Nortech Systems Incorporated (NASDAQ:NSYS) Q4 2021 Results Conference Call March 21, 2022 5:00 PM ET Company Participants Chris Jones - CFO Jay Miller - CEO Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to the Q4 2021 Nortech Systems Inc. Earnings Conference Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ NORTECH SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) Commission file number 0-13257 State of Incorporation: Minnesota ...

Nortech Systems Incorporated (NASDAQ:NSYS) Q3 2021 Earnings Conference Call November 11, 2021 5:00 PM ET Company Participants Jay Miller - CEO Chris Jones - CFO Conference Call Participants Operator Good day, ladies and gentlemen, and welcome to the Q3 2021 Nortech Systems Inc. Earnings Conference Call. All lines have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation. [Operator instructions] At this time, it is my pleasure to turn the floor ov ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201-%20Financial%20Statements) This section presents Nortech Systems' unaudited condensed consolidated financial statements, including statements of operations, balance sheets, cash flows, shareholders' equity, and detailed accounting notes for periods ended September 30, 2021 and 2020 Key Financial Highlights (in thousands) | Metric | Q3 2021 | Q3 2020 | % Change (QoQ) | 9M 2021 | 9M 2020 | % Change (YoY) | | :-------------------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Net Sales | $29,452 | $26,362 | 11.7% | $81,706 | $80,263 | 1.8% | | Gross Profit | $8,041 | $1,962 | 309.8% | $13,187 | $7,927 | 66.4% | | Net Income | $3,557 | $1,971 | 80.5% | $2,188 | $1,985 | 10.2% | | Net Income Per Common Share - Basic | $1.33 | $0.74 | 79.7% | $0.82 | $0.75 | 9.3% | | Net Income Per Common Share - Diluted | $1.24 | $0.73 | 69.9% | $0.78 | $0.74 | 5.4% | Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2021 | Dec 31, 2020 | % Change | | :-------------------------- | :----------- | :----------- | :------- | | Total Assets | $66,513 | $57,634 | 15.4% | | Total Liabilities | $45,477 | $38,916 | 16.8% | | Total Shareholders' Equity | $21,036 | $18,718 | 12.4% | | Current Assets | $51,134 | $41,037 | 24.6% | | Current Liabilities | $32,881 | $19,536 | 68.3% | Cash Flow Highlights (in thousands) | Metric | 9M 2021 | 9M 2020 | Change | | :------------------------------------ | :------ | :------ | :----- | | Net Cash Used In Operating Activities | $(2,852) | $(99) | $(2,753) | | Net Cash (Used In) Provided By Investing Activities | $(621) | $5,597 | $(6,218) | | Net Cash Provided By (Used In) Financing Activities | $1,352 | $(4,464) | $5,816 | | Net Change in Cash | $(2,121) | $1,034 | $(3,155) | | Cash - Ending of Period | $1,443 | $1,694 | $(251) | - Employee Retention Credit (ERC): Recognized **$5,209k** related to ERC as a reduction of associated costs (cost of goods sold, selling, and general and administrative expenses) for the nine months ended September 30, 2021[27](index=27&type=chunk) - Intangible Asset Abandonment: Recognized a **$560k** loss on abandonment of the Devicix tradename in the three months ended September 30, 2021[32](index=32&type=chunk) - Customer Concentration: For Q3 2021, two customers accounted for **36%** of net sales, and at September 30, 2021, two customers represented approximately **36%** of total accounts receivable[42](index=42&type=chunk) - PPP Loan: Applied for forgiveness of the **$6,077k** Promissory Note under the Paycheck Protection Program in the third quarter of 2021[57](index=57&type=chunk) - Covenant Compliance: The company met all covenants under its credit agreement with **Bank of America** for the period ended September 30, 2021[55](index=55&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) [Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1. Summary of Significant Accounting Policies](index=10&type=section&id=NOTE%201.%20Summary%20of%20Significant%20Accounting%20Policies) [NOTE 2. Concentration of Credit Risk and Major Customers](index=14&type=section&id=NOTE%202.%20Concentration%20of%20Credit%20Risk%20and%20Major%20Customers) [NOTE 3. Revenue](index=14&type=section&id=NOTE%203.%20Revenue) [NOTE 4. Financing Arrangements](index=16&type=section&id=NOTE%204.%20Financing%20Arrangements) [NOTE 5. Leases](index=18&type=section&id=NOTE%205.%20Leases) [NOTE 6. Income Taxes](index=19&type=section&id=NOTE%206.%20INCOME%20TAXES) [NOTE 7. Restructuring Charges](index=19&type=section&id=NOTE%207.%20RESTRUCTURING%20CHARGES) [NOTE 8. Related Party Transactions](index=20&type=section&id=NOTE%208.