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What changed in LSI INDUSTRIES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of LSI INDUSTRIES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+64 added−70 removedSource: 10-K (2025-09-11) vs 10-K (2024-09-11)

Top changes in LSI INDUSTRIES INC's 2025 10-K

64 paragraphs added · 70 removed · 54 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

13 edited+2 added−1 removed36 unchanged
Biggest changeThe Company offers a nonqualified deferred compensation plan, an equity-based incentive plan and an incentive plan that is based upon the achievement of the Company’s business plan goals, for certain employees. 7 Information Concerning the Company We file reports with the Securities and Exchange Commission (“SEC”) on Forms 10-K, 10-Q and 8-K.
Biggest changeWe offer a comprehensive compensation and benefits program to our employees, including competitive wages, medical and dental insurance, and a 401(k) retirement savings plan. 7 Information Concerning the Company We file reports with the Securities and Exchange Commission (“SEC”) on Forms 10-K, 10-Q and 8-K.
Most lighting products are made to order and shipped shortly after they are manufactured. Our display solutions operations manufacture custom products for customers who require us to stock certain amounts of finished goods in exchange for their commitment to that inventory.
Most lighting products are made to order and shipped shortly after they are manufactured whereas our display solutions operations manufacture custom products for customers who require us to stock certain amounts of finished goods in exchange for their commitment to that inventory.
In addition to the products manufactured by EMI, the Display Solutions Segment also manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, refrigerated displays, and custom display elements.
In addition to the products manufactured by EMI and CBH, the Display Solutions Segment also manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, digital menu board systems, refrigerated displays, and custom display elements.
Increasingly, we have become the primary supplier of exterior and interior visual image and display elements for our customers. 5 Sales, Customers and Marketing The products and services we offer are sold primarily throughout the United States, but also in Canada, Mexico, and Latin America (approximately 4% of consolidated net sales are outside the United States).
Increasingly, we have become the primary supplier of exterior and interior visual image and display elements for our customers. 5 Sales, Customers and Marketing The products and services we offer are sold primarily throughout the United States, but also in Canada, Mexico, Latin America, and the Caribbean (approximately 3% of consolidated net sales are outside the United States).
Certain market verticals, grocery and QSR for example, restrict renovation activity during the November and December holiday season, as these are the high consumer traffic and sales periods. Sales in our Lighting Segment are to customers in both the new construction and renovation and retrofit markets.
Certain market verticals, grocery and quick-service restaurants (QSR) for example, restrict renovation activity during the November and December holiday season, as these are the high consumer traffic and sales periods. Sales in our Lighting Segment are to customers in both the new construction and renovation and retrofit markets.
EMI is a metal and millwork manufacturer of standard and customized fixtures, displays, and food equipment for the convenience store, grocery, and restaurant industries. Due to the similarity and complimentary nature of the products manufactured by EMI with our other current product offerings, we consolidated EMI with our Display Solutions Segment.
EMI is a metal and millwork manufacturer of standard and customized fixtures, displays, and food equipment for the convenience store, grocery, and restaurant industries. Due to the similarity and complementary nature of the products manufactured by EMI and CBH with our other current product offerings, we consolidated these companies with our Display Solutions Segment.
Research and development costs related to both product and software development totaled $3.5 million and $3.4 million for the fiscal years ended June 30, 2024, and 2023, respectively.
Research and development costs related to both product and software development totaled $3.3 million and $3.5 million for the fiscal years ended June 30, 2025, and 2024, respectively.
Our business is organized as follows: the Lighting Segment, which represented 56% of our fiscal 2024 net sales and the Display Solutions Segment, which represented 44% of our fiscal 2024 net sales. See Note 3 of Notes to Consolidated Financial Statements beginning on page 48 of this Form 10-K for additional information on business segments.
Our business is organized as follows: the Lighting Segment, which represented 43% of our fiscal 2025 net sales and the Display Solutions Segment, which represented 57% of our fiscal 2025 net sales. See Note 4 of Notes to Consolidated Financial Statements beginning on page 48 of this Form 10-K for additional information on business segments.
