UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE
14A
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Precision
Optics Corporation, Inc. |
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Notice of 2023 Annual Shareholders’ Meeting and Proxy Statement |
Friday, December 1, 2023
at 10 a.m. EDT
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Meeting Held at:
DoubleTree by Hilton Hotel
Leominster
99 Erdman Way
Leominster, MA 01453
TABLE OF CONTENTS
22 East Broadway
Gardner, MA 01440
(978) 630-1800
October 20, 2023
Dear Fellow Shareholder:
You are cordially invited
to attend the 2023 Annual Meeting of Shareholders of Precision Optics Corporation, Inc. The meeting will be held at 10 a.m. local time
on Friday, December 1, 2023, at the DoubleTree by Hilton Hotel Leominster located at 99 Erdman Way, Leominster, MA 01453.
The formal Notice of the
2023 Annual Meeting and Proxy Statement has been made a part of this invitation.
Through careful evaluation of this Proxy Statement,
you can help us to achieve these goals and shape our future.
Whether or not you attend
the Annual Meeting, it is important that your shares are represented and voted at the Annual Meeting. After reading the Proxy Statement,
please promptly vote and submit your proxy by dating, signing and returning the enclosed proxy card in the enclosed postage-prepaid envelope. Your
shares cannot be voted unless you submit your proxy or attend the Annual Meeting in person.
Important Notice Regarding
the Availability of Proxy Materials for the Annual Shareholder Meeting: The Proxy Statement, form of proxy, Annual Report on Form
10-K for the year ended June 30, 2023 and related materials are available at www.proxyyvote.com, or by contacting our Investor Relations
department through email at blum@lythampartners.com or by calling (602) 889-9670.
The Board of Directors and
our Company management look forward to seeing you at the Annual Meeting.
Thank you.
NOTICE
OF 2023 ANNUAL MEETING OF SHAREHOLDERS
Friday, December
1, 2023
DoubleTree
by Hilton Hotel Leominster
99 Erdman
Way, Leominster, MA 01453
We are pleased to invite
you to join our Board of Directors, senior leadership and other shareholders for our 2023 Annual Meeting of Precision Optics Corporation,
Inc. shareholders. The meeting will be held at the DoubleTree by Hilton Hotel Leominster located at 99 Erdman Way, Leominster, MA 01453,
at 10:00 a.m. local time on Friday, December 1, 2023. The purposes of the meeting are:
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To re-elect the five Directors nominated by our Board of Directors; |
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To consider and vote on whether to approve, on an advisory basis, the compensation paid to our Named Executive Officers for the year ended June 30, 2023; |
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To ratify the appointment of Stowe & Degon, LLC as our independent registered public accounting firm for the year ending June 30, 2024; |
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To transact such other business as may properly come before the meeting and at any adjournments or postponements of the meeting. |
The Board of Directors
has set October 10, 2023 as the record date for the Annual Meeting. This means that only shareholders of record of Precision
Optics as of the close of business on that date are entitled to receive notice of the meeting; and vote at the meeting and any adjournment
or postponement of the meeting.
For ten days prior to the
Annual Meeting, a complete list of shareholders entitled to vote at the Annual Meeting will be available at the Secretary’s office,
22 East Broadway, Gardner, MA 01440.
This Proxy Statement, form
of proxy and our Annual Report for the year ended June 30, 2023 are available online at www.proxyvote.com. You can also access these materials
by contacting our Investor Relations Department by email at blum@lythampartners.com or by calling (602) 889-9670.
By Order of the Board of Directors,
/s/ Wayne M. Coll
Wayne M. Coll
Secretary and Chief Financial Officer
Your Vote is Important to us. Regardless
of whether you plan to attend, we urge all shareholders to vote on the matters described in the accompanying Proxy Statement we hope that
you will promptly vote and submit your proxy by dating, signing and returning the enclosed proxy card. This will not limit your rights
to attend or vote at the Annual Meeting.
PROXY SUMMARY
General Voting and Meeting Information
The Notice and Access cards
detailing the availability of this Proxy Statement and proxy card are first mailed to shareholders on or about October 20, 2023, and all
proxy documents will be made available via www.proxyvote.com. It is important that you carefully review the proxy materials, and follow
the instructions below to cast your vote on all voting matters.
Voting Methods
Even if you plan to attend the Annual
Meeting in person please vote as soon as possible by using one of the following advance voting methods. Make sure to have your notice
card, proxy card or voting instruction form in hand and to follow the instructions.
You can vote in advance through
one of three ways:
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Via the Internet* – Visit the website listed on your notice card, proxy card or voting instruction form. |
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By Telephone* – Call the telephone number listed on your notice card, proxy card or voting instruction form. |
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By Mail – If you are a shareholder of record and have received a notice regarding the availability of proxy materials, you may request a written proxy card by following the instructions in the notice. Then sign, date, and return your proxy card/voting instruction form in the enclosed envelope. |
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If you are a beneficial owner you may vote via the Telephone or Internet, if your bank, broker, or other nominee makes those methods available, in which case they will include the instructions with the proxy materials. If you are a shareholder of record, Precision Optics will include instructions on how to vote via Internet or Telephone directly on your notice or proxy voting card. |
Voting at the Annual Meeting
Shareholders of record
may vote at the Annual Meeting. Beneficial owners may vote in person if they have a legal proxy. Even if you plan to attend the
Annual Meeting in person, we strongly recommend that you submit your proxy or voting instructions or vote by Telephone or the Internet
prior to the meeting so that your vote will be counted, if you later decide not to attend the Annual Meeting.
Voting Matters and Board Recommendations
Shareholders are being asked to vote on the following matters at the
2023 Annual Meeting:
Proposal |
Recommended
Vote |
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PROPOSAL 1 - Election of Directors |
FOR |
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Election of five director nominees as follows: Peter H. Woodward, Andrew J. Miclot, Richard B. Miles, Peter V. Anania, Joseph N. Forkey. The Board believes that the nominee’s knowledge, skills, and abilities will positively contribute to the function of the Board as a whole. Accordingly, your proxy holder will vote your shares FOR the election of the Board’s nominee unless you instruct otherwise. |
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PROPOSAL 2 - Advisory Vote to Approve Executive Compensation |
FOR |
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The Say-on-Pay Proposal, to approve, on an advisory basis, the compensation paid to our Named Executive Officers for the year ended June 30, 2023. Precision Optics has designed its compensation programs to reward and motivate employees to continue to grow the Company. The Board of Directors takes shareholder views seriously and will take into account the advisory vote in future executive compensation decisions. Your proxy holder will vote your shares FOR the approval of the executive compensation paid to our Named Executive Officers unless you instruct otherwise. |
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PROPOSAL 3 - Ratification of Independent Registered Public Accounting Firm |
FOR |
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Stowe & Degon LLC has been appointed as the Company’s independent registered public accounting firm for the year ending June 30, 2024. The Board believes that retention of the firm is in the best interests of the Company and its shareholders. Accordingly, your proxy holder will vote your shares FOR the ratification of the appointment of Stowe & Degon LLC as our independent registered public accounting firm unless you instruct otherwise. |
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Questions and Answers
1. What
is a proxy statement, what is a proxy and how does it work?
A proxy statement is a document that the U.S.
Securities and Exchange Commission requires us to give you when we ask you to sign a proxy card designating someone other than you to
vote the stock you own. The written document you sign indicating who may vote your shares of common stock is called a proxy card and the
person you designate to vote your shares is called a proxy. The Board of Directors is asking to act as your proxy. By signing and returning
to us the proxy card you are designating us as your proxy to cast your votes at the Annual Meeting. We will cast your votes as you indicate
on the proxy card.
Our employees, officers and
directors may solicit proxies. We will bear the cost of soliciting proxies and will reimburse brokerage houses and other custodians, nominees
and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy and solicitation material to the owners of our common
stock.
2. Who
is entitled to vote at the Annual Meeting?
Only shareholders who were
Precision Optics Corporation, Inc. shareholders of record at the close of business on October 10, 2023, or the Record Date, may vote at
the Annual Meeting of Shareholders. As of the close of business on the Record Date, there were 6,066,518 shares of our common
stock outstanding. Each shareholder is entitled to one vote for each share of our common stock held as of the Record Date.
3. What
is the difference between a shareholder of record and a beneficial owner?
If your shares are registered directly in your
name with Precision Optics’ transfer agent, Computershare, Inc., you are considered, with respect to those shares, a shareholder
of record. As a shareholder of record, we will send you Proxy Materials for the Annual Meeting.
If your shares are held in
a brokerage account or by a bank or other nominee, you are considered the beneficial owner of your shares of common stock. The Notice
Regarding the Availability of Proxy Material for the Annual Meeting has been forwarded to you by your broker, bank or nominee who is considered,
with respect to those shares, the shareholder of record. As the beneficial owner, you have the right to direct your broker, bank, or nominee
how to vote your shares by using the voting instruction form included in the proxy materials.
4. What
does it mean if I receive more than one proxy card?
If you hold your shares in
multiple registrations, or in both registered and street name, you will receive a notice card, proxy card or voting instruction form for
each account. Please vote each proxy card or voting instruction form you receive using one of the voting methods outlined elsewhere in
this proxy statement.
5. What
proposals will be voted on at the 2023 Annual Meeting?
