Core Viewpoint - Qualstar Corporation plans to reincorporate from California to Nevada and execute a 3:1 stock split, which has been approved by the Board of Directors and approximately 77.9% of shareholders [1][2]. Group 1: Reincorporation Plan - The reincorporation plan has received approval from the Company's Board of Directors and shareholders holding about 77.9% of the outstanding shares, meeting the requirements under California law [2]. - Shareholders who did not support the conversion have the right to dissent and can receive the appraised fair market value of their shares in cash, provided they follow specified procedures [2]. - If dissenting shareholders exceed 1% of the outstanding shares, the Board may choose to abandon the reincorporation [2]. Group 2: Implementation Timeline - A Notice detailing the plan of conversion will be mailed to shareholders on December 12, 2025, outlining the differences between California and Nevada corporate laws and the dissenters' rights [3]. - The reincorporation will take effect upon filing the necessary documentation with the Secretaries of State of California and Nevada, expected around January 12, 2026, unless the Board decides to abandon the plan [4]. Group 3: Company Overview - Qualstar Corporation, established in 1984, specializes in manufacturing and marketing data storage systems and high-efficiency power solutions [5]. - The data storage systems, marketed under the Qualstar™ brand, include scalable automated magnetic tape libraries designed for electronic data management in network computing environments [6]. - The power solutions, marketed under the N2Power™ brand, offer OEM designers enhanced functionality while minimizing thermal loads and operating costs across various markets [7].

Core Insights - Qualstar Corporation will present at the 2025 Gateway Conference on September 3-4, 2025, in San Francisco, CA [1][2] - CEO Steven N. Bronson will discuss the company's strong second-quarter results, highlighting 34% gross margins and positive net income [3] - The company aims to leverage its 40 years of expertise to pursue growth opportunities, including complementary software solutions and selective acquisitions [3] Company Overview - Qualstar Corporation, founded in 1984, specializes in manufacturing data storage systems and high-efficiency power solutions [5] - The data storage systems are marketed under the Qualstar™ brand, featuring scalable automated magnetic tape libraries for electronic data management [6] - Power solutions are marketed under the N2Power™ brand, providing OEM designers with enhanced functionality while reducing thermal loads and operating costs [7]

Core Insights - Qualstar Corporation reported a gross margin expansion to 34% in Q2 2025, up from 22% in Q2 2024, alongside positive net income and a solid cash position [6][15] - Despite a year-over-year revenue decline due to the loss of a significant power-supply customer, the company is focused on strategic growth initiatives in data storage and power solutions [2][4] Financial Performance - Revenues for Q2 2025 were $1.43 million, a decrease of 39.6% from $2.37 million in Q2 2024; for the first half of 2025, revenues were $3.09 million, down 33.6% from $4.65 million in the same period in 2024 [5][15] - Gross profit for Q2 2025 was $482,000, down 7.8% from $523,000 in Q2 2024; for the first half of 2025, gross profit was $1.09 million, a decrease of 10.8% from $1.22 million in the first half of 2024 [5][15] - Net income for Q2 2025 was $204,000, or $0.14 per share, compared to a net loss of $327,000, or ($0.23) per share in Q2 2024; for the first half of 2025, net income was $387,000, compared to a loss of $427,000 in the first half of 2024 [5][6][15] Strategic Initiatives - The company is actively pursuing acquisitions and strategic alliances to enhance its data management capabilities and add complementary software offerings, aiming to drive recurring revenue [6][4] - Qualstar's management emphasizes a disciplined operating model that has led to gross margin expansion and positive net income despite lower revenues [4][6] Cash Position - As of June 30, 2025, Qualstar had cash and cash equivalents totaling $2.2 million, with no debt [6][15]