# EDGAR Filing Document

**Accession Number:** 0000806172
**File Stem:** 0001171520-25-000333
**Filing Date:** 2025-11
**Character Count:** 31076
**Document Hash:** 7f5249b42f19882b4878a6372e04fe65
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171520-25-000333.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001171520-25-000333

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251014

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SONO TEK CORP
- **CENTRAL INDEX KEY:** 0000806172
- **STANDARD INDUSTRIAL CLASSIFICATION:** SPECIAL INDUSTRY MACHINERY, NEC [3559]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 141568099
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 0228

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40763
- **FILM NUMBER:** 251473432

**BUSINESS ADDRESS:**
- **STREET 1:** 2012 RT 9W BLDG 3
- **CITY:** MILTON
- **STATE:** NY
- **ZIP:** 12547
- **BUSINESS PHONE:** 8457952020

**MAIL ADDRESS:**
- **STREET 1:** 2012 RT. 9W, BLDG. 3,
- **CITY:** MILTON
- **STATE:** NY
- **ZIP:** 12547

?xml version='1.0' encoding='ASCII'?

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM 8-K**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): **October 14, 2025**

**<u>Sono-Tek Corporation</u>**

(Exact name of registrant as specified in its charter)

Commission File Number: **000-16035**

---

| | |
|:---|:---|
| **<u>New York</u>** | **<u>14-1568099</u>** |
| (State of Incorporation) | (I.R.S. Employer ID No.) |
| **<u>2012 Route 9W, Milton, New York</u>** | **<u>12547</u>** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(845) 795-2020**

Check appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **Trading**<br> **<u>Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, $0.01 par value per share | SOTK | NASDAQ |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

**Item 2.02: Results of Operations and Financial Condition.**

**Item 7.01: Regulation FD Disclosure**

On October 14, 2025, Sono-Tek Corporation issued a press release regarding its financial results for the quarter ended August 31, 2025 in the form attached as exhibit 99.1.

The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

**Item 9.01: Financial Statements and Exhibits.**

(d) Exhibits

99.1 &nbsp;&nbsp;&nbsp;&nbsp; [Press Release dated October 14, 2025](ex99-1.htm).

104&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SONO-TEK CORPORATION

By: <u>/s/ Stephen J. Bagley</u>

Stephen J. Bagley

Chief Financial Officer

October 14, 2025

## Exhibit 99.1

**Exhibit 99.1**

**Sono-Tek Reports Fiscal Second Quarter Financial Results**

**and Record First Half 2026 Revenue**

***- Reports Sixth Consecutive Quarter of Revenue over $5 million Highlighted by 150% Annual Increase in Medical Market Sales-***

 

***-Fiscal First Half Net Income Increases 35%-***

***-Backlog Increased 50% Sequentially*** ***Reflecting New Order Momentum-***

***-Updates FY26 Guidance Reflecting Improved Outlook, Anticipating Modest Revenue Growth with Increasing Demand in the Medical Device Market-***

 

***-Conference Call Today at 10:30 am ET-***

 ****

MILTON, N.Y., October 14, 2025 – <u>Sono-Tek Corporation</u> (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for the second quarter and first half of fiscal year 2026, ended August 31, 2025.

**Second Quarter Fiscal 2026 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;• Net Sales for the quarter increased to $5.163 million compared
to $5.162 million year over year and increased sequentially compared to $5.13 million in the first quarter of fiscal 2026.

&nbsp;&nbsp;&nbsp;&nbsp;• Gross profit for the quarter increased 3% year over year to $2.6
million compared with $2.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;• Net income for the quarter increased 24% to $424 thousand, or $0.03 per share, compared with
$341 thousand, or $0.02 per share.

**First Half Fiscal 2026 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;• Record first half fiscal 2026 revenue increased year over year
to $10.30 million compared to $10.19 million.

&nbsp;&nbsp;&nbsp;&nbsp;• Gross profit increased 6% year over year to $5.3 million compared
with $5.0 million, primarily due to product mix and favorable warranty expenses
in the current period.

&nbsp;&nbsp;&nbsp;&nbsp;• Net income increased 35% year over year to $909 thousand, or $0.06 per share, compared with
$672 thousand, or $0.04 per share.

**Balance Sheet, Backlog and Guidance for Fiscal Year 2026** 

&nbsp;&nbsp;&nbsp;&nbsp;• As of August 31, 2025, cash, cash equivalents and marketable securities totaled $10.6 million
with no outstanding debt.

&nbsp;&nbsp;&nbsp;&nbsp;• Total equipment and service-related backlog
remains strong at $11.21 million compared to $11.6 million at the end of Q2 FY2025 and increased 50% compared to $7.48 million at the end of Q1 FY2026, reflecting new order momentum from the medical market.

&nbsp;&nbsp;&nbsp;&nbsp;• For the full fiscal year, the Company is updating its guidance
reflecting an improved outlook anticipating modest revenue growth, balancing a cautious view as the market adjusts to recent shifts in
governmental clean energy and tariff policies with a positive offset from growing demand in the medical device market.

Dr. Christopher L. Coccio, Executive Chairman, stated, "We are pleased to report continued growth and profitability in line with our guidance with the continuing trend of over $5 million in quarterly revenue for the past six quarters. Importantly, we remain solidly profitable with strong margins and effective cost controls. Based on projected shipments for the second half of our fiscal year 2026, we are raising guidance slightly, now anticipating modest revenue growth, taking into consideration evolving governmental clean energy incentives and tariff policies which each may affect the initiation and timing of customer orders. Despite the evolving landscape in the clean energy industry, we have successfully offset it with our diversification strategy into other sectors such as the medical device industry. It is gratifying to see the promising demand in the medical device industry that we projected coming to fruition with our recently announced $5 million dollar order for multiple state-of-the-art MediCoat systems designed for high-precision, scalable manufacturing in addition to our most recent order of over $2.8 million from another major medical device manufacturer. With a healthy balance sheet, solid backlog and strong customer demand, we remain laser focused on execution and look forward to building on our recent success."

Steve Harshbarger, CEO & President of Sono-Tek stated, "We continue to see the success of our growth strategies with customers moving into complex large-scale production systems with significantly higher average selling prices "ASPs". Customer demand and momentum remain strong, and it is validating to see the growing adoption of Sono-Tek's advanced coating platforms by leading medical device manufacturers worldwide. We are well positioned with our strong balance sheet and backlog to navigate potential short-term demand shifts that may result from changes in tariff policies and clean energy incentives. We remain focused on our long-term growth strategy and look forward to continued revenue growth and profitability over the long term."

**Second Quarter Fiscal 2026 Results**

*(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)*

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended August 31,** | **Three Months Ended August 31,** | **Change** |
|  | **2025** | **2024** | $**%** |
| &nbsp;&nbsp;Net Sales | $5163 | $5162 | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;Gross Profit | $2590 | $2516 | &nbsp;&nbsp;3% |
| &nbsp;&nbsp; Gross Margin | 50% | 49% |  |
| &nbsp;&nbsp;Operating Income | $421 | $286 | &nbsp;&nbsp;47% |
| &nbsp;&nbsp; Operating Margin | 8% | 6% |  |
| &nbsp;&nbsp;Net Income | $424 | $341 | &nbsp;&nbsp;24% |
| &nbsp;&nbsp; Net Margin | 8% | 7% |  |

---

 

&nbsp;&nbsp;&nbsp;&nbsp;• **Net Sales:** $5.163 million, a slight increase from the
$5.162 million in the second quarter of fiscal year 2025. This marks the sixth consecutive quarter with sales over $5 million.

&nbsp;&nbsp;&nbsp;&nbsp;• **Gross Profit:** $2.6 million, up 3% from the prior year
second quarter of $2.5 million. Gross margin increased to 50% from 49%, mainly due
to a favorable product mix of high ASP systems, reflecting further maturation of our product offerings, with reduced costs and favorable
warranty expenses in the current period .

