Core Insights - Espey Mfg. & Electronics Corp. (ESP) reported a net income of 76 cents per share for the first quarter of fiscal 2026, an increase from 61 cents per share in the prior-year period, despite a decline in net sales [1][2] Financial Performance - Net sales for the quarter were $9.1 million, reflecting a 12.9% decline from $10.4 million in the same quarter a year earlier [2] - Gross profit increased by 14.9% to $3.2 million, resulting in a gross margin improvement to 35.4% from 26.8% in the year-ago quarter [3] - Operating income rose to $2.1 million from $1.7 million in the prior-year quarter, despite a 6.4% increase in selling, general, and administrative expenses to $1.2 million [4] - Cash flow from operations was robust at $5.7 million, significantly up from $1.4 million in the prior-year quarter [5] Business Dynamics - The decline in sales was attributed to fewer deliveries and milestone completions, particularly due to the wind-down of a significant build-to-print program [6] - The company emphasized that the sales decrease was not indicative of a long-term trend but rather due to the timing of shipments [6] - Espey's revenue model is heavily influenced by milestone-based and delivery-based billing, with $7.3 million recognized from units delivered and $1.8 million from milestone achievements [8] Customer Concentration - The top five customers accounted for nearly 80% of total sales, up from 52% in the year-ago period, indicating increased customer concentration [8] Tax and Guidance - The effective tax rate was 15.2%, down from 20% in the prior year, reflecting tax benefits from various deductions [9] - Management anticipates higher revenues for fiscal 2026 compared to fiscal 2025, supported by a backlog of $141.1 million as of Sept. 30, 2025 [10] - New orders for fiscal 2026 totaled $10.5 million, up from $7.8 million in the same quarter last year, with approximately $161.5 million in outstanding opportunities [12] Capital Improvement Initiatives - The company is progressing on a $3.4 million Navy-funded capital improvement initiative aimed at enhancing test and qualification infrastructure, with $1 million in milestone reimbursements received [13]

Core Insights - Espey Mfg. & Electronics Corp. reported net sales of $9,092,876 for the first three months of fiscal year 2026, a decrease from $10,443,218 in the same period of fiscal year 2025 [2] - The company achieved a net income of $2,169,836, or $0.80 per share, compared to $1,598,317, or $0.63 per share, in the prior year, indicating an increase in profitability despite lower sales [2] - The total backlog increased significantly to approximately $141.1 million from $94.6 million year-over-year, reflecting strong demand and order growth [3] Financial Performance - Net sales decreased by approximately 12.9% year-over-year [2] - Net income increased by approximately 35.7% year-over-year, demonstrating improved profitability [2] - New orders received in the first three months of fiscal year 2026 were roughly $10.5 million, up from $7.8 million in the same period of fiscal year 2025, indicating a positive trend in order intake [3] Management Commentary - The President and CEO highlighted solid execution by the team, emphasizing improvements in gross profit, backlog levels, and net income despite softer sales [4] - The decline in sales was attributed to a change in the timing of shipments rather than a decrease in demand [4] - The company is focused on labor efficiencies, material cost savings, and effective resource management, which contributed to the strength of gross profits [4] Business Overview - Espey's primary business involves the development, design, and production of specialized military and industrial power supplies and transformers [5]

Financial Performance - Net sales for the three months ended September 30, 2025, were $9,092,876, a decrease of 13.0% compared to $10,443,218 for the same period in 2024[9] - Gross profit increased to $3,217,002, representing a gross margin of 35.4%, up from $2,800,882 and a gross margin of 26.8% in the prior year[9] - Operating income rose to $2,065,736, an increase of 20.1% from $1,719,213 in the same quarter last year[9] - Net income for the quarter was $2,169,836, a 35.7% increase compared to $1,598,317 in the prior year[9] - Basic net income per share increased to $0.80, up from $0.63 in the same quarter of 2024[9] - Total revenue for the three months ended September 30, 2025 was $7,339,223, a decrease of 11.1% from $8,262,496 in the same period of fiscal year 2024[41] - Revenue recognized based on milestones achieved for the three months ended September 30, 2025 was $1,753,653, down from $2,180,722 in the same period of fiscal year 2024[41] Assets and Liabilities - Total assets as of September 30, 2025, were $84,846,731, an increase of 7.0% from $79,116,564 as of June 30, 2025[7] - Total current assets increased to $80,730,705 as of September 30, 2025, compared to $75,156,408 as of June 30, 2025[7] - Total liabilities remained stable at $33,868,970 as of September 30, 2025, compared to $28,267,564 as of June 30, 2025[7] - The company experienced a decrease in trade accounts receivable by $1,241,032, contrasting with an increase of $383,333 in the previous year[15] - The company’s total liabilities included an increase in accounts payable by $750,263, compared to an increase of $170,683 in the prior year[15] Cash and Investments - Cash and cash equivalents rose to $22,220,227, up from $18,862,645 at the end of the previous quarter[7] - Cash and cash equivalents at the end of the period were $22,220,227, a significant increase from $4,813,898 at the end of September 2024[15] - Total investment securities as of September 30, 2025, amounted to $24,688,473, with certificates of deposit valued at $23,583,000 and municipal bonds at $1,105,473[19] - The company’s investment securities portfolio is diversified and primarily consists of investment-grade fixed income instruments[21] Dividends and Shareholder Equity - The company declared dividends of $1.00 per share, significantly higher than $0.25 per share in the same quarter last year[9] - Total stockholders' equity increased to $50,977,761, compared to $50,849,000 as of June 30, 2025[7] - The Company paid regular cash dividends of $0.25 per share and a special dividend of $0.75 per