Acquisition and Intellectual Property - Optex Systems, Inc. acquired certain intellectual property and technical information related to the Speedtracker Mach product line for $1 million in cash, with potential future payments based on milestones[108]. - The Company acquired certain intellectual property related to the Speedtracker Mach product line for $1 million in cash on January 18, 2024[146]. Financial Performance - Total revenues for the three months ended December 31, 2023, increased by $2.9 million, or 72.5%, compared to the prior year period[115]. - Consolidated gross profit for the same period increased by $1.0 million, or 134.9%, with gross margins improving in both operating segments[116]. - Operating income for the three months ended December 31, 2023, increased by $0.8 million, driven by higher revenue and gross profit[117]. - Net income for the three months ended December 31, 2023, was $0.4 million, compared to a net loss of $(0.2) million for the prior year period[121]. - Adjusted EBITDA for the same period increased by $0.9 million to $0.8 million, compared to $(0.2) million for the prior year[121]. - Gross margin for the consolidated results was 24.2% for the three months ended December 31, 2023, compared to 17.7% for the prior year[116]. - For the three months ended December 31, 2023, total revenue increased by $2.9 million or 72.5% compared to the prior year period, reaching $6.968 million[133]. - Operating income for the three months ended December 31, 2023, was $553 thousand, compared to an operating loss of ($282) thousand in the prior year[138]. Orders and Backlog - New orders booked during the three months ended December 31, 2023, totaled $10.1 million, representing a 9.8% decrease from $11.2 million in the prior year[124]. - Backlog as of December 31, 2023, was $45.0 million, an increase of 12.2% from $40.1 million as of January 1, 2023[127]. - The Optex Systems Richardson backlog as of December 31, 2023, was $29.3 million, an increase of $7.3 million or 33.2% from $22.0 million as of January 1, 2023[129]. Segment Performance - Orders for the Optex Richardson segment decreased by $2.4 million, or 27.9%, primarily due to a significant prior year order for the Government of Israel[125]. - Orders for the Applied Optics Center increased by $1.3 million, or 50.0%, driven by higher demand for laser filters and other products[126]. - Optex Systems Richardson revenue increased by $1.8 million or 109.6% for the three months ended December 31, 2023, driven by higher orders and backlog[134]. - Applied Optics Center revenue increased by $1.2 million or 47.6% for the three months ended December 31, 2023, primarily due to increased demand for laser filters[135]. Working Capital and Cash Flow - The company increased its line of credit from $2.0 million to $3.0 million to meet working capital requirements due to increased backlog and revenue delays[111]. - As of December 31, 2023, the Company had working capital of $13.0 million, a slight decrease from $13.5 million as of October 1, 2023[139]. - The Company generated operating cash of $2.3 million during the three months ended December 31, 2023[140]. Supply Chain and Operational Challenges - Significant material shortages have been experienced, particularly affecting periscope products, which have negatively impacted production levels and delivery dates[110]. - The company anticipates continued market-wide material shortages for critical components, which may adversely affect profit margins over the next three years[109]. - Recent supply chain disruptions have extended supplier delivery lead times, impacting the company's ability to sustain operations[109]. - The company is actively seeking alternative suppliers and increasing recruitment efforts to mitigate risks associated with labor shortages and component delays[110]. Risks and Regulatory Environment - The company is both a prime and sub-prime contractor to the Department of Defense, with contracts subject to Federal Acquisition Regulation clauses[102]. - The company is subject to risks related to defense program funding, geopolitical unrest, and changes in technology and customer order patterns[99]. - The company has noted that inflation did not significantly affect operating results for the periods presented[96]. Warranty and Contract Reserves - As of December 31, 2023, the company accrued warranty costs of $48 thousand, down from $75 thousand as of October 1, 2023, due to lower shipments and favorable changes in estimates[154]. - The company had $308 thousand in contract loss reserves as of December 31, 2023, compared to $243 thousand on October 1, 2023, primarily related to older legacy periscope IDIQ contracts[155]. - During the three months ended December 31, 2023, the company recognized $90 thousand in loss reserves on new contract awards and reduced existing loss reserves by $25 thousand[155]. - The company has a deferred tax asset valuation allowance of ($0.8) million against deferred tax assets of $1.7 million, resulting in a net deferred tax asset of $0.9 million as of December 31, 2023[156].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 1, 2023 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ until ___ Commission File Number 001-41644 OPTEX SYSTEMS HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 90-0609531 (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from ______to______. OPTEX SYSTEMS HOLDINGS, INC. (Exact Name of Registrant as Specified in Charter) Delaware 001-41644 90-0609531 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1420 Presidential Drive, Richardson, TX 75081-2439 (Address of principal executive offices) (Zip Code) WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 2, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to______. OPTEX SYSTEMS HOLDINGS, INC. (Exact Name of Registrant as Specified in Charter) Delaware 000-54114 90-0609531 (State or other jurisdiction (Commission (IRS E ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 1, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to______. OPTEX SYSTEMS HOLDINGS, INC. (Exact Name of Registrant as Specified in Charter) Delaware 000-54114 90-0609531 (State or other jurisdiction of incorporation ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 2, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ until ___ Commission File Number 000-54114 OPTEX SYSTEMS HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 90-0609531 (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 OPTEX SYSTEMS HOLDINGS, INC. (Exact Name of Registrant as Specified in Charter) Delaware 000-54114 90-0609531 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1420 Presidential Drive, Richardson, TX 75081-2439 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (972) 764-5700 Securities registered pursuant to Section 12(b) of the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 3, 2022 Delaware 000-54114 90-0609531 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1420 Presidential Drive, Richardson, TX 75081-2439 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (972 ...

WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Securities registered pursuant to Section 12(b) of the Act: Delaware 000-54114 90-0609531 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 1420 Presidential Drive, Richardson, TX 75081-2439 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 3, 2021 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ until ___ Commission File Number 000-54114 OPTEX SYSTEMS HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 90-0609531 (State or other jurisdiction of incorpor ...