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• The Stratasys or 3D Systems of industrial coating. (Highlights its role as a provider of high-precision additive manufacturing equipment, but for coatings instead of complex 3D objects.)
• KLA for advanced industrial coating equipment. (Positions Sono-Tek as a critical, high-tech equipment provider for advanced manufacturing processes, similar to KLA's role in semiconductor quality control.)

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• Ultrasonic Spray Nozzles: Precision atomizing devices that use high-frequency vibrations to create fine, uniform sprays for thin film coatings.
• Ultrasonic Coating Systems: Integrated platforms that utilize ultrasonic spray technology to apply uniform coatings for various industrial and medical applications.
• Ultrasonic Dispensers: Devices designed for non-contact, micro-volume dispensing of low-viscosity fluids, often used in medical and electronic manufacturing.

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Sono-Tek (SOTK) sells primarily to other companies (B2B) rather than individuals. Due to the nature of its business and public reporting practices, Sono-Tek does not publicly disclose the names of specific major customer companies. Its customer base is diverse, spanning various high-technology and industrial sectors globally, meaning no single customer typically accounts for a significant portion of its revenue.

Instead of naming specific customer companies, Sono-Tek's major customers can be broadly categorized by the industries and applications they serve:

• Medical Device Manufacturers: Companies that produce a wide range of medical devices requiring precision ultrasonic coatings. This includes manufacturers of drug-eluting stents, balloons, catheters, blood collection tubes, diagnostic slides, and other critical medical components.
• Electronics & Semiconductor Manufacturers: Companies involved in the production of advanced electronic components, printed circuit boards (PCBs), displays (e.g., OLED, touch panels), sensors, and semiconductor fabrication, where precise and uniform coatings are essential for performance and reliability.
• Renewable Energy & Industrial Manufacturers: This category encompasses companies operating in sectors such as solar panel manufacturing (photovoltaics), fuel cell production, battery manufacturing, glass coating, textile applications, nanotechnology, and other general industrial applications including aerospace and automotive components requiring high-performance, thin-film coatings.

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Dr. Christopher L. Coccio, Executive Chairman
Dr. Coccio joined Sono-Tek as a Director in 1998 and was appointed President and Chief Executive Officer in 2001, becoming Chairman in 2007. At the beginning of 2024, he transitioned to Executive Chairman. During his tenure as Chairman and CEO, Sono-Tek's sales grew from $2.5 million to $20 million, and the company uplisted to Nasdaq in 2021. Earlier in his career, from 1964 to 1996, he held various engineering, sales, marketing, and management positions at General Electric Company, with P&L responsibilities for up to $100 million in sales and 500 people. He also served with the Senate Energy Committee after winning an ASME Congressional Fellowship in 1976.

R. Stephen Harshbarger, CEO & President
Mr. Harshbarger has over 30 years of experience in ultrasonic coating equipment for the electronics, medical device, and advanced energy industries. He joined Sono-Tek in 1993, was appointed President in 2012, elected a Director in 2013, and assumed the Chief Operating Officer position in August 2020. In January 2024, he was appointed CEO. As President, he directed the company's Sales, Marketing, Engineering, Service, and Manufacturing Operations. Before becoming President, he served as Sales Engineer, World-Wide Sales and Marketing Manager, Vice President & Director of Electronics and Advanced Energy (E&AE), and Executive Vice President, establishing a worldwide distribution network in over 40 countries. Prior to joining Sono-Tek, Mr. Harshbarger was the Sales and Marketing Manager for Plasmaco Inc., a flat panel display developer, where he established its distribution network, participated in venture capital funding, and introduced flat panel technology to Wall Street trading floors.

Stephen J. Bagley, CPA, CFO
Mr. Bagley joined Sono-Tek as Chief Financial Officer in 2005. From 1987 to 1991, he worked in public accounting, and from 1992 to 2005, he held various leadership positions as Controller, Chief Financial Officer, and Vice President of Finance for companies with up to $45 million in revenues. He earned a Bachelor of Science degree from The State University of New York – College at Oneonta and an MBA from Marist College, becoming a licensed CPA in 1990.

Chris Cichetti, COO
Mr. Cichetti assumed the role of Chief Operating Officer at Sono-Tek in March 2025. He joined Sono-Tek in 2005 as an Electrical Engineer and has since held several leadership positions, including Application Engineer, Senior Application Engineer, Manager of the Application Engineering Department, and Vice President of Sales & Applications Engineering. He oversees Engineering, Applications Engineering, Sales, Service, IT, and Manufacturing.

Maria Kuha, Vice President, Manufacturing Operations, Procurement & Logistics
Mrs. Kuha joined Sono-Tek in 2007 and was appointed VP, Manufacturing Operations, Procurement & Logistics in September 2022. Her previous roles at Sono-Tek include Operations Director and Purchasing Manager, providing extensive expertise in procurement.

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The key risks to Sono-Tek's (SOTK) business include:

1. Dependence on a Limited Number of Customers and Distributors: Sono-Tek's financial results are significantly exposed to its largest customers. For the fiscal years ended February 29, 2024, and February 28, 2023, the two largest customers accounted for approximately 12% and 14% of the company's net sales, respectively. The loss of a major customer or any substantial reduction in their orders could materially decrease net sales and adversely affect Sono-Tek's operations.
2. Risks Associated with Information Technology Systems and Cybersecurity Breaches: Sono-Tek makes considerable efforts to maintain the security and integrity of its IT systems and data; however, completely mitigating risks such as industrial espionage, cyber-attacks, misuse, theft of information or assets, or damage by unauthorized access is virtually impossible. Such cybersecurity events could lead to the disclosure of confidential information, improper use of intellectual property, data manipulation or destruction, and production downtimes, all of which could negatively impact the company's financial results and incur costly legal actions.
3. Effectiveness of Internal Controls over Financial Reporting: If Sono-Tek's internal controls over financial reporting are found to be ineffective in the future, leading to a material weakness or significant deficiency, investor perceptions regarding the reliability of the company's financial statements may be adversely affected. This could consequently lead to a decline in the market price of its stock and otherwise negatively impact its liquidity and financial condition.

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The addressable markets for Sono-Tek's (SOTK) main products and services, which primarily involve precision ultrasonic coating systems, include the global ultrasonic coating systems market and the global medical device coating market.

• The global ultrasonic coating systems market was valued at USD 18.53 billion in 2024 and is projected to reach USD 44.78 billion by 2033, growing at a compound annual growth rate (CAGR) of 10.3% from 2025 to 2033.
• The global medical device coating market size was estimated at USD 15.08 billion in 2024 and is projected to reach USD 23.85 billion by 2030, growing at a CAGR of 7.9% from 2025 to 2030.

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Sono-Tek (SOTK) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Growth in Alternative/Clean Energy Sector: The alternative and clean energy sector has been a significant driver, with sales in this area soaring by 64% in fiscal year 2025. This contributed an additional $3.84 million to revenue. Sono-Tek has shipped high average selling price (ASP) systems to major solar companies and sees strong applications for its ultrasonic coating technology in next-generation solar cells, fuel cells, green hydrogen generation, and carbon capture.
2. Expansion in Medical Device Market: The medical market is showing substantial growth for Sono-Tek. Sales in this sector increased by 150% year-over-year in the second quarter of fiscal year 2026, driven by demand for balloon coating systems across the U.S., Europe, and China. The company has also secured significant orders for advanced medical device coating systems, indicating continued strength in this area.
3. Increased Demand in Semiconductor/Microelectronics Markets: Sono-Tek is experiencing expanding demand for its ultrasonic coating systems within the semiconductor and microelectronics industries. Customers are increasingly utilizing Sono-Tek's solutions for next-generation chips, displays, and sensors, contributing to growth in this high-tech sector.
4. Strong Backlog and New Order Momentum: The company consistently reports a robust and growing backlog, which serves as a strong indicator of future revenue. The total equipment and service-related backlog saw a 50% sequential increase in the second quarter of fiscal year 2026, reflecting solid new order momentum and providing a stable foundation for near-term demand.
5. Leveraging Innovative Ultrasonic Coating Technology and High-Value Solutions: Sono-Tek's position as a leader in ultrasonic coating systems, combined with its strategic focus on innovative technologies and proprietary expertise, is central to its growth. The company is actively developing advanced thin-film coating technologies and pivoting towards offering complete, high-value solutions to enhance its market offerings and drive customer adoption.

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Share Repurchases

• Sono-Tek's Board of Directors authorized a share repurchase program of up to $2.0 million of its outstanding common stock on November 4, 2024.
• The company expects to fund this repurchase program through existing cash on hand and future cash flows.
• As of August 31, 2024, Sono-Tek had approximately 15,751,000 shares of common stock outstanding.

Capital Expenditures

• For fiscal year 2024 (ended February 29, 2024), capital expenditures amounted to $0.8 million.
• Approximately $350,000 of the fiscal 2024 capital expenditures was allocated towards significant enhancements in IT infrastructure, including network upgrades, cybersecurity fortification, and expanding server capacity.
• Sono-Tek anticipates capital expenditures to total approximately $500,000 for fiscal year 2025, with $403,000 already invested in ongoing manufacturing facility upgrades during the first nine months of the fiscal year.