The following proposals will
be voted on at the Annual Meeting:
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Elect five directors nominated by the Board of Directors, to serve until the 2024 Annual Meeting or until a successor is duly elected and qualified; |
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Approve on an advisory basis, of the compensation paid to our Named Executive Officers, or the Say-on-Pay Proposal; |
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Ratify the appointment of Stowe & Degon LLC as our independent public accounting firm for the year ending June 30, 2024; |
6. What
are the Board’s recommendations?
Our Board recommends that you vote:
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“FOR” Proposal No. 1 to elect each of the five named director nominees to serve until the 2024 Annual Meeting or until a successor is duly elected and qualified; |
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“FOR” Proposal No. 2, the Say-on-Pay Proposal, to approve on an advisory basis, the compensation paid to our Named Executive Officers for the year ended June 30, 2023; |
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“FOR” Proposal No. 3 to ratify the appointment of Stowe & Degon LLC as our independent registered public accounting firm for the year ending June 30, 2024; |
7. Will
there be any other items of business on the agenda?
We do not expect any other
items of business because the deadline for shareholder proposals and nominations has already passed. Nonetheless, in case there is an
unforeseen need, the accompanying proxy gives discretionary authority to the persons named on the proxy with respect to any other matters
that might be brought before the Annual Meeting. Those persons intend to vote that proxy in accordance with their best judgment.
8. How
will my shares be voted?
To designate how you would
like to vote, fill out the proxy card or voting instruction form indicating how you would like your votes cast. If you do not specify
how to vote, we will vote your shares as follows:
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“FOR” Proposal No. 1 to elect five director nominees; |
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“FOR” Proposal No. 2, the Say-on-Pay Proposal, to approve on an advisory basis, the compensation paid to our Named Executive Officers for the year ended June 30, 2023; |
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“FOR” Proposal No. 3 to ratify the appointment of Stowe & Degon LLC as our independent registered public accounting firm for the year ending June 30, 2024; |
9. Can
I change my vote or revoke my proxy?
You may change your vote or revoke your proxy
at any time prior to the vote at the Annual Meeting. If you submitted your proxy by mail, you must file with our Secretary at Precision
Optics Corporation, Inc., 22 East Broadway, Gardner, MA 01440, a written notice of revocation or deliver a valid, later-dated proxy. If
you submitted your proxy by telephone or the Internet, you may change your vote or revoke your proxy with a later telephone or Internet
proxy, as the case may be. Attendance at the Annual Meeting will not have the effect of revoking a proxy unless you give written
notice of revocation to the Secretary before the proxy is exercised or you vote by written ballot at the Annual Meeting.
10. What
is a broker non-vote and what is the impact of not voting?
A broker “non-vote”
occurs when a nominee holding shares of common stock for a beneficial owner, such as a bank or broker, does not vote on one or more proposals
because the nominee does not have discretionary voting power on that matter, which is also referred to as holding shares in street name.
Your bank or broker does not have discretion to vote uninstructed shares on the proposals in this Proxy Statement, except for Proposal
No. 3 to ratify the appointment of our independent registered public accounting firm. As a result, if you hold your shares in street name
it is critical that you provide instructions to your bank or broker, if you want your vote to count in the election of directors and the
advisory vote related to executive compensation.
11. What
constitutes a quorum?
A quorum is the minimum number
of shareholders necessary to conduct the Annual Meeting. The presence at the Annual Meeting, in person or by proxy, of the holders of
a majority of common stock outstanding on the Record Date will constitute a quorum. As of the close of business on the Record Date, there
were 6,066,518 shares of our common stock outstanding. Votes withheld from any nominee, abstentions and broker “non-votes”
are counted as present or represented for the purpose of determining the presence of a quorum.
12. Is
cumulative voting permitted for the election of directors?
No. Shareholders may not
cumulate votes in the election of directors, which means that each shareholder may vote only the number of shares he or she owns for a
single director candidate.
13. What
is the vote required for a proposal to pass?
Proposal No. 1—Election
of Directors: Shareholders may cast a vote “FOR” or “WITHHOLD” with regard to the election of each director
nominee. The affirmative vote of a plurality of the shares of common stock present or represented by proxy and entitled to vote at the
Annual Meeting, in person or by proxy, is required for the election of such a nominee. Thus, assuming a quorum is present at the Annual
Meeting, the nominees who receive the most affirmative votes will be elected as the Company’s directors. Abstentions and broker
“non-votes” will have no effect on the voting outcome with respect to the election of directors.
Proposal No. 2—Say-on-Pay: Shareholders
may cast a vote “FOR,” “AGAINST” or “ABSTAIN” on the Say-on-Pay proposal. Because this proposal asks
for a non-binding, advisory vote, there is no required vote that would constitute approval. We value the opinions expressed by our shareholders
in this advisory vote, and will consider the outcome of the vote when designing our compensation programs and making future compensation
decisions for our Named Executive Officers. Abstentions and broker “non-votes,” if any, will not have any impact on this advisory
vote.
Proposal No. 3—Ratification
of the Selection of our Independent Registered Public Accounting Firm: Shareholders may vote “FOR,” “AGAINST”
or “ABSTAIN from ratifying our selection of Stowe & Degon LLC as our independent registered public accounting firm for the year
ending June 30, 2024. A majority of the votes properly cast upon this proposal is required to ratify our independent registered public
accounting firm. Abstentions and broker “non-votes” will have no effect on the voting outcome with respect to the election
of directors. Because Proposal No. 3 is a routine proposal on which a broker or other nominee is generally empowered to vote, broker “non-votes”
likely will not result from this proposal. Thus, if you are a beneficial owner holding shares through a broker, bank or other holder of
record and you do not vote on this proposal, your broker may cast a vote on your behalf for this proposal.
GOVERNANCE
Proposal No. 1 – Election of Directors
Election of five directors.
the Board believes that the nominee’s knowledge, skills, and abilities would positively contribute to the function of the Board
as a whole. Accordingly, your proxy holder will vote your shares FOR the election of the Board’s nominee named
below unless you instruct otherwise.
Directors and Nominees
Previously, our Directors
were divided into three classes with staggered three-year terms, an arrangement consistent with a provision of the Massachusetts Business
Corporations Act which applies to public corporations. In May 2022, and as permitted by that Act, the Board voted to opt out of the classified
board arrangement. Accordingly, our Board now consists of five directors who all are elected to one-year terms, serving until the next
Annual Meeting of Shareholders or until their earlier resignation or replacements:
Name |
Position with our Company |
Director Since |
Peter H. Woodward |
Chairman of the Board and Director |
2014 |
Andrew J. Miclot |
Director |
2016 |
Richard B. Miles |
Director |
2005 |
Peter V. Anania |
Director |
2021 |
Joseph N. Forkey |
Chief Executive Officer, President, Treasurer and Director |
2006 |
What am I voting on?
Shareholders are being asked
to elect five nominees for election as directors. Further information about the five current Company directors appears below.
Required Vote
With regard to the election
of directors, votes may be cast “FOR” or “WITHHOLD.” The affirmative vote of a plurality of the shares of common
stock present or represented by proxy and entitled to vote at the Annual Meeting, in person or by proxy, is required for the election
of the nominee. Thus, assuming a quorum is present at the 2023 Annual Meeting, the nominees who receives the most affirmative votes will
be elected as directors. Abstentions and broker “non-votes” will have no effect on the voting outcome with respect to the
election of directors.
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The Board of Directors recommends a vote FOR the election of Peter H. Woodward, Andrew J. Miclot, Richard B. Miles, Peter V. Anania, Joseph N. Forkey. |
Director Biographies and Qualifications
The biographies of our directors
and certain information regarding each director’s experience, attributes, skills and/or qualifications that led to the conclusion
that the director should be serving as a Director of Precision Optics Corporation, Inc. are stated below.
Peter H. Woodward, age 49 – Chairman of the Board
Mr. Woodward was appointed
to our Board effective July 9, 2014 and as chairman of the Board in connection with the sale and purchase agreement we entered into in
July 2014. Mr. Woodward is the founder of MHW Capital Management, LLC, or MHW, a position he has held since September 2005. MHW specializes
in large equity investments in public companies implementing operating strategies to significantly improve their profitability. From 1996
to 2005, Mr. Woodward was the Managing Director for Regan Fund Management, LLC. He served as the President and Chief Executive Officer
and Director of Cartesian, Inc. from June 2015 to July 2018, and currently serves as Chairman of the Board and Chairman of the Audit Committee
for TSS, Inc., and as the CEO of Innovative Power, LLC. Mr. Woodward holds a BA in economics from Colgate University and a Masters of
International Affairs with a concentration in international economics and finance from Columbia University. He is also a Chartered Financial
Analyst.
Andrew J. Miclot, age 68 – Director
Mr. Miclot was appointed to our Board on March
2, 2016. Mr. Miclot has more than 35 years of leadership experience with medical device suppliers and brings substantial global industry
knowledge to our Company. From September 2020 to May 2021, Mr. Miclot was President of Electromedical Products International, Inc., a
medical device company treating anxiety, insomnia, depression and pain. Mr. Miclot was the President and Vice Chairman and Director of
WishBone Medical, Inc., a pediatric orthopedic company dedicated to the unmet needs of children suffering from orthopedic challenges from
October 2017 to January 2019. He has been on the Indiana University Alumni Association Advisory Board from October 2016 to October 2021.
