TSS net income +153% on $7.8M tax benefit as operating income fell 25%; $40M facility complete

Filed March 18, 2026 · Period ending December 31, 2025 · Compared to 10-K Apr 15, 2025 · ~2 min read

Key Changes

• high

  Net income rose 153% to $15.1M despite operating income falling 25% to $6.3M, driven by an $11.3M below-the-line swing: $7.8M income tax benefit (valuation allowance release) and $3.6M non-operating/other income.

  MD&A: Net Income & Tax verify on EDGAR →
• high

  Material weakness in internal controls persists into 2025, now expanded to include IT user access controls; remediation incomplete despite external staffing and consultant engagement.

  Controls & Risk Factors verify on EDGAR →
• high

  Completed $40M Georgetown facility buildout (60% over initial $25M estimate) and extended AI rack integration agreement by two years with pricing adjustments to recover higher power/capex costs.

  Business & MD&A: Facility verify on EDGAR →