IEH Corporation Files Super 10-K For Fiscal Years Ended 2020, 2021 & 2022

BROOKLYN, NY / ACCESSWIRE / June 22, 2023 / IEH Corporation today filed its annual report on Form 10-K covering the fiscal years ended 2020, 2021 and 2022. This includes a restatement of the audited financial statements for the fiscal year ended March 31, 2020, along with the audited financial statements for the fiscal years ended March 31, 2021 and 2022, constituting a "Super 10-K." In addition, IEH is in the process of preparing its Form 10-K for the fiscal year ending March 31, 2023, in an effort to become current in its filings.

Dave Offerman, President and CEO of IEH Corporation commented, "After two-plus years of exhausting labors by our finance department, consultants and auditors, IEH is pleased to finally share our financial statements for the past two years, along with the restated 2020 financial statements. It has been a painstaking process for our financial and accounting staff, our consultants and service providers and our audit firm, as we reconciled the inventory discrepancies that were the primary cause of our delayed periodic reports. Although the reasons and circumstances surrounding the filing delays have been addressed in prior communications, it is worth reviewing how we got here, what we have done to address the technical issues, and what we are doing to mitigate the possibility of future delays in filing our periodic reports. Following that review will be an update on our filings in the SEC administrative proceeding instituted on August 17, 2022 to determine whether to revoke the registration of our common stock, and an overview of our business, and state of operations.

MRP TO SAP MIGRATION

For nearly 30 years, IEH utilized an MRP system for its internal operations. While this system had historically worked well, it was a DOS-based system using 8-bit architecture, and in recent years was becoming increasingly difficult to run on modern servers and personal computers. In addition, resources for support and maintenance were becoming less available. Therefore, in 2014, IEH purchased licenses for a small business ERP system from an SAP reseller, and began the process of tailoring it to our needs. In 2017, we began running the new SAP system in parallel with the legacy system, that is, inputting the same transactions in both systems, until we decided to switch completely to the new SAP system in September 2019. This was essentially a migration to a new enterprise accounting and inventory system. Although the two systems had been running in parallel, there were material differences in inventory treatment between the two - the legacy system utilized a periodic inventory valuation methodology (a top-down approach) while the new SAP system utilizes a perpetual inventory system (a bottom-up approach). The two disparate systems itemize inventory categories - raw material, work-in-progress (WIP), and finished goods - differently. As previously communicated, the inventory reconciliation required intense, demanding work that involved discriminating periodic inventory costing from perpetual inventory costing. While we understood at the time that some work would be necessary to reconcile the different systems, the enormity of the task did not start to manifest until we began preparing our financial statements for the first quarter of fiscal 2021.