From October 2015 to January 2018, Mr. Miclot served as President, CEO and Director of Micro Machine Co., a supplier of medical products
for the orthopedic and spinal industries. Prior to joining Micro Machine Co., from May 2013 to September 2014, Mr. Miclot was Executive
Vice President of MicroTechnologies, Inc., a medical device supplier. Mr. Miclot was General Manager and Senior Vice President of ArthroCare
Corporation from June 2009 to March 2013. From January 2008 to March 2009, Mr. Miclot was President, CEO and Director of Ascension Orthopedics,
Inc. He was Vice President of Marketing for the orthopedic global business unit at Orthofix, Inc. from April 2007 to January 2008, and
from March 1994 to April 2007, he served as Senior Vice President with Symmetry Medical Inc., a medical device supplier and was also the
Investor Relations Officer, after the NYSE IPO in December 2004 until April 2007. Mr. Miclot has a BA degree in Speech and Hearing and
a MA degree in Audiology from Indiana University and an MBA from the Lake Forest Graduate School of Management, earned in 1991.
Dr. Richard B. Miles,
age 80 – Director
Professor Richard B. Miles
was appointed to our Board of Directors in November 2005. He received his Ph.D. degree in Electrical Engineering from Stanford University
in 1972 with a thesis on nonlinear optics. He was a member of the Mechanical and Aerospace Engineering faculty at Princeton University
from 1972 until 2013, at which time he retired from his Princeton academic appointment and became Professor Emeritus and Senior Scholar.
From 1980 to 1996 he served as Chairman of Engineering Physics at Princeton. In 2017 he joined Texas A&M University and was appointed
TEES Eminent Professor of Aerospace Engineering. In 2019 he was named Distinguished University Professor and is currently the holder of
the O’Donnell Foundation Chair V. He is a member of the National Academy of Engineering and a Fellow of the National Academy of
Inventors. He serves on the Board of Directors of the Hertz Foundation and the Board of Trustees of Pacific University, Oregon and is
a Fellow of the Optical Society of America (OSA) and the American Institute Aeronautics and Astronautics (AIAA). In 1997 he founded Plasma
TEC, Inc, and currently serves as its CEO. Professor Miles is a valuable member of our Board due to his depth of scientific experience
and familiarity with the field of our technologies, insight into the academic community, and familiarity with the latest developments
and innovations in science and technology.
Peter V. Anania, age 68 – Director
On October 6, 2021, our Board appointed Mr.
Peter V. Anania as a class II director for a three-year term or until his successor is duly elected or qualified. Peter V. Anania is President
of Anania & Associates which he founded in 1987, and Anania & Associates Investment Company LLC, a private investment firm focused
on privately held, manufacturing businesses which he founded in January 2008. Since November 2000, he serves as President and on the Board
of Microwave Techniques LLC, Elmet Technologies, LLC, Polymer Laboratories & Solutions LLC and mWave Industries LLC. He has served
in operating and board positions of numerous private companies in which he has invested and performed management consulting services to
non-portfolio companies. Mr. Anania served on the Windham Town Council from 2011 to 2014, board of the Windham Economic Development Corporation,
Maine Heritage Policy Center (Chairman); is a current Corporator for Bangor Savings Bank; an Emeritus Board member of the Maine International
Trade Center participating in trade missions to Korea, the United Kingdom, Brazil, Argentina, Taiwan, Singapore, Germany, the Netherlands
and Mexico; and serves as a charter member of Maine's District Export Council helping small businesses expand their export sales. He previously
served on the board of the USM Alumni Association, the Family Crisis Center, the United Way Allocation Committee and Raye’s Mustard
Mill in Eastport. Mr. Anania has a B.A. from the University of Maine in marketing and management and an MBA from the University of Southern
Maine.
Joseph N. Forkey, age 55 – Chief Executive
Officer, President, Treasurer and Director
Dr. Joseph N. Forkey has
served as our Chief Executive Officer, President and Treasurer since February 8, 2011. Dr. Forkey has been a member of our Board of Directors
since 2006. He served as our Chairman of our Board of Directors from February 2011 to July 2014. He served as our Executive Vice President
and Chief Scientific Officer from April 2006 to February 2011, and held the position of our Chief Scientist from September 2003 to April
2006. Since joining us, he has been involved in general technical and management activities of our Company, as well as investigations
of opportunities that leverage our newly developed technologies. Dr. Forkey holds B.A. degrees in Mathematics and Physics from Cornell
University, and a Ph.D. in Mechanical and Aerospace Engineering from Princeton University. Prior to joining us, Dr. Forkey spent seven
years at the University of Pennsylvania Medical School as a postdoctoral fellow and research staff member. Dr. Forkey is a valuable member
of our Board due to his depth of scientific, operating, strategic, transactional, and senior management experience in our industry. Additionally,
Dr. Forkey has held positions of increasing responsibility at our Company and holds an intimate knowledge of our Company due to his longevity
in the industry and with us.
Board Meetings and Committees, Annual Meeting Attendance
Our Board of Directors held
6 meetings during fiscal year 2023, and in addition, took action from time to time by unanimous written consent. Each director attended
at least 75% of the aggregate number of meetings of the Board of Directors held during the period for which such Director served on our
Board of Directors and of the Committees on which such director served.
It is the policy of the Company
to encourage, but not to require, nonemployee directors of the Company to attend each Annual Meeting of Shareholders, either in person
at the location of the Annual Meeting or through remote participation by videoconference or otherwise.
Director Independence,
Related Person Transactions and Other Legal Information
Independent Directors
We determine independence
using the definitions set forth in the Nasdaq Listing Rules and the rules under the Securities Exchange Act of 1934. These definitions
define independence based on whether the director or a family member of the director has been employed by the Company in the past three
years, how much compensation or other payments the director or family member of a director received from the Company over the past three
years, how much stock the director or family member of the director owns in the Company and whether the director or family member of the
director is associated with the Company’s independent auditor.
The Board has determined
that Messrs. Woodward, Miclot and Miles are independent as defined by Rule 5605(a)(2) of the Nasdaq Listing Rules.
Related Person Transactions
It is our policy that all
employees, officers and directors must avoid any activity that is or has the appearance of conflicting with the interests of our Company.
Our Board reviews all related party transactions for potential conflict of interest situations on an ongoing basis and all such transactions
relating to executive officers and directors must be approved by the Board. In carrying out this responsibility, the Board has determined
that we have the following related party transactions.
(a) As
partial consideration for the October 2021 acquisition of Lighthouse Imaging, and as part of an Asset Purchase Agreement dated as of October
4, 2021, we agreed to pay up to $1,500,000 in two annual installments of up to $750,000, each contingent upon the Lighthouse Imaging
division achieving stated levels of gross margin for the given twelve month earn-out period. As of June 30, 2022, the first annual earn-out
liability of $750,000 for the period ending September 30, 2022 was written off to other income due to the Company’s determination
that the Lighthouse Imaging division would not achieve the minimum gross margin requirement for that first earn-out installment. On March
28, 2023, the Company and holders of rights to participate in the remaining earn-out installment entered into an amendment (i) reducing
the stated gross margin target and threshold for the second earn-out period (the twelve months ending September 1, 2023) but also (ii)
reducing the maximum earn-out payment for such second period, to $600,000. Under the amendment, the participating holders also confirmed
the accuracy of prior calculations under the Asset Purchase Agreement and confirmed the absence of any prior disputes relating to the
first annual earn-out payment. As of June 30, 2023, the final annual earn-out liability of $600,000 for the period ending September
30, 2023 was written off to other income due to the Company’s determination that the Lighthouse Imaging division would not achieve
the minimum gross margin requirement for that final earn-out installment.
(b) Christopher J. DiRubio,
the adult son of our Senior Vice President of Sales and Marketing, Jeffrey L. DiRubio, purchased 3,333 shares of our stock in a private
placement by the Company that closed on June 20, 2023.
(c) H2C 2020 LLC purchased
3,334 shares of our stock in a private placement by the Company that closed on June 20, 2023. The equity owners of H2C 2020 LLC include
the adult daughter and son-in-law of our Senior Vice President of Sales and Marketing, Jeffrey L. DiRubio.
Arrangements or Understandings between our
Executive Officers or Directors and Others
There are no arrangements
or understandings between our executive officers or directors and any other person pursuant to which he was or is to be selected as a
director or officer.
Other Involvement in Certain Legal
Proceedings
None of our directors have
been involved in any bankruptcy or criminal proceedings, nor have there been any judgments or injunctions brought against any of our directors
during the last ten years that we consider material to the evaluation of the ability and integrity of any director.
Information about
Corporate Governance
Board Leadership Structure
Mr. Woodward has served as
our Chairman of our Board of Directors since July 9, 2014. Dr. Forkey has been our Chief Executive Officer, President and Treasurer since
February 8, 2011. Dr. Forkey manages the day-to-day affairs of our Company. Our independent directors, Dr.
Miles serves on our Board of Directors since November 2005, Mr. Miclot since March 2016 and Mr. Anania since October 2021. Our Board believes
that having a majority of independent directors serves our Company well. The Board believes that its structure should be informed by the
needs and circumstances of our Company, the Board, and our shareholders. With this in mind, the Board believes that its structure is currently
serving our Company well, and intends to maintain this where appropriate and practicable in the future.
Risk Oversight of Management
The Board of Directors oversees
management regarding our Company’s risks. Our management keeps the Board of Directors apprised of significant risks facing our Company
and the approach being taken to understand, manage and mitigate such risks. Additional review or reporting on enterprise risks is conducted
as needed or as requested by the Board of Directors.