&nbsp;&nbsp;&nbsp;&nbsp;• **Operating Income:** Increased 47% to $421 thousand compared
to $286 thousand in the second quarter of fiscal year 2025, due to an increase in gross profit combined with lower operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;• **Net Income:** Increased 24% to $424 thousand, up from $341
thousand in the second quarter of fiscal year 2025, reflecting a combination of higher gross profit and lower operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;• **Other Income:** Interest and dividend income decreased slightly
to $82 thousand for the second quarter of fiscal year 2026 from $85 thousand in the second quarter of fiscal year 2025.

**Second Quarter Fiscal Year 2026 Product and Market Sales Overview**

&nbsp;&nbsp;&nbsp;&nbsp;• **Product Categories:** In-Line Coating Systems (previously
referred to as Integrated Coating Systems) sales decreased by $493 thousand, or 24%, to $1.53 million, primarily driven by a
customer-requested delivery delay in the clean energy sector. Multi-Axis Coating Systems increased by $99 thousand, or 5%, to $2.03
million. Fluxing sales increased by $46 thousand or 39% to $165 thousand, reflecting increased demand from Asia. OEM sales increased by
$189 thousand, or 92%, to $394 thousand driven by strong fluxer OEMs and two new OEM's. Spare parts, Services and Other sales increased
by $160 thousand, or 18% to $1.04 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o During the current reporting period, the Company updated the
title of its product category previously referred to as "Integrated Coating Systems" to "In-Line Coating Systems."
We made this change to provide greater clarity in describing this segment of our business. The definition and contents of this category
remain unchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o In-Line Coating Systems include Sono-Tek products that are typically
stationary platforms with minimal motion control and may occasionally incorporate a simple axis of movement such as a rotation fixture.
These systems are commonly installed over moving substrates such as conveyors or webs, which may be provided either by Sono-Tek or by
the customer. They often employ multiple ultrasonic nozzles to provide uniform coverage over larger areas in continuous production environments.
In-Line Coating Systems are unlike our Multi-Axis Coating Systems, which commonly utilize XYZ motion platforms or 6+ axis robotic configurations.

&nbsp;&nbsp;&nbsp;&nbsp;• **End Markets:** The Medical market increased by 150% y-o-y
or $602 thousand to $1.00 million, led by balloon coating systems shipped to the
U.S., Europe, and China. Alternative/Clean Energy decreased slightly by 3% y-o-y or $65 thousand, to $2.43 million, supported
by a strong clean energy backlog going into FY 2026. The Electronics market declined slightly by 1% y-o-y, down $22 thousand to
$1.46 million. The Industrial market declined 68% or $517 thousand to $238 thousand, influenced
by a large FY 2025 European glass coating order that did not repeat.

&nbsp;&nbsp;&nbsp;&nbsp;• **Geography:** US/Canada sales decreased 22% y-o-y, or $775
thousand, driven by slowing momentum in the US clean energy industry. Offsetting the US sales decline, sales in Asia increased 153% y-o-y,
or $562 thousand, with major growth in China and other parts of Asia. EMEA sales increased 25%, or $288 thousand while Latin American
sales were down $74 thousand.

**First Half Fiscal Year 2026 Overview**

*(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)*

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended August 31,** | **Six Months Ended August 31,** | **Change** |
|  | **2025** | **2024** | $**%** |
| &nbsp;&nbsp;Net Sales | $10295 | $10193 | &nbsp;&nbsp;1% |
| &nbsp;&nbsp;Gross Profit | $5254 | $4971 | &nbsp;&nbsp;6% |
| &nbsp;&nbsp; Gross Margin | 51% | 49% |  |
| &nbsp;&nbsp;Operating Income | $905 | $524 | &nbsp;&nbsp;73% |
| &nbsp;&nbsp; Operating Margin | 9% | 5% |  |
| &nbsp;&nbsp;Net Income | $909 | $672 | &nbsp;&nbsp;35% |
| &nbsp;&nbsp; Net Margin | 9% | 7% |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;• **Net Sales:** $10.30 million, an increase from $10.19 million
in the first half of fiscal year 2025.