%20RELATED%20PARTY%20TRANSACTIONS) [Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations](index=21&type=section&id=Item%202-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20And%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, covering business overview, recent developments, operating performance, liquidity, capital resources, and critical accounting policies - Business Overview: Nortech Systems is a full-service **electronics manufacturing services (EMS)** contract manufacturer, providing wire and cable assemblies, PCB assemblies, and box builds, primarily serving the medical, aerospace and defense, and industrial equipment markets[72](index=72&type=chunk) - COVID-19 Impact: Operations continued with safety measures, but the full extent of the pandemic's impact on business, financial condition, and results remains uncertain due to ongoing **supply chain and workforce shortages**[73](index=73&type=chunk)[74](index=74&type=chunk) - Facility Consolidation: The closure of the **Merrifield, Minnesota** production facility was completed in Q1 2021, with manufacturing shifted to other Minnesota locations[76](index=76&type=chunk) - Government Aid: Applied for forgiveness of the **$6.1 million PPP Promissory Note** in Q3 2021 and expects to receive approximately **$5.2 million in Employee Retention Credits (ERC)** for Q1 and Q2 2021, which reduced payroll and benefit costs[77](index=77&type=chunk)[78](index=78&type=chunk) Net Sales by Market (in thousands) | Market | Q3 2021 | Q3 2020 | % Change (QoQ) | 9M 2021 | 9M 2020 | % Change (YoY) | | :-------------------- | :------ | :------ | :------------- | :------ | :------ | :------------- | | Medical | $16,978 | $14,218 | 19.4% | $45,389 | $42,753 | 6.2% | | Aerospace and Defense | $3,092 | $6,206 | (50.2)% | $10,540 | $15,509 | (32.0)% | | Industrial | $9,382 | $5,938 | 58.0% | $25,777 | $22,001 | 17.2% | | **Total Net Sales** | **$29,452** | **$26,362** | **11.7%** | **$81,706** | **$80,263** | **1.8%** | 90-day Shipment Backlog by Market (in thousands) | Market | Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | % Change (QoQ) | % Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Medical | $19,666 | $18,879 | $11,483 | 4.2% | 71.3% | | Aerospace and Defense | $8,568 | $5,981 | $6,764 | 43.3% | 26.7% | | Industrial | $10,657 | $9,874 | $4,860 | 7.9% | 119.3% | | **Total Backlog** | **$38,891** | **$34,734** | **$23,108** | **12.0%** | **68.3%** | - Gross Profit Margin: Improved significantly to **27.3% in Q3 2021** (from **7.4% in Q3 2020**) and **16.1% in 9M 2021** (from **9.9% in 9M 2020**), primarily due to the **$4.7 million ERC** reduction in payroll and medical expenses and increased utilization[86](index=86&type=chunk) - Operating Expenses: Selling expenses decreased due to **ERC**. General and administrative expenses decreased in Q3 2021 due to **ERC** but increased in 9M 2021 due to higher professional service fees. Research and development expenses were **$0.3 million** for 9M 2021, up from minimal expenses in 2020[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Liquidity and Capital Resources: Management believes cash from operations, available funds under the **Bank of America credit agreement**, expected **ERC funds**, and cash on hand will be adequate to meet liquidity needs, despite ongoing COVID-19 uncertainties. Net cash used in operating activities for 9M 2021 was **$2.9 million**, driven by increased working capital and inventory[94](index=94&type=chunk)[95](index=95&type=chunk) [Overview](index=21&type=section&id=Overview) [Recent Developments](index=21&type=section&id=Recent%20Developments) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) [Net Sales](index=22&type=section&id=Net%20Sales) [Backlog](index=24&type=section&id=Backlog) [Gross Profit](index=24&type=section&id=Gross%20Profit) [Selling Expense](index=24&type=section&id=Selling%20Expense) [General and Administrative Expense](index=24&type=section&id=General%20and%20Administrative%20Expense) [Research and Development Expense](index=24&type=section&id=Research%20and%20Development%20Expense) [Restructuring Charges](index=24&type=section&id=Restructuring%20Charges) [Loss on Abandonment of Intangible Asset](index=25&type=section&id=Loss%20on%20Abandonment%20of%20Intangible%20Asset) [Income Taxes](index=25&type=section&id=Income%20Taxes) [Net Income](index=25&type=section&id=Net%20Income) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) [Off-Balance Sheet Arrangements](index=27&type=section&id=Off-Balance%20Sheet%20Arrangements) [Critical Accounting Policies and Estimates](index=27&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) [Forward-Looking Statements](index=27&type=section&id=Forward-Looking%20Statements) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company, though various market risks like volatility, supply chain disruptions, and raw material cost instability are implicitly relevant - Not Applicable: The company states that quantitative and qualitative disclosures about market risk are not applicable[107](index=107&type=chunk) - Identified Market Risks (from surrounding text): - **Volatility in market supply, demand, or currency exchange rates** - **Supply chain disruption** and unreliability due to COVID-19 - Lack of sufficient **human resources** - Increased **competition** or OEMs ceasing outsourcing - Increases in **raw material costs** (e.g., copper, oil) - **Commodity and energy cost instability** - General **economic, financial, and business conditions** - Outbreaks of **epidemic, pandemic, or contagious diseases**[107](index=107&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204-%20Controls%20and%20Procedures) Management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective, with no material changes in internal control over financial reporting during the quarter - Disclosure Controls and Procedures: Management, with the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures and concluded they were **effective** as of the end of the reporting period[108](index=108&type=chunk) - Internal Control Over Financial Reporting: There were **no material changes** in internal control over financial reporting during the most recently completed fiscal quarter[109](index=109&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=28&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) [Changes in Internal Control Over Financial Reporting](index=28&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201-%20Legal%20Proceedings) The company is subject to various legal proceedings and claims that arise in the ordinary course of business - The company is subject to various legal proceedings and claims that arise in the ordinary course of business[112](index=112&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%20-%201A.%20Risk%20Factors) This section refers to risk factors from the 2020 Annual Report on Form 10-K, noting no material changes other than those specified - Refers to risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020[113](index=113&type=chunk) - No material changes in risk factors from the Annual Report on Form 10-K, other than as noted[113](index=113&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds](index=29&type=section&id=Item%202-%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds) The company's share repurchase program has expired, and no additional amounts are available for repurchase as of September 30, 2021 - The share repurchase program expired as of September 30, 2021, with no additional amounts available for repurchase[114](index=114&type=chunk) [Item 3. Defaults on Senior Securities](index=29&type=section&id=Item%203-%20Defaults%20on%20Senior%20Securities) There are no defaults on senior securities to report - No defaults on senior securities[115](index=115&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204-%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[116](index=116&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205-%20Other%20Information) There is no other information to report under this item - No other information[117](index=117&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206-%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, and financial statements formatted in Inline XBRL - Exhibits include **CEO and CFO certifications (31.1, 31.2, 32)**, financial statements in **Inline XBRL (101)**, and the **Cover Page Interactive Data File (104)**[119](index=119&type=chunk) SIGNATURES

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices: ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2020 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________ NORTECH SYSTEMS INCORPORATED (Exact name of registrant as specified in its charter) Commission file number 0-13257 State of Incorporation: Minnesota ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201%20-%20Financial%20Statements) Nortech Systems reported a 6.1% decrease in net sales but achieved a net income for the nine months ended September 30, 2020, largely due to a gain on asset sale Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Sep 30, 2020 ($ Thousands) | Three Months Ended Sep 30, 2019 ($ Thousands) | Nine Months Ended Sep 30, 2020 ($ Thousands) | Nine Months Ended Sep 30, 2019 ($ Thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $26,362 | $30,058 | $80,263 | $85,515 | | **Gross Profit** | $1,646 | $3,635 | $7,092 | $8,921 | | **Income (Loss) From Operations** | $2,709 | $713 | $3,149 | $(600) | | **Net Income (Loss)** | $1,971 | $413 | $1,985 | $(1,502) | | **Diluted EPS ($)** | $0.73 | $0.16 | $0.74 | $(0.56) | Condensed Consolidated Balance Sheets (Unaudited) | Metric | Sep 30, 2020 ($ Thousands) | Dec 31, 2019 ($ Thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $40,817 | $43,284 | | **Total Assets** | $59,957 | $61,410 | | **Total Current Liabilities** | $18,246 | $22,232 | | **Total Liabilities** | $37,831 | $41,434 | | **Total Shareholders' Equity** | $22,126 | $19,976 | Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | Nine Months Ended Sep 30, 2020 ($ Thousands) | Nine Months Ended Sep 30, 2019 ($ Thousands) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | $(99) | $(233) | | **Net Cash Provided By (Used In) Investing Activities** | $5,597 | $(822) | | **Net Cash (Used In) Provided By Financing Activities** | $(4,464) | $2,063 | [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, key financial events, including a major customer, a sale-leaseback transaction, and a PPP loan - The majority of revenue (approximately **80%** for Q3 2020 and **84%** for the first nine months of 2020) is recognized over time under contract manufacturing agreements[44](index=44&type=chunk) - A single customer with two divisions accounted for approximately **24%** of net sales for the nine months ended September 30, 2020, and **37%** of total accounts receivable as of that date[39](index=39&type=chunk) - In Q3 2020, the company completed a sale and leaseback of its Bemidji and Mankato, Minnesota manufacturing facilities, receiving net proceeds of approximately **$6.0 million** and recording a gain of **$3.8 