Director Nominations
The Board of Directors nominates
directors for election at each annual meeting of shareholders and appoints new directors to fill vacancies when they arise. The Board
is responsible for the identification, evaluation, recruitment of qualified candidates to the Board of Directors for nomination or election.
It is the policy of the Company that the Board seek recommendations from the independent directors as to each person considered for nomination
or election as a director.
One of the Board of Directors’
objectives in evaluating director nominations is to ensure that its membership is composed of experienced and dedicated individuals with
a diversity of backgrounds, perspectives and skills. The Board selects nominees for director based on the nominee's character, judgment,
diversity of experience, business acumen, and ability to act on behalf of all shareholders. We do not have a formal diversity policy;
however, the Board endeavors to have a Board representing diverse viewpoints as well as diverse expertise at policy-making levels in many
areas, including business, accounting and finance, manufacturing, marketing and sales, education, legal, government affairs, regulatory
affairs, research and development, business development, technology and in other areas that are relevant to our activities.
The Board believes that nominees
for director should have experience, such as those mentioned above, that may be useful to our Company and the Board of Directors, high
personal and professional ethics and the willingness and ability to devote sufficient time to carry out effectively their duties as directors.
The Board believes it is appropriate for at least one, and, preferably, multiple, members of the Board of Directors to meet the criteria
for an “audit committee financial expert” as defined by rules of the SEC, and for a majority of the members of the Board of
Directors to meet the definition of “independent director” as defined by the Nasdaq Listing Rules. The Board also believes
it is appropriate for key members of our management to participate as members of the Board of Directors. Prior to each annual meeting
of shareholders, the Board identifies nominees first by evaluating the current directors whose term will expire at the annual meeting
and who are willing to continue in service. These candidates are evaluated based on the criteria described above, including as demonstrated
by the candidate’s prior service as a director, and the needs of the Board of Directors with respect to the particular talents and
experience of its directors. In the event that a director does not wish to continue in service, the Board determines not to re-nominate
the director, a vacancy is created on the Board of Directors as a result of a resignation, an increase in the size of the Board or other
event, the Board will consider various candidates for Board membership, including those suggested by Board members, officers, employees,
customers, vendors, by an executive search firm engaged by the Board or by shareholders.
The Board of Directors will
consider candidates for director positions that are recommended by any of our stockholders. Any such recommendation should be provided
to our Secretary. The recommended candidate should be submitted to us in writing addressed to our Secretary, c/o Precision Optics Corporation,
Inc., 22 East Broadway, Gardner, Massachusetts 01440. The recommendation should include the following information: name of candidate;
address, phone and fax number of candidate; a statement signed by the candidate certifying that the candidate wishes to be considered
for nomination to our Board of Directors and stating why the candidate believes that he or she would be a valuable addition to our Board
of Directors; a summary of the candidate’s work experience for the prior five years and the number of shares of our stock beneficially
owned by the candidate.
The Board will evaluate the
recommended candidate and shall determine whether or not to proceed with the candidate in accordance with our procedures. We reserve the
right to change our procedures at any time to comply with the requirements of applicable laws.
Shareholder Communications with the Board of Directors
If you wish to communicate
with the Board of Directors, you may send your communication in writing to: Secretary, c/o Precision Optics Corporation, Inc., 22 East
Broadway, Gardner, Massachusetts, 01440. Please include your name and address in the written communication and indicate whether you are
a shareholder of Precision Optics. The Secretary will review any communication received from a shareholder, and all material communications
from shareholders will be forwarded to the appropriate director or directors or Committee of the Board of Directors based on the subject
matter.
Director Compensation
The following table sets
forth cash amounts and the value of other compensation paid to our directors, but does not include the compensation of Dr. Joseph N. Forkey,
our Chief Executive Officer, President, and Treasurer, as his compensation is reflected in the Summary Executive Compensation Table. During
the fiscal year ended June 30, 2023, our Board of Directors determined that Dr. Joseph N. Forkey was our employee director and, therefore,
would not earn any fees related to service on our Board.
Name of Director |
|
Fees earned or paid
in cash ($)(1) |
Option awards
($)(2) |
Total
($) |
Andrew J. Miclot |
|
|
16,250 |
|
101,551 |
117,801 |
Richard B. Miles |
|
|
8,750 |
|
101,551 |
110,301 |
Peter V. Anania |
|
|
8,750 |
|
101,551 |
110,301 |
Peter H. Woodward |
|
|
40,000 |
(2) |
153,327 |
192,327 |
_______________________
(1) |
Under our director compensation plan, each non-management, non-Chairman board
member received $1,250 for the first quarter of FY 2023. For the remainder of FY 2023, each non-Chairman board member received $2,500
quarterly and Mr. Miclot received an additional $2,500 quarterly as chair of the Compensation Committee. We also reimburse our directors
for travel expenses. Mr. Woodward receives $10,000 per quarter for the performance of services as Chairman. |
|
|
(2) |
On November 16, 2022, options to purchase up to 6,666 shares of common stock were granted to Mr. Miclot, Dr. Miles, and Mr. Anania, and up to 10,000 shares to Mr. Woodward, at an exercise price of $6.26 per share. On January 16, 2023, options to purchase up to 13,334 shares of common stock were granted to Mr. Miclot, Dr. Miles, and Mr. Anania, and up to 20,000 shares to Mr. Woodward, at an exercise price of $6.26 per share. All such options were exercisable at the date of grant and by their terms will expire on the tenth anniversary of the grant date. |
As of October 10, 2023, the following outstanding
stock options were held by each of our directors: Andrew J. Miclot – 59,998, Dr. Richard B. Miles – 60,998, Peter V. Anania
– 26,666, Peter H. Woodward – 90,000.
Narrative to Director Compensation Table
Under our director compensation plan, each non-management,
non-Chairman board member shall receive $5,000 annually paid in quarterly amounts of $1,250. In accordance with a separate agreement,
the Chairman of the Board, Mr. Woodward, receives $10,000 per quarter for the greater time commitment required to perform the duties of
Chairman of the Board. We also reimburse our directors for travel expenses.
Executive Officers
Executive Officers’ Biographies and Qualifications
The biographies of our executive officers
and certain information regarding each officer’s experience, attributes, skills and/or qualifications that led to the conclusion
that the officer should be serving as an officer of Precision Optics are stated below.
Dr. Joseph Forkey, age 55 – President,
Chief Executive Officer and Director
For Mr. Forkey’s biography,
please refer to the section entitled “Director Biographies and Qualifications.”
Wayne M. Coll
Mr. Coll was elected
as Chief Financial Officer and Secretary effective June 12, 2023. Mr. Coll has over 30 years of senior financial executive experience,
primarily with medical device-based businesses. He formerly served as Chief Financial Officer for Flowonix Medical Incorporated (2021-2023),
Micron Products, Inc. (2019-2021), Keystone Dental, Inc. (2018-2019), and Modern Dental Laboratory USA, LLC (2013-2018). Mr. Coll received
a B.S. in Business Administration and Accounting from the University of Lowell, and an M.B.A. from the University of Massachusetts Lowell.
Mahesh Lawande
Mr. Lawande was elected as Chief Operating Officer
on April 24, 2023. Mr. Lawande has senior operations and engineering experience primarily with medical technology-based businesses. He
formerly served as Senior Director of Supply Chain Operations in North America for Draeger Medical Systems, Inc. (2017-2019), Director
of Operations for Analogic Corporation (2021-2022), and Vice President – Manufacturing and Operations for Third Pole Therapeutics
(2022-2023). Mr. Lawande received a B.E. in Electronics and Communications from Goa University, India, and an M.B.A. in Corporate Entrepreneurship
and Strategy from F.W. Olin Graduate School of Business at Babson College.
Other Involvement in Certain Legal Proceedings
None of our executive officers
have been involved in any bankruptcy or criminal proceedings, nor have there been any judgments or injunctions brought against any of
our executive officers during the last ten years that we consider material to the evaluation of the ability and integrity of any executive
officer.
Executive Compensation
Named Executive Officers
This Proxy Statement contains
information about the compensation paid to our Named Executive Officers, as defined by Item 402(m)(2) of Regulation S-K, during our fiscal
year ended June 30, 2023. In accordance with the rules and regulations of the Securities and Exchange Commission for smaller reporting
companies, we determined that the following officers were our Named Executive Officers:
|
· |
Joseph N. Forkey, Chief Executive Officer, President, Treasurer and Director; |
|
|
|
|
· |
Wayne M. Coll, Chief Financial Officer; and |
|
|
|
|
· |
Mahesh Lawande, Chief Operating Officer. |
Compensation Overview
We qualify as a “smaller
reporting company” under the rules promulgated by the Securities and Exchange Commission, and we have elected to comply with the
disclosure requirements applicable to smaller reporting companies. Accordingly, this executive compensation summary is not intended to
meet the “Compensation Discussion and Analysis” disclosure required of larger reporting companies.
Role of the Board
The Board of Directors oversees
and determines executive compensation and reviews our major compensation plans, policies and programs. All compensation for our Chief
Executive Officer and our Chief Financial Officer is determined by the full Board of Directors, with the exception of the compensation
for our Chief Executive Officer, Dr. Forkey, who recuses himself and does not participate in the determination or discussion of his own
compensation. The Board is charged with the responsibility of reviewing the performance and establishing the total compensation of our
Chief Executive Officer and our Chief Financial Officer on an annual basis. The Board often discusses compensation matters as part of
regularly scheduled Board meetings. The Board administers our incentive plans and is responsible for approving grants of equity awards
under such plans. We believe that our Board adequately fulfilled its role in overseeing our compensation policies in the past.
