Optex Systems Holdings Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Optex Systems Holdings Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing financial information and customer concentration risks.</b>

AI Summary

Optex Systems Holdings Inc (OPXS) filed a Quarterly Report (10-Q) with the SEC on February 12, 2024. Optex Systems Holdings Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the first quarter of fiscal year 2024. The company's principal business is optical instruments and lenses. The filing includes data related to sales revenue and accounts receivable from various customers, including US Government agencies and defense contractors. The company is incorporated in Delaware and headquartered in Richardson, Texas.

Why It Matters

For investors and stakeholders tracking Optex Systems Holdings Inc, this filing contains several important signals. The 10-Q filing provides investors with crucial, up-to-date financial performance data and operational insights for Optex Systems Holdings Inc. Understanding customer concentration risk, as detailed in the filing, is vital for assessing the stability and future revenue streams of the company.

Risk Assessment

Risk Level: medium — Optex Systems Holdings Inc shows moderate risk based on this filing. The company's reliance on a few major customers, including US Government agencies and defense contractors, presents a medium risk due to potential revenue disruption if these relationships change.

Analyst Insight

Investors should closely monitor Optex Systems Holdings Inc.'s customer relationships and revenue diversification strategies following this 10-Q filing.

Key Numbers

• 2023-12-31 — Period End Date (Conformed Period of Report)
• 2024-02-12 — Filing Date (Filed as of Date)
• Q1 FY2024 — Fiscal Quarter (Reporting Period)

Key Players & Entities

• Optex Systems Holdings Inc. (company) — Filer
• 2023-12-31 (date) — Period of Report
• 2024-02-12 (date) — Filed as of date
• Richardson, TX (location) — Business Address
• 3827 (sic) — Standard Industrial Classification
• US Government (company) — Customer
• US Defense Contractor (company) — Customer

Forward-Looking Statements

• Optex Systems Holdings Inc. will continue to face significant customer concentration risk in the next fiscal year. (Optex Systems Holdings Inc.) — high confidence, target: 2024-10-01

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's revenue is significantly dependent on a limited number of customers, including US Government agencies and defense contractors, which could impact financial results if these relationships are adversely affected.

Industry Context

Optex Systems Holdings Inc. operates in the optical instruments and lenses industry, a sector that often serves defense, industrial, and commercial markets.

Regulatory Implications

As a publicly traded company, Optex Systems Holdings Inc. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency for investors.

What Investors Should Do

1. Analyze the specific revenue figures and growth rates for each customer segment mentioned in the filing.
2. Assess the company's strategies for mitigating customer concentration risk.
3. Compare the current financial data with previous filings to identify trends in revenue and profitability.

Key Dates

• 2023-12-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-02-12: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive overview of a company's financial performance during a specific quarter.)

Customer Concentration Risk

The risk associated with a company's reliance on a small number of customers for a significant portion of its revenue. (Highlights potential instability in revenue if key customer relationships are lost or altered.)

Year-Over-Year Comparison

This filing is a 10-Q for the period ending December 31, 2023, providing an update on the company's financial status since its last reporting period.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value OPXS The Nasdaq Stock Mar

Filing Documents

• form10-q.htm (10-Q) — 938KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-24-005894.txt (&nbsp;) — 5341KB
• opxs-20231231_pre.xml (EX-101.PRE) — 268KB
• opxs-20231231_lab.xml (EX-101.LAB) — 341KB
• opxs-20231231_def.xml (EX-101.DEF) — 196KB
• opxs-20231231_cal.xml (EX-101.CAL) — 47KB
• opxs-20231231.xsd (EX-101.SCH) — 41KB
• form10-q_htm.xml (XML) — 854KB

From the Filing

UNITED SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to______. OPTEX SYSTEMS HOLDINGS, INC. (Exact Name of Registrant as Specified in Charter) Delaware 001-41644 90-0609531 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1420 Presidential Drive , Richardson , TX 75081-2439 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (972) 764-5700 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value OPXS The Nasdaq Stock Market LLC Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act: Large Accelerated Filer Accelerated Reporting Company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of February 12, 2024: 6,823,693 shares of common stock. OPTEX SYSTEMS HOLDINGS, INC. FORM 10-Q For the period ended December 31, 2023 INDEX PART I— FINANCIAL INFORMATION F-1 Item 1. Unaudited Condensed Consolidated Financial Statements F-1 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Item 3. Quantitative and Qualitative Disclosures About Market Risk 13 Item 4. Controls and Procedures 13 PART II— OTHER INFORMATION 13 Item 1. Legal Proceedings 13 Item 1A. Risk Factors 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 13 Item 3. Defaults Upon Senior Securities 13 Item 4. Mine Safety Disclosures 13 Item 6. Exhibits 13 SIGNATURE 14 2 Part 1. Financial Information Item 1. Unaudited Condensed Consolidated Financial Statements OPTEX SYSTEMS HOLDINGS, INC. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2023 (UNAUDITED) AND OCTOBER 1, 2023 F-2 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 (UNAUDITED) AND THE THREE MONTHS ENDED JANUARY 1, 2023 (UNAUDITED) F-3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 (UNAUDITED) AND THE THREE MONTHS ENDED JANUARY 1, 2023 (UNAUDITED) F-4 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED DECEMBER 31, 2023 (UNAUDITED) AND THE THREE MONTHS ENDED JANUARY 1, 2023 (UNAUDITED) F-5 CONDENSED CONSOLIDATED FINANCIAL STATEMENT FOOTNOTES (UNAUDITED) F-6 F-1 Optex Systems Holdings, Inc. Condensed Consolidated Balance Sheets December 31, 2023 October 1, 2023 (Thousands, except share and per share data) December 31, 2023 (Unaudited) October 1, 2023 ASSETS Cash and Cash Equivalents $ 2,373 $ 1,204 Accounts Receivable, Net 2,430 3,624 Inventory, Net 12,685 12,153 Contract Asset 258 336 Prepaid Expenses 154 219 Current Assets 17,900 17,536 Property and Equipment, Net 964 998 Other Assets Deferred Tax Asset 887 922 Right-of-use Asset 2,615 2,740 Security Deposits 23 23 Other Assets 3,525 3,685 Total Assets $ 22,389 $ 22,219 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $ 1,796 $ 810 Operating Lease Liability 625 620 Federal Income Taxes Payable 326 247 Accrued Expenses 992 1,265 Accrued Selling Expen

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