Frequency Electronics FEIM G&A

During the fourth quarter of fiscal 2026, the Company approved a plan to exit its FEI-Elcom business. Effective as of April 30, 2026, FEI-Elcom, a wholly-owned subsidiary of the Company, was converted into a Delaware limited liability company and the ongoing business operations, including the net book value of the assets and liabilities at April 30, 2026, of FEI-Elcom have been transferred to the FEI-NY segment. As FEI-Elcom was already reported within the FEI-NY segment, the restructuring did not result in a change in the financial presentation of any segment information. The remaining workforce will continue as employees of FEI-NY while remaining in the New Jersey office location. As a result of the restructuring, the Company recognized approximately $3.8 million of inventory write offs included in cost of revenues, approximately $0.4 million of SG&A expense related to severance and legal costs, and approximately $0.4 million of other expense for derecognition of goodwill in the consolidated statement of operations. All charges noted related to restructuring have been recorded in the FEI-NY segment. The Company believes that the charges associated with this restructuring are substantially complete as of April 30, 2026.