share in the three months ended September 30, 2025[32] Stock Options and Compensation - The company reported a stock-based compensation expense of $74,440 for the three months ended September 30, 2025, down from $101,492 in the same period of 2024[26] - ESOP compensation expense for the three-month period ended September 30, 2025 was $247,344, compared to $123,194 for the same period in 2024[48] - The aggregate intrinsic value of outstanding options at September 30, 2025 was $3,790,995[33] - The intrinsic value of options exercised during the three months ended September 30, 2025 was $640,228, compared to $93,512 for the same period in 2024[33] - As of September 30, 2025, there was $158,654 of unrecognized compensation cost related to stock option awards expected to be recognized over the next 1.25 years[27] Backlog and Future Commitments - The Company's backlog as of September 30, 2025 totaled approximately $141.1 million, with 27.6% expected to be recognized in 2026[44] - Contract liabilities increased to $27,974,103, up from $22,886,404 as of June 30, 2025, indicating growth in future revenue commitments[7] - The company experienced a significant increase in contract liabilities, with a rise of $5,087,699 compared to a decrease of $327,812 in the previous year[15] Segment Reporting and Management - The Company adopted FASB's ASU 2023-07 for segment reporting as of June 30, 2025, enhancing qualitative and quantitative disclosures for reportable segments[51] - The Chief Operating Decision Maker (CODM) is the Chief Executive Officer, overseeing a single operating segment and evaluating performance based on financial data[51] - Significant expenses reviewed by the CODM include Cost of Sales and Selling, General and Administrative costs, which are separately presented in the financial statements[51]

Core Insights - Canuc Resources Corporation has announced a seismic survey commissioned by Natural Resources Canada for early 2026 on its McLaren Lake Fault Zone, part of the East Sudbury Project [1][2][6] - The survey aims to enhance understanding of critical minerals and their formation in Canada's subsurface, focusing on a known Metasomatic Iron Alkali Calcic (MIAC) system [4][5][6] Company Overview - Canuc Resources Corporation holds a 100% interest in the East Sudbury Project, which spans 19,710 hectares and is located approximately 20 kilometers northeast of the Sudbury Mining Camp [9] - The East Sudbury Project includes areas with potential for hosting IOCG and affiliated critical mineral deposits, as well as the historical Scadding Gold Mine [9][10] Seismic Survey Details - The seismic survey will be conducted by Optiseis Solutions Ltd., a leader in subsurface imaging, under the Critical Minerals Geoscience and Data Initiative [2][5] - The survey will utilize innovative geophysical methods, combining surface seismic surveys with fiber-optic sensing in boreholes to identify key alteration zones [5][6] Mineralization Potential - The McLaren Lake Fault Zone is recognized for its potential to host IOCG and associated critical mineral and precious metal deposits, with existing evidence of copper, gold, and cobalt mineralization [4][6][8] - The company anticipates that the results from the seismic survey will provide valuable insights into mineral systems and guide future exploration efforts [6][8]

Core Insights - Canuc Resources Corporation has initiated a diamond core drilling program at its East Sudbury Project (ESP) to explore gold mineralization [1][6] - The company acquired 100% ownership of the ESP on May 8, 2025, and has since verified historical gold assay data, identifying multiple gold prospects [2][9] - The drilling program aims to provide infill data for previously identified gold zones, with the goal of calculating a maiden Mineral Resource Estimate for Gold Lens 1 [6][7] Company Overview - Canuc Resources Corporation is a junior resource company with a 100% interest in the East Sudbury Project, which spans 19,710 hectares and is located near the Sudbury Mining Camp [9] - The ESP includes the historical Scadding Gold Mine and is associated with critical and precious metal mineralization [9] - The company also holds a 100% interest in the San Javier Silver-Gold Project in Mexico and generates cash flow from natural gas production at its MidTex Energy Project in Texas [10][12] Drilling Program Details - The drilling program will focus on a well-defined zone of gold mineralization adjacent to the historical North Pit gold mine, with a mineralized zone measuring 80 m x 3 m x 100 m [3][4] - Historical assay results from the mineralized zone show a range from less than 1 g/t to highs of 735.51 g/t, with the best intersection reported at 36.27 g/t Au over 12.27 m [4][5] - A minimum of 15 drill holes are planned for this phase to gather fill-in information for areas not previously tested [4][6]

Core Insights - Espey Mfg. & Electronics Corp. has commenced full-scale production and testing operations at its new Magnetics Center of Excellence, following the completion of construction in April 2025 [1] - The company was awarded a $7.4 million grant in fiscal year 2023 as part of the U.S. Navy's initiative to strengthen the shipbuilding industrial base, which will enhance Espey's testing capabilities and support scalable growth [2][3] Company Developments - The new facility spans 24,000 square feet and supports Espey's leadership in advanced magnetics systems development and MIL-STD testing [3] - Espey's primary business focuses on the development, design, and production of specialized military and industrial power supplies and transformers [4]

Core Viewpoint - The article examines Espey Mfg. & Electronics (NYSE: ESP) to determine if the recent share price decline is justified or an overreaction [1]. Company Analysis - Espey Mfg. & Electronics has recently appeared on stock screeners, indicating potential interest from investors [1]. - The analysis suggests a long-term investment perspective, focusing on a 5-10 year horizon, with an emphasis on value stocks [1]. Investment Strategy - The investment strategy discussed includes a mix of growth, value, and dividend-paying stocks, with a particular inclination towards value investing [1]. - The company also engages in selling options occasionally, indicating a diversified investment approach [1].