Compensation Philosophy and Objectives
Due to the size of our Company,
the performance of our Chief Executive Officer, our Chief Financial Officer and our Chief Operating Officer directly affects all aspects
of our results. Consequently, our compensation philosophy is to reward these executive officers for the achievement of short- and long-term
corporate and individual performance, as measured by the attainment of specific goals for the creation of long-term shareholder value.
Also, to ensure that we are strategically and competitively positioned for the future, the Board has the discretion to attribute significant
weight to other factors in determining executive compensation, such as maintaining competitiveness, expanding markets, pursuing growth
opportunities and achieving other long-range business and operating objectives. The level of compensation should also allow us to attract,
motivate, and retain talented executive officers that contribute to our long-term success. The compensation of our Chief Executive Officer,
Chief Financial Officer and Chief Operating Officer is comprised of cash compensation and long-term incentive compensation in the form
of base salary, restricted stock and stock options with the possibility to earn bonuses.
Summary Compensation Table for the Years Ended June 30,
2023 and 2022
The following table sets
forth all compensation for our fiscal years ended June 30, 2023 and 2022 awarded to, earned by, or paid to our Principal Executive Officer,
our most highly compensated executive officer and our most highly compensated employee, all of which are referred to herein as the “Named
Executive Officers.” No other executive officer earned over $100,000 in the last completed fiscal year.
Name and Principal Position |
|
Year
June 30, |
|
Salary ($) |
Bonus ($) |
Option Awards ($) (1) |
Total
($) |
Dr. Joseph N. Forkey |
|
2023 |
|
240,385 |
|
0 |
|
0 |
(2) |
240,385 |
Director, Chief Executive Officer, President and Treasurer |
|
2022 |
|
250,000 |
|
0 |
|
0 |
|
250,000 |
Daniel S. Habhegger (3) |
|
2023 |
|
132,421 |
|
0 |
|
0 |
(4) |
132,421 |
Chief Financial Officer, Secretary |
|
2022 |
|
193,630 |
|
20,000 |
(5) |
0 |
|
213,630 |
Jeffrey L. DiRubio |
|
2023 |
|
203,148 |
|
83,482 |
(6) |
0 |
|
286,630 |
Senior Vice President Sales and Marketing |
|
2022 |
|
168,002 |
|
29,316 |
(7) |
150,082 |
(8) |
347,400 |
(1) |
Represents the aggregate grant date fair value of stock option awards granted in the respective fiscal year as computed in accordance with FASB ASC Topic 718, Compensation — Stock Compensation. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option valuation model. A discussion of the assumptions used in calculating the amounts in this column may be found in the Notes to our audited consolidated financial statements for the year ended June 30, 2023 set forth in this Annual Report on Form 10-K. These amounts do not represent the actual amounts paid to or realized by the executives during the fiscal years presented. |
|
|
(2) |
We granted Dr. Forkey a performance stock option to purchase up to 16,667 shares of our common stock at an exercise price of $5.85 per share, the closing price of our common stock on November 1, 2022. The options vest on a formula basis, subject to satisfaction of stated EBITDA targets and stated management objectives. At the time of this filing the performance targets were not met and the options thereby failed to vest. |
|
|
(3) |
Mr. Habhegger resigned as an employee and officer effective February 14, 2023. |
|
|
(4) |
We granted Mr. Habhegger a performance stock option to purchase up to 16,667 shares of our common stock at an exercise price of $5.85 per share, the closing price of our common stock on November 1, 2022. The options vest on a formula basis, subject to satisfaction of stated EBITDA targets and stated management objectives. Due to Mr. Habhegger’s departure, the performance targets were not met and the options thereby failed to vest. |
|
|
(5) |
Represents the fair value of performance bonus award paid in the form of common stock. |
|
|
(6) |
Represents performance bonus awards for the respective fiscal year. |
|
|
(7) |
Represents performance bonus awards for the respective fiscal year. |
|
|
(8) |
We granted Mr. DiRubio a stock option to purchase up to 33,333 shares of our common stock at an exercise price of $6.27 per share, the closing price of our common stock on February 7, 2022. These options vest in three pro rata increments on February 7, 2023, 2024, and 2025. |
Narrative to Summary
Compensation Table
Named Executive Officer Employment Agreements
Agreement with Dr. Forkey
On July 27, 2018, our Board of Directors approved
a new compensation agreement with our Chief Executive Officer, Dr, Joseph Forkey, effective August 2, 2018. Pursuant to the agreement,
we agreed to pay Dr. Forkey a base salary of $200,000 per year beginning retroactively on July 1, 2018. Effective October 1, 2019, our
Board of Directors approved an increase of Dr. Forkey’s base salary to $250,000 per year.
Agreement with Mr. Habhegger
Effective December 1, 2019, we entered into an
employment agreement with Daniel S. Habhegger to serve as our Chief Financial Officer. Mr. Habhegger resigned as Chief Financial Officer
effective January 6, 2023, and resigned as an employee and officer effective February 14, 2023. At the date of his resignation, his salary
was $200,000 per annum.
Agreement with Mr. DiRubio
As of February 7, 2022, we entered into an Employment
Agreement with Mr. DiRubio to serve as Senior Vice President of Sales and Marketing of Precision Optics Corporation. The agreement covers
a period of one year from January 1, 2022, subject to automatic annual renewals unless earlier terminated or unless either party gives
at least 30 days’ notice of nonrenewal. Mr. DiRubio will receive base salary of $190,000 per year, plus formulaic cash bonuses based
on specified financial results versus budget. For the period January 1 through June 30, 2022, Mr. DiRubio earned a revenue-based bonus
of $22,670 and gross margin-based bonus of $6,594. For the fiscal year ending June 30, 2023, his maximum aggregate cash bonus would be
$125,000, subject to meeting or exceeding targeted financial result targets for the year. Under his Agreement, Mr. DiRubio also received
a one-time stock option award for the purchase of up to 33,333 shares of Company common stock at an exercise price of $6.27 per share,
to vest in pro rata increments on February 7, 2023, 2024 and 2025. If Mr. DiRubio is terminated without cause by the Company during the
first year of the agreement, he shall receive a lump-sum $47,500 cash severance payment and all unexercised stock options shall vest immediately
and be exercisable for the remainder of their term. If Mr. DiRubio is terminated without cause subsequent to the first year of the Agreement,
he shall receive a lump-sum cash severance payment equal to one-fourth his then current annual salary (not including bonus). The agreement
also provides that during the term of his employment and for twelve months thereafter, Mr. DiRubio agrees not to compete with the Company,
solicit employees, vendors or customers for purposes that do not directly benefit the Company or to interfere in any way with the Company’s
relationship with any vendors or customers.
Agreement with Mr. Coll
As of June 12, 2023, we entered into an Employment
Agreement with Wayne M. Coll to serve as our Chief Financial Officer and Secretary, pursuant to which we agreed to pay Mr. Coll a base
salary of $300,000 per year. We also granted Mr. Coll a stock option to purchase up to 50,000 shares of common stock at $6.94 per share,
with annual vesting in three equal increments beginning June 12, 2024.
Agreement with Mr. Lawande
As of April 24, 2023, we entered into an Employment
Agreement with Mahesh Lawande to serve as our Chief Operating Officer, pursuant to which we agreed to pay Mr. Lawande a base salary of
$275,000 per year. We also granted Mr. Lawande a stock option to purchase up to 60,000 shares of common stock at $6.40 per share, with
annual vesting in three equal increments beginning April 24, 2024.
Apart from the agreements described above, we
have no other employment contracts in place with any Named Executive Officer or any compensatory plan or arrangement with respect to any
Named Executive Officer where such plan or arrangement will result in payments to such Named Executive Officer upon or following his resignation,
or other termination of employment with us and our subsidiaries, or as a result of a change-in-control of our Company or a change in the
Named Executive Officers’ responsibilities following a change-in-control.
Outstanding Equity Awards at Fiscal Year-End Table for the Fiscal
Year Ended June 30, 2023
The following table shows grants of options outstanding
on June 30, 2023, the last day of our most recent fiscal year, to each of the Named Executive Officers included in the Summary Executive
Compensation Table.
Name | |
Number of securities underlying unexercised options Exercisable | | |
Number of securities underlying unexercised options Unexercisable | | |
Option exercise price ($) | | |
Option expiration date |
Dr. Joseph N. Forkey | |
| 116,666 | | |
| 0 | | |
| 2.19 | | |
08/02/2028 |
| |
| 50,000 | | |
| 0 | | |
| 5.04 | | |
06/04/2031 |
| |
| | | |
| | | |
| | | |
|
Daniel S. Habhegger | |
| 26,666 | | |
| 0 | | |
| 5.04 | | |
06/04/2031 |
| |
| | | |
| | | |
| | | |
|
Jeffrey DiRubio | |
| 33,333 | | |
| 0 | | |
| 3.90 | | |
05/17/2029 |
| |
| 8,333 | | |
| 0 | | |
| 5.04 | | |
06/04/2031 |
| |
| 11,111 | | |
| 22,222 | | |
| 6.27 | | |
02/07/2032 |
Profit Sharing and 401(k) Plan
We have a defined contribution 401(k) profit sharing
plan. Employer profit sharing and matching contributions to the plan are discretionary. No employer profit sharing contributions were
made to the plan in fiscal years 2023 and 2022. No employer matching contributions were made to the plan in fiscal years 2023 and 2022.