Our marketing approach and means of distribution vary by product line and by market. Manufacturing and Distribution We currently operate out of sixteen manufacturing facilities located within eleven U.S. states and one province in Ontario, Canada. We design, engineer, and manufacture most of our lighting and display products through the utilization of lean manufacturing principles.
Our marketing approach and means of distribution vary by product line and by market. Manufacturing and Distribution We currently operate out of eighteen manufacturing facilities located within eleven U.S. states, one leased facility in Mexico, and two provinces in Canada. We design, engineer, and manufacture most of our lighting and display products through the utilization of lean manufacturing principles.
The major products and services offered by our Display Solutions Segment include signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated food and beverage displays, check-out counters, and non-refrigerated merchandising displays.
The major products and services offered by our Display Solutions Segment include signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated food and beverage displays, check-out counters, and an array of merchandising displays and cabinetry specific to the needs of our customers.
We strive to reduce price volatility in our purchases of raw materials and components through annual contracts with strategic suppliers. Our Lighting operations generally carry a certain level of sub-assemblies and finished goods inventory to meet quick delivery requirements. The Company’s operations dealing with LED products generally carry LED and LED component inventory due to longer lead times.
We strive to reduce price volatility in our purchases of raw materials and components through annual contracts with strategic suppliers. Our Lighting operations generally carry a certain level of sub-assemblies and finished goods inventory to meet quick delivery requirements.
Utilizing LED light sources, our products are designed for energy efficiency, reliability, performance, ease of installation and service while providing a high degree of overall aesthetic appeal. We focus on providing performance based, energy efficient lighting solutions implemented across all key vertical markets served. Display Solutions Segment We acquired EMI Industries, LLC (EMI) in the fourth quarter of fiscal 2024.
Utilizing LED light sources, our products are designed for energy efficiency, reliability, performance, and ease of installation and service while providing a high degree of overall aesthetic appeal. We focus on providing performance based, energy efficient lighting solutions implemented across all key vertical markets served.
Net sales by segment are as follows (in thousands): 2024 2023 Lighting Segment $ 262,413 $ 272,451 Display Solutions Segment 207,225 224,528 Total Net Sales $ 469,638 $ 496,979 Lighting Segment Our Lighting Segment manufactures, markets, and sells outdoor and indoor lighting fixture and controls solutions in the following vertical markets: refueling and convenience store, parking lot and garage, quick-service restaurant, retail, grocery and pharmacy, automotive dealership, sports court and field, and warehouse.
Net sales by segment are as follows (in thousands): 2025 2024 Lighting Segment $ 248,357 $ 262,413 Display Solutions Segment 325,020 207,225 Total Net Sales $ 573,377 $ 469,638 Lighting Segment Our Lighting Segment manufactures, markets, and sells outdoor and indoor lighting fixture and controls solutions in several vertical markets such as but not limited to the following: refueling and convenience store, parking lot and garage, quick-service restaurant, retail, grocery and pharmacy, automotive dealership, sports court and field, and warehouse.
Removed
We have approximately 1,900 full-time and part-time employees and approximately 70 agency employees as of June 30, 2024. We offer a comprehensive compensation and benefits program to our employees, including competitive wages, medical and dental insurance, and a 401(k)-retirement savings plan.
Added
Display Solutions Segment We acquired Canada’s Best Holdings (CBH), an Ontario Canada-based company in the third quarter of fiscal 2025. CBH is a leading provider of retail fixtures and custom store design solutions for grocery, quick service restaurant, c-store, banking, and specialty retail industries. We also acquired EMI Industries, LLC (EMI) in the fourth quarter of fiscal 2024.
Added
We have approximately 2,000 full-time and part-time employees and approximately 175 agency employees as of June 30, 2025.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control . We depend heavily on the proper functioning and availability of our information, communications, and data processing systems, including operating and financial reporting systems, in operating our business.
Biggest changeEven when price increases are successful, the timing of such price increases may lag behind the incurrence of higher costs. 9 Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control .
This could in turn put pressure on our manufacturing costs and result in reduced profit margin associated with certain of our customer programs, or loss of customer programs that we may not be able to replace. 13 RISKS RELATED TO FINANCIAL MATTERS A significant decline in our stock price could adversely affect our ability to raise additional capital.
