Taitron components inc 2025年度报告

INDEX Item 1.Condensed Financial Statements (Unaudited)Condensed Consolidated Balance SheetsCondensed Consolidated Statements of Operations and Comprehensive Income (Loss)Condensed Consolidated Statements of Shareholders’ EquityCondensed Consolidated Statements of Cash FlowsNotes to Condensed Consolidated Financial StatementsItem 2.Management’s Discussion and Analysis of Financial Condition and Results of OperationsItem 3.Quantitative and Qualitative Disclosures About Market RiskItem 4.Controls and Procedures PART II - OTHER INFORMATION Index Index TAITRON COMPONENTS INCORPORATED Notes to Condensed Consolidated Financial Statements (Unaudited) 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview of Business We are primarily a supplier of original designed and manufactured (“ODM”) electronic components (“ODM Components”) with our product offerings rangingfrom discrete semiconductors through small electronic devices. Our products include value-added engineering and turn-key solutions, focusing on providingcontract electronic manufacturers (“CEMs”) and original equipment manufacturers (“OEMs”) with ODM products for their multi-year turn-key projects (“ODM Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United Statesof America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all ofthe information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring natureand considered necessary for a fair statement of its financial condition and results of operations for the interim periods presented in this Quarterly Report on Form Use of Estimates In preparing these financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as ofthe date of the condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Management bases itsestimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basisfor making judgments about the carrying values of assets and liabilities and the amount reported as revenue and expenses that are not readily apparent from other Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires the Company todisclose disaggregated jurisdictional and categorical information for the tax rate reconciliation, income taxes paid and other income tax related amounts. Thisguidance is effective for annual periods beginning after December 15, 2024, which will be the Company’s fiscal year 2025, with early adoption permitted. The In November 2024, the FASB issued ASU 2024-03 “Disaggregation of Income Statement Expenses,” which requires the Company to disaggregate key expensecategories such as employee compensation, depreciation and intangible asset amortization within its financial statements. ASU 2024-03 is effective for annualsperiods beginning with the Company’s fiscal year 2027, and interim periods within the Company’s fiscal year 2028, with early adoption permitted. The Companyis currently evaluating the impact of this ASU on its Notes to the Consolidated Financial Statements. Index Revenue recognition Revenue is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance obligations occurupon the transfer of control of products, either from our facilities or directly from suppliers to customers. We consider customer purchase orders to be the contractswith a customer. All revenue is generated from contracts with customers. In determining the transaction price, we evaluate whether the price is subject to refund or adjustment to determine the net consideration to which we expect toreceive. Taxes assessed by a governmental authority on revenue-producing transactions are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs andare included in cost of products sold. Based upon the nature of our contracts with customers and our performance obligations within those contracts, we have no contract assets or liabilities as of March31, 2025 and December 31, 2024. Nature of products We are primarily a supplier of original designed and manufactured (“ODM”) products that include value-added engineering and turn-key solutions. The followingis a description of major products lines from which we generate our revenue: ODM Projects - Our custom made small devices for original equi