Proposal No. 2 – Advisory Vote to Approve Executive Compensation
The Dodd-Frank Wall Street Reform and Consumer
Protection Act added Section 14A to the Securities Exchange Act of 1934. As required pursuant to Section 14A of the Exchange Act, Proposal
No. 2 is a non-binding, advisory proposal on the compensation that we paid to our Named Executive Officers for the year ended June 30,
2021. The Board of Directors is providing shareholders with the opportunity to cast an advisory vote on the compensation of our Named
Executive Officers. This proposal, commonly known as a “say-on-pay” proposal, gives you, as a shareholder, the opportunity
to endorse or not endorse our executive compensation programs and policies and the compensation paid to our Named Executive Officers for
the year ended June 30, 2023.
We believe in the
power of open disclosure and know the only way to build and strengthen our reputation and our Company is through honesty and trust. In
connection with that belief and as required by SEC rules, we are asking our shareholders to approve, on an advisory basis, the compensation
that we paid to our Named Executive Officers.
As discussed under
the heading “Executive Compensation—Compensation Overview” in this Proxy Statement, our compensation objectives
are to: attract and retain highly qualified individuals with a demonstrated record of achievement; reward past performance; provide incentives
for future performance; and align the interests of the Named Executive Officers with the interests of our shareholders. The Board is asking
shareholders to support this proposal based on the disclosure set forth in these sections of this Proxy Statement, which, among other
things, demonstrates:
|
· |
our commitment to ensuring executive compensation is aligned with our corporate strategies and business objectives and competitive with those of other companies in our industry; |
|
· |
the design of our compensation programs is intended to reward our Named Executive Officers for the achievement of key strategic and financial performance measures by linking short- and long-term cash and equity incentives to the achievement of measurable corporate and individual performance goals; and |
|
· |
our strong emphasis on the alignment of the incentives of our Named Executive Officers with the creation of increased shareholder value. |
Required Vote
Because this proposal
asks for a non-binding, advisory vote, there is no required vote that would constitute approval. We value the opinions expressed by our
shareholders in this advisory vote, and our Compensation Committee, which is responsible for overseeing and administering our executive
compensation programs, will consider the outcome of the vote when designing our compensation programs and making future compensation decisions
for our Named Executive Officers. Abstentions and broker “non-votes,” if any, will not have any impact on this advisory vote.
|
Your Board of Directors is asking shareholders to cast a non-binding,
advisory vote FOR the following resolution:
“RESOLVED, that the Company’s shareholders hereby approve,
on an advisory basis, the compensation of our Named Executive Officers as disclosed pursuant to the compensation disclosure rules of the
SEC, including the compensation tables and accompanying narrative disclosure under the heading “Executive Compensation.” |
SHARE OWNERSHIP
Equity Compensation Plan Information
The following table provides
information as of June 30, 2023 with respect to compensation plans under which our equity securities are authorized for issuance:
Plan Category |
Number of securities to be issued upon exercise of outstanding options, warrants and rights |
Weighted-average exercise price of outstanding options, warrants and rights |
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
Equity compensation plans approved by security holders |
223,567 |
6.20 |
122,665 |
Equity compensation plans not approved by security holders |
903,573 |
4.07 |
47,789 |
Total |
1,127,140 |
4.53 |
170,454 |
2011 Equity Incentive Plan
The Precision Optics Corporation, Inc. 2011 Equity
Incentive Plan, referred to as the 2011 Plan, was adopted by our Board of Directors on October 13, 2011. The 2011 Plan allows for the
granting of stock options to selected employees, directors and other persons who provide services to us or our affiliates.
On April 16, 2015, the Board of Directors approved
an amendment to the 2011 Equity Incentive Plan which increased the maximum number of shares of our common stock that may be awarded under
the Plan from 325,000 to 1,825,000, an increase of 1,500,000 shares. In connection therewith, on April 20, 2015, we filed a registration
statement on Form S-8 to register the 1,500,000 shares of common stock.
On May 1, 2019, the Board of Directors approved
an amendment to the 2011 Equity Incentive Plan to update the Plan for the latest changes to the tax laws and increase the maximum number
of shares of our common stock that may be awarded under the Plan from 1,825,000 to 2,825,000, an increase of 1,000,000 shares. In connection
therewith, on September 6, 2019, we filed a registration statement on Form S-8 to register the 1,000,000 shares of common stock.
2021 Equity Incentive Plan
The Precision Optics Corporation, Inc. 2021 Equity
Incentive Plan, referred to as the 2021 Plan, was adopted by our Board of Directors on May 10, 2021. The 2021 Plan allows for the granting
of stock options to selected employees, directors and other persons who provide services to us or our affiliates for up to a total of
1,000,000 shares of the Company’s common stock. In connection therewith, we filed a registration statement on Form S-8 to register
the 1,000,000 shares of common stock.
2022 Equity Incentive Plan
The Precision Optics Corporation, Inc. 2022 Equity
Incentive Plan, referred to as the 2022 Plan, was adopted by our Board of Directors on February 10, 2022, and approved by our stockholders
on April 8, 2022. The 2022 Plan allows for the granting of stock options to selected employees, directors and other persons who provide
services to us or our affiliates for up to a total of 333,333 shares of the Company’s common stock, which total may be increased
annually without a further vote of stockholders in an amount determined by our Board of directors, but not to exceed 5% of the number
of outstanding shares of common stock on the last day of the immediately preceding year. As permitted by the Plan, the Board of Directors
on September 20, 2023 approved an amendment increasing the number of shares that may be issued under the 2022 Plan by 300,000 shares.
The Company plans to file a registration statement on Form S-8 to register the 633,333 shares of common stock issuable under this Plan
Security Ownership of Certain Beneficial Owners
The following tables set forth information regarding
our common stock owned as of the close of business on October 10, 2023 by the following persons: (i) each person who is known by us to
own beneficially more than 5% of our common stock, (ii) each of our directors who beneficially owns our common stock, (iii) each of our
Named Executive Officers who beneficially own our common stock and (iv) all executive officers and directors, as a group, who beneficially
own our common stock. The information on beneficial ownership in the table and footnotes thereto is based upon data furnished to us by,
or on behalf of, the persons listed in the table.
We have determined beneficial ownership in accordance
with the rules of the SEC. Except as indicated by the footnotes below, we believe, based on the information furnished to us, that the
persons and entities named in the table below have sole voting and investment power with respect to all shares of common stock that they
beneficially own, subject to applicable community property laws.
In computing the number of shares of common stock
beneficially owned by a person and the percentage ownership of that person, we deemed outstanding shares of common stock subject to options
held by that person or group that are currently exercisable or exercisable within 60 days after October 10, 2023. We did not deem these
shares outstanding, however, for the purpose of computing the percentage ownership of any other person or group.
Shareholders Known by Us to Own 5% or More of Our Common
Stock
|
|
Amount of beneficial ownership (1) |
|
|
Percent of |
|
Name and Address of Beneficial Owner |
|
Shares Owned |
|
|
Shares –
Rights to
Acquire |
|
|
Total
Number |
|
|
Shares
Beneficially
Owned (2) |
|
Dolphin Offshore Partners LP (3)
4828 First Coast Highway, STE 5
Fernandina, FL 32034 |
|
|
561,712 |
|
|
|
0 |
|
|
|
561,712 |
|
|
|
9.27% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sandra F., Norman H. and Brian L. Pessin (4)
400 E.51st Street PH 31
New York, NY 10022 |
|
|
896,728 |
|
|
|
0 |
|
|
|
896,728 |
|
|
|
14.79% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hershey Strategic Capital, LP (5)
888 7th Ave., 17th Floor
New York, New York 10019 |
|
|
328,826 |
|
|
|
0 |
|
|
|
328,826 |
|
|
|
5.43% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHW Partners, L.P. (6)
150 East 52nd Street, 30th Fl.
New York, New York 10022 |
|
|
224,671 |
|
|
|
90,000 |
|
|
|
314,671 |
|
|
|
5.12% |
|
(1) |
Represents shares with respect to which each beneficial owner listed has or will have, upon acquisition of such shares upon exercise or conversion of options, warrants, conversion privileges or other rights exercisable within 60 sixty days, sole voting and investment power. For the purposes of this table, we have not assumed the limitations on exercise set forth in certain options, which limit the number of shares of common stock that the holder, together with all other shares of common stock beneficially owned by such person, does not exceed 4.999% of the total outstanding shares of common stock. |
(2) |
As of October 10, 2023, there were 6,066,518 issued shares of our common stock issued and outstanding. Percentages are calculated on the basis of the amount of issued and outstanding common stock plus, for each person or group, any securities that such person or group has the right to acquire within 60 days pursuant to options, warrants, conversion privileges or other rights. |
|
|
(3) |
We relied, in part, on the Schedule 13D/A filed jointly by Dolphin Offshore Partners, L.P., Dolphin Mgmt. Services, Inc. and Peter E. Salas on March 20, 2023 for this information. |
|
|
|
Dolphin Offshore Partners, L.P., a Delaware limited partnership, is an investment manager. Dolphin Mgmt. Services, Inc., a Delaware corporation, is the managing general partner of Dolphin Offshore Partners, L.P. Peter E. Salas is the President, sole shareholder and controlling person of Dolphin Mgmt. Services, Inc. Peter Salas is a U.S. citizen. |
|
|
|
Dolphin Offshore Partners, L.P., Dolphin Mgmt. Services, Inc. and Peter E. Salas each may be deemed to beneficially own an aggregate of 561,712 shares of common stock. Dolphin Offshore Partners, L.P., Dolphin Mgmt. Services, Inc. and Peter E. Salas each may be deemed to have shared power to vote or direct the vote, and dispose or direct the disposition, of all such shares of common stock. |
|
|
(4) |
We relied, in part, on a Schedule 13D/A filed jointly with the SEC on November 2, 2022 by Sandra F. Pessin, Brian L. Pessin and Norman H. Pessin. Mr. Norman H. Pessin and Mrs. Sandra F. Pessin are married and considered to beneficially hold each other’s shares. Ms. Pessin owns 477,362 shares, Mr. Norman Pessin owns 38,133 shares and Mr. Brian Pessin owns 381,233 shares for a combined beneficial ownership of 896,728 shares. Norman and Sandra Pessin are the parents of Brian Pessin. |
|
|
(5) |
We relied, in part, on the
Schedule 13D/A jointly filed by Hershey Strategic Capital, LP, Hershey Management I, LLC and Hershey Strategic Capital GP, LLC on
October 10, 2017 for this information. Hershey Management I, LLC, a Delaware limited liability company, is the investment advisor of
Hershey Strategic Capital, LP, a Delaware limited partnership. Hershey Strategic Capital GP, LLC, a Delaware limited liability
company, is the general partner of Hershey Strategic Capital, LP. Adam Hershey is the sole managing member of both Hershey
Management I, LLC and Hershey Strategic Capital GP, LLC. As the investment advisor, Hershey Management I, LLC has the voting and
dispositive power with respect to all of the shares of common stock owned by Hershey Strategic Capital, LP. |
|
|
|
Hershey Strategic Capital, LP beneficially owns 328,826 shares of common stock. Hershey Strategic Capital, LP is managed by Adam Hershey, and in such capacity, Mr. Hershey holds the power to vote and direct the disposition of all shares of common stock owned by Hershey Strategic Capital, LP. Hershey Management I disclaims beneficial ownership in the shares. |
|
|
(6) |
We relied, in part, on a Form 4 filed with the SEC on January 18, 2023 by Peter H. Woodward, a Form 4 filed with the SEC on December 1, 2016 by Mr. Woodward, and on a Schedule 13D/A jointly filed with the SEC on November 3, 2015 by MHW Partners, L.P., MHW Capital, LLC, MHW Capital Management, LLC for this information. |
|
|
|
MHW Partners, L.P. is a Delaware limited partnership. MHW Capital, LLC is a Delaware limited liability company. MHW Capital Management, LLC is a Delaware limited liability company. MHW Capital, LLC is the general partner of MHW Partners, L.P. Mr. Woodward is the principal of MHW Capital Management, LLC and MHW Capital, LLC and in such capacity, Mr. Woodward holds the power to vote and direct the disposition of all shares of common stock owned by MHW Partners, L.P. MHW Partners, L.P., MHW Capital, LLC, MHW Capital Management, LLC and Mr. Woodward share the power to vote and direct the disposition of all shares of common stock owned by MHW Partners, L.P. Mr. Woodward is a citizen of the United States and our current Chairman of our Board of Directors. |
|
|
|
MHW Partners, L.P. beneficially owns 224,671 shares of common stock, and 90,000 shares that may be acquired upon the exercise of outstanding stock options held by Mr. Woodward, all of which have vested. |
Officers and Directors
|
|
|
|
Amount of beneficial ownership (2) |
|
|
Percent of |
|
Name and address of beneficial owner (1) |
|
Nature of beneficial ownership |
|
Shares
Owned |
|
|
Shares – Rights
to Acquire |
|
|
Total
Number |
|
|
Shares
Beneficially
Owned (3) |
|
Dr. Joseph N. Forkey (4) |
|
Chief Executive Officer, President, Treasurer and Director |
|
|
120,847 |
|
|
|
166,666 |
|
|
|
287,513 |
|
|
|
4.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peter H. Woodward (5) |
|
Chairman of the Board of Directors |
|
|
224,671 |
|
|
|
90,000 |
|
|
|
314,671 |
|
|
|
5.11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dr. Richard B. Miles (6) |
|
Director |
|
|
5,037 |
|
|
|
60,998 |
|
|
|
66,035 |
|
|
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Andrew J. Miclot (7) |
|
Director |
|
|
0 |
|
|
|
59,998 |
|
|
|
59,998 |
|
|
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peter V. Anania (8) |
|
Director |
|
|
210,598 |
|
|
|
26,666 |
|
|
|
237,264 |
|
|
|
3.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wayne M. Coll (9) |
|
Chief Financial Officer, Secretary |
|
|
0 |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mahesh Lawande (10) |
|
Chief Operating Officer |
|
|
0 |
|
|
|
60,000 |
|
|
|
60,000 |
|
|
|
* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All directors and executive officers as a group |
|
|
|
|
561,153 |
|
|
|
514,328 |
|
|
|
1,092,148 |
|
|
|
16.3% |
|
* Percentage of shares beneficially
owned does not exceed one percent of issued and outstanding shares of stock.
_______________________
(1) |
Unless otherwise stated, the address of each beneficial owners listed on the table is c/o Precision Optics Corporation, Inc., 22 East Broadway, Gardner, MA 01440. |
|
|
(2) |
Represents shares with respect to which each beneficial owner listed has or will have, upon acquisition of such shares upon exercise or conversion of options, warrants, conversion privileges or other rights exercisable within 60 sixty days, sole voting and investment power. |
|
|
(3) |
As of July 11, 2023, there were 6,066,518 shares of our common stock issued and outstanding. Percentages are calculated on the basis of the amount of issued and outstanding common stock plus, for each person or group, any securities that such person or group has the right to acquire within 60 days pursuant to options, warrants, conversion privileges or other rights. |
|
|
(4) |
Dr. Forkey is a member of our Board of Directors and serves as our Chief Executive Officer, President and Treasurer. Dr. Forkey’s beneficial ownership consists of (a) 120,847 shares of common stock, and (b) 166,666 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
|
|
(5) |
Mr. Peter Woodward is the Chairman of our Board of Directors. Mr. Woodward’s beneficial ownership consists of (a) 224,671 shares of common stock held through MHW Partners, L.P., and (b) 90,000 shares of common stock which may be acquired upon the exercise of outstanding stock options. |
(6) |
Dr. Miles is a member of our Board of Directors. Dr. Miles’ beneficial ownership consists of (a) 5,037 shares of common stock, and (b) 60,998 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
|
|
(7) |
Mr. Miclot is a member of our Board of Directors. Mr. Miclot’s beneficial ownership consists of 59,998 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
|
|
(8) |
Mr. Anania is a member of our Board of Directors. Mr. Anania’s beneficial ownership consists of (a) 201,647 shares of common stock held directly, (b) 8,950 shares of common stock held by his wife, and (c) 26,666 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
|
|
(9) |
Mr. Coll is our Chief Financial Officer and Secretary effective June 12, 2023. Mr. Coll’s beneficial ownership consists of 50,000 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
|
|
(10) |
Mr. Lawande is our Chief Operating Officer effective April 24, 2023. Mr. Lawande’s beneficial ownership consists of 60,000 shares of common stock that may be acquired upon the exercise of outstanding stock options. |
As of June 30, 2023, there
are no arrangements among our beneficial owners, known to management, which may result in a change in control of our Company.
Delinquent Section
16(a) Reports
Section 16(a) of the
Securities Exchange Act of 1934, as amended, requires our directors, executive officers and persons who own more than 10% of a registered
class of our securities to file reports of beneficial ownership and changes in beneficial ownership with the Securities and Exchange Commission
on Forms 3 (Initial Statement of Beneficial Ownership), 4 (Statement of Changes of Beneficial Ownership of Securities) and 5 (Annual Statement
of Beneficial Ownership of Securities). Officers, directors and greater than 10% beneficial owners are required by SEC regulations to
furnish us with copies of all Section 16(a) forms they file.
Based solely upon a review
of reports provided to us by our officers and directors, we believe that, during the fiscal year ended June 30, 2023, no person required
to file reports under Section 16(a) of the Securities Exchange Act of 1934 failed to file such reports on a timely basis during such fiscal
year except for the following: a Form 3 for Mahesh Lawande due on May 4, 2023 and filed on May 9, 2023; a Form 4 for Daniel S. Habhegger
due on November 3, 2022 and filed on December 29, 2022; a Form 4 for each of Joseph N. Forkey, Peter H. Woodward, Andrew J. Miclot, Peter
V. Anania, and Richard B. Miles due on November 18, 2022 and filed on December 29, 2022; and a Form 4 for Peter V. Anania due on June
2, 2022 and filed on April 14, 2023.
AUDIT MATTERS
Report of the Audit Committee
The Audit Committee of the
Board of Directors consists of Peter H. Woodward (Chair), Andrew Miclot and Dr. Richard B. Miles.
The Audit Committee oversees
our financial reporting, internal control and audit functions. Management is responsible for the preparation, presentation and integrity
of our financial statements, accounting and financial reporting principles and internal controls and procedures designed to ensure compliance
with accounting standards, applicable laws and regulations. Stowe & Degon LLC, our independent registered accounting firm, is responsible
for performing an independent audit of the consolidated financial statements in accordance with standards of the Public Company Accounting
Oversight Board.
