For the fiscal year ended June 30, 2026 (annual context), total revenue grew 65.2% to $31.5M from $19.1M, driven primarily by Systems Manufacturing revenue surging 172.9% to $22.6M as the single-use cystoscope program transitioned from engineering/development to production and customer demand scaled. Engineering Design Services revenue fell 29.7% to $3.5M due to the same program transition and increased non-billable sustaining engineering to support manufacturing scale-up. MicroOptics Lab revenue declined 75.7% to $520K, attributed to delays in receiving new production orders from a defense contractor (the lab's primary customer). Gross margin slipped to 17.2% from 17.8%.
Customer concentration increased materially on an annual basis: for fiscal 2026, one customer accounted for approximately 41% of total revenues and a second for 27% (combined ~68%), versus 22% and 20% in fiscal 2025. Two customer receivable balances represented 34.4% and 22.8% of total receivables at June 30, 2026. The company notes loss of these customers would have a material impact on its business.
Following the February 2026 U.S. Supreme Court ruling invalidating IEEPA tariffs, the company recorded during fiscal 2026 an $880,598 receivable for tariff recovery (offset to cost of goods sold) and a $558,266 liability to refund IEEPA tariff surcharges previously collected from customers (reducing revenue). Only $37,576 in refund proceeds had been received by June 30, 2026, leaving an outstanding IEEPA refund claim of $843,022 in accounts receivable. Separately, the company recognized a $224,544 government grant expense reduction (all within COGS) under its early adoption of ASU 2025-10, with a corresponding receivable outstanding at year-end.
The company expanded its physical footprint with two new operating leases commenced in fiscal 2026: a 7-year lease for approximately 19,590 sq ft at 550 King Street, Littleton, MA (term commenced October 1, 2025; annual base rent starting at ~$361K after a six-month abatement) and a 7-year lease for approximately 8,750 sq ft in South Portland, ME (commenced August 1, 2025; annual base rent of $131,250 after a five-month abatement). The El Paso, TX facility lease was extended 36 months through May 2028. Total future minimum operating lease payments at June 30, 2026 were $3,643,811 over the weighted-average 6.4-year term. Effective June 1, 2026, the company also established a self-funded employee health insurance program with a group captive insurance arrangement, accruing approximately $70,000 in claims liability at year-end.
The company was not in compliance with its minimum annual debt service coverage ratio covenant of 1.2x as of June 30, 2026. On September 25, 2026 (post-year-end), the lender waived the covenant for fiscal 2026 and modified the credit agreement to eliminate the DSCR covenant entirely, replacing it with a minimum liquidity covenant of $2.0 million, while retaining the existing term note and providing $750,000 of revolver availability (expandable to $1,250,000 upon achieving a DSCR of 1.2x), subject to a $5,000 waiver fee. In March 2026, the company completed a public offering of 3,194,444 shares at $3.60 per share, raising $10.6M in net proceeds for working capital and general corporate purposes, bringing cash and cash equivalents to $9.8M at June 30, 2026.
(Filed on May 13, 2026)
+108.0%
23.6%
$10.7M
Q3 FY2026 revenue reached $8.71M, up 108% year-over-year, driven primarily by Systems Manufacturing revenue surging 206% to $6.19M (71% of total revenue vs. 48% a year earlier), which management attributed to significant increases in customer demand and resultant scaling of manufacturing capabilities.
MicroOptics Lab revenue declined 72.4% to $137,500 in Q3 due to delays in receiving new production orders from a defense customer; management retained the specialized workforce despite resulting negative margins. Ross Optical Industries revenue increased 65.4% to $1.32M, partly because customers could no longer postpone deliveries that had been delayed by new tariffs.
Q3 gross margin improved to 23.6% from 10.0% in the prior-year quarter, driven by Systems Manufacturing volume, improving yield performance across manufacturing lines, and $224,544 in government grant income recognized in cost of goods sold (early adoption of ASU 2025-10); a matching $224,544 government receivable for personnel, direct costs, and operating expenses was recorded as of March 31, 2026.
The company was not in compliance with its 1.20x minimum debt service coverage ratio covenant as of March 31, 2026, and under current projections does not expect to meet the covenant for fiscal 2026; management stated it is in discussions with Main Street Bank of Marlborough regarding a waiver or longer-term solution, while noting current liquidity would be sufficient to repay the loans if the lender demanded repayment.
