carried elsewhere
The following table presents our selling, general and administrative expenses:
Previous report — wording carried elsewhere
The following table presents our research and development expenses: