About Precision Optics Corporation

Precision Optics Corporation, Inc. operates as a developer and manufacturer of advanced optical instruments. The company's proprietary medical instrumentation line, unique custom design and manufacturing capabilities, and expert engineering and development has generated traditional proprietary endoscopes and endocouplers, as well as other custom imaging and illumination products for its customers' use in minimally invasive surgical procedures. The company designs and manufactures 3D endoscopes and very small Microprecision lenses, assemblies and complete medical devices to meet the surgical community's continuing demand for smaller, disposable, and more enhanced imaging systems for minimally invasive surgery. The company owns the operating assets of Ross Optical Industries, Inc. of El Paso, Texas. As Ross Optical Industries, the company also operates as a supplier of custom optical components and assemblies for military and defense, medical and various other industrial applications. All products sold by the company under the Ross Optical name include a custom or catalog optic, which is sourced through its extensive domestic and worldwide network of optical fabrication suppliers. Products often include thin film optical coatings that are applied using the company's in-house coating department. The company owns the operating assets of Lighthouse Imaging, LLC of Windham, Maine. The company's Lighthouse Imaging division supplements its operations as a manufacturer of advanced optical imaging systems and accessories and has provided further expertise in electrical engineering and development of end-to-end medical visualization devices. Product development competencies at Lighthouse Imaging include Systems, Optical, Mechanical, Electrical and Process Development Engineering. The company's product development team has extensive experience developing visualization systems that are used in a variety of clinical applications. Lighthouse Imaging is an industry leader in chip-on-tip visualization systems. During the fiscal year ended June 30, 2023, approximately 32% the company's business was from engineering services primarily relating to the design of medical device optical assemblies, 50% from the sale of both internally manufactured and purchased optical components, and 18% from the manufacture of optical assemblies and sub-assemblies primarily for medical device instrument. Principal Products and Services The company manufactures medical products, such as endoscopes and endocouplers. The company has developed and sold endoscopes incorporating various optical technologies for use in a variety of minimally invasive surgical and diagnostic procedures. The company produces endoscopes for various applications, which are CE marked and therefore certified for sale throughout the European Economic Area. The company develops, manufactures and sells a proprietary product line of endocouplers. The company also designs and manufactures custom optical medical devices to satisfy its customers' specific requirements. In addition to medical devices, the company manufactures and sells components and assemblies specially designed for industrial and military use. The acquisition of the assets of Ross Optical Industries expanded the company's optics components and assemblies business. All products supplied by Ross Optical include a custom or catalog optic, which is sourced through Ross Optical's extensive domestic and worldwide network of optical fabrication suppliers. Most systems make use of optical lenses, prisms, mirrors and windows and range from individual optical components to complex mechano-optical assemblies. Products often include thin film optical coatings that are applied by the Ross Optical division in-house coating department. The acquisition of the assets of Lighthouse Imaging LLC expanded the company's electrical engineering and development of end-to-end medical visualization devices. Product development competencies at Lighthouse Imaging include systems, optical, mechanical, electrical and process development engineering. The Lighthouse product development team has extensive experience developing visualization systems that are used in a variety of clinical applications representing a vertical integration of the company's established product development capabilities will provide its customers with value-added product development service and product offerings. Microprecision Lenses and Micro Medical Cameras: Combined with recent advances by other companies in complementary metal-oxide-semiconductor, or CMOS, image sensor fabrication techniques, the company's Microprecision lenses and proprietary manufacturing techniques enable the manufacture of micro medical cameras at low prices and with sizes on the order of one millimeter or less, characteristics that make them well suited to medical applications. The company engages in development projects to design and produce even smaller CMOS based camera modules together with customized illumination using various technologies to match the needs of the medical device endoscopes. The company is also designing disposable versions of its camera modules and assemblies designed for single-use and reduced risk of contamination from repeated use. 3D Endoscopes: The company's 3D endoscopes provide next generation optical imaging for minimally invasive surgical procedures that utilize hand-held rigid endoscopes by using the brain's natural ability to perceive depth, which is the third dimension, by viewing one's environment through two eyes. Utilizing the company's proprietary technology to provide independent images to right and left eyes, surgeons can view the operative field with 3D perception. Sales and Marketing The company markets directly to established medical device companies primarily in the United States that could benefit from its advanced endoscopy visualization systems. Through this direct marketing, referrals, attendance at trade shows and a presence in online professional association websites, the company has expanded its on-going pipeline of projects to significant medical device companies and to well-funded emerging medical device companies, and to a number of major defense/aerospace companies. International Business The company's medical products have received the CE mark certification, which permits sales into the European Economic Area and which benefits its customers as they market their products manufactured by the company or containing its sub-assemblies into markets outside the United States. The company has an expanded network of overseas suppliers of various types and sizes of optical components and assemblies that enhance its ability to meet the material demands of its customers' unique optical and medical device designs. Raw Materials and Principal Suppliers A key raw material component for the company's products is precision grade optical glass, which the company obtains from a few suppliers, principally SCHOTT North America, Inc. and Ohara Corporation. The company obtains CMOS sensors used in the development of endoscope products for its customers from various suppliers, such as OmniVision Technologies, Inc. Patents and Trademarks The company holds rights to various United States patents, and has patent applications pending, including applications for its new generation of micro medical cameras. The company's patent portfolio includes patents, rights to patents and patent applications that cover various aspects of its technology in the following areas: Medical devices; 3-D endoscopes; Microprecision lenses and micro medical cameras; and defense products. The patents contained in the company's patent portfolio have various expiration dates through March 2043. Customers During the year ended June 30, 2023, the company sold product and services to 361 customers. Research and Development For the year ended June 30, 2023, the company's research and development expenses were $809,877. Government Regulations The company designs and manufactures components for the defense industry, and imports, exports and manufactures optical products for the defense industry, some of which is controlled by the U.S. regulations. Generally, these regulations require strict control over technical data in documented form and as embodied in products, both within the company and as part of exported shipments. In particular, the company maintains a technology control plan, it is ISO certified and ITAR (International Traffic in Arms Regulations) registered with the U.S. State Department and the company maintains a number of technology assistance agreements with overseas suppliers that have been approved by the U.S. State Department. All of the company's medical products are manufactured in conformity with the CE mark requirements. History Precision Optics Corporation, Inc. was founded in 1982. The company was incorporated in Massachusetts in 1982.