Financial Performance - Espey Mfg. & Electronics Corp. reported a net income of $1.05 per share for Q4 2025, an increase from 73 cents per share a year earlier [1] - The company generated net sales of $9.6 million in Q4 2025, down from $11.6 million in the prior-year quarter, but quarterly net income rose to $2.9 million from $1.9 million a year earlier [2] - For fiscal 2025, Espey posted a net income of $8.1 million, up from $5.8 million in the prior year, representing an increase of about 40%, with EPS rising to $3.02 from $2.29 [3] Business Metrics - Espey's backlog reached approximately $139.7 million as of June 30, 2025, with expectations to recognize 35% as revenue in fiscal 2026 [4] - Export shipments grew to $3.1 million in 2025 compared to $2.4 million a year earlier [4] - Sales concentration remained high, with six domestic customers accounting for 74% of sales in fiscal 2025, down from five customers making up 81% of sales in 2024 [5] Management Outlook - Management anticipates revenues in fiscal 2026 will be higher than in fiscal 2025, but net income per share is expected to decline due to higher anticipated costs [6] - Ongoing supply chain challenges and inflationary pressures are notable hurdles, with component waiting times approaching a year or more [6][7] Operational Factors - The improvement in net income was partly due to operational adjustments and tax benefits, with the provision for income taxes declining to $1.6 million in 2025 from $1.5 million in 2024 [8] - Espey received a $3.4 million funding award from the U.S. Navy for facility and capital equipment upgrades, expected to be completed by the end of fiscal 2026 [9] - The company finalized its withdrawal from the IBEW Local 1799 Pension Fund, making a final payment of $0.5 million in May 2025 [10]

[PART I](index=3&type=section&id=PART%20I) [Business](index=3&type=section&id=Item%201.%20Business) Espey Mfg. & Electronics Corp. is a military power electronics OEM, with **13.5% sales growth in FY2025**, managing customer concentration and supply chain risks - Espey Mfg. & Electronics Corp. is a power electronics design and original equipment manufacturing (OEM) company, providing highly reliable products for military and severe environment applications. The company is **ISO 9001:2015 and AS9100:2016 certified**[12](index=12&type=chunk)[13](index=13&type=chunk) Total Sales (FY2024-2025) | Fiscal Year | Total Sales | | :------------ | :------------ | | 2025 | $43,950,872 | | 2024 | $38,736,319 | | **Change** | **+13.5%** | - Sales to six customers accounted for **74% of total sales in 2025** (16%, 13%, 12%, 12%, 11%, 10% respectively), and sales to five customers accounted for **81% of total sales in 2024** (20%, 18%, 16%, 16%, 11% respectively), indicating significant customer concentration risk[15](index=15&type=chunk) Sales Backlog (June 30, 2024-2025) | Backlog Category | June 30, 2025 | June 30, 2024 | | :--------------- | :------------ | :------------ | | Total Sales Backlog | $139.7 million | $97.2 million | | Funded Portion | $106.6 million | N/A | | Unfunded Backlog | $33 million | $2.3 million | | **Change (Total)** | **+43.7%** | | - Approximately **$49.1 million** of the June 30, 2025 backlog is anticipated to be filled during the fiscal year ending June 30, 2026[22](index=22&type=chunk) - The Company's business is not seasonal, but is exposed to risks from its concentration in the rail industry and military/industrial applications, including dependence on government appropriations and potential contract terminations[25](index=25&type=chunk) Research and Development Expenditures (FY2024-2025) | Fiscal Year | R&D Expenditures | | :------------ | :----------------- | | 2025 | $71,074 | | 2024 | $86,714 | - As of August 31, 2025, the Company had **152 employees**, with approximately **34%** represented by the International Brotherhood of Electrical Workers under a collective bargaining agreement expiring June 30, 2028[29](index=29&type=chunk) [Cybersecurity](index=6&type=section&id=Item%201C.%20Cybersecurity) The company prioritizes robust cybersecurity, managing complex threats as a defense contractor through NIST-compliant assessments and DFARS compliance - The Company faces complex cybersecurity threats as a defense contractor, including malware, ransomware, phishing, Denial of Service attacks, and Advanced Persistent Threats[36](index=36&type=chunk) - A security team, comprising senior management, IT, human resources, and program management, performs routine risk assessments in accordance with **NIST 800-30**, with oversight from the Audit Committee of the Board of Directors[36](index=36&type=chunk) - The Company is required to adhere to rigorous regulations like **DFARS** for protecting controlled unclassified information (CUI) and mandatory reporting of cybersecurity incidents to the Department of Defense (DoD)[36](index=36&type=chunk) [Property](index=6&type=section&id=Item%202.%20Property) All company operations are housed in an owned, vertically integrated **174,000 sq ft** facility in Saratoga Springs, New York - The Company's entire operation, including administrative, manufacturing, and engineering facilities, is located in Saratoga Springs, New York[37](index=37&type=chunk) - The Saratoga Springs plant, owned by the Company, consists of two buildings on a 22-acre site, with approximately **174,000 square feet** of in-service floor space (**113,000 sq ft for manufacturing**)[38](index=38&type=chunk) - The manufacturing operation includes a complete machine shop with welding and sheet metal fabrication facilities, and a sophisticated on-site environmental test facility, which are also available to other companies on a contract basis[38](index=38&type=chunk) [Legal Proceedings](index=6&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ordinary course litigation, but management believes no pending matters will materially impact its financial condition - The Company is party to various litigation matters and claims arising from time to time in the ordinary course of business[39](index=39&type=chunk) - Management believes that the final outcome of such matters will not have a material adverse effect on the Company's business, financial condition, results of operations or cash flows[39](index=39&type=chunk) - Currently, there are **no legal matters pending**[39](index=39&type=chunk) [Mine Safety Disclosures](index=6&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [PART II](index=7&type=section&id=PART%20II) [Market for the Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities](index=7&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%20and%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section details common stock market activity, including price ranges, dividend payments, and equity compensation plan information Common Stock Price Range (High/Low) by Quarter | Quarter | 2025 High | 2025 Low | 2024 High | 2024 Low | | :------------- | :-------- | :------- | :-------- | :------- | | First