This could in turn put pressure on our manufacturing costs and result in reduced profit margin associated with certain of our customer programs, or loss of customer programs that we may not be able to replace. RISKS RELATED TO FINANCIAL MATTERS A significant decline in our stock price could adversely affect our ability to raise additional capital.
We may experience design, manufacturing, marketing, or other difficulties, such as an inability to attract a sufficient number of experienced engineers which could delay or prevent our development, introduction or marketing of new products or enhancements and result in unexpected expenses. Such difficulties could cause us to lose business from our customers and could adversely affect our competitive position.
We may experience design, manufacturing, marketing, or other difficulties, such as inability to attract a sufficient number of experienced engineers which could delay or prevent our development, introduction or marketing of new products or enhancements and result in unexpected expenses. Such difficulties could cause us to lose business from our customers and could adversely affect our competitive position.
In addition, a delay in the receipt of revenues, even if such revenues are eventually received, may cause our operating results for a particular quarter to fall below our expectations. RISKS RELATED TO LEGAL AND REGULATORY MATTERS Potential changes in U.S. trade policies could have a material adverse effect on the Company.
In addition, a delay in the receipt of revenues, even if such revenues are eventually received, may cause our operating results for a particular quarter to fall below our expectations. 11 RISKS RELATED TO LEGAL AND REGULATORY MATTERS Potential changes in U.S. trade policies could have a material adverse effect on the Company.
Two of our largest market verticals are to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business. The Company has a concentration of sales in the refueling and convenience store and grocery markets.
Two of our largest market verticals are the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business. The Company has a concentration of sales in the refueling and convenience store and grocery markets.
The price to be paid would be the greater of the highest price paid by such 15% owner in acquiring its shares or the highest trading price for a period of time prior to such person becoming a 15% owner; ● the votes of holders of 66 2/3% of all outstanding shares is required to amend our Articles of Incorporation and to approve mergers, reorganizations, and similar transactions; and advance notice requirements by shareholders for director nominations and actions to be taken at annual meetings.
The price to be paid would be the greater of the highest price paid by such 15% owner in acquiring its shares or the highest trading price for a period of time prior to such person becoming a 15% owner; ● the votes of holders of 66 2/3% of all outstanding shares are required to amend our Articles of Incorporation and to approve mergers, reorganizations, and similar transactions; and advance notice requirements by shareholders for director nominations and actions to be taken at annual meetings.
Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected. 14
Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.
If the inflation rate continues to increase, it will likely affect our expenses, including, but not limited to, employee compensation and labor expenses along with the cost of various goods and services the Company purchases, and we may not be successful in offsetting such cost increases.
If the inflation rate increases, it will likely affect our expenses, including, but not limited to, employee compensation and labor expenses along with the cost of various goods and services the Company purchases, and we may not be successful in offsetting such cost increases.
Recent increases in inflation and interest rates in the United States and elsewhere could adversely affect our business. We are exposed to fluctuations in inflation and interest rates, which could negatively affect our business, financial condition, and results of operations. The United States and other jurisdictions have recently experienced high levels of inflation.
Increases in inflation and interest rates in the United States and elsewhere could adversely affect our business. We are exposed to fluctuations in inflation and interest rates, which could negatively affect our business, financial condition, and results of operations. The United States and other jurisdictions have experienced high levels of inflation.
Products or technologies developed by others may render the Company’s products or technologies obsolete or noncompetitive. A fundamental shift in technologies in key product markets could have a material adverse effect on the Company’s operating results and competitive position within the industry.
Products or technologies developed by others may render the Company’s products or technologies obsolete or non-competitive. A fundamental shift in technologies in key product markets could have a material adverse effect on the Company’s operating results and competitive position within the industry.
In addition, actions by our competitors, our customer’s financial constraints, and industry factors or otherwise, could have an adverse effect on our business in either of these markets. 9 The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits The Company has grown and strengthened its business through strategic acquisitions and will continue to do so as opportunities arise in the future in order to meet the Company’s growth objectives.
