东方公司2025年季度报告

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ________________ to _______________Commission File Number001-35383THE EASTERN COMPANY (Exact name of registrant as specified in its charter) Connecticut06-0330020 3 Enterprise Drive,Suite 408,Shelton,Connecticut (Address of principal executive offices) (203)-729-2255(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: and (2) has been subject to such filing requirements for the past 90 days.Yes☒ 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 theregistrant was required to submit such files).Yes☒ Large accelerated filer☐Accelerated filer☒Non-accelerated filer☐Smaller reporting company☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period forcomplying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐ TABLE OF CONTENTS Condensed Consolidated Statements of OperationsCondensed Consolidated Statements of Comprehensive IncomeCondensed Consolidated Balance Sheets Notes to Condensed Consolidated Financial Statements Quantitative and Qualitative Disclosures About Market Risk accounting principles in the United States (“GAAP”) for complete financial statements. Refer to the consolidated financial statementsof The Eastern Company (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) and the notes thereto The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, alladjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interimperiods have been reflected therein. Operating results for interim periods are not necessarily indicative of the results that may beexpected for the full year. All intercompany accounts and transactions are eliminated.The condensed consolidated balance sheet as of December 28, 2024 has been derived from the audited consolidated balance sheet atThe Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31. References in this QuarterlyReport on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-weekperiod ending on January 3, 2026. In a 52-week fiscal year, each quarter has 13 weeks. References to the first quarter of 2024, the firstfiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period fromDecember 31, 2023 to March 30, 2024. References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of2025 or the three months ended March 29, 2025, mean the 13-week period from December 29, 2024 to March 29, 2025.Certain amounts in the 2024 financial statements have been reclassified to conform with the 2025 presentation with no impact orchange to previously reported net income or shareholders’ equity. See Note B,Discontinued Operations, for additional information. $3,935,599$3,304,849Cost of products sold(2,947,478)(2,562,277Gross margin988,121 Income (Loss) from discontinued operations before income taxes Prepaid expenses Right of use assetsTotal assets of discontinued operations Current assets of discontinued operations¹$6,346,332$5,071,828Non-current assets of discontinued operations- The total assets and liabilities of discontinued operations are presented as current in the March 29, 2025 and December 28, 2024balance sheet as we expect to sell the discontinued operations and collect proceeds within one year of such dates.10 Weighted average shares outstanding anticipated cash flows from transactions denominated in foreign currencies, namely Mexican pesos. This does not eliminate the impactof the volatility of foreign exchange rates. However, because the Company generally enters into forward contracts twelve to eighteen Designated Foreign Currency Hedge Contracts All of the Company’s designated foreign currency hedge contracts as of March 29, 2025 were cash flow hedges under ASC Topic 815,“Derivatives and Hedging” (“ASC 815”). The Company records the effective portion of any change in the fair value of designated party transaction occurs, the Company reclassifies the effective portion of any related gain or loss on the designated foreign currencyhedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur,the Comp