TAITRON COMPONENTS INC Files 2023 Annual Report on Form 10-K

TL;DR

<b>TAITRON COMPONENTS INC filed its 2023 10-K report, detailing its financial performance and corporate information.</b>

AI Summary

TAITRON COMPONENTS INC (TAIT) filed a Annual Report (10-K) with the SEC on April 1, 2024. TAITRON COMPONENTS INC filed its annual report for the fiscal year ended December 31, 2023. The company is registered in California and its principal executive offices are located at 28040 West Harrison Parkway, Valencia, CA 91355. TAITRON COMPONENTS INC's Class A common stock, $.001 par value, is traded on the NASDAQ Capital Market under the symbol TAIT. The company has submitted all required reports for the preceding 12 months and has been subject to filing requirements for the past 90 days. TAITRON COMPONENTS INC has submitted electronically every Interactive Data File required for the preceding 12 months.

Why It Matters

For investors and stakeholders tracking TAITRON COMPONENTS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of TAITRON COMPONENTS INC's financial health and operational status for the fiscal year 2023, crucial for investors to assess performance and future prospects. The filing confirms TAITRON COMPONENTS INC's compliance with SEC reporting requirements, indicating transparency and adherence to regulatory standards, which is important for maintaining investor confidence.

Risk Assessment

Risk Level: low — TAITRON COMPONENTS INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments, indicating a stable reporting status.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand TAITRON COMPONENTS INC's performance and potential challenges.

Key Numbers

• 20231231 — Fiscal Year End (Report period)
• 20240401 — Filing Date (Date of filing)
• 0001185185-24-000345 — Accession Number (Unique identifier for the filing)
• 5065 — SIC Code (Standard Industrial Classification)
• 95-4249240 — IRS Number (Employer Identification No.)
• 001 — Par Value (Class A common stock par value)

Key Players & Entities

• TAITRON COMPONENTS INC (company) — Registrant name
• NASDAQ Capital Market (company) — Exchange where TAIT is traded
• TAIT (company) — Trading symbol
• California (company) — State of incorporation
• 28040 West Harrison Parkway, Valencia, California 91355 (company) — Principal executive offices address
• 0-25844 (regulator) — Commission file number
• 1934 Act (regulator) — SEC Act
• Rule 405 (regulator) — SEC Rule

FAQ

Industry Context

TAITRON COMPONENTS INC operates in the wholesale of electronic parts and equipment sector. This 10-K filing provides insights into its operations within this industry.

Regulatory Implications

The filing indicates compliance with Section 13 or 15(d) of the Securities Exchange Act of 1934 and Rule 405 of Regulation S-T, demonstrating adherence to SEC reporting regulations.

What Investors Should Do

1. Review the full 10-K document for detailed financial statements and management discussion.
2. Analyze the company's business operations and market position within the electronic parts wholesale industry.
3. Monitor future filings for any changes in financial performance or strategic direction.

Year-Over-Year Comparison

This is the annual report (10-K) for the fiscal year ended December 31, 2023, following previous filings required by the SEC.

Key Financial Figures

• $6,049,000 — ina. The sales of our ODM Products were $6,049,000 and $8,282,000 in 2023 and 2022, respec
• $8,282,000 — of our ODM Products were $6,049,000 and $8,282,000 in 2023 and 2022, respectively. Strateg

Filing Documents

• taitron20231231_10k.htm (10-K) — 993KB
• ex_645266.htm (EX-23.1) — 2KB
• ex_645267.htm (EX-31.1) — 9KB
• ex_645268.htm (EX-31.2) — 9KB
• ex_645269.htm (EX-32) — 6KB
• rji-logo.jpg (GRAPHIC) — 11KB
• rji-sig.jpg (GRAPHIC) — 8KB
• 0001185185-24-000345.txt (&nbsp;) — 5669KB
• tait-20231231.xsd (EX-101.SCH) — 41KB
• tait-20231231_cal.xml (EX-101.CAL) — 40KB
• tait-20231231_def.xml (EX-101.DEF) — 224KB
• tait-20231231_lab.xml (EX-101.LAB) — 364KB
• tait-20231231_pre.xml (EX-101.PRE) — 221KB
• taitron20231231_10k_htm.xml (XML) — 874KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 13 Item 2.

Properties

Properties 13 Item 3.

Legal Proceedings

Legal Proceedings 13 Item 4. Mine Safety Disclosures 13 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 14 Item 6. [Reserved] 14 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 17 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 18 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 36 Item 9A.