&nbsp;&nbsp;&nbsp;&nbsp;• **Gross Profit:** $5.3 million, up 6% from the first half of fiscal year 2025 of $5 million.
Gross margin increased to 51% from 49%, mainly primarily due to product mix and
favorable warranty expenses in the current period .

&nbsp;&nbsp;&nbsp;&nbsp;• **Operating Income:** Increased 73% to $905 thousand compared
to $524 thousand in the first half of fiscal year 2025, due to an increase in gross profit combined with lower operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;• **Net Income:** Increased 35% to $909 thousand, up from $672
thousand in the first half of fiscal year 2025, reflecting a combination of higher gross profit and lower operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;• **Other Income:** Interest and dividend income decreased slightly
to $224 thousand for the first half of fiscal year 2026 compared to $228 thousand for the first half of fiscal year 2025.

**First Half Fiscal Year 2026 Product and Market Sales Overview**

&nbsp;&nbsp;&nbsp;&nbsp;• **Product Categories:** In-Line Coating Systems (previously
referred to as Integrated Coating Systems) sales increased by $1.82 million, or 65%, to $4.58 million, driven
by shipments of six high-ASP systems to a major solar customer totaling $4.42 million. Fluxing sales increased by $64 thousand
or 25% driven by strength in Asia. Multi-Axis Coating Systems declined $1.89 million, or 41%, to $2.71 million following
a strong FY2025 for semiconductor systems that did not repeat, and slower clean energy activity in FY2026 . OEM sales were down
slightly by $13 thousand or 2% and Spare Parts, Services and Other sales were up $126 thousand, a 6% increase.

&nbsp;&nbsp;&nbsp;&nbsp;• **End Markets:** The Medical market rose by 44% or $553 thousand, supported by strong balloon coating systems shipped to the U.S., Europe, and China,
and increased stent coating activity in Europe. Alternative/Clean Energy rose 19% y-o-y, up $901 thousand, driven by the shipment
of six high ASP solar coating systems. The Electronics market declined 21% y-o-y, down $646 thousand following
strong FY2025 semiconductor sales, and FY2026 customer timing for similar machines . The Industrial market declined 67% or $711
thousand, influenced by a large FY 2025 European glass coating order that did
not repeat.

&nbsp;&nbsp;&nbsp;&nbsp;• **Geography:** US/Canada sales decreased 5% y-o-y, or $324
thousand, driven by slowing momentum in the US clean energy industry. This was offset by increased sales in Asia with 74% growth y-o-y,
or $647 thousand, led by strong medical sales in China and strong alternative energy
sales in Japan and South Korea. EMEA sales declined slightly, declining $60 thousand and Latin American sales down $160 thousand, due
to slow fluxing sales in Mexico.

**Balance Sheet and Cash Flow Overview**

At August 31, 2025, cash, cash equivalents and marketable securities totaled $10.6 million, with no debt, and stockholders' equity was $18.7 million.

Capital expenditures in the first half of fiscal 2026 were $113K, which were invested in ongoing upgrades to the Sono-Tek's manufacturing facilities. Sono-Tek anticipates that capital expenditures will total approximately $300k in fiscal year 2026.

**Conference Call Information**

Sono-Tek will hold a conference call to discuss its second quarter and first half of fiscal year 2026 financial results today, Tuesday, October 14, 2025 at 10:30 am ET. To participate, please call 1-844-481-2752 or 1-412-317-0668 for international callers at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call.

A simultaneous webcast of the call may be accessed through the Company's website, <u>Events & Presentations \| Sono-Tek</u> or at <u>https://event.choruscall.com/mediaframe/webcast.html?webcastid=L9LSqRTH</u>

A replay of the call will be available at 1-877-344-7529 or 1-412-317-0088 for international callers, access code 6867548, through October 21, 2025. A replay of the call will also be available on the Company's website for one year at <u>www.sono-tek.com</u>.

**About Sono-Tek**

Sono-Tek Corporation (Nasdaq: SOTK) is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts in diverse industries including medical devices, semiconductors, microelectronics, alternative energy, advanced industrial manufacturing, and research and development sectors.

