Financial Performance - Net sales for the first quarter of fiscal year 2026 were $1.55 million, a decrease from $1.88 million in the same period of fiscal year 2025 [2] - Net income for the first quarter of fiscal year 2026 was $61,000, or $0.01 per diluted share, compared to $98,000, or $0.02 per diluted share in the first quarter of fiscal year 2025 [2] - Gross profit decreased to $527,000, or 34% of net sales, down from $661,000 and 35% in the first quarter of fiscal year 2025, primarily due to decreased sales [3] Operational Insights - The company is heavily impacted by the performance of its customers, many of whom have not yet recovered from the demand reductions following the COVID pandemic [3] - Recent market instability due to increased tariffs and geopolitical conflicts has added challenges to the company's operations [3] - Despite reduced demand, there is renewed interest in new business opportunities, including orders for proprietary CO cleaning machines and a gaming console customer looking to ramp up production [3] Financial Position - The company ended the first quarter of fiscal year 2026 with $5.82 million in cash and cash equivalents, exceeding its combined short- and long-term liabilities by $3.06 million [5] - Working capital balance was $5.7 million, with a current ratio of 3.2:1, and total shareholders' equity increased to $6.4 million from $6.3 million as of March 31, 2025 [5] Expense Management - Selling, general and administrative expenses slightly increased by 1% to $665,000 due to inflationary pressures [4] - The company recognized a currency exchange gain of $4,000 in the first quarter of fiscal year 2026, down from $38,000 in the same period of fiscal year 2025 [4]