In addition, actions by our competitors, our customers’ financial constraints, and industry factors or otherwise, could have an adverse effect on our business in either of these markets. 8 The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits The Company has grown and strengthened its business through strategic acquisitions and will continue to do so as opportunities arise in the future in order to meet the Company’s growth objectives.
ITEM 1A. RISK FACTORS In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition, cash flows or future results. Any one of these factors could cause the Company’s actual results to vary materially from recent results or from anticipated future results.
ITEM 1A. RISK FACTORS In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition, cash flows or future results. Anyone of these factors could cause the Company’s actual results to vary materially from recent results or from anticipated future results.
In addition, a continued increase in interest rates will further result in increased interest expense. Anti-takeover provisions in our organizational documents and in Ohio law could make difficult or delay a change in management or negatively impact our share price.
In addition, an increase in interest rates will further result in increased interest expense. 12 Anti-takeover provisions in our organizational documents and in Ohio law could make difficult or delay a change in management or negatively impact our share price.
The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations.
RISKS RELATED TO OUR STRATEGY The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations.
In as many instances as possible, we require a commitment from the customer before the inventory is produced. Our request for a commitment can range from a single site or store to a large rollout program involving many sites or stores. The risk does exist that a customer cannot or will not honor its commitment to us.
Our request for a commitment may range from a single site or store to a large rollout program involving many sites or stores. The risk does exist that a customer cannot or will not honor its commitment to us.
Although the Company attempts to pass along increased costs in the form of price increases to its customers, the Company may be unsuccessful in doing so for competitive reasons. Even when price increases are successful, the timing of such price increases may lag significantly behind the incurrence of higher costs.
Although the Company attempts to pass along increased costs in the form of price increases to its customers, the Company may be unsuccessful in doing so for competitive reasons.
Our information systems are protected through physical and software security as well as redundant backup systems, however, as cyber-attacks continue to evolve, we are committed to investing in our cyber defenses in order to mitigate the risks.
Our information systems are protected through physical and software security as well as redundant backup systems, however, as cyber-attacks continue to evolve, we are committed to investing in our cyber defenses in order to mitigate the risks. Some of our software systems are provided and/or utilized by third parties who maintain responsibility for mitigating cybersecurity risk.
Our customers have the right under some circumstances to terminate contracts or defer the timing of our shipments or installments and their payments to us. We may not receive all of the revenues from our backlog. If we do not receive all of the revenues we currently expect to receive, our future operating results could be adversely affected.
We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts. Our customers have the right under some circumstances to terminate contracts or defer the timing of our shipments or installments and their payments to us. We may not receive all of the revenues from our backlog.
Some of our purchased components are sourced from or manufactured in foreign countries. Import tariffs and potential import tariffs have resulted or may result in increased prices for these imported goods and materials and, in some cases, may result or have resulted in price increases for domestically sourced goods and materials.
Import tariffs will result in increased prices for imported goods and materials and, in some cases, may result or have resulted in price increases for domestically sourced goods and materials.
Rising wages across an improving economy can increase the competition among employers for a scarce labor force and make it difficult for us to attract and retain key personnel. 11 If the Company ’ s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims The Company may need to recall products if they are improperly designed, manufactured, packaged, or labeled, and the Company’s insurance may not provide full coverage for such recall events.
If the Company ’ s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims The Company may need to recall products if they are improperly designed, manufactured, packaged, or labeled, and the Company’s insurance may not provide full coverage for such recall events.
Our systems and those of our technology and communications providers are vulnerable to interruptions caused by natural disasters, power loss, telecommunication and internet failures, cyber-attack, and other events beyond our control.
We depend heavily on the proper functioning and availability of our information, communications, and data processing systems, including operating and financial reporting systems, in operating our business. Our systems and those of our technology and communications providers are vulnerable to interruptions caused by natural disasters, power loss, telecommunication and internet failures, cyber-attack, and other events beyond our control.
These measures could also result in increased costs for goods imported into the U.S. or may cause us to adjust our foreign supply chain. Either of these could require us to increase prices to our customers which may reduce demand, or, if we are unable to increase prices, result in lowering our margin on products sold.
