Note 9 - Subsequent Events

On January 1, 2024, 60,000 restricted shares issued to the independent board members were vested.

On January 8, 2024, $76 thousand and $56 thousand was paid to Danny Schoening, CEO and Karen Hawkins, CFO, respectively for incentive bonuses calculated in accordance with a formula previously approved by the Board of Directors’ Compensation Committee for performance against the fiscal year 2023 measurement targets.

On January 18, 2024, Optex Systems Holdings, Inc., through its wholly-owned subsidiary Optex Systems, Inc. (collectively, the “Company”), entered into an asset purchase agreement and a contract manufacturing agreement with RUB Aluminium s.r.o. (“RUB”). Under the agreements, the Company acquired certain intellectual property and technical and marketing information relating to the Speedtracker Mach product line, which is primarily used for firearm projectile speed detection, measuring and tracking. RUB will continue to manufacture Speedtracker Mach products on behalf of the Company. The Company acquired the assets using $1 million in cash on hand, with potential additional future cash payments based on successful completion of defined milestones. The initial term of the contract manufacturing agreement is one year, subject to additional one-year renewal terms to which both parties must agree.

The acquisition is deemed as a non-significant asset acquisition of intangible assets based on the guidance of U.S. GAAP ACS 805 and does not meet the significance test pursuant to SEC Rule 3-05.