v3.26.1

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash	$ 1,655	$ 916
Accounts receivable, less allowances of $161 and $196, respectively	16,998	14,875
Inventories, net	20,695	21,638
Contract assets	15,184	13,792
Prepaid assets and other assets	1,618	4,094
Total current assets	56,150	55,315
Property and equipment, net	5,203	6,232
Operating lease assets	7,016	8,139
Deferred tax assets	3,394	2,575
Other intangible assets, net	156	174
Total assets	71,919	72,435
Current liabilities:
Line of credit	7,000
Accounts payable	12,809	11,582
Accrued payroll and commissions	1,822	1,841
Customer deposits	5,386	5,140
Current portion of operating leases	1,332	1,175
Current portion of finance lease obligations	274	143
Other accrued liabilities	1,221	1,547
Total current liabilities	29,844	21,428
Long-term liabilities:
Long-term line of credit		8,634
Long-term operating lease obligations, net of current portion	6,476	7,773
Long-term finance lease obligations, net of current portion	626	311
Other long-term liabilities	426	284
Total long-term liabilities	7,528	17,002
Total liabilities	37,372	38,430
Shareholders’ equity:
Preferred stock, $1 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding	250	250
Common stock - $0.01 par value; 9,000,000 shares authorized; 2,786,134 and 2,760,793 shares issued and outstanding, respectively	28	28
Additional paid-in capital	17,855	17,329
Accumulated other comprehensive loss	(709)	(977)
Retained earnings	17,123	17,375
Total shareholders’ equity	34,547	34,005
Total liabilities and shareholders’ equity	$ 71,919	$ 72,435

Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

NORTECH SYSTEMS INC 10-K