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Foreign Operations

3 Months Ended

Sep. 30, 2025

14. Foreign Operations

Assets and liabilities denominated in non-U.S. currencies are translated at rates of exchange prevailing on the balance sheet date, and revenues and expenses are translated at average rates of exchange for the period. Gains or losses on the translation of the financial statements of a non-U.S. operation, where the functional currency is other than the U.S. dollar, are reflected as a separate component of equity, which was a cumulative gain of approximately $1.1 million and $1.0 million as of September 30, 2025 and June 30, 2025, respectively. We also recognized net foreign currency transaction losses of $0.04 million for both the three months ended September 30, 2025 and 2024, included in the Condensed Consolidated Statements of Comprehensive Income (Loss) in the line item entitled “Other income (expense), net.”

Our cash and cash equivalents cash totaled approximately $11.5 million at September 30, 2025. Of this amount, approximately 15% was held by our foreign subsidiaries in China and Latvia. These foreign funds were generated in China and Latvia as a result of foreign earnings. With respect to the funds generated by our foreign subsidiaries in China, the retained earnings of the respective subsidiary must equal at least 50% of its registered capital before any funds can be repatriated through dividends. As of September 30, 2025, LPOIZ had approximately $0.4 million in retained earnings available for repatriation, based on earnings accumulated through December 31, 2024, the end of the most recent statutory tax year, that remained undistributed as of September 30, 2025.

Revenues from foreign countries for the three months ended September 30, 2025 and 2024 are as follows:

	Three Months Ended September 30,
	2025		2024
Revenues:
United States	$	7,430,542	$	5,865,639
Europe		5,789,120		1,281,260
China		1,210,874		629,417
Other Asian countries		379,611		210,231
Rest of world		248,134		413,834
	$	15,058,281	$	8,400,381

Long-lived assets located in foreign countries as of September 30, 2025 and June 30, 2025 are as follows:

	September 30, 2025		June 30, 2025
Long-lived assets:
United States	$	45,223,294	$	45,982,722
Latvia		4,685,744		4,848,441
China		2,196,116		2,300,608
	$	52,105,154	$	53,131,771