These measures could also result in increased costs for goods imported into the U.S. or may cause us to adjust our foreign supply chain.
Changes in a customer ’ s demands and commitment to proprietary inventory could result in significant inventory write-offs. Upgrading or replacing a customer’s current image requires the manufacture of inventory that is specific to the particular customer. This is particularly true in the Display Solutions Segment.
Upgrading or replacing a customer’s current image requires the manufacture of inventory that is specific to the particular customer. This is particularly true in the Display Solutions Segment. In as many instances as possible, we require a commitment from the customer before the inventory is produced.
The development and maintenance of these measures is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become increasingly more sophisticated. Despite our efforts, we are not fully insulated from data breaches, technology disruptions or data loss, which could adversely impact our competitiveness and results of operations.
Despite our efforts, we are not fully insulated from data breaches, technology disruptions or data loss, which could adversely impact our competitiveness and results of operations.
The Company may not be able to obtain indemnity or reimbursement from its suppliers or other third parties for the warranty costs or liabilities associated with its products. A significant product recall, warranty claim, or product liability case could also result in adverse publicity, damage to the Company’s reputation, and a loss of consumer confidence in its products.
The Company may not be able to obtain indemnity or reimbursement from its suppliers or other third parties for the warranty costs or liabilities associated with its products.
Further, the difference in gross margin of the products sold within the Lighting and Display Solutions Segments can also vary significantly.
Further, the difference in gross margin of the products sold within the Lighting and Display Solutions Segments can also vary significantly. Consequently, changes in the product mix of our sales from quarter-to-quarter or from year-to-year can have a significant impact on our reported gross profit margins.
While the Company is frequently monitoring its outstanding receivables with its customers, the risk does exist that a customer with large credit exposure is unable to make payment on its outstanding receivables which could result in a significant write-off of accounts receivable. 10 Price increases in, and significant shortages of, raw materials and components; and shortages in transportation and increased fuel prices could adversely affect our operating margin.
RISKS RELATED TO OUR OPERATIONS Price increases in, and significant shortages of, raw materials and components; and shortages in transportation and increased fuel prices could adversely affect our operating margin.
Some of our software systems are provided and/or utilized by third parties who maintain responsibility for mitigating cybersecurity risk We have invested and continue to invest in technology security initiatives, employee training, information technology risk management and disaster recovery plans.
We have invested and continue to invest in technology security initiatives, employee training, information technology risk management and disaster recovery plans. The development and maintenance of these measures is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become increasingly more sophisticated.
Removed
Risk Factor Summary Risks Related to Our Strategy ● Lower levels of economic activity in our end markets could adversely affect our operating results. ● The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations. ● The markets in which we operate are subject to competitive pressures that could affect selling prices, and therefore could adversely affect our operating results. ● Two of our largest market verticals are to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business. ● The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits. ● If we do not develop the appropriate new products or if customers do not accept new products, we could experience a loss of competitive position which could adversely affect future revenues. ● If we are unable to adequately protect our intellectual property, we may lose some of our competitive advantage.
Added
Rising wages across an improving economy can increase the competition among employers for a scarce labor force and make it difficult for us to attract and retain key personnel.
Removed
Risks Related to our Operations ● Sudden or unexpected changes in a customer’s creditworthiness could result in significant accounts receivable write-offs. ● Price increases in, and significant shortages of, raw materials and components; and shortages in transportation and increased fuel prices could adversely affect our operating margin. ● Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control . ● Labor shortages or increases in labor costs could adversely impact our business and results of operations. ● If the Company’s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims. ● Changes in a customer’s demands and commitment to proprietary inventory could result in significant inventory write-offs. ● The turnover of independent commissioned sales representatives could cause a significant disruption in sales volume. ● The Company may be unable to sustain significant customer and/or channel partner relationships. ● A loss of key personnel or inability to attract qualified personnel could have an adverse effect on our operating results. ● Changes in a shift in product mix can have a significant impact on our gross margins. ● We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts.
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A significant product recall, warranty claim, or product liability case could also result in adverse publicity, damage to the Company’s reputation, and a loss of consumer confidence in its products. 10 Changes in a customer ’ s demands and commitment to proprietary inventory could result in significant inventory write-offs.
