NOTE 10 - SUBSEQUENT EVENTS

During the quarter ended March 31, 2025, the U.S. government increased certain existing tariffs and implemented new tariffs on imported products. See Business Trends and Uncertainties in Note 2 – Summary of Significant Accounting Policies and Note 8 - Concentrations for information regarding the impact of tariffs on the Company.

In April 2025, the U.S. government increased import tariffs across a wide range of countries at various rates, including on product imports from almost all countries, and individualized higher tariffs on certain countries, which include countries where the Company sources raw materials and components, notably China. As a result, selling prices of the Company’s finished products are likely to increase if tariffs are enforced at the April 2025 levels or are increased in the future, which may have a negative impact on the Company’s revenues, profitability and cash flows. While some of these tariff announcements have since been followed by announcements of limited exemptions and temporary pauses, due to the uncertainties pertaining to tariffs and tariff levels it is difficult for the Company to reliably forecast their short-term or ongoing impact to its business or that of its customers. Imports from our supplier in China have been temporarily paused to allow us to explore new arrangements with them. In addition, we are actively pursuing alternative sourcing strategies.

Management evaluated events subsequent to March 31, 2025 through the filing date of these condensed consolidated financial statements and concluded there are no additional material subsequent events to disclose.