Sono-Tek has a long history of providing advanced coating solutions to the medical device industry, enabling precision coatings for life-saving technologies such as stents, balloons, diagnostic devices, and various drug delivery platforms. At the same time, our expertise in semiconductor and microelectronics applications continues to expand, as customers increasingly turn to Sono-Tek for solutions supporting next-generation chips, displays, and sensors. Alongside these markets, our technologies are also leading the way in next-generation clean energy coatings for fuel cells, carbon capture, advanced solar cells, and various other advanced industrial applications, underscoring the versatility and broad reach of Sono-Tek's ultrasonic coating platforms.

Our product line is rapidly evolving, transitioning from R&D tools to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services ensures unparalleled results for our clients and helps some of the world's most promising companies achieve technological breakthroughs and bring them to market. The company strategically delivers its products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.

Our growth strategy is focused on leveraging our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop microscopic coating technologies that enable better outcomes for our customers' products and processes. For further information, visit <u>www.sono-tek.com</u>.

**Safe Harbor Statement**

This news release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ materially. These "forward-looking statements' are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device market; continued private and public funding for the clean energy sector and continued strong demand for Sono-Tek's suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement.

**For more information:**

**Sono-Tek Corp.** 

Stephen J. Bagley

Chief Financial Officer

Ph: (845) 795-2020

<u>info@sono-tek.com</u>

**Investor Relations**

Kirin Smith

PCG Advisory, Inc.

<u>ksmith@pcgadvisory.com</u>

***-FINANCIAL TABLES FOLLOW -***

**SONO-TEK CORPORATION**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **August 31,<br> 2025** | **February 28,<br> 2025** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3832133 | $5202361 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 6736469 | 6727678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable (less allowance of $12,225, respectively) | 4212354 | 2347764 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 4152027 | 4474401 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 188695 | 236261 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 19121678 | 18988465 |
| Land | 250000 | 250000 |
| Buildings, equipment, furnishings and leasehold improvements, net | 2413664 | 2610600 |
| Intangible assets, net | 33529 | 37386 |
| Deferred tax asset | 1366864 | 1525185 |
| TOTAL ASSETS | $23185735 | $23411636 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $614512 | $859483 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 1852959 | 1718574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | 1906629 | 2413195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 27813 | 496055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4401913 | 5487307 |
| Deferred tax liability | 88153 | 132134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 4490066 | 5619441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies (Note 10) |  |  |
| Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value; 25,000,000 shares authorized, 15,751,153 issued and 15,707,062 outstanding as of August 31, 2025 and 15,751,153 issued and 15,749,037 outstanding February 28, 2025, respectively | 157512 | 157512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 10163952 | 10018034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | 8533194 | 7624516 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost, 44,091 shares and 2,116 shares, August 31, 2025 and February 28, 2025, respectively | (158989) | (7867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 18695669 | 17792195 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $23185735 | $23411636 |

---

See notes to unaudited condensed consolidated financial statements.

**SONO-TEK CORPORATION**

**CONDENSED CONSOLIDATED STATEMENTS OF INCOME**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended<br> August 31,** | **Six Months Ended<br> August 31,** | **Three Months Ended<br> August 31,** | **Three Months Ended<br> August 31,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net Sales | $10295469 | $10192820 | $5162696 | $5161782 |
| Cost of Goods Sold | 5041218 | 5222236 | 2572959 | 2645685 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross Profit | 5254251 | 4970584 | 2589737 | 2516097 |
| Operating Expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and product development costs | 1295748 | 1427303 | 627278 | 695873 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing and selling expenses | 1729504 | 1885608 | 871353 | 988418 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative costs | 1324477 | 1133387 | 669952 | 545816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | 4349729 | 4446298 | 2168583 | 2230107 |
| Operating Income | 904522 | 524286 | 421154 | 285990 |
| Interest and Dividend Income | 223660 | 227730 | 81562 | 85076 |
| Net unrealized gain on marketable securities | 1570 | 53941 | 23493 | 43580 |
| Income Before Income Taxes | 1129752 | 805957 | 526209 | 414646 |
| Income Tax Expense | 221074 | 134435 | 102516 | 73961 |
| Net Income | $908678 | $671522 | $423693 | $340685 |
| Basic Earnings Per Share | $0.06 | $0.04 | $0.03 | $0.02 |
| Diluted Earnings Per Share | $0.06 | $0.04 | $0.03 | $0.02 |
| Weighted Average Shares - Basic | 15727844 | 15750895 | 15721162 | 15750910 |
| Weighted Average Shares - Diluted | 15740384 | 15771472 | 15731571 | 15768251 |

---

See notes to unaudited condensed consolidated financial statements.

