v3.25.4
Note 14 - Foreign Operations
6 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Foreign Currency Disclosure [Text Block]

14. Foreign Operations

 

Assets and liabilities denominated in non-U.S. currencies are translated at rates of exchange prevailing on the balance sheet date, and revenues and expenses are translated at average rates of exchange for the period. Gains or losses on the translation of the financial statements of a non-U.S. operation, where the functional currency is other than the U.S. dollar, are reflected as a separate component of equity, which was a cumulative gain of approximately $1.3 million and $1.0 million as of December 31, 2025 and June 30, 2025, respectively. For the three months ended December 31, 2025 and 2024, we recognized net foreign currency transaction losses of $0.01 million and gains of $0.4 million, respectively. We also recognized net foreign currency transaction losses of $0.06 million and a gain of $0.01 million for the six months ended December 31, 2025 and 2024, respectively, included in the Condensed Consolidated Statements of Comprehensive Income (Loss) in the line item entitled “Other income (expense), net.”

 

Our cash and cash equivalents totaled approximately $73.6 million at December 31, 2025. Of this amount, approximately 4% was held by our foreign subsidiaries in China and Latvia. These foreign funds were generated in China and Latvia as a result of foreign earnings. With respect to the funds generated by our foreign subsidiaries in China, the retained earnings of the respective subsidiary must equal at least 50% of its registered capital before any funds can be repatriated through dividends. As of December 31, 2025, LPOIZ had approximately $0.5 million in retained earnings available for repatriation, based on earnings accumulated through December 31, 2025, the end of the most recent statutory tax year, that remained undistributed as of December 31, 2025.

 

Revenues from foreign countries for the six months ended December 31, 2025 and 2024 are as follows:

 

  

Three Months Ended

  

Six Months Ended

 
  

December 31,

  

December 31,

 
  

2025

  

2024

  

2025

  

2024

 

Revenues:

                

United States

 $6,851,495  $4,763,010  $14,282,038  $10,628,649 

Europe

  8,007,751   1,308,728   13,796,871   2,589,988 

China

  963,124   694,884   2,173,998   1,324,301 

Other Asian countries

  306,977   272,287   686,587   482,518 

Rest of world

  222,305   385,920   470,439   799,754 
  $16,351,652  $7,424,829  $31,409,933  $15,825,210 

 

Long-lived assets located in foreign countries as of December 31, 2025 and June 30, 2025 are as follows:

 

  

December 31,

  

June 30,

 
  

2025

  

2025

 

Long-lived assets:

        

United States

 $44,850,132  $45,982,722 

Latvia

  4,514,089   4,848,441 

China

  2,193,546   2,300,608 
  $51,557,767  $53,131,771