million**[31](index=31&type=chunk) - On April 15, 2020, the company received an unsecured loan of **$6.1 million** pursuant to the Paycheck Protection Program (PPP) with a 1% interest rate and a 2-year term[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20And%20Results%20of%20Operations) Revenue declined due to COVID-19, but operating income improved from a sale-leaseback gain, with liquidity managed through cost controls - The company is a full-service electronics manufacturing services (EMS) contract manufacturer serving the aerospace and defense, medical, and industrial equipment markets[63](index=63&type=chunk) - The COVID-19 pandemic has impacted operations, but all manufacturing facilities have remained operational, with work-from-home policies and safety measures implemented for essential on-site staff[64](index=64&type=chunk) - To improve operational efficiency, the company approved the closure of its Merrifield, Minnesota production facility, expected to be complete by December 31, 2020[67](index=67&type=chunk) Net Sales by Market | Market | Q3 2020 ($ Thousands) | Q3 2019 ($ Thousands) | % Change | YTD 2020 ($ Thousands) | YTD 2019 ($ Thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Medical | $14,218 | $17,043 | (16.6)% | $42,753 | $46,006 | (7.1)% | | Industrial | $5,938 | $8,623 | (31.1)% | $22,001 | $26,290 | (16.3)% | | Aerospace and Defense | $6,206 | $4,392 | 41.3% | $15,509 | $13,219 | 17.3% | | **Total Net Sales** | **$26,362** | **$30,058** | **(12.3)%** | **$80,263** | **$85,515** | **(6.1)%** | 90-Day Shipment Backlog by Market | Market | Sep 30, 2020 ($ Thousands) | Sep 30, 2019 ($ Thousands) | | :--- | :--- | :--- | | Medical | $11,484 | $17,778 | | Industrial | $4,860 | $8,334 | | Aerospace and Defense | $6,764 | $5,909 | | **Total 90-Day Backlog** | **$23,108** | **$32,021** | - Liquidity is being managed through cost reductions, minimizing capital expenditures, and funds from a Bank of America credit agreement, a PPP loan, and a sale-leaseback transaction[85](index=85&type=chunk)[89](index=89&type=chunk) - As of September 30, 2020, the company had **$8.6 million** of unused availability under its line of credit[85](index=85&type=chunk)[89](index=89&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that this disclosure is not applicable[98](index=98&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2020, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[99](index=99&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls, except for those related to the adoption of the new lease standard (ASC 842)[100](index=100&type=chunk) [PART II - OTHER INFORMATION](index=29&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=29&type=section&id=Item%201%20-%20Legal%20Proceedings) The company is subject to various legal proceedings and claims arising in the ordinary course of business - The company is subject to various legal proceedings and claims that arise in the ordinary course of business[102](index=102&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) Material risks include ongoing COVID-19 impacts and potential regulatory scrutiny of the Paycheck Protection Program loan - The COVID-19 pandemic is adversely affecting and is expected to continue to affect operations, supply chains, financial condition, and results of operations, leading to reduced sales, supply chain disruption, and reduced customer demand[104](index=104&type=chunk) - The company faces risk of regulatory scrutiny from the Small Business Administration (SBA) and U.S. Department of Treasury for its **$6.1 million** PPP loan[106](index=106&type=chunk) - An adverse finding could require repayment of the loan and potentially subject the company to fines and penalties[106](index=106&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202%20-%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds) The company's share repurchase program expired as of September 30, 2020 - The company's share repurchase program expired as of September 30, 2020[108](index=108&type=chunk) [Defaults on Senior Securities](index=30&type=section&id=Item%203%20-%20Defaults%20on%20Senior%20Securities) There were no defaults on senior securities during the reporting period - None[109](index=109&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204%20-%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[110](index=110&type=chunk) [Other Information](index=30&type=section&id=Item%205%20-%20Other%20Information) The company reports no other information for this item - None[111](index=111&type=chunk) [Exhibits](index=30&type=section&id=Item%206%20-%20Exhibits) Exhibits filed include the Q3 2020 Earnings Release, CEO/CFO certifications, and XBRL financial data - Exhibits filed include the Q3 2020 Earnings Release, CEO/CFO certifications, and XBRL financial data[113](index=113&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices: ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) NORTECH SYSTEMS INCORPORATED Commission file number 0-13257 State of Incorporation: Minnesota IRS Employer Identification No. 41-1681094 Executive Offices: 7550 Meridian Circle N., Suite # 150, Maple Grove, MN 55369 Telephone number: (952) 345-2244 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT T ...