**Product Sales**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> August 31,** | **Three Months Ended <br> August 31,** | **Change** | **Change** | **Six Months Ended <br> August 31,** | **Six Months Ended <br> August 31,** | **Change** |
|  | **2025** | **2024** | **$** | **%** | **2025** | **2024** | **%** |
| Fluxing Systems | $165000 | $119000 |  | 39% | $317000 | $253000 | 25% |
| In-Line Coating Systems <sup>1</sup> | 1530000 | 2023000) |  | (24%) | 4584000 | 2770000 | 65% |
| Multi-Axis Coating Systems | 2030000 | 1931000 |  | 5% | 2707000 | 4595000) | (41%) |
| OEM Systems | 394000 | 205000 |  | 92% | 524000 | 537000) | (2%) |
| Spare Parts, Services and Other | 1044000 | 884000 |  | 18% | 2164000 | 2038000 | 6% |
| TOTAL | $5163000 | $5162000 |  | 0% | $10296000 | $10193000 | 1% |

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&nbsp;&nbsp;&nbsp;&nbsp;1. During the current reporting period, the Company updated the title of its product category previously referred to as "Integrated
Coating Systems" to "In-Line Coating Systems." This change was made to provide greater clarity in describing this product
line of our business. The definition and contents of this category remain unchanged. In-Line Coating Systems include Sono-Tek products
that are typically stationary platforms with minimal motion control, and may occasionally incorporate a simple axis of movement such as
a rotation fixture. These systems are commonly installed over moving substrates such as conveyors or webs, which may be provided either
by Sono-Tek or by the customer. They often employ multiple ultrasonic nozzles to provide uniform coverage over larger areas in continuous
production environments. In-Line Coating Systems are unlike our Multi-Axis Coating Systems, which commonly utilize XYZ motion platforms
or 6+ axis robotic configurations.

**Market Sales**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> August 31,** | **Three Months Ended <br> August 31,** | **Change** | **Six Months Ended <br> August 31,** | **Six Months Ended <br> August 31,** | **Change** |
|  | **2025** | **2024** | **%** | **2025** | **2024** | **%** |
| Electronics/Microelectronics | $1455000 | $1477000) | (1%) | $2399000 | $3045000) | (21%) |
| Medical | 1004000 | 402000 | 150% | 1812000 | 1259000 | 44% |
| Alternative/Clean Energy | 2433000 | 2498000) | (3%) | 5681000 | 4780000 | 19% |
| Emerging R&D and Other | 33000 | 30000 | 10% | 47000 | 41000 | 15% |
| Industrial | 238000 | 755000 | (68%) | 357000 | 1068000 | (67%) |
| TOTAL | $5163000 | $5162000 | 0% | $10296000 | $10193000 | 1% |

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**Geographic Sales**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> August 31,** | **Three Months Ended <br> August 31,** | **Change** | **Six Months Ended <br> August 31,** | **Six Months Ended <br> August 31,** | **Change** |
|  | **2025** | **2024** | **%** | **2025** | **2024** | **%** |
| U.S. & Canada | $2720000 | $3495000) | (22%) | $6263000 | $6587000) | (5%) |
| Asia Pacific (APAC) | 930000 | 368000 | 153% | 1527000 | 880000 | 74% |
| Europe, Middle East, Asia (EMEA) | 1424000 | 1136000 | 25% | 2321000 | 2381000) | (3%) |
| Latin America | 89000 | 163000 | (45%) | 185000 | 345000 | (46%) |
| TOTAL | $5163000 | $5162000 | 0% | $10296000 | $10193000 | 1% |

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