Financial Performance - Net sales for the first quarter of 2021 totaled $1,964,000, an increase of $492,000 or 33.4% compared to $1,472,000 in the same period of 2020, primarily driven by increased ODM project sales volume [51]. - Gross profit for the first quarter of 2021 was $861,000, with a gross margin percentage of 43.8%, down from 45.6% in the comparable period of 2020, due to higher freight and tariff costs [52]. - Net income for the first quarter of 2021 was $337,000, an increase of $247,000 compared to $90,000 in the same period of 2020 [54]. - Cash flows provided by operating activities increased to $625,000 in the first quarter of 2021 from $398,000 in the same period of 2020, reflecting changes in operating assets and liabilities [56]. Expenses and Cost Management - Selling, general and administrative expenses decreased to $540,000 in the first quarter of 2021 from $598,000 in the same period of 2020, primarily due to lower salaries and personnel-related costs [53]. - Cash dividends increased by 14.3% from $0.035 per share to $0.04 per share, resulting in cash flows used for financing activities rising to $233,000 in the first quarter of 2021 from $147,000 in the same period of 2020 [58]. Inventory and Accounts - As of March 31, 2021, inventory represented approximately 29.3% of current assets and 22.6% of total assets, with inventory balances of $3,341,000 [60]. - The allowance for sales returns and doubtful accounts totaled $7,000 as of March 31, 2021, with sales returns for the first quarter of 2021 being $0 compared to $3,000 in the same period of 2020 [44]. Strategic Focus - The company has shifted its core strategy to focus on higher margin ODM projects, moving away from maintaining a vast quantity of electronic components for immediate orders [47]. - The company believes that funds generated from operations and existing cash balances are likely sufficient to finance working capital and capital expenditure requirements for the foreseeable future [59].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 0-25844 TAITRON COMPONENTS INCORPORATED (Exact name of registrant as specified in its charter) California 95-4249240 ( ...