UNITED STATES 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 September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 0-25844

TAITRON COMPONENTS INCORPORATED

(Exact name of registrant as specified in its charter)

California		95-4249240
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

28040 West Harrison Parkway, Valencia, California		91355-4162
(Address of principal executive offices)		(Zip Code)

(661) 257-6060

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A common stock		TAIT		NASDAQ Capital Market

Indicate by check mark whether the registrant (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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

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 the definitions 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 filer ☐
Non-accelerated filer ☑	Smaller 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 the latest practicable date:

Classes of common stock		Outstanding on October 31, 2025
Class A		5,258,568
Class B		762,612

TAITRON COMPONENTS INCORPORATED

INDEX

		Page
PART I - FINANCIAL INFORMATION

Item 1.	Condensed Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	2
	Condensed Consolidated Statements of Shareholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13
Item 4.	Controls and Procedures	13

PART II - OTHER INFORMATION

Item 1.	Legal proceedings	14
Item 1A.	Risk Factors	14
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3.	Defaults Upon Senior Securities	14
Item 4.	Mine Safety Disclosures	14
Item 5.	Other Information	14
Item 6.	Exhibits	15
	Signatures	16

	September 30,			December 31,
	2025			2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	3,960,000		$	4,208,000
Accounts receivable, less allowances of $7,000		445,000			421,000
Short-term investments (Note 2)		5,929,000			5,179,000
Inventories, less reserves for obsolescence of $5,161,000, and $5,152,000, respectively (Note 3)		2,098,000			2,949,000
Prepaid expenses and other current assets (Note 4)		227,000			308,000
Total current assets		12,659,000			13,065,000
Property and equipment, net		2,883,000			3,029,000
Deferred taxes		1,543,000			1,542,000
Total assets	$	17,085,000		$	17,636,000

Liabilities and Equity
Current liabilities:
Accounts payable	$	492,000		$	251,000
Accrued liabilities		275,000			822,000
Accrued restructuring reserve		1,256,000			-
Total current liabilities		2,023,000			1,073,000

Commitments and contingencies (Note 6)

Equity:
Shareholders’ equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; None issued or outstanding		-			-
Class A common stock, $0.001 par value. Authorized 20,000,000 shares; 5,258,568 shares issued and outstanding		5,000			5,000
Class B common stock, $0.001 par value. Authorized, issued and outstanding 762,612 shares		1,000			1,000
Additional paid-in capital		11,486,000			11,484,000
Accumulated other comprehensive loss		(68,000	)		(49,000	)
Retained earnings		3,638,000			5,122,000
Total equity		15,062,000			16,563,000
Total liabilities and equity	$	17,085,000		$	17,636,000

	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025			2024

Net product revenue	$	529,000		$	1,187,000		$	2,778,000		$	3,374,000
Cost of products sold		202,000			635,000			1,109,000			1,664,000
Gross profit		327,000			552,000			1,669,000			1,710,000

Selling, general and administrative expenses		516,000			530,000			1,651,000			1,683,000
Restructuring and severance expenses		-			-			1,680,000			-
Operating income (loss)		(189,000	)		22,000			(1,662,000	)		27,000

Interest income, net		54,000			68,000			158,000			223,000
Other income (expense), net		77,000			163,000			841,000			976,000
Income (loss) before income taxes		(58,000	)		253,000			(663,000	)		1,226,000

Income tax provision		-			(8,000	)		(8,000	)		(23,000	)

Net income (loss)	$	(58,000	)	$	245,000		$	(671,000	)	$	1,203,000

Net income (loss) per share: Basic	$	(0.01	)	$	0.04		$	(0.11	)	$	0.20
Diluted	$	(0.01	)	$	0.04		$	(0.11	)	$	0.20

Weighted average shares outstanding: Basic		6,021,180			6,021,180			6,021,180			6,021,180
Diluted		6,021,180			5,999,180			6,021,180			6,011,180

Cash dividends declared per common share	$	0.035		$	0.050		$	0.135		$	0.150

Net income (loss)	$	(58,000	)	$	245,000		$	(671,000	)	$	1,203,000
Other comprehensive income (loss):
Foreign currency translation adjustment		5,000			36,000			(19,000	)		8,000
Comprehensive income (loss)		(53,000	)		281,000			(690,000	)		1,211,000

											Accumulated
	Common Stock								Additional		Other
	Class A				Class B				Paid-in		Comprehensive			Retained			Total
	Shares		Amount		Shares		Amount		capital		Loss			Earnings			Equity

