{"url_path":"/sec/iehc/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 ****Business:**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-12","source_url":"https://www.sec.gov/Archives/edgar/data/50292/0001213900-26-068122-index.html","accession_number":"0001213900-26-068122","cik":"0000050292","ticker":"IEHC","issuer_name":"IEH Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/50292/0001213900-26-068122-index.html","primary_entity_key":"0000050292","primary_entity_name":"IEH Corp"},"word_count":2241,"has_tables":true,"body_markdown":"** **\n\n**Item 1.****Business:**\n\n \n\nIEH Corporation (hereinafter referred to as “IEH”\nor the “Company”) began operations in New York, New York in 1941 and was incorporated as a New York corporation in March 1943,\nwhen Louis Offerman founded L. Offerman Tool & Die with his two sons, Bernard and Seymour.\n\n \n\nIn the late 1960’s, IEH bought a license to manufacture\nHyperboloid sockets, and began making printed circuit board (“PCB”) connectors for the defense and aerospace industries, in\naccordance with the MIL-DTL-55302 military specification.  We have been making these connectors and variations of them ever since,\nand today, we are one of the leaders in Hyperboloid connectors and contacts.\n\n \n\nIn use for nearly 60 years under demanding conditions, Hyperboloid\ntechnology has proven itself to be the leading design for integrity and reliability. On avionics platforms, military and commercial aerospace\nequipment, engine control systems, missiles and torpedoes, vehicular electronics, satellites and rocket launchers, medical devices, industrial\nand environmental controls, test equipment, pin grid array sockets and countless other rugged applications, Hyperboloid aims to be the\nhighest reliability connector available.\n\n \n\nAt IEH, we design and manufacture Hyperboloid connectors\nthat not only accommodate, but exceed military and aerospace specification standards. Years after inception, our Hyperboloid solutions\ncontinue to prove their reliability and benefits. Our engineers have long provided reliable and innovative Hyperboloid interconnect solutions\nfor defense, commercial, aerospace and medical use.\n\n \n\nWe are a family managed business, as Louis’ great-grandson,\nMr. David Offerman, is the President and Chief Executive Officer, and we believe that we still manufacture the highest quality products\nfor the most demanding environments. But most importantly, we are always looking ahead. We are committed to developing new technology\nthat meets the demands of our fast-paced customers, and we are steadfast about always exceeding our customers’ expectations.\n\n \n\nIEH serves customers in the United States and internationally.\nOur customers include defense contractors, commercial aerospace equipment manufacturers, medical device manufacturers, oil and gas exploration\nfirms, and commercial space launch companies. We sell both directly and through distributors. We maintain a Military Specification\nQPL (Qualified Product Listing), and an ISO (International Standards Organization) 9001:2015 Certification.\n\n \n\nFor the fiscal years ended March 31, 2026 and 2025, approximately\n63.2% and 65.7%, respectively, of the Company’s sales were for defense applications, 25.2% and 19.9%, respectively, for commercial\naerospace, and 11.6% and 14.4%, respectively, for commercial space launch, medical, oil and gas and industrial markets.\n\n \n\n**New Product Development:**\n\n** **\n\nIEH continues to expand the scope and range of its PCB connector\nofferings. We have also increased the breadth of our products by introducing high-speed connectors for data transmission, as well\nas hybrid power/signal connectors.  New product developments are primarily driven by customer demand. IEH also continues to\nspecialize in custom interconnects designed specifically for customer applications.  Our engineers work in conjunction with customer\nengineers to create, refine and manufacture connectors and interconnect solutions that meet their specific, demanding needs.  IEH\nengineers are renowned for their flexibility and creativity in solving customer interconnect challenges and providing innovative solutions.\n\n \n\n 1 \n\n \n\n  \n\n**Marketing and Sales:**\n\n \n\nThe market for connectors and interconnect devices, domestic\nand worldwide, is highly fragmented as a result of the manufacture by many companies of a multitude of different types and varieties of\nconnectors and interconnects. For example, connectors include: printed wiring board, rectangular I/O, circular, planar coaxial, IC socket\nand fiber optic. The Company has been servicing a niche in the market by manufacturing connectors containing Hyperboloid contact designs\nin the printed wiring board style of connectors.\n\n \n\nThe Company is continuously experimenting with innovative\nconnection designs, which may cause it to alter its marketing plans in the future if a market should develop for any of its current or\nfuture innovative designs. The Company is continually reviewing product lines being sold in the connector and interconnect marketplace.\nWe are committed to expanding our product offering and we consider that many of our current or future custom designs will become product\nlines.