Note 15 - Foreign Operations

3 Months Ended

Sep. 30, 2026

Foreign Currency Disclosure [Text Block]

15. 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 $1.4 million and $1.3 million as of September 30, 2026 and June 30, 2026, respectively. We recognized net foreign currency transaction losses of $0.04 million for both the three months ended September 30, 2026 and 2025, included in the unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) in the line item entitled “Other income (expense), net.”

Our cash and cash equivalents totaled approximately $82.9 million at September 30, 2026. Of this amount, approximately 6% 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. We intend to reinvest earnings generated by our foreign subsidiary in Latvia. With respect to the funds generated by our foreign subsidiary in China, in July 2026, we announced that we had entered into an equity transfer agreement to divest LPOIZ, which closed on October 30, 2026. We previously declared intercompany dividends to remit a portion of the earnings of LPOIZ to the U.S. parent company. During the quarter ended September 30, 2026, the final dividend payment was remitted, pursuant to the equity transfer agreement.

Revenues from foreign countries for the three months ended September 30, 2026 and 2025 are as follows:

	*Three Months Ended*
	*September 30,*
	*2026*		*2025*
Revenues:
United States	$	12,094,565	$	7,430,542
United Kingdom (1)		3,858,523		3,185,612
Israel		1,207,574		1,566,607
China		1,225,278		1,210,874
Other European countries		1,505,658		1,036,901
Other Asian countries		554,285		379,611
Rest of world		316,771		248,134
	$	20,762,654	$	15,058,281

(1) The majority of shipments to the United Kingdom are for a customer that integrates products in the United Kingdom and returns them to their customers in the U.S.

Long-lived assets located in foreign countries as of September 30, 2026 and June 30, 2026 are as follows:

	*September 30,*		*June 30,*
	*2026*		*2026*
Long-lived assets:
United States	$	57,402,007	$	56,884,880
Latvia		5,497,786		5,176,771
China		1,935,530		2,049,520
	$	64,835,323	$	64,111,171

- Definition

The entire disclosure for foreign currency transactions and translation. This may include description of foreign currency transactions, foreign currency gains and losses, explanation of change in cumulative translation adjustment, description of effect of subsequent foreign currency exchange rate change, cumulative translation adjustment movement, foreign currency translation adjustment by component movement, translation adjustment for net investment hedge movement, adjustment for long-term intercompany transactions, schedule of long-term intercompany balances and any other foreign currency transactions and translation related items.

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