Removed
Risks Related to Legal and Regulatory Matters ● Potential changes in U.S. trade policies could have a material adverse effect on the Company. ● Changes in our tax rates and exposures to additional income tax liabilities could have an unfavorable effect on the Company’s reported results. ● Emphasis on environmental, social, and governance (“ESG”) matters by various stakeholders could negatively affect our business. 8 Risks Related to Financial Matters ● A significant decline in our stock price could adversely affect our ability to raise additional capital. ● Recent increases in inflation and interest rates in the United States and elsewhere could adversely affect our business. ● Anti-takeover provisions in our organizational documents and in Ohio law could make difficult or delay a change in management or negatively impact our share price. ● Due to inherent limitations, there can be no assurance that our system of disclosure and internal controls and procedures will be successful in preventing all errors, theft, and fraud, or in informing management of all material information in a timely manner.
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If we do not receive all of the revenues we currently expect to receive, our future operating results could be adversely affected.
Removed
RISKS RELATED TO OUR STRATEGY Lower levels of economic activity in our end markets could adversely affect our operating results. Our businesses operate in several vertical market segments including the refueling and convenience store markets, parking lot and garage markets, quick-service restaurant market, retail and grocery store markets, the automotive market, the warehouse market, and the sports complex market.
Added
There is uncertainty about the future relationship between the U.S and various other countries with respect to trade policies and tariffs. There is also uncertainty as to whether trade between the U.S. and other countries, including countries in which we operate along with countries where our customers or suppliers operate, may be impacted by those policy developments.
Removed
Operating results can be negatively impacted by volatility in these markets. Future downturns in any of the markets we serve could adversely affect our overall sales, profitability, and cash flow.
Added
Changes in policy or continued uncertainty could depress economic activity and restrict our access to certain suppliers and customers. Tariffs implemented on our component parts and certain finished good inventory will increase the cost of our products manufactured at our plants in the U.S. and in Canada. Some of our purchased components are sourced from or manufactured in foreign countries.
Removed
In addition, customer difficulties in the future could result from economic declines or issues arising from the cyclical nature of their business and, in turn, result in decreases in product demand, increases in bad debt write-offs, decreases in timely collection of accounts receivable and adjustments to our allowance for credit losses, resulting in material reductions to our revenues and net earnings.
Added
Either of these could require us to increase prices to our customers, which may reduce demand, or, if we are unable to increase prices, result in lowering our margin on products sold which in turn could adversely impact our business, financial condition, and results of operations.
Removed
In addition, economic and political conditions worldwide have from time to time contributed to slowdowns in our industry at large, as well as to the specific markets in which we operate.
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If the markets in which we participate experience economic downturns, as well as a slow recovery period, this could negatively impact our sales and revenue generation, margins, and operating expenses, and consequently have a material adverse effect on our business, financial condition and results of operations.
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RISKS RELATED TO OUR OPERATIONS Sudden or unexpected changes in a customer ’ s creditworthiness could result in significant accounts receivable write-offs. The Company takes a conservative approach when extending credit to its customers.
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Customers are granted an appropriate credit limit based upon the due diligence performed on the customer which includes, among other things, the review of the company’s financial statements and banking information, various credit checks, and payment history the customer has with the Company.
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At any given time, the Company can have a significant amount of credit exposure with its larger customers.
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Consequently, changes in the product mix of our sales from quarter-to-quarter or from year-to-year can have a significant impact on our reported gross profit margins. 12 We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts.
Removed
Changes in the U.S. trade policy, U.S. social, political, regulatory, and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we currently purchase component parts and sell products, and any resulting negative sentiments towards the United States as a result of such changes, could have an adverse effect on our business.
Removed
We cannot predict future trade policy or the terms of any renegotiated trade agreements and their impacts on our business.
Removed
The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements, or policies has the potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the U.S. economy, which in turn could adversely impact our business, financial condition, and results of operations.