Quarter | $32.00 | $20.50 | $18.00 | $14.74 | | Second Quarter | $33.00 | $26.38 | $19.29 | $14.69 | | Third Quarter | $30.29 | $25.16 | $27.32 | $17.97 | | Fourth Quarter | $48.71 | $24.85 | $26.31 | $20.20 | - The approximate number of holders of record of the common stock was **53** on September 12, 2025[43](index=43&type=chunk) Cash Dividends Paid on Common Stock | Fiscal Year | Regular Dividend per Share | Special Dividend per Share | | :------------ | :------------------------- | :------------------------- | | 2025 | $1.00 | $0.75 | | 2024 | $0.675 | — | Equity Compensation Plan Information (June 30, 2025) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of Securities remaining available for future issuance under equity compensation plan (excluding securities reflected in column (a)) (c) | | :---------------------------------- | :------------------------------------------------------------------------------------------ | :------------------------------------------------------------------------------ | :------------------------------------------------------------------------------------------------------------------------------------------- | | Equity compensation plans approved by security holders | 228,146 | $19.26 | 12,469 | | Equity compensation plans not approved by security holders | — | — | — | | Total | 228,146 | | 12,469 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=8&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses FY2025 financial performance, including **13.5% sales growth** and improved net income, alongside FY2026 outlook and critical accounting policies [Business Outlook](index=8&type=section&id=Business%20Outlook) Management projects higher FY2026 revenues but lower net income per share due to backlog costs, while navigating supply chain issues and pursuing strategic growth - Management expects revenues in fiscal year 2026 to be higher than fiscal year 2025, but net income per share is anticipated to fall below fiscal 2025 results due to higher anticipated aggregate costs for products in the backlog[49](index=49&type=chunk) - Ongoing demand in the power electronics industry continues to create shortages and extended lead times, with some components requiring a year or more. The Company factors these into planning and quotations[50](index=50&type=chunk) - The Company expects new orders in fiscal year 2026 to be lower than the **$86.4 million** received in fiscal year 2025, which included two significant multi-year contract awards totaling **$49.4 million**[53](index=53&type=chunk) - As of August 31, 2025, the Company has outstanding opportunities representing approximately **$163 million** for both repeat and new programs[53](index=53&type=chunk) - Capital expenditures for fiscal year 2026 are not expected to exceed **$850,000**, primarily for machinery and equipment and facility upgrades, in addition to grant-funded projects[57](index=57&type=chunk) [Results of Operations](index=9&type=section&id=Results%20of%20Operations) FY2025 net sales grew **13.5% to $43.95 million**, driving a **40% increase in net income to $8.14 million**, with improved gross profit margins Key Financial Performance Indicators (FY2024-2025) | Metric | FY2025 | FY2024 | Change (%) | | :-------------------------------------- | :------------ | :------------ | :--------- | | Net Sales | $43,950,872 | $38,736,319 | +13.5% | | Cost of Sales | $31,266,241 | $28,083,259 | +11.3% | | Gross Profit | $12,684,631 | $10,653,060 | +19.1% | | Gross Profit as % of Sales | 28.9% | 27.5% | +1.4 pp | | Selling, General and Administrative Expenses | $4,557,945 | $4,113,608 | +10.8% | | Operating Income | $8,126,686 | $6,539,452 | +24.3% | | Other Income | $1,601,978 | $755,562 | +112.0% | | Income before Provision for Income Taxes | $9,728,664 | $7,295,014 | +33.4% | | Provision for Income Taxes | $1,585,710 | $1,479,874 | +7.1% | | Net Income | $8,142,954 | $5,815,140 | +40.0% | | Basic EPS | $3.14 | $2.34 | +34.2% | | Diluted EPS | $3.02 | $2.29 | +31.9% | - The increase in net sales in FY2025 was primarily attributable to several large multi-year contracts for shipboard transformers and power distribution panels, power systems for combat vehicles, and power systems for aircraft radar and missile platforms, as well as increases in build-to-print sales[59](index=59&type=chunk) - The increase in gross profit for FY2025 was primarily due to higher sales levels, favorable product mix, higher than average profit margins on completed milestone sales, and non-recurring cost savings from labor efficiencies and material purchases. FY2024 gross profit was negatively impacted by unanticipated costs on fixed-price engineering design contracts[61](index=61&type=chunk) - Other income increased significantly due to higher interest income from increased investment securities and fixed interest rates, and a one-time Capital Investment Grant of **$300,000** related to the completion of a new building in fiscal 2025[63](index=63&type=chunk) Effective Tax Rate (FY2024-2025) | Fiscal Year | Effective Tax Rate | | :------------ | :----------------- | | 2025 | 16.3% | | 2024 | 20.3% | - The lower effective tax rate in fiscal 2025 was mainly due to benefits from stock option exercises, dividends paid on allocated ESOP shares, and foreign derived intangible income[64](index=64&type=chunk) [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to **$46.9 million**, and operating cash flow significantly rose to **$20.99 million in FY2025**, supported by Navy grants Working Capital (June 30, 2024-2025) | Fiscal Year | Working Capital | | :------------ | :-------------- | | 2025 | $46.9 million | | 2024 | $38 million | Summary of Cash Flow Information (FY2024-2025) | Cash Flow Activity | FY2025 | FY2024 | | :-------------------------------- | :------------ | :------------ | | Net cash provided by operating activities | $20,991,372 | $10,595,200 | | Net cash used in investing activities | $(6,938,966) | $(7,840,277) | | Net cash provided by (used in) financing activities | $458,268 | $(1,151,708) | - The increase in cash provided by operating activities in FY2025 compared to the prior year primarily relates to an increase in contract liabilities and a decrease in inventory, partially offset by increases in accounts receivable and prepaid expenses[68](index=68&type=chunk) - The Company has an uncommitted and unused **$3,000,000** line of credit, expiring February 28, 2026, and does not anticipate needing borrowed funds in the foreseeable future[66](index=66&type=chunk)[168](index=168&type=chunk) Capital Expenditures and Grant Reimbursements (FY2024-2025) | Metric | FY2025 | FY2024 | | :-------------------------------------- | :------------ | :------------ | | Total expended for plant improvements and new equipment | $4,365,404 | $5,164,165 | | Reimbursed from $7.4M Navy award | $3,260,000 | $4,228,722 | | Eligible for reimbursement under $3.4M Navy award | $1,731,042 | N/A | [Critical