\n\n \n\nThe Company’s products are marketed to Original Equipment\nManufacturers (“OEM”) directly and through authorized representatives and distributors serving primarily the defense, aerospace,\nmedical, space, oil and gas, industrial, test equipment and commercial electronics markets. The Company is also involved in developing\nnew connectors for specific uses, which result from changes in technology. The Company assists customers in the development and design\nof connectors for specific customer applications. This service is marketed to customers who require the development of connectors and\ninterconnection devices specially designed to accommodate the customers’ own products.\n\n** **\n\nThe Company is primarily a manufacturer and its products\nare essentially basic components of larger assemblies of finished goods. During the year ended March 31, 2026, two customers accounted\nfor 34.0% of the Company’s net revenues, each represented 23.5% and 10.5%, respectively. During the year ended March 31, 2025, two\ncustomers accounted for 31.9% of the Company’s net revenues, each represented 17.8% and 14.1%, respectively. \n\n \n\nThe Company currently employs 17 independent sales representatives\nand distributors to market its products in all regions in the United States as well as in Canada, the European Union, Southeast Asia,\nCentral Asia and the Middle East. These independent sales representatives also promote the product lines of other electronics manufacturers;\nhowever, they do not promote the product lines of manufacturers which compete directly with the Company’s products. These sales\nrepresentatives accounted for approximately 75% of the Company’s net sales for the fiscal year ended March 31, 2026 (with the balance\nof Company net sales being generated via direct customer contact).\n\n \n\nInternational sales accounted for approximately 5.8% and\n5.7% of net sales for the fiscal years ended March 31, 2026 and 2025, respectively.\n\n \n\nWe also market our products and capabilities through our\nwebsite, www.iehcorp.com. Our product series HBH Hybrid Power/Signal Hyperboloid Connectors, has a configuration tool that allows\nusers to build their own hybrid connector and download 3D models to incorporate into their modules. \n\n \n\n**Backlog of Orders/Capital Requirements:**\n\n \n\nOur customers typically enter into supply arrangements for\nthe purchase of our products which we will produce and deliver over time. On an as-needed basis, our customers place specific production\norders, and these orders are generally filled and shipped within twelve to twenty-four weeks. Our backlog consists of supply arrangements\nwhere the anticipated unfulfilled shipping dates are generally within approximately twelve months. Because of the possibility of customer\nchanges in delivery schedules or the cancellation of orders, our backlog as of any particular date may not be indicative of revenue in\nany future period. The backlog amounted to approximately $27,782,000 at March 31, 2026 as compared to $12,445,000 at March 31, 2025. The\nincrease in total backlog as of March 31, 2026 compared with the previous year is primarily due to increases in defense orders primarily\ndriven by geopolitical conditions around the globe and continued recovery of the commercial aerospace industry as prior production, labor\nand regulatory issues related to a major airplane producer have been resolved.\n\n \n\n 2 \n\n \n\n  \n\nA portion of these backlog orders are subject to cancellation\nor postponement of delivery dates and, therefore, no assurance can be given that actual sales will result from these orders. The Company\ndoes not foresee any problems which would prevent it from fulfilling these orders.\n\n** **\n\n**Forward-Looking Business Trends:**\n\n** **\n\nOur operations are subject to global economic and geopolitical\nrisks. For example, the ongoing and evolving conflicts in Eastern Europe and the Middle East have impacted economic activity as well as\nthe availability and price of raw materials and energy. The Company continues to actively monitor these factors and find ways to mitigate\nthe impact on its operations. The company also continues to monitor and evaluate the evolving situation around imposition of tariffs by\nthe current administration and subsequent Supreme Court ruling(s) against tariff imposition and the resulting impact on sourcing of raw\nmaterials and revenue generated from global markets.\n\n** **\n\nFor additional information on risk factors that could impact\nour results, please refer to “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K.\n\n \n\n**Competition:**\n\n \n\nThe design, development, manufacture and distribution of\nelectrical connectors and interconnection devices is a highly competitive field. The Company principally competes with both large and\nsmall companies who also produce high performance connectors in printed circuits and wiring boards for high technology applications. The\nCompany competes by adapting certain technologies to meet specific product applications, aiming to produce connectors cost-effectively,\nand through its production capabilities. In addition, there are many companies who offer connectors with designs similar to those utilized\nby the Company and are direct competitors of the Company.