Solitron Devices, Inc. (OTCMKTS:SODI) Files An 8-K Results of Operations and Financial ConditionItem 2.02.
On May 31, 2017 Solitron Devices, Inc. (“Solitron” or the “Company”) announced that it expected to take an inventory charge due to excess and obsolescence (“E&O”) and wafer yield loss that would result in year-end inventory being approximately $2.7 million. The Company is announcing that as of July 21, 2017, it believes it has completed its work on allocating the charge to the proper periods. As part of management's review, it has been determined, subject to review by the Company's auditors, that the E&O component of the inventory charge is expected to be approximately $200,000 higher due to a revision in inventory policy to reserve all wafers that are not directly tied to existing orders. In addition, it was determined, subject to review by the Company’s auditors, that an additional charge of approximately $200,000 was necessary for excess raw materials (material in excess of two years average use). Approximately three-fourths of the E&O charge for excess raw materials relates to raw materials purchased prior to calendar year 2014. Management's current estimate of year-end inventory as of February 28, 2017, is approximately $2.3 million.
Section 3 – Securities and Trading Markets
|Item 3.01.||Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard, Transfer of Listing.|
On July 17, 2017, the trading of the common stock of Solitron was moved from the OTCQB marketplace to the OTC Pink marketplace due to the Company’s failure to remain within the continued standards as found in Section 2 of the OTCQB Eligibility Standards by not filing its Form 10-K for the year ended February 28, 2017 within forty-five days of its due date. The Company received notice from the OTC Markets Group regarding the move to the OTC Pink marketplace on July 14, 2017. The stock still trades under the symbol “SODI.” The Company intends to reapply for listing on the OTCQB marketplace once it has filed with the Securities and Exchange Commission all applicable periodic filings.
Section 7 – Regulation FD
|Item 7.01||Regulation FD Disclosure.|
The information set forth under "Item 2.02 Results of Operations and Financial Condition" of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.
About Solitron Devices, Inc. (OTCMKTS:SODI)
Solitron Devices, Inc. designs, develops, manufactures and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company manufactures a range of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field effect transistors (Power MOSFETS), field effect transistors and other related products. Other products, such as Joint Army/Navy (JAN) transistors, diodes and Standard Military Drawings (SMD) voltage regulators, are sold as standard or catalog items. Its semiconductor products are classified as active electronic components, which include bipolar transistors and MOS transistors. Its semiconductor products are used as components of military, commercial and aerospace electronic equipment, such as ground and airborne radar systems, power distribution systems, missiles, missile control systems and spacecraft. Its products are also used on the space shuttle.