LTRX — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-08-27

• Lantronix, Inc. is a global leader in Edge AI and Industrial IoT solutions that power National Defense Authorization Act (“NDAA”)-compliant unmanned systems, critical infrastructure and resilient enterprise networks. We deliver intelligent computing, secure connectivity, and remote management for mi…

• Unmanned Aerial Systems: Over the past year, we have increased our position in the UAS market through our Qualcomm Dragonwing–based system-on-modules (“SoM”), including our Open-Q 8550 micro SoM and our Drone Reference Platform, which integrates edge compute, sensing, and flight control into a singl…

• Demand for NDAA- and TAA-compliant supply chains has accelerated across defense, public safety, and critical-infrastructure customers. These compliance frameworks restrict the use of certain foreign-sourced components and have become essential for UAS platforms seeking eligibility for U.S. federal, …

• · Critical Infrastructure Monitoring: We are partnering with a Tier-1 U.S. mobile network operator by delivering a nationwide solution for backup-power management across more than 50,000 cell sites. This deployment enables remote oversight and data-driven service to cell sites and provides 24/7 moni…

• · Enterprise: In the financial sector, we provide solutions to a Tier 1 banking customer to enhance network resiliency using our Out-of-Band (“OOB”) Management offerings. Our hardware and software offerings provide secure alternative pathways for critical infrastructure, including servers, networks,…

Text removed vs the prior filing · source: 10-K · 2025-08-29

• Lantronix Inc. (Nasdaq: LTRX) is a global leader in Edge AI and Industrial Internet of Things (“IoT”) solutions, delivering intelligent computing, secure connectivity, and remote management for mission-critical applications. Serving high-growth markets, including smart cities, enterprise information…

• · Smart Cities: We are partnering with various Smart Grid customers that deploy their solutions to enhance grid resiliency and flexibility through intelligence at the edge. We supply customers an entire solution that includes our SmartLV compute and connectivity solutions as well as our design servi…

• · Enterprise: In the financial sector, we provide solutions to a Tier 1 banking customer to enhance network resiliency using our Out-of-Band Management offerings. Our hardware and software offerings provide secure alternative pathways for critical infrastructure, including servers, networks, and rou…

• · Unmanned Aerial Systems (UAS): We are advancing the UAS market through our Qualcomm Dragonwing–based system-on-modules (“SoM”), purpose-built for industrial drone applications with particular focus on defense and security. We are working with customers to deliver high-performance compute at the ed…

• Our latest SIP devices are designed to process multiple media streams using Computer Vision (CV) technology, enabling sophisticated edge analytics. These modules are remotely managed via Percepxion™, Lantronix’s Cloud IoT Edge Solution software, offering seamless control and monitoring. Typically em…

Text added vs the prior filing · source: 10-K · 2026-08-27

• Our business related to government contracts subjects us to additional risks.

• We believe that the continued growth of our presence in the drone and defense technology markets will depend, to a certain degree, on the ability of our customers to win government contracts and subcontracts, in particular from the U.S. Department of War. The funding of U.S. government programs is u…

• U.S. government contracts generally permit the government to terminate the contract without prior notice, at the government’s convenience. On contracts for which we are a subcontractor or for which we provide our products to the contractor or subcontractor, the U.S. government could terminate the co…

• In addition, maintaining compliance with government regulations, including audit requirements of the U.S. government and our customers that are subject to these requirements, could require us to put in place controls and procedures to monitor compliance with applicable regulations that may be costly…

• The effect of a pandemic or major public health concern, could result in material adverse effects on our business, financial position, results of operations and cash flows.

Text removed vs the prior filing · source: 10-K · 2025-08-29

• The effect of a pandemic or major public health concern, such as the COVID-19 pandemic, could result in material adverse effects on our business, financial position, results of operations and cash flows.

• Pandemics or similar outbreaks have had, and may in the future have, an adverse impact on the economy, our business and the businesses of our suppliers, and our results of operations and financial condition. For example, the COVID-19 pandemic resulted in industry events, trade shows and business tra…

• In addition, the impact of possible pandemics subjects us to various risks and uncertainties that could materially adversely affect our business, results of operations and financial condition, including the following:

• · significant volatility or decreases in the demand for our products or extended sales cycles;

• · changes in customer behavior and preferences, as customers may experience financial difficulties and/or may delay orders or reduce their spending;

Text added vs the prior filing · source: 10-K · 2026-08-27

• References to “fiscal 2026” refer to the fiscal year ended June 30, 2026 and references to “fiscal 2025” refer to the fiscal year ended June 30, 2025.

• In March 2026, the U.S. Court of International Trade issued a ruling indicating that importers that paid tariffs under the International Emergency Economic Powers Act (“IEEPA”) may be entitled to refunds. We have paid tariffs on certain imported products and materials that were subject to IEEPA-base…

• On July 7, 2026, we entered into an asset purchase agreement to acquire the industrial IoT business of Vecima Networks Inc., including its Nero Global Tracking software-as-a-service platform, for aggregate consideration of approximately $11.7 million, excluding working capital adjustments and other …

• During the fourth quarter of fiscal 2026, we made a qualitative assessment of whether goodwill impairment existed. Since our assessment of the qualitative factors did not result in a determination that it was more likely than not that the fair value of our single reporting unit is less than its carr…

• Net revenue increased primarily due to (i) higher unit sales of our embedded compute products, which includes our drone and aerospace and defense products, in the Americas and EMEA regions, and (ii) higher unit sales of our embedded wired connectivity products across all regions, reflecting continue…

Text removed vs the prior filing · source: 10-K · 2025-08-29

• References to “fiscal 2025” refer to the fiscal year ended June 30, 2025 and references to “fiscal 2024” refer to the fiscal year ended June 30, 2024.

• In December 2024, we finalized the acquisition of Netcomm Wireless Pty Ltd (“Netcomm”), a subsidiary of DZS Inc., for $6,458,000 in cash. Netcomm operated an enterprise IoT business. The acquisition complements our focus on Enterprise and Smart City vertical markets and adds products to enhance our …

• Refer to Note 3 of Notes to Consolidated Financial Statements included in Part II, Item 8 of this Report, which is incorporated herein by reference, for additional discussion regarding the acquisition.

• We allocate the fair value of the purchase consideration of a business acquisition to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (“IPR&D”), if applicable, based on their estimated fair values. The excess of the fair value of purcha…

• Significant management judgment is required in estimating the reporting unit’s fair value and in the creation of the forecasts of future operating results that are used in the discounted cash flow method of valuation. These include (i) estimation of future cash flows, which is dependent on internal …