In overseeing the preparation
of our financial statements, the Committee has had access to our management to review and discuss all financial statements prior to their
issuance and to discuss significant accounting issues. Management advised the Board that all financial statements were prepared in accordance
with U.S. generally accepted accounting principles. The Committee has met with our independent auditors with regard to our audited financial
statements for the year ended June 30, 2023. For the year ended June 30, 2023, the Committee and the Board received the independent auditor’s
letter and written disclosures required by the Independence Standards Board Standard No. 1 (Independence Discussions with Audit Committees).
In reliance on the reviews
and discussion with management and the independent registered public accounting firm referred to above, and upon the recommendation of
the Audit Committee, the Board of Directors approved the inclusion of the audited financial statements in Precision Optic’s Annual
Report on Form 10-K for the year ended June 30, 2023, for filing with the SEC. The Board appointed Stowe & Degon LLC to serve as the
Company’s independent registered public accounting firm for the year ending June 30, 2024.
Audit Committee
Peter H. Woodward |
Andrew J.
Miclot |
Richard B.
Miles |
(Chairman) |
|
|
Proposal No. 3 – Ratification of the
Appointment of Stowe & Degon LLC
The Board has appointed
Stowe & Degon LLC as our independent registered public accounting firm for the year ending June 30, 2024. A representative of Stowe
& Degon LLC is expected to be present at the 2023 Annual Meeting. They will have an opportunity to make a statement, if they desire
to do so, and will be available to respond to appropriate questions. Although shareholder ratification of our independent registered public
accounting firm is not required by our Bylaws or otherwise, we are submitting the selection of Stowe & Degon LLC to our shareholders
for ratification to permit shareholders to participate in this important corporate decision.
Required Vote
Ratification of the appointment
of Stowe & Degon LLC requires the affirmative vote of a majority of the shares present and voting at the Annual Meeting in person
or by proxy. Unless marked to the contrary, proxies received will be voted “FOR” ratification of the appointment. A properly
executed proxy marked “ABSTAIN” with respect to this proposal will not be voted, although it will be counted for purposes
of determining the number of shares of common stock entitled to vote. Accordingly, an abstention will have the effect of a negative vote.
Because this proposal is a routine proposal on which a broker or other nominee is generally empowered to vote, broker “non-votes”
likely will not result from this proposal. Thus, if you are a beneficial owner holding shares through a broker, bank or other holder of
record and you do not vote on this Proposal, your broker may cast a vote on your behalf for this proposal. In the event ratification is
not obtained, the Board will review its future selection of our independent registered public accounting firm but will not be required
to select a different independent registered public accounting firm.
|
Your Board of Directors recommends a vote FOR the ratification of Stowe & Degon LLC as our independent registered public accounting firm for the year ending June 30, 2024 |
Principal Accountant
Fees and Services
Stowe & Degon LLC has
audited our financial statements since 2008. The aggregate fees billed to us for professional accounting services, including the audit
of our annual consolidated financial statements by our independent registered public accounting firm for the years ended June 30, 2023
and 2022, are set forth in the table below.
|
Year Ended June 30, |
2023 |
2022 |
Audit fees |
$ |
109,835 |
$ |
96,815 |
|
Audit Related Fees |
|
4,184 |
|
4,420 |
|
Tax fees |
12,699 |
10,000 |
|
Other fees |
2,500 |
6,680 |
|
Total fees |
$ |
129,218 |
$ |
117,915 |
|
For purposes of the preceding table, the professional fees are classified
as follows:
Audit Fees. Audit fees for fiscal year
2023 are comprised of fees for professional services performed for the audit of our annual financial statements and review of our quarterly
financial statements of $109,835, which fees do not include any direct out-of-pocket expenses. Audit fees for fiscal year 2022 are comprised
of fees for professional services performed for the audit of our annual financial statements and review of our quarterly financial statements
of $96,815, including direct out-of-pocket expenses in the amount of $1,795.
Audit-related Fees. Audit-related fees
are comprised of fees for assurance and related attestation services that are reasonably related to the performance of the audit of our
annual financial statements, or the review thereof, and fees for due diligence services.
Tax Fees: Tax fees for fiscal 2022 and
2023 are comprised of fees for professional services performed with respect to corporate tax compliance, tax return preparation and filing,
tax planning and tax advice.
Audit Committee Pre-Approval Policies and
Procedures
In consultation with
our Chief Financial Officer, the Audit Committee pre-approves all services provided by our independent registered public accounting firm.
100% of the above services and fees were reviewed and approved by the Board of Directors either before or after the respective services
were rendered. The Board of Directors has considered the nature and amount of fees billed by Stowe & Degon LLC and believes that the
provision of services for activities unrelated to the audit is compatible with maintaining the firm’s independence.
Forward-Looking
Statements Disclaimer
Forward-looking statements
are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. These risks and
uncertainties include, but are not limited to the risks described in our Annual Report on Form 10-K available at www.sec.gov. The words
“may,” “will,” “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” “aim,” “seek,” “should,” “likely,” and similar
expressions as they relate to us or our management are intended to identify these forward-looking statements. All statements by us regarding
our expected financial position, revenues, cash flows and other operating results, business strategy, and similar matters are forward
looking statements. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Any forward-looking
statement speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to
update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date as of which such
statement was made.
General Information
Below you will find general
information on Shareholder Proposals, “Householding” of Proxy Materials, and more specific instructions on how to vote, which
can be found on your proxy voting card.
Shareholder Proposals
There are no shareholder
proposals for the 2023 Annual Meeting. If you would like information on submitting a shareholder proposal to be included in the 2024 Proxy
Statement and Annual Meeting, please refer to the information below.
How do I submit a Shareholder Proposal to be Included in the Proxy Statement?
You must submit your
proposal to our Secretary no later than June 22, 2024 – 120 calendar days before the anniversary of this Proxy Statement publication.
This is to comply with Rule 14a-8 under the 1934 Act.
What if the date
of the 2024 Annual Meeting is significantly different?
If the date of the
Annual Meeting is changed by more than 30 days, the proposal must be submitted to our Secretary by the close of business on the later
of:
• 90 days
prior to the Annual Meeting, OR
• 7 days
following the first public announcement of the Annual Meeting date
|
|
Who Presents the Proposal at the Meeting?
The Shareholder proponent,
or a representative who is qualified under state law, must appear in person at the 2023 Annual Meeting of Shareholders to present the
proposal.
How Should I Send my Proposal?
Please send your proposal
to our Secretary at:
Precision Optics Corporation,
Inc.
22 East Broadway
Gardner, MA 01440
We strongly suggest
that proposals are sent by Certified Mail – Return Receipt Requested.
|
|
|
|
What Must be Included in My Notice that I send to the Secretary? |
1. A
brief description of the proposed business
2. The
text of the proposal
3. Reasons
for conducting the business at the meeting
4. Name
and address (as they appear on our books) of the shareholder proposing such business
5. The
beneficial owner (if any) on whose behalf the proposal is made
6. Any
material interest of the shareholder in such business
7. Any
other information required by proxy proposal submission rules of the SEC |
“Householding” of Proxy Materials
The SEC has adopted rules
that permit companies and intermediaries such as brokers to satisfy delivery requirements for proxy statements with respect to two or
more shareholders sharing the same address by delivering a single proxy statement addressed to those shareholders. This process, which
is commonly referred to as “householding,” potentially provides extra convenience for shareholders and cost savings for us.
Under this procedure, multiple shareholders who share the same last name and address will receive only one copy of the annual proxy materials,
unless they notify us that they wish to continue receiving multiple copies. We have undertaken householding to reduce our printing costs
and postage fees.
If you wish to opt-out of
householding and continue to receive multiple copies of the proxy materials at the same address, you may do so at any time prior to thirty
days before the mailing of proxy materials, which will typically be mailed in June of each year, by notifying us in writing at: Secretary,
Precision Optics Corporation, Inc., 22 East Broadway, Gardner, MA 01440, or by contacting us at (978) 630-1800. You also may request additional
copies of the proxy materials by notifying us in writing at the same address or contacting us at (978) 630-1800, and we will undertake
to deliver such additional copies promptly. If you share an address with another shareholder and currently are receiving multiple copies
of the proxy materials, you may request householding by notifying us at the above referenced address or telephone number.
Other Matters
Your Board of Directors does
not know of any other business that will be presented at the Annual Meeting. If any other business is properly brought before the Annual
Meeting, your proxy holders will vote on it as they think best unless you direct them otherwise in your proxy instructions.
Whether or not you intend
to be present at the 2023 Annual Meeting, we urge you to submit your signed proxy promptly.
By Order of the Board of Directors.
/s/ Wayne M. Coll
Wayne M. Coll
Chief Financial Officer and Secretary
Gardner, Massachusetts
The Notice of Annual
Meeting, Proxy Statement, form of proxy and our 2023 Annual Report on Form 10-K are available at www.proxyvote.com. We will provide copies
of our Proxy Statement and our 2023 Annual Report free of charge upon request. We will also provide copies of exhibits to our 2023 Annual
Report, but may charge a reasonable fee per page to any requesting shareholder. Shareholders may make such requests in writing to Secretary,
Precision Optics Corporation, Inc., 22 East Broadway, Gardner, MA 01440. The request must include a representation by the shareholder
that as of October 10, 2023, the shareholder was entitled to vote at the 2023 Annual Meeting.
Appendix A
Proxy Card
[Enclosed]
Thank you for being
a shareowner of Precision Optics Corporation, Inc.
Learn more at http://poci.com/
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