Item 2. Properties

Properties — owned and leased real estate

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Biggest change(includes 4,000 sq. ft. of office space) Bangor, ME Leased 10) Display Solutions manufacturing 77,000 sq. ft. Collingwood, ON Leased 11) Display Solutions office 1,000 sq. ft. Gloucester, MA Leased 12) Display Solutions manufacturing 68,000 sq. ft. Payson, UT Leased 13) Display Solutions office and manufacturing 124,000 sq. ft. Tampa, FL Leased 14) Display Solutions manufacturing 61,000 sq. ft.
Biggest change(includes 8,000 sq. ft. of office space Milo, ME Owned 8a) Display Solutions office and manufacturing 64,000sq. ft. (includes 4,000 sq. ft. of office space) Bangor, ME Leased 8b) Display Solutions office and manufacturing 42,500 sq. ft. Bangor, ME Leased 9) Display Solutions manufacturing 77,000 sq. ft. Collingwood, ON Leased 10) Display Solutions manufacturing 68,000 sq. ft.
ITEM 2. PROPERTIES Description Size Location Status 1) Corporate Headquarters and Lighting and Display Solutions manufacturing 243,000 sq. ft. (includes 66,000 sq. ft of office space) Cincinnati, OH Owned 2) Lighting manufacturing 122,000 sq. ft. Cincinnati, OH Owned 3) Lighting office and manufacturing 96,000 sq. ft.
Item 2. Properties Description Size Location Status 1a) Corporate Headquarters and Lighting and Display Solutions manufacturing 243,000 sq. ft. (includes 66,000 sq. ft of office space) Cincinnati, OH Owned 1b) Lighting manufacturing 122,000 sq. ft. Cincinnati, OH Owned 2) Lighting office and manufacturing 96,000 sq. ft.
(includes 5,000 sq. ft. of office space Independence, KY Owned 4) Display Solutions office and manufacturing 183,000 sq. ft. (includes 34,000 sq. ft. of office space) Houston, TX Leased 5) Display Solutions office 46,000 sq. ft. (includes 10,000 sq. ft. of office space Akron, OH Leased 6) Lighting office and manufacturing 57,000 sq. ft.
(includes 5,000 sq. ft. of office space Independence, KY Owned 3) Display Solutions office and manufacturing 183,000 sq. ft. (includes 34,000 sq. ft. of office space) Houston, TX Leased 4) Display Solutions office 10,000 sq. ft. Uniontown, OH Leased 5a) Lighting office and manufacturing 57,000 sq. ft.
(includes 5,000 sq. ft. of office space) Columbus, OH Owned 7) Lighting office and manufacturing 336,000 sq. ft. (includes 60,000 sq. ft. of office space) Burlington, NC Leased 8) Display Solutions office and manufacturing 77,000 sq. ft. (includes 8,000 sq. ft. of office space Milo, ME Owned 9) Display Solutions office and manufacturing 106,000 sq. ft.
(includes 5,000 sq. ft. of office space) Columbus, OH Owned 5b) Lighting office and manufacturing 56,500 sq. ft. (includes 9,000 sq. ft. of office space) Columbus, OH Leased 6) Lighting office and manufacturing 336,000 sq. ft. (includes 60,000 sq. ft. of office space) Burlington, NC Leased 7) Display Solutions office and manufacturing 77,000 sq. ft.
Arlington, TX Leased 15) Display Solutions office and manufacturing 110,000 sq. ft. Cranston, RI Leased 16) Display Solutions manufacturing 37,000 sq. ft. Boonton, NJ Leased 17) Display Solutions manufacturing 62,000 sq. ft. Alpharetta, GA Leased 18) Display Solutions warehouse 5,400 sq. ft. Queretaro, Mexico Leased
Payson, UT Leased 11) Display Solutions office and manufacturing 124,000 sq. ft. Tampa, FL Leased 12) Display Solutions manufacturing 61,000 sq. ft. Arlington, TX Leased 13) Display Solutions office and manufacturing 110,000 sq. ft. Cranston, RI Leased 14) Display Solutions manufacturing 37,000 sq. ft. Boonton, NJ Leased 15) Display Solutions manufacturing 62,000 sq. ft.
