Financial Analysis

Note 10 Term Loan and Line of credit On March 15, 2024, we entered into a loan and security agreement (the EBC Credit Agreement) with Eclipse Business Capital, as administrative agent (EBC) and used proceeds from the initial drawings under the EBC Credit Facilities (as defined below) to repay in full outstanding obligations under the our previous loan agreement and to pay fees, premiums, costs and expenses, including fees payable in connection with the EBC Credit Agreement. Our previous loan agreement with Bank of America, N.A. was terminated upon entry into the EBC Credit Agreement and is no longer in effect. The EBC Credit Agreement provides for (i) a senior secured revolving loan facility of up to $15.0 million (the EBC Revolving Loan Facility) and (ii) a senior secured revolving credit facility of up to $1.0 million (the EBC Additional Line and, together with the EBC Revolving Loan Facility, the EBC Credit Facilities) (with a $3.0 million swingline loan sublimit). On June 14, 2024, the parties entered into the First Amendment to the EBC Credit Agreement (the First Amendment), which provided for a modified EBC Additional Line of $1.0 million through July 12, 2024, $666,666.67 from July 13, 2024 through August 11, 2024 and $333,333.34 from August 12, 2024 through September 10, 2024. Availability of borrowings under the EBC Credit Facilities are based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our accounts receivable and inven …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 8 Stock options Incentive and non-qualified stock option plans On July 22, 2020, the Companys Board of Directors adopted the 2020 Equity Incentive Plan (the 2020 Plan). In September 2020, the Companys stockholders approved the 2020 Plan by vote as required by NASDAQ. An aggregate of 1,250,000 shares of common stock was set aside and reserved for issuance under the 2020 Plan. At its annual meeting held on September 5, 2024, the Companys stockholders approved an amendment to the 2020 Plan to increase the number of shares of common stock available for issuance under the plan by 1,000,000 shares. As of October 31, 2025, 974,022 shares of common stock were remaining for future grants of stock options under the 2020 Plan. Additional disclosures related to stock option plans On January 11, 2024, we granted incentive stock options to Mr. Dawson for the purchase of 116,667 shares, Mr. Yin for the purchase of 41,667 shares, and Mr. Bibisi for the purchase of 41,667 shares. The incentive stock options vest over four years as follows: (i) one -quarter of the options shall vest on January 11, 2025 and (ii) the remaining options shall vest in 12 equal quarterly installments over the next three years. All incentive stock options expire 10 years from the date of grant. On April 16, 2024, we granted a total of 25,000 incentive stock options to three managers. The shares of incentive stock options vest over four years as follows: (i) one -quarter of the options shall vest on April 16, 202 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 7 Income tax provision The provision for income taxes for the fiscal years ended October 31, 2025 and 2024 consists of the following (in thousands): 2025 2024 Current: Federal $ 619 $ - State 82 93 701 93 Deferred: Federal 21 1,942 State 16 761 37 2,703 $ 738 $ 2,796 Income tax at the federal statutory rate is reconciled to our actual net provision for income taxes as follows (in thousands, except percentages): 2025 2024 % of Pretax % of Pretax Amount Income Amount Loss U.S. federal statutory tax rate $ 171 21.1 % $ (799 ) 21.0 % State and local taxes, net of federal tax benefit (105 ) -12.9 % (170 ) 4.5 % Permanent differences 16 2.0 % 14 -0.4 % Stock options 12 1.5 % 45 -1.2 % Foreign derived intangible income deduction (27 ) -3.3 % - 0.0 % IRC 162(m) disallowance 45 5.5 % - 0.0 % R&D credits (153 ) -18.8 % (102 ) 2.7 % Uncertain tax position reserves 5 0.6 % 3 -0.1 % Return-to-provision adjustments 19 2.3 % (34 ) 0.9 % Change in the valuation allowance on deferred tax assets 755 93.0 % 3,839 -100.9 % Income tax expense $ 738 91.0 % $ 2,796 -73.5 % The significant components of deferred income taxes were as follows (in thousands): 2025 2024 Deferred Tax Assets: Reserves $ 1,001 $ 561 Compensation accruals 294 264 Stock-based compensation awards 278 328 Uniform capitalization 404 277 Lease liability 4,761 5,221 Others 88 55 Capitalized Section 174 Costs 1,543 1,209 Research and development tax credits 219 282 163(j) interest carryforward 181 347 Gross deferred tax a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent accounting standards Recently issued accounting pronouncements adopted: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our fiscal year ending October 31, 2025, and for interim periods within our fiscal year ending October 31, 2026, with early adoption permitted. The adoption of this ASU on a retrospective basis did not have a material effect on our consolidated financial statements. However, our segment disclosures have been expanded to include significant segment expenses as reviewed by our chief operating decision maker (CODM). Please see Note 6 for more details. Recently issued accounting pronouncements not yet adopted: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , to expand the disclosure requirements for income taxes, specifically related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective for our fiscal year ending October 31, 2026, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, …