Accounting Policies and Significant Estimates](index=11&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Estimates) Key accounting policies involve significant estimates for revenue recognition on fixed-price contracts, inventory valuation, and deferred taxes - Critical accounting policies include revenue recognition, inventory valuation, and deferred taxes, which involve significant management judgments, estimates, and assumptions[72](index=72&type=chunk) - Revenue recognition for fixed-price military contracts involves determining performance obligations and transaction prices using an expected cost plus a margin approach, as standalone observable prices are not available[73](index=73&type=chunk)[74](index=74&type=chunk) - Inventory, including raw materials and contracts in process, is valued at the lower of cost (average cost) or net realizable value, with provisions for losses made when probable and estimable, based on estimated total cost at completion[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Deferred tax assets and liabilities are recognized for future tax consequences of temporary differences between financial statement and tax bases, measured using enacted tax rates[79](index=79&type=chunk) [Financial Statements and Supplementary Data](index=12&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes audited financial statements, the independent auditor's unqualified opinion, and detailed notes on accounting policies and financial performance [Report of Independent Registered Public Accounting Firm](index=12&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Freed Maxick, P.C. issued an **unqualified opinion** on the company's FY2025 and FY2024 financial statements, affirming U.S. GAAP conformity - Freed Maxick, P.C. issued an **unqualified opinion** on the financial statements of Espey Mfg. & Electronics Corp. for the fiscal years ended June 30, 2025 and 2024[82](index=82&type=chunk) - The audit was conducted in accordance with **PCAOB standards**, assessing risks of material misstatement and evaluating accounting principles and significant management estimates[84](index=84&type=chunk)[85](index=85&type=chunk) [Critical Audit Matters](index=12&type=section&id=Critical%20Audit%20Matters) Inventory valuation for contracts in process is a critical audit matter due to its magnitude and the subjectivity of cost estimates - The valuation of inventory and accruals related to contracts in process and work in process was identified as a **critical audit matter**[87](index=87&type=chunk) - This matter is critical due to the magnitude of the inventory and the subjectivity involved in estimating the total cost at completion of a contract, which requires a high degree of auditor judgment[88](index=88&type=chunk) - Audit procedures included understanding management's estimation process, retrospective review of prior period estimates, brainstorming for fraud/error susceptibility, testing management's estimates, and reviewing job loss accruals[89](index=89&type=chunk) [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$79.12 million in 2025**, driven by higher cash, investments, and contract liabilities, boosting stockholders' equity Consolidated Balance Sheet Highlights (June 30, 2024-2025) | Asset/Liability/Equity Category | June 30, 2025 | June 30, 2024 | | :------------------------------ | :------------ | :------------ | | Cash and cash equivalents | $18,862,645 | $4,351,970 | | Investment securities | $24,717,245 | $18,878,631 | | Total current assets | $75,156,408 | $53,236,656 | | Total assets | $79,116,564 | $56,542,931 | | Contract liabilities | $22,886,404 | $9,043,422 | | Total current liabilities | $28,267,564 | $15,268,959 | | Total liabilities | $28,267,564 | $15,268,959 | | Total stockholders' equity | $50,849,000 | $41,273,972 | - Cash and cash equivalents increased significantly from **$4.35 million in 2024 to $18.86 million in 2025**[90](index=90&type=chunk) - Contract liabilities saw a substantial increase from **$9.04 million in 2024 to $22.89 million in 2025**[90](index=90&type=chunk) [Consolidated Statements of Comprehensive Income](index=15&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) FY2025 saw net sales rise **13.5% to $43.95 million**, with net income increasing **40% to $8.14 million** and basic EPS at **$3.14** Consolidated Statements of Comprehensive Income (FY2024-2025) | Metric | FY2025 | FY2024 | | :-------------------------------------- | :------------ | :------------ | | Net sales | $43,950,872 | $38,736,319 | | Gross profit | $12,684,631 | $10,653,060 | | Operating income | $8,126,686 | $6,539,452 | | Total other income | $1,601,978 | $755,562 | | Income before provision for income taxes | $9,728,664 | $7,295,014 | | Provision for income taxes | $1,585,710 | $1,479,874 | | Net income | $8,142,954 | $5,815,140 | | Unrealized gain on investment securities | $5,052 | $8,973 | | Total comprehensive income | $8,148,006 | $5,824,113 | | Net income per share: Basic | $3.14 | $2.34 | | Net income per share: Diluted | $3.02 | $2.29 | - Net income increased by **40.0%** from **$5,815,140 in FY2024 to $8,142,954 in FY2025**[91](index=91&type=chunk) - Basic EPS increased from **$2.34 in FY2024 to $3.14 in FY2025**, and Diluted EPS increased from **$2.29 to $3.02**[91](index=91&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=16&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity increased to **$50.85 million in 2025**, driven by net income and stock option exercises, despite dividend payments Key Changes in Stockholders' Equity (FY2024-2025) | Item | FY2025 Change | FY2024 Change | | :---------------------------------- | :------------ | :------------ | | Net income | $8,142,954 | $5,815,140 | | Stock options exercised | $3,055,622 | $526,362 | | Stock-based compensation | $346,281 | $283,673 | | Dividends paid on common stock | $(2,597,354) | $(1,678,070) | | Reduction of unearned ESOP shares | $622,473 | $438,136 | | Total Stockholders' Equity (End of Period) | $50,849,000 | $41,273,972 | - Total stockholders' equity increased by **$9,575,028** from June 30, 2024, to June 30, 2025[95](index=95&type=chunk) [Consolidated Statements of Cash Flows](index=18&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow nearly doubled to **$20.99 million in FY2025**, leading to a **$14.51 million increase** in cash and cash equivalents Consolidated Statements of Cash Flows (FY2024-2025) | Cash Flow Activity | FY2025 | FY2024 | | :-------------------------------- | :------------ | :------------ | | Net cash provided by operating activities | $20,991,372 | $10,595,200 | | Net cash used in investing activities | $(6,938,965) | $(7,840,277) | | Net cash provided by (used in) financing activities | $458,268 | $(1,151,708) | | Increase in cash and cash equivalents | $14,510,675 | $1,603,215 | | Cash and cash equivalents, end of the year | $18,862,645 | $4,351,970 | - Net cash provided by operating activities increased by approximately **98%** in FY2025, primarily due to an increase in contract liabilities and a decrease in inventory[96](index=96&type=chunk) - Cash flows from financing activities shifted from a net use of **$1.15 million in FY2024** to a net provision of **$0.46 million in FY2025**, largely due to increased proceeds from stock option exercises[96](index=96&type=chunk) [Notes to Financial Statements](index=19&type=section&id=Notes%20to%20Financial%20Statements) These notes provide detailed disclosures on accounting policies, revenue, investments, PPE, taxes, ESOP, stock compensation, and other financial specifics [Note 1. Nature of Operations](index=19&type=section&id=Note%201.