The company's operating footprint expanded with an eight-year lease in South Portland, Maine (entered May 2025) and a seven-year lease in Littleton, Massachusetts (entered June 2025), with combined remaining minimum lease payments of $3.67M; open purchase orders at quarter end totaled approximately $6.2M, and cash and equivalents rose to $10.68M following a March 30, 2026 public offering that raised $10.63M in net proceeds.
(Filed on February 17, 2026)
+62.8%
2.8%
$881.5K
Systems Manufacturing revenue surged 213.2% to $5.19M in Q2 FY2026 (vs. $1.66M in the prior-year quarter), attributed to significant increases in customer demand and scaling of manufacturing capabilities; this drove total company revenue up 62.8% to $7.37M. In contrast, Engineering Design Services fell 31.2% to $962K (prior-year engagements completed, pipeline delays) and MicroOptics Lab fell 60.1% to $171K (delays in receiving new production orders from a defense customer).
Gross margin compressed sharply to 2.8% in Q2 FY2026 (vs. 23.6% a year earlier), with the filing citing yield losses on the cystoscope single-use manufacturing line, startup yield issues on a second customer's single-use line, under-absorption of manufacturing overhead, and negative margins in Engineering Design Services and MicroOptics Lab resulting from deliberate retention of specialized workforces despite low utilization.
Management reported completed actions during FY2026 to date including improved manufacturing yields and production throughput via new leadership and process discipline, and renegotiated pricing plus tariff reimbursement with some major manufacturing customers. Planned for the next twelve months: increased utilization of engineering resources and the MicroOptics Laboratory, launch of several maturing development projects into manufacturing, and cost-structure reductions including headcount rationalization and optimization.
The company disclosed a going-concern qualification, noting $881K in cash as of December 31, 2025 is insufficient to fund planned operations for at least one year. The company was not in compliance with its 1.20x minimum debt service coverage ratio covenant as of December 31, 2025, restricting access to further advances under its Main Street Bank loan facility. Management intends to seek additional capital through equity offerings, debt financings, government funding, or delayed cash outlays.
The company's operational footprint expanded with a new seven-year operating lease in Littleton, Massachusetts (entered June 2, 2025; two five-year extension options; $2.59M in remaining minimum payments; $1.79M right-of-use asset recorded) and a three-year extension of the El Paso, Texas facility lease through May 2028. Combined operating lease commitments total $3.82M through 2031, and open purchase orders as of December 31, 2025 were approximately $7.07M.
(Filed on November 13, 2025)
+59.2%
14.2%
$1.4M
Systems Manufacturing revenue surged ~297% YoY to $4.87M, driven by increased customer demand and scaling of manufacturing capabilities, including the transfer of the company's single-use cystoscope program from Engineering Design Services (whose revenue fell 59.3% to $656K). Engineering revenue also declined due to completion of prior-year product development engagements and delayed pipeline opportunities in the current quarter.
MicroOptics Lab revenue dropped 76.5% YoY to $100K, primarily due to delays in receiving new production orders from a defense customer; separately, Ross Optical Industries revenue rose 13.7% to $1.06M, attributed to customers' inability to continue postponing previously delayed deliveries amid new tariff uncertainty.
Gross margin compressed to 14.2% (from 26.6% a year earlier), driven by lower utilization of engineering resources for customer-paid work, low yields on manufacturing lines producing single-use medical devices, and the MicroOptics Lab reorder delay. The company noted R&D support for an 'evolving single-use medical device environment.'
The company entered two new multi-year facility leases during the quarter: an eight-year lease in South Portland, Maine (May 15, 2025; remaining minimum payments ~$1.11M) and a seven-year lease in Littleton, Massachusetts (June 2, 2025; remaining minimum payments ~$2.59M), representing a significant operational footprint expansion beyond its existing Gardner, MA and El Paso, TX locations.
The company was not in compliance with its 1.20x Debt Service Coverage ratio covenant under its Main Street Bank loan as of September 30, 2025 (quarterly testing); any future advances under the revolving facility are contingent on restoring compliance. Open purchase orders totaled approximately $7.4M at quarter end, roughly 1.1x quarterly revenue, indicating substantial forward production commitments.
Capital equipment expenditures for the quarter were $523,539 (vs. $28,099 in the prior-year quarter), reflecting the manufacturing capacity build-out; net fixed assets (net of depreciation) rose to $960,878 from $533,792 at June 30, 2025, and leasehold improvements increased by ~$370K.