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Note 9 Retirement plan We have a 401(k) plan available to our employees. For the years ended October 31, 2025 and 2024, we contributed and recognized as an expense of $523,000 and $533,000, respectively, which amounts represented 3% of eligible employee earnings under the Companys Safe Harbor Non-elective Employer Contribution Plan. …

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Note 11 Related party transactions A portion of our operating space is leased from K&K Unlimited, a company controlled by Darren Clark, the former owner and current President of Cables Unlimited. Cables Unlimited monthly rent expense under the lease was $18,000 through May 30, 2025 then the monthly expense increased to $18,540 for the remainder of the year. The monthly payments also include all utilities, janitorial expense routine maintenance costs, and costs of insurance for Cables Unlimiteds business operations and equipment. During the fiscal years ended October 31, 2025 and 2024, we paid a total of $237,000 and $218,000 under the leases, respectively. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 Segment information We previously managed our business as two reportable segments, the RF Connector segment and the Custom Cabling segment. During the fourth quarter of fiscal year 2025, we completed changes to the structure of our organization in connection with broader restructuring initiatives, including consolidation of manufacturing operations, headcount reductions, and the transition of our sales organization to a unified, customer-centric model. As a result of these changes, we now operate as a single reportable segment. Comparative prior-period segment disclosures that reflected the previous two segments have been revised to conform to this change in our reportable segment. Our chief operating decision maker (CODM), which is our Chief Executive Officer, evaluates our financial information such as revenue, margins, operating expenses, net income or loss, and other non- generally accepted accounting principles (GAAP) financial measures on a consolidated basis to allocate resources and assess performance. However, while the Companys CODM uses more than one measure to assess performance, the Companys segment disclosures do not include non-GAAP disclosures. The Company has determined that the disclosures below correspond with the amounts in the consolidated financial statements and are most consistent with GAAP. The following table presents our single segment revenue, gross profit, significant expenses, and net income (loss) for the years ended October 31, 2025 and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 Term Loan and Line of credit On March 15, 2024, we entered into a loan and security agreement (the EBC Credit Agreement) with EBC, as administrative agent, and used proceeds from the initial drawings under the EBC Credit Facilities (as defined below) to repay in full outstanding obligations under the loan agreement we had entered into in February 2022 with Bank of America, N.A. (the BofA Loan Agreement) and to pay fees, premiums, costs and expenses, including fees payable in connection with the EBC Credit Agreement. The BofA Loan Agreement was terminated upon entry into the EBC Credit Agreement and is no longer in effect. The EBC Credit Agreement provides for (i) a senior secured revolving loan facility of up to $15.0 million (the EBC Revolving Loan Facility) and (ii) a senior secured revolving credit facility of up to $1.0 million (the EBC Additional Line and, together with the EBC Revolving Loan Facility, as amended, the EBC Credit Facilities) (with a $3.0 million swingline loan sublimit). On June 14, 2024, the parties entered into the First Amendment to the EBC Credit Agreement (the First Amendment), which provided for a modified EBC Additional Line of $1.0 million through July 12, 2024, $666,667 from July 13, 2024 through August 11, 2024 and $333,333 from August 12, 2024 through September 10, 2024. Availability of borrowings under the EBC Credit Facilities is based upon a borrowing base formula and periodic borrowing base certifications valuing certain of our acco …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 7 Stock-based compensation and equity transactions On December 2, 2024, we granted 47,500 incentive stock options. The incentive stock options vest equally over four years as follows: (i) one -quarter of the options vested on December 2, 2025 and (ii) the remaining options shall vest in three equal annual installments over the next three years. On January 13, 2025, we granted a total of 82,500 shares of restricted stock and 165,000 incentive stock options. The shares of restricted stock and incentive stock options vest over four