Three months ending March 31, 2025, June 30, 2025 and September 30, 2025 (unaudited)
Balance at December 31, 2024		5,258,568	$	5,000		762,612	$	1,000	$	11,484,000	$	(49,000	)	$	5,122,000		$	16,563,000
Consolidated net loss		-		-		-		-		-		-			(286,000	)	$	(286,000	)
Other comprehensive loss		-		-		-		-		-		(14,000	)		-		$	(14,000	)
Stock based compensation expense		-		-		-		-		1,000		-			-		$	1,000
Cash dividends		-		-		-		-		-		-			(301,000	)	$	(301,000	)
Balance at March 31, 2025		5,258,568	$	5,000		762,612	$	1,000	$	11,485,000	$	(63,000	)	$	4,535,000		$	15,963,000
Consolidated net loss		-		-		-		-		-		-			(327,000	)	$	(327,000	)
Other comprehensive loss		-		-		-		-		-		(10,000	)		-		$	(10,000	)
Stock based compensation expense		-		-		-		-		1,000		-			-		$	1,000
Cash dividends		-		-		-		-		-		-			(301,000	)	$	(301,000	)
Balance at June 30, 2025		5,258,568	$	5,000		762,612	$	1,000	$	11,486,000	$	(73,000	)	$	3,907,000		$	15,326,000
Consolidated net loss		-		-		-		-		-		-			(58,000	)	$	(58,000	)
Other comprehensive income		-		-		-		-		-		5,000			-		$	5,000
Cash dividends		-		-		-		-		-		-			(211,000	)	$	(211,000	)
Balance at September 30, 2025		5,258,568	$	5,000		762,612	$	1,000	$	11,486,000	$	(68,000	)	$	3,638,000		$	15,062,000

Three months ending March 31, 2024, June 30, 2024 and September 30, 2024 (unaudited)
Balance at December 31, 2023		5,233,568	$	5,000		762,612	$	1,000	$	11,474,000	$	(61,000	)	$	5,424,000		$	16,843,000
Consolidated net income		-		-		-		-		-		-			552,000		$	552,000
Other comprehensive income		-		-		-		-		-		8,000			-		$	8,000
Stock based compensation expense		-		-		-		-		4,000		-			-		$	4,000
Cash dividends		-		-		-		-		-		-			(301,000	)	$	(301,000	)
Balance at March 31, 2024		5,233,568	$	5,000		762,612	$	1,000	$	11,478,000	$	(53,000	)	$	5,675,000		$	17,106,000
Consolidated net income		-		-		-		-		-		-			406,000		$	406,000
Other comprehensive loss		-		-		-		-		-		(36,000	)		-		$	(36,000	)
Stock based compensation expense		-		-		-		-		3,000		-			-		$	3,000
Cash dividends		-		-		-		-		-		-			(301,000	)	$	(301,000	)
Balance at June 30, 2024		5,233,568	$	5,000		762,612	$	1,000	$	11,481,000	$	(89,000	)	$	5,780,000		$	17,178,000
Consolidated net income		-		-		-		-		-		-			245,000		$	245,000
Other comprehensive income		-		-		-		-		-		36,000			-		$	36,000
Stock based compensation expense		-		-		-		-		2,000		-			-		$	2,000
Cash dividends		-		-		-		-		-		-			(301,000	)	$	(301,000	)
Balance at September 30, 2024		5,233,568	$	5,000		762,612	$	1,000	$	11,483,000	$	(53,000	)	$	5,724,000		$	17,160,000

	Receivable - Zowie Technology			Other			Prepaid Expenses and Other Current Assets Total

Balance at December 31, 2024	$	186,000		$	122,000		$	308,000
Other changes		(58,000	)		(23,000	)		(81,000	)
Balance at September 30, 2025	$	128,000		$	99,000		$	227,000

	Severance Liability

Balance at March 31, 2025	$	-
Accrual recognized		1,579,000
Balance at June 30, 2025	$	1,579,000
Payments		(323,000	)
Balance at September 30, 2025	$	1,256,000

Exhibit Number		Description of Document
31.1 *		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32 **		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 USC. Section 1350).
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase
101.DEF*		XBRL Taxonomy Extension Definition Linkbase
101.LAB*		XBRL Taxonomy Extension Label Linkbase
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase

	TAITRON COMPONENTS INCORPORATED

Date: November 14, 2025	/s/ Stewart Wang
	Stewart Wang,
	Chief Executive Officer, Chief Financial Officer and President
	(Principal Executive Officer and Principal Financial Officer)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Primary geographical markets:
United States	$	514,000	$	1,105,000	$	2,717,000	$	3,119,000
Asia		11,000		77,000		50,000		244,000
Other		4,000		5,000		11,000		11,000
		529,000		1,187,000		2,778,000		3,374,000
Major product lines:
ODM projects	$	419,000	$	946,000	$	2,326,000	$	2,475,000
ODM components		109,000		232,000		445,000		885,000
Distribution components		1,000		9,000		7,000		14,000
		529,000		1,187,000		2,778,000		3,374,000
Timing of revenue recognition:
Products transferred at a point in time	$	529,000	$	1,187,000	$	2,778,000	$	3,374,000

SEC Form 10-Q filed by Taitron Components Incorporated