\n\n \n\nThe primary basis upon which the Company competes is product\nperformance and production capabilities. The Company usually receives job orders after submitting bids pursuant to customer-issued specifications\nfor connectors and interconnects. The Company’s bid can be for a new item that requires the item to perform under harsh environment\nrequirements or it can be for a standard catalog item. The Company also offers engineering services to its customers in designing and\ndeveloping connectors for specialized products and specific customer applications. This enables the Company to receive a competitive advantage\nover those companies who basically manufacture connectors based solely or primarily on catalog specifications.\n\n** **\n\nSome of the Company’s competitors may have greater\nfinancial resources than the Company and no assurances can be given that the Company will be able to compete effectively with these companies\nin the future.\n\n \n\n**Suppliers of Raw Materials and Component Parts:**\n\n** **\n\nThe Company utilizes a variety of raw materials and manufactured\ncomponent parts, which it purchases from various suppliers. These materials and components are available from numerous sources and the\nCompany does not believe that it will have a problem obtaining such materials and parts in the future, both locally or globally.\n\n \n\nHowever, any delay in the Company’s ability to obtain\nnecessary raw materials and component parts may affect its ability to meet customer production needs. In anticipation of such delays,\nthe Company carries an inventory of raw materials and component parts to avoid shortages and to ensure continued production. However,\nas global supply chains continue to be constrained and impacted, by geopolitical and economic conditions, there can be no assurance that\nwe will not be affected in the future, and we believe that raw materials and supply chains may continue to be affected in fiscal year\n2027 and beyond in part due to global uncertainty.\n\n \n\nAdditionally, continuing inflationary pressures have been\nimpacting virtually all aspects of our materials and suppliers, including power prices and labor costs, and are likely to impact our fiscal\nyear 2027 results.\n\n \n\n 3 \n\n \n\n  \n\n**Human Capital Management:**\n\n \n\nOur employees are our greatest resource and an integral component\nto our operations. Their health, safety and well-being are a priority for us.\n\n* *\n\n*Talent*\n\n \n\nWe are focused on sourcing, attracting, and retaining talent,\nespecially those with technical backgrounds. We recognize and reward performance while continually working to develop, engage and retain\nhigh-performing employees. We have made significant investments to provide ongoing training and career development for our employees.\nWe provide competitive compensation and comprehensive benefits.\n\n \n\nAs of March 31, 2026, we employed 176 people of which 174\nare full-time employees. Around half of the employees engaged in manufacturing and testing activities are covered by a collective bargaining\nagreement with the United Auto Workers of America, Local 259 (the “Union”), which expires on March 31, 2027.\n\n \n\n*Safety/Health and Wellness*\n\n \n\nWe are committed to providing a safe and healthy work environment\nfor our employees. Aligned with our values, we strive to continuously monitor our work environment to keep our employees safe. We have\nan open-door policy for all employees to report concerns or safety issues. Our commitment to employee safety also includes ongoing safety\ncommunications with safety topics and providing safety training.\n\n \n\n**Governmental Regulations:**\n\n \n\nThe Company is subject to federal regulations, principally\nunder the Occupational Safety and Health Act (“OSHA”), Defense Supply Command Columbus (“DSCC”) and the Defense\nLogistics Agency (“DLA”).\n\n \n\nOSHA provides federal guidelines and specifications to companies\nin order to insure the health and safety of employees.\n\n** **\n\nDSCC oversees the quality and specifications of products\nand components manufactured and sold to the government and the defense industry. DSCC’s primary customer is the U.S. military. Many\nof our products appear on DLA Qualified Products Listing (“QPL”). To remain qualified, the Company submits its products to\nan outside testing laboratory approved by DLA which performs all required testing. After review by the Company of the testing results,\nthe data is then submitted to DLA. The Company and its products are only approved and remain on the QPL if the Company has passed all\ntesting requirements. Although DLA continuously requires suppliers to meet changing specifications, the Company has not encountered any\nsignificant problems meeting such specifications and its products have, in the past, been approved. The Company is unaware of any changes\nin the governmental regulations which are expected to materially affect the Company’s business.\n\n \n\nThe Company is also subject to various laws and governmental\nregulations concerning environmental matters. Compliance with these federal, state, and local laws and regulations related to protection\nof the environment has had no material effect on our business.\n\n \n\n 4 \n\n \n\n  \n\n**Available Information**\n\n** **\n\nOur website is www.iehcorp.com. On our website we make available\nat no cost our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports\nfiled or furnished as soon as reasonably practicable after we electronically file such material with, or furnish them to, the SEC. The\ninformation contained on our website is not a part of this Annual Report on Form 10-K and not incorporated by reference herein."}