Controls and Procedures

Controls and Procedures 36 Item 9B. Other Information 36 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 36 PART III Item 10. Directors, Executive Officers and Corporate Governance 37 Item 11.

Executive Compensation

Executive Compensation 37 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 37 Item 13. Certain Relationships, Related Transactions and Director Independence 37 Item 14. Principal Accounting Fees and Services 37 PART IV Item 15. Exhibits, Financial Statement Schedules 38 Item 16. Form 10-K Summary 38

Signatures

Signatures 39 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains statements which constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements represent our expectations or beliefs concerning future events, including the following: any statements regarding future sales, costs and expenses and gross profit percentages; any statements regarding the continuation of historical trends; any statements regarding expected capital expenditures; and any statements regarding the sufficiency of our cash balances and cash generated from operating and financing activities for future liquidity and capital resource needs, and are usually denoted by words or phrases such as "believes," "plans," "should," "expects," "thinks," "projects," "estimates," "anticipates," "will likely result," or similar expressions. We wish to caution readers that all forward-looking statements are necessarily speculative and not to place undue reliance on forward-looking statements, which speak only as of the date made, and to advise readers that actual results could vary due to a variety of risks and uncertainties, some of which are discussed in this report in the Part I, Item 1A. Risk Factors and elsewhere in this report. Except as required by law, we undertake no obligation to update forward-looking statements. References to "Taitron", "the Company", "the company", "we," "our" and "us" refer to Taitron Components Incorporated and its divisions, unless the context otherwise requires. PART I

BUSINESS

ITEM 1. BUSINESS. General We are primarily a supplier of original designed and manufactured (ODM) products that include value-added engineering and turn-key solutions. We focus on providing original equipment manufacturers (OEMs) and contract electronic manufacturers (CEMs) with ODM products for their multi-year turn-key projects ("ODM Projects") and ODM electronic components ("ODM Components"). Our product offerings range from discrete semiconductors through small electronic devices. We also distribute brand name electronic components with a vast inventory available on hand. We are incorporated in California and were originally formed in 1989. We maintain two (2) divisions, in Taiwan and China. Our Taiwan and China locations provide support for inventory sourcing, purchases and coordinating the manufacture of our ODM Projects and ODM Components (collectively we refer to these as "ODM Products"). In 2023 and 2022, we offered approximately 47 and 59, respectively, different ODM Products that are manufactured to specifications developed as a result of our engineering support services. Our China location also serves as the engineering center responsible for making component datasheets and test specifications, arranging pre-production and mass production at our manufacturer partners, preparing samples, monitoring the quality of shipments, performing failure analysis reports, and designing circuits with partners for ODM Projects. We have also developed a reputation for stocking a large selection of electronic component inventories to meet the rapid delivery requirements of our customers. At December 31, 2023, our inventory consisted of approximately 12,000 different products manufactured by more than 100 different suppliers. However, our core strategy has shifted to primarily focus on our ODM Products that require custom products designed for specific applications to OEM customers, and away from actively marketing our superstore strategy of maintaining a vast quant

RISK FACTORS

ITEM 1A. RISK FACTORS. Certain factors may have a material adverse effect on our business, prospects, financial condition and results of operations. You should carefully consider the risks and uncertainties described below together with all of the other information contained in this Annual Report on Form 10-K, including our consolidated financial statements and the related notes, before deciding to invest in our common shares. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business. If any of the following risks actually occurs, our business, financial condition, results of operations and future prospects could be materially and adversely affected. If our suppliers fail to meet our component and manufacturing needs, it could delay our production and our product shipments to customers and negatively affect our operations. Our ODM Products comprise many components and subassemblies produced by outside suppliers. We depend greatly on these suppliers for items that are essential to the manufacture of our products, including printed circuit boards and integrated circuits. For certain items, we qualify only a single source, which magnifies the risk of shortages and decreases our ability to negotiate with that supplier on the basis of price. From time to time, we have been unable to obtain sufficient components that we have needed due to shortages or quality issues from some of our suppliers. If our suppliers fail to meet our manufacturing needs, it would delay our production and our product shipments to customers and negatively affect our operations. Our primary suppliers are located in Asia. If a manufacturer should be unable to deliver products to us on a timely basis or at all, our business could be adversely affected. Though we have had many years of favorable experience with these suppliers, there

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View this 10-K filing on SEC EDGAR