years as follows: (i) one -quarter of the restricted shares and options vested on January 13, 2026 and (ii) the remaining restricted shares and options shall vest in 12 equal quarterly installments over the next three years. On December 1, 2025, we granted 55,500 incentive stock options. The incentive stock options vest equally over four years as follows: (i) one -quarter of the options shall vest on December 1, 2026 and (ii) the remaining options shall vest in three equal annual installments over the next three years. On January 7, 2026, we granted a total of 82,500 shares of restricted stock and 165,000 incentive stock options. The shares of restricted stock and incentive stock options vest over four years as follows: (i) one -quarter of the restricted shares and options shall vest on January 7, 2027 and (ii) the remaining restricted shares and options shall vest in 12 equal quarterly installments over the next three years. No other shares or o …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 9 Income taxes In accordance with applicable accounting guidance, the Company is required to use an estimated annual effective tax rate to compute its tax provision during an interim period. However, there is an exception to the use of this method when a reliable estimate of the annual effective tax rate cannot be made due to the sensitivity of changes in estimates of ordinary income (loss). In that case, an entity may report the actual tax provision or benefit applicable when annual income (loss) cannot be estimated as a discrete item in the interim period. This exception was used in determining the tax provision for the six months ended April 30, 2026. We recorded income tax provisions of $60,000 and $135,000 for the three months ended April 30, 2026 and 2025, respectively. The effective tax rate for the three months ended April 30, 2026 and 2025 was 6.4% and (122.7%), respectively. For the six months ended April 30, 2026 and 2025, we recorded income tax provisions of $94,000 and $171,000, respectively. The effective tax rate for the six months ended April 30, 2026 and 2025 was 10.2% and (53.6%), respectively. The effective tax rate for the three months and six months ended April 30, 2026 differed from the U.S. statutory tax rate of 21% primarily due to state taxes, various permanent differences, research and development tax credits, unrecognized tax benefits and change in valuation allowance. We had $271,000 and $217,000 of unrecognized tax benefits, as of April 30, 2 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent accounting standards Recently issued accounting pronouncements adopted: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our fiscal year ended October 31, 2025, and for interim periods within our fiscal year ending October 31, 2026, with early adoption permitted. The adoption of this ASU on a retrospective basis did not have a material effect on our consolidated financial statements. However, our segment disclosures have been expanded to include significant segment expenses as reviewed by our chief operating decision maker (CODM). Please see Note 8 for more details. Recently issued accounting pronouncements not yet adopted: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to expand the disclosure requirements for income taxes, specifically related to the effective tax rate reconciliation and income taxes paid. ASU 2023-09 will be effective for our fiscal year ending October 31, 2026, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. In November 2024, the FASB issued ASU 2024-0 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 8 Segment information We previously managed our business as two reportable segments, the RF Connector and Cable Assembly segment and the Custom Cabling Manufacturing and Assembly segment. During the fourth quarter of the fiscal year ended October 31, 2025, we completed changes to the structure of our organization in connection with broader restructuring initiatives, including consolidation of manufacturing operations, headcount reductions, and the transition of our sales organization to a unified, customer-centric model. As a result of these changes, we now operate as a single reportable segment. Comparative prior-period segment disclosures that reflected the previous two segments have been revised to conform to this change in our reportable segment. Our CODM, which is our Chief Executive Officer, evaluates our financial information such as revenue, margins, operating expenses, net income or loss, and other non-GAAP financial measures on a consolidated basis to allocate resources and assess performance. However, while our CODM uses more than one measure to assess performance, the Companys segment disclosures do not include non-GAAP disclosures. The Company has determined that the disclosures below correspond with the amounts in the consolidated financial statements and are most consistent with GAAP. The following table presents our single segment revenue, gross profit, significant expenses, and net income (loss) for the three and six months ended April 30, 2026 and 2025 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing