revenue $5.6M, net income -$11.8M. Revenue surges 9000% to as three acquisitions add manufacturing scale; net loss narrows 68% on non-operating swing despite operating loss widening 126%

Filed August 10, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 14, 2025 · ~2 min read

Key Changes

• high

  Net loss narrowed 68% to $11.8M while operating loss widened 126% to $23.0M — the $37.6M improvement came entirely from non-operating/other items (+$37.6M), not operations. Earnings quality divergence signals the net-income change did not reflect operational performance.

  MD&A: Operating Results verify on EDGAR →
• high

  Three acquisitions (LSI $110M, NuCrypt $2.5M, NHanced $48M) contributed $8.6M of the $9.2M six-month revenue but turned gross margin negative (-20%) from under-absorption of fixed costs at low production volumes. Management expects improvement as volumes recover but provides no assurance.

  MD&A: Revenue & Gross Margin verify on EDGAR →
• high

  Company disclosed multiple material weaknesses: insufficient accounting personnel and segregation of duties, inadequate risk-assessment processes, and deficient IT general controls. No misstatement occurred this period, but unremediated weaknesses pose future risk.

  MD&A: Internal Controls verify on EDGAR →