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Alpharetta, GA Leased 16) Display Solutions warehouse 5,400 sq. ft. Queretaro, Mexico Leased 17a) Display Solutions manufacturing 47,500 sq. ft.(includes 1,050 sq. ft. of office space) Ontario, Canada Leased 17b) Display Solutions manufacturing and distribution warehouse 57,500 sq. ft. Ontario, Canada Leased 17c) Distribution warehouse 12,000 sq. ft. Ontario, Canada Leased 18) Distribution warehouse 12,000 sq. ft.
Added
Alberta, Canada Leased Note: Some properties are close in proximity and therefore are grouped together in this schedule 15

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe repurchase program may be suspended or discontinued at any time. The Company did not repurchase any shares in the fiscal year ended June 30, 2024. ITEM 6. . [RESERVED]
Biggest changeThe repurchase program may be suspended or discontinued at any time. The Company did not repurchase any shares in the fiscal year ended June 30, 2025. ITEM 6. [RESERVED]
The Company has paid annual cash dividends beginning in fiscal 1987 through fiscal 1994, and quarterly cash dividends since fiscal 1995. The Company’s indicated annual rate for payment of a cash dividend at the end of fiscal 2024 was $0.20 per share.
The Company has paid annual cash dividends beginning in fiscal 1987 through fiscal 1994, and quarterly cash dividends since fiscal 1995. The Company’s indicated annual rate for payment of a cash dividend at the end of fiscal 2025 was $0.20 per share.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES LSI’s shares of common stock are traded on the NASDAQ Global Select Market under the symbol “LYTS.” At August 31, 2024, there were approximately 530 registered holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES LSI’s shares of common stock are traded on the NASDAQ Global Select Market under the symbol “LYTS.” At August 31, 2025, there were approximately 497 registered holders of record of our common stock.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeITEM 6. [RESERVED] 17 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 17 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 17 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 18 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 18 ITEM 9A. CONTROLS AND PROCEDURES 19 ITEM 9B.
Biggest changeITEM 6. [RESERVED] 16 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 16 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 16 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 17 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 17 ITEM 9A. CONTROLS AND PROCEDURES 18 ITEM 9B.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe sales transacted by these subsidiaries in pesos and Canadian dollars combined represents approximately3% of the Company’s fiscal 2024 consolidated net sales. All other business conducted by the Company is in U.S. dollars.
Biggest changeThe sales transacted by these subsidiaries in pesos and Canadian dollars combined represents approximately 3% of the Company’s fiscal 2025 consolidated net sales. All other business conducted by the Company is in U.S. dollars.
The Company does not actively hedge or use derivative instruments to manage its risk in this area. The Company does, however, seek and qualify new suppliers, negotiate with existing suppliers, and arranges stocking agreements to mitigate risk of supply and price increases. The Company’s Lighting Segment has historically implemented price increases with customers to offset raw material price increases.
The Company does not actively hedge or use derivative instruments to manage its risk in this area. The Company does, however, seek and qualify new suppliers, negotiate with existing suppliers, and arrange stocking agreements to mitigate risk of supply and price increases. The Company’s Lighting Segment has historically implemented price increases with customers to offset raw material price increases.
The Company’s Display Solutions Segment generally establishes new sales prices, reflective of the then current raw material prices, for each program as it begins with further price increases throughout the life of the program when warranted. 17 Foreign Currency Translation Risk The Company has minimal foreign currency risk with respect to its Mexican and Canadian subsidiaries.
The Company’s Display Solutions Segment generally establishes new sales prices, reflective of the then current raw material prices, for each program as it begins with further price increases throughout the life of the program when warranted. 16 Foreign Currency Translation Risk The Company has some foreign currency risk with respect to its Mexican and Canadian subsidiaries.
The price risk for materials the Company purchases is related to price increases in commodity items that affect all users of the materials, including the Company’s competitors. For the fiscal year ended June 30, 2024, the purchased material component of cost of goods sold subject to price risk was approximately $198.2 million.
The price risk for materials the Company purchases is related to price increases in commodity items that affect all users of the materials, including the Company’s competitors. For the fiscal year ended June 30, 2025, the purchased material component of cost of goods sold subject to price risk was approximately $263.1 million.

Other LYTS 10-K year-over-year comparisons