%20Nature%20of%20Operations) Espey Mfg. & Electronics Corp. manufactures electronic equipment primarily for military and industrial applications globally - Espey Mfg. & Electronics Corp. is a manufacturer of electronic equipment used primarily in military and industrial applications[97](index=97&type=chunk) - The principal markets for the Company's products are companies that provide electronic support to both military and industrial applications across the United States and at some international locations[97](index=97&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=19&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note details key accounting policies for revenue recognition, inventory, depreciation, income taxes, investments, and segment reporting - Revenue from fixed-price military and industrial contracts is recognized based on performance obligations, with transaction prices determined using an expected cost plus a margin approach[98](index=98&type=chunk)[100](index=100&type=chunk) - Inventory (raw materials, contracts in process, work in process) is valued at the lower of cost (average cost) or net realizable value, with provisions for losses on contracts made when probable and estimable[101](index=101&type=chunk)[102](index=102&type=chunk) - The Company adopted **ASU 2023-07**, 'Segment Reporting', effective June 30, 2025, which did not materially impact its segment-related disclosures[119](index=119&type=chunk) - The Company's defense electronics products market is largely dependent on new contracts from the United States and foreign governments, exposing it to concentration of risk related to government expenditures and procurement regulations (**FAR, DFAR**)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Note 3. Revenue](index=23&type=section&id=Note%203.%20Revenue) Revenue is recognized over time from military and industrial contracts, with a **$139.7 million backlog** and high customer concentration - Revenue is recognized over time using the output method, based on units delivered or milestones achieved, as control of products or services is transferred to customers[127](index=127&type=chunk) Revenue Recognition by Method (FY2024-2025) | Revenue Source | FY2025 | FY2024 | | :------------------ | :------------ | :------------ | | Units delivered | $35,343,557 | $33,403,833 | | Milestones achieved | $8,607,314 | $5,332,486 | Contract Liabilities (June 30, 2024-2025) | Fiscal Year | Contract Liabilities | | :------------ | :------------------- | | 2025 | $22,886,404 | | 2024 | $9,043,422 | | **Change** | **+153.1%** | - The total sales backlog at June 30, 2025, was approximately **$139.7 million**, with **35%** expected to be recognized in fiscal year 2026, **19%** in 2027, **15%** in 2028, and **31%** thereafter[131](index=131&type=chunk) - Sales to six domestic customers accounted for **74% of total sales in 2025**, and sales to five domestic customers accounted for **81% of total sales in 2024**, highlighting significant customer concentration[132](index=132&type=chunk) Export Shipments (FY2024-2025) | Fiscal Year | Export Shipments | | :------------ | :--------------- | | 2025 | $3,124,820 | | 2024 | $2,350,087 | | **Change** | **+32.97%** | [Note 4. Investment Securities](index=24&type=section&id=Note%204.%20Investment%20Securities) Investment securities, primarily certificates of deposit and municipal bonds, increased to **$24.72 million in 2025**, with most maturing within one year Investment Securities Fair Value (June 30, 2024-2025) | Security Type | June 30, 2025 Fair Value | June 30, 2024 Fair Value | | :-------------------- | :----------------------- | :----------------------- | | Certificates of deposit | $23,539,000 | $17,651,000 | | Municipal bonds | $1,178,245 | $711,570 | | U.S. Treasury bills | — | $516,061 | | **Total** | **$24,717,245** | **$18,878,631** | - The investment portfolio is diversified, highly liquid, and primarily consists of investment grade fixed income instruments[134](index=134&type=chunk) Contractual Maturities of Available-for-Sale Debt Securities (June 30, 2024-2025) | Fiscal Year | Less than One Year | One to Five Years | Total | | :------------ | :----------------- | :---------------- | :------------ | | June 30, 2025 | $22,933,933 | $1,783,312 | $24,717,245 | | June 30, 2024 | $17,889,582 | $989,049 | $18,878,631 | [Note 5. Contracts in Process](index=25&type=section&id=Note%205.%20Contracts%20in%20Process) Unrecognized gross contract value for contracts in process increased to **$139.67 million in 2025**, with associated costs of **$15.04 million** Contracts in Process (June 30, 2024-2025) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Unrecognized gross contract value | $139,673,288 | $97,216,542 | | Costs related to contracts in process | $15,040,253 | $15,904,588 | - The unrecognized gross contract value increased by approximately **43.7%** from 2024 to 2025[136](index=136&type=chunk) - Costs related to contracts in process include material, subcontract costs, labor, and an allocation of overhead costs, and are not reflected in comprehensive income until units are shipped[136](index=136&type=chunk) [Note 6. Property, Plant and Equipment](index=25&type=section&id=Note%206.%20Property%2C%20Plant%20and%20Equipment) Net PPE increased to **$3.96 million in 2025**, supported by **$7.4 million** and an additional **$3.4 million** in Navy funding for upgrades Property, Plant and Equipment, Net (June 30, 2024-2025) | Category | June 30, 2025 | June 30, 2024 | | :------------------------ | :------------ | :------------ | | Land | $45,000 | $45,000 | | Building and improvements | $6,137,629 | $5,472,156 | | Machinery and equipment | $11,887,737 | $11,509,018 | | Furniture and fixtures | $165,651 | $165,651 | | Total | $18,236,017 | $17,191,825 | | Accumulated depreciation | $(14,275,861) | $(13,885,550) | | **Net PPE** | **$3,960,156**| **$3,306,275**| - Depreciation expense was **$451,523** for the year ended June 30, 2025, and **$453,517** for 2024[137](index=137&type=chunk) - The Company received **$7.4 million** in Navy funding for facility and capital equipment upgrades, completed in April 2025, with all related assets placed in service by June 30, 2025[138](index=138&type=chunk) - An additional **$3.4 million** Navy award was received in fiscal year 2025 for continued upgrades, with approximately **$1,731,042** in unreimbursed spending included in property, plant, and equipment at June 30, 2025[139](index=139&type=chunk) [Note 7. Pension Expense](index=26&type=section&id=Note%207.%20Pension%20Expense) The company paid a **$772,157** pension withdrawal obligation in FY2025 and made contributions to NEBF and a 401(k) plan - The Company recorded a termination withdrawal obligation of **$772,157** at June 30, 2024, for withdrawing from the IBEW Local 1799 Pension Fund, which was paid in full during fiscal year 2025[140](index=140&type=chunk) Pension and 401(k) Contributions (FY2024-2025) | Plan | FY2025 | FY2024 | | :---------------------------------- | :---------- | :---------- | | National Electrical Benefit Fund (NEBF) | $79,739 | $79,429 | | 401(k) employer matching contributions | $66,617 | $60,301 | [Note 8. Provision for Income Taxes](index=26&type=section&id=Note%208.%20Provision%20for%20Income%20Taxes) The FY2025 income tax provision was **$1.59 million**, with a lower effective tax rate of **16.3%** due to various tax benefits Provision for Income Taxes (FY2024-2025) | Component | FY2025 | FY2024 | | :-------------------- | :------------ | :------------ | | Current tax expense - federal | $1,882,969 | $2,515,865 | | Current tax (benefit) expense - state | $9,606 | $(3,010) | | Deferred tax benefit | $(306,865) | $(1,032,981) | | **Total Provision** | **$1,585,710**| **$1,479,874**| Effective Income Tax Rates and Reconciliation (FY2024-2025) | Item | FY2025 | FY2024 | | :-------------------------------------- | :------ | :------ | | U.S. federal statutory income tax rate | 21.0% | 21.0% | | State franchise tax, net of federal income tax benefit | 0.1 | — | | ESOP cost versus Fair Market Value | 0.5 | 0.1 | | Dividend on allocated ESOP shares | (0.6) | (0.3) | | Stock-based compensation | (3.8) | 0.2 | | Foreign derived intangible income | (0.9) | (0.8) | | Other | (0.0) | 0.1 | | **Effective tax rate** | **16.3%** | **20.3%** | Deferred Tax Assets and Liabilities (June 30, 2024-2025) | Category | June 30, 2025 | June 30, 2024 | | :---------------------------- | :------------ | :------------ | | Total deferred tax assets | $1,272,246 | $974,091 | | Total deferred tax liability | $70,227 | $78,937 | | **Net deferred tax asset (liability)** | **$1,202,019**| **$895,154** | [Note 9. Employee Stock Ownership Plan](index=27&type=section&id=Note%209.%20Employee%20Stock%20Ownership%20Plan) The company sponsors a leveraged ESOP, with compensation expense of **$622,472 in 2025** and **595,299 total shares** held - The Company sponsors a leveraged Employee Stock Ownership Plan (ESOP) covering all nonunion employees who meet eligibility criteria[149](index=149&type=chunk) ESOP Compensation Expense (FY2024-2025) | Fiscal Year | ESOP Compensation Expense | | :------------ | :------------------------ | | 2025 | $622,472 | | 2024 | $438,136 | ESOP Shares (June 30, 2024-2025) | Share Category | June 30, 2025 | June 30, 2024 | | :---------------- | :------------ | :------------ | | Allocated shares | 405,482 | 451,132 | | Unearned shares | 189,817 | 211,487 | | **Total shares held by the ESOP** | **595,299** | **662,619** | | Fair value of unearned shares | $8,676,535 | $4,494,099 | [Note 10. Stock-based Compensation](index=28&type=section&id=Note%2010.%20Stock-based%20Compensation) Stock-based compensation expense increased to **$346,281 in FY2025**, with **228,146 options outstanding** and an aggregate intrinsic value of **$6.03 million** Total Stock-based Compensation Expense (FY2024-2025) | Fiscal Year | Total Stock-based Compensation Expense | | :------------ | :------------------------------------- | | 2025 | $346,281 | | 2024 | $283,673 | - As of June 30, 2025, there was **$233,094** of unrecognized compensation cost related to stock option awards, expected to be recognized as expense over the next **1.75 years**[154](index=154&type=chunk) Stock Option Activity (FY2024-2025) | Activity | Shares Subject to Option (2025) | Weighted Average Exercise Price (2025) | Shares Subject to Option (2024) | Weighted Average Exercise Price (2024) | | :------------------------ | :------------------------------ | :------------------------------------- | :------------------------------ | :------------------------------------- | | Balance at July 1 | 322,056 | $18.41 | 296,331 | $19.15 | | Granted | 79,000 | $21.79 | 80,900 | $16.78 | | Exercised | (162,410) | $18.81 | (31,325) | $16.80 | | Forfeited or expired | (10,500) | $18.90 | (23,850) | $24.30 | | **Outstanding at June 30**| **228,146** | **$19.26** | **322,056** | **$18.41** | - The aggregate intrinsic value of outstanding options at June 30, 2025, was **$6,033,634**[158](index=158&type=chunk)[159](index=159&type=chunk) [Note 11. Concentration of Credit Risk](index=30&type=section&id=Note%2011.%20Concentration%20of%20Credit%20Risk) The company faces significant credit risk concentration, with **six customers accounting for 70%** of trade accounts receivable - Financial instruments, including cash and cash equivalents, short-term investments, and accounts receivable, subject the Company to concentrations of credit risk[161](index=161&type=chunk) - At June 30, 2025, **70%** of the Company's total trade accounts receivable balance was represented by six customers (26%, 14%, 11%, 7%, 7%, and 6% respectively)[161](index=161&type=chunk) - The Company manages credit risk through credit approvals, credit limits, monitoring procedures, and establishing an allowance for credit losses based on various factors[162](index=162&type=chunk) [Note 12. Related Parties](index=30&type=section&id=Note%2012.%20Related%20Parties) This note details the administration and voting rights of common stock shares held by the ESOP Trust - The administration of common stock shares held by the ESOP Trust is governed by the Espey Mfg. & Electronics Corp. Employee Retirement Plan and Trust and a Trust Agreement[163](index=163&type=chunk) - Allocated shares are voted according to participant instructions, while unallocated shares and those without instructions are voted in the same proportion as instructions received on allocated shares, as directed by the Board of Directors[163](index=163&type=chunk) [Note 13. Commitments and Contingencies](index=31&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) The company faces government contractor audits and ordinary course litigation, but no material adverse effects are currently anticipated - Contingent liabilities on outstanding standby letters of credit agreements aggregated to **zero** at June 30, 2025 and 2024[164](index=164&type=chunk) - As a U.S. Government contractor, the Company is subject to audits, reviews, and investigations, with potential risks including contract termination, damages, and debarment for non-compliance[164](index=164&type=chunk) - The Company is party to various litigation matters and claims arising in the ordinary course of business, but currently, there are **no matters pending** that are expected to have a material adverse effect[165](index=165&type=chunk) [Note 14. Stockholders' Equity](index=31&type=section&id=Note%2014.%20Stockholders'%20Equity) This note details stockholders' equity, including **240,615 reserved common shares**, EPS reconciliation, and dividend payments Common Shares Reserved for Future Issuance (June 30, 2025) | Category | Number of Shares | | :---------------------------- | :--------------- | | Stock options outstanding | 228,146 | | Stock options available for issuance | 12,469 | | **Total common shares reserved** | **240,615** | Earnings Per Share (EPS) Reconciliation (FY2024-2025) | Metric | FY2025 | FY2024 | | :-------------------------------------- | :------------ | :------------ | | Net income (Numerator) | $8,142,954 | $5,815,140 | | Denominator for basic EPS (Weighted average common shares) | 2,591,036 | 2,489,165 | | Denominator for diluted EPS (Weighted average common shares) | 2,696,192 | 2,536,967 | - The Company paid regular cash dividends on common stock of **$1.00 per share** for fiscal year 2025 and **$0.675 per share** for fiscal year 2024[167](index=167&type=chunk) [Note 15. Line of Credit](index=32&type=section&id=Note%2015.%20Line%20of%20Credit) The company has an unused **$3 million** line of credit expiring **February 28, 2026**, and does not anticipate needing borrowed funds - The Company has an uncommitted and unused Line of Credit with a financial institution, allowing borrowing up to **$3,000,000**[168](index=168&type=chunk) - The line of credit bears interest at the SOFR Daily Floating Rate plus **2 percentage points**, is collateralized by accounts receivable, and expires on **February 28, 2026**[168](index=168&type=chunk) - The Company did not borrow any funds during the last two fiscal years and does not anticipate the need for borrowed funds in the foreseeable future[168](index=168&type=chunk) [Note 16. Quarterly Financial Information (Unaudited)](index=32&type=section&id=Note%2016.%20Quarterly%20Financial%20Information%20%28Unaudited%29) This note presents unaudited quarterly financial data for FY2025 and FY2024, including net sales, gross profit, and net income Quarterly Financial Information (Unaudited) - FY2025 | 2025 Quarter | Net Sales | Gross Profit | Net Income | Basic EPS | Diluted EPS | | :----------- | :----------- | :----------- | :----------- | :-------- | :---------- | | First | $10,443,218 | $2,800,882 | $1,598,317 | $0.63 | $0.61 | | Second | $13,608,740 | $3,163,712 | $1,908,499 | $0.74 | $0.71 | | Third | $10,302,719 | $2,948,384 | $1,704,487 | $0.66 | $0.63 | | Fourth | $9,596,194 | $3,771,652 | $2,931,651 | $1.10 | $1.05 | Quarterly Financial Information (Unaudited) - FY2024 | 2024 Quarter | Net Sales | Gross Profit | Net Income | Basic EPS | Diluted EPS | | :----------- | :----------- | :----------- | :----------- | :-------- | :---------- | | First | $8,568,214 | $2,245,377 | $1,094,544 | $0.44 | $0.44 | | Second | $10,302,541 | $3,142,575 | $1,795,370 | $0.73 | $0.72 | | Third | $8,254,653 | $2,064,191 | $1,031,930 | $0.41 | $0.40 | | Fourth | $11,610,911 | $3,200,917 | $1,893,296 | $0.76 | $0.73 | [Note 17. Segment Reporting](index=32&type=section&id=Note%2017.%20Segment%20Reporting) The company adopted ASU 2023-07 and operates as a single segment, with domestic revenue consistently exceeding **90% of total revenue** - As of June 30, 2025, the Company adopted **FASB's ASU 2023-07**, 'Segment Reporting', which provides enhancements to qualitative and quantitative reportable segment disclosure requirements[170](index=170&type=chunk) - Espey operates as a **single operating segment**, with the Chief Executive Officer serving as the Chief Operating Decision Maker (CODM)[170](index=170&type=chunk) - The CODM evaluates performance and makes operating decisions based on consolidated financial data, focusing on significant expenses like Cost of Sales and Selling, General and Administrative costs[170](index=170&type=chunk) - Domestic revenue accounted for **more than 90%** of total revenue during the years ended June 30, 2025 and 2024[170](index=170&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=33&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were **no changes** in and disagreements with accountants on accounting and financial disclosure - There were **no changes** in and disagreements with accountants on accounting and financial disclosure[171](index=171&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were **effective as of June 30, 2025** - The Company's management, with the participation of the CEO and Principal Financial Officer, concluded that disclosure controls and procedures were **effective as of June 30, 2025**[171](index=171&type=chunk) - There have been **no material changes** in internal controls over financial reporting during the period covered by this report[172](index=172&type=chunk) - Management concluded that the internal control over financial reporting was **effective as of June 30, 2025**, based on the **COSO Internal Control-Integrated Framework (2013)**[174](index=174&type=chunk) [Other information](index=33&type=section&id=Item%209B.%20Other%20information) **No other information** was reported for this item - **No other information** was reported for this item[175](index=175&type=chunk) [PART III](index=34&type=section&id=PART%20III) This section incorporates by reference information from the **2025 Annual Meeting of Shareholders** proxy statement for Items 10 through 14 - Information for Items 10 through 14 is incorporated by reference from the Company's definitive proxy statement relating to the **2025 Annual Meeting of Shareholders**[177](index=177&type=chunk) [PART IV](index=34&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules, Signatures](index=34&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules%2C%20Signatures) This section lists filed exhibits and includes required signatures from key officers and directors, affirming report accuracy - This section lists various exhibits, including the Certificate of Incorporation, By-Laws, Description of Capital Stock, Stock Option Plans, Employment Agreements, Code of Ethics, and Certifications[179](index=179&type=chunk)[180](index=180&type=chunk) - The report is duly signed by the President and Chief Executive Officer, Chairman of the Board, other Directors, and the Principal Financial Officer, affirming compliance with Securities Exchange Act requirements[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)

Core Points - Espey Mfg. & Electronics Corp. has declared a special cash dividend of $0.75 per share in addition to a regular quarterly dividend of $0.25 per share [1] - The dividends will be payable on September 26, 2025, to all shareholders of record on September 19, 2025 [1] Company Overview - Espey's primary business involves the development, design, and production of specialized military and industrial power supplies and transformers [2]