10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)                                    

☒          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 0-20852

ULTRALIFE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	16-1387013 (I.R.S. Employer Identification No.)
2000 Technology Parkway Newark, New York 14513 (Address of principal executive offices) (Zip Code)	(315) 332-7100  (Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $0.10 par value per share	ULBI	NASDAQ
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No☒

As of May 8, 2025, the registrant had 16,632,965 shares of common stock outstanding.

ULTRALIFE CORPORATION AND SUBSIDIARIES

INDEX

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements (unaudited):
	Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	1
	Consolidated Statements of Income and Comprehensive Income for the Three-Month Periods Ended March 31, 2025 and March 31, 2024	2
	Consolidated Statements of Cash Flows for the Three-Month Periods Ended March 31, 2025 and March 31, 2024	3
	Consolidated Statements of Changes in Stockholders’ Equity for the Three-Month Periods Ended March 31, 2025 and March 31, 2024	4
	Notes to Consolidated Financial Statements (unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 4.	Controls and Procedures	24
PART II.	OTHER INFORMATION
Item 6.	Exhibits	25
	Signatures	26

PART I. FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands except share amounts)

(Unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash	$	8,719		$	6,854
Trade accounts receivable, net of allowance for expected credit losses of $408 and $384, respectively		36,061			29,370
Inventories, net		47,853			51,363
Prepaid expenses and other current assets		8,836			9,573
Total current assets		101,469			97,160
Property, plant and equipment, net		40,277			40,485
Goodwill		45,141			45,006
Other intangible assets, net		24,185			24,557
Deferred income taxes, net		8,020			8,413
Other noncurrent assets		4,661			4,830
Total assets	$	223,753		$	220,451
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,617		$	14,160
Current portion of long-term debt		3,094			2,750
Accrued compensation and related benefits		3,207			2,911
Accrued expenses and other current liabilities		8,578			9,470
Total current liabilities		31,496			29,291
Long-term debt, net		50,510			51,502
Deferred income taxes		1,413			1,443
Other noncurrent liabilities		3,730			4,028
Total liabilities		87,149			86,264
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued		-			-
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 21,069,079 shares at March 31, 2025 and 21,069,079 shares at December 31, 2024; outstanding – 16,632,965 shares at March 31, 2025 and 16,632,965 shares at December 31, 2024		2,107			2,107
Capital in excess of par value		192,055			191,828
Accumulated deficit		(32,577	)		(34,442	)
Accumulated other comprehensive loss		(3,695	)		(4,006	)
Treasury stock - at cost; 4,436,114 shares at March 31, 2025 and December 31, 2024		(21,492	)		(21,492	)
Total Ultralife Corporation equity		136,398			133,995
Non-controlling interest		206			192
Total stockholders’ equity		136,604			134,187
Total liabilities and stockholders’ equity	$	223,753		$	220,451

The accompanying notes are an integral part of these consolidated financial statements.

1

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In Thousands except per share amounts)

(Unaudited)

	Three-month period ended
	March 31, 2025			March 31, 2024
Revenues	$	50,746		$	41,927
Cost of products sold		38,001			30,457
Gross profit		12,745			11,470
Operating expenses:
Research and development		2,404			1,756
Selling, general and administrative		6,942			5,651
Total operating expenses		9,346			7,407
Operating income		3,399			4,063
Other expense (income):
Interest and financing expense		1,032			520
Miscellaneous income		(79	)		(64	)
Total other expense		953			456
Income before income taxes		2,446			3,607
Income tax provision		567			703
Net income		1,879			2,904
Net income attributable to non-controlling interest		14			13
Net income attributable to Ultralife Corporation		1,865			2,891
Other comprehensive income (loss):
Foreign currency translation adjustments		311			(232	)
Comprehensive income attributable to Ultralife Corporation	$	2,176		$	2,659
Net income per share attributable to Ultralife common stockholders – basic	$	.11		$	.18
Net income per share attributable to Ultralife common stockholders – diluted	$	.11		$	.18
Weighted average shares outstanding – basic		16,633			16,396
Potential common shares		47			122
Weighted average shares outstanding - diluted		16,680			16,518

The accompanying notes are an integral part of these consolidated financial statements.

2

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)

(Unaudited)

	Three-month period ended
	March 31, 2025			March 31, 2024
OPERATING ACTIVITIES:
Net income	$	1,879		$	2,904
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		950			740
Amortization of intangible assets		405			228
Amortization of financing fees		65			16
Stock-based compensation		227			161
Deferred income taxes		344			650
Changes in operating assets and liabilities:
Accounts receivable		(6,608	)		(3,562	)
Inventories		3,614			(1,699	)
Prepaid expenses and other assets		725			1,102
Accounts payable and other liabilities		1,767			(621	)
Net cash provided by (used in) operating activities		3,368			(81	)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(895	)		(372	)
Net cash used in investing activities		(895	)		(372	)
FINANCING ACTIVITIES:
Payments on credit facilities		(687	)		(500	)
Proceeds from exercise of stock options		-			685
Net cash (used in) provided by financing activities		(687	)		185
Effect of exchange rate changes on cash		79			89
INCREASE (DECREASE) IN CASH		1,865			(179	)
Cash, Beginning of period		6,854			10,278
Cash, End of period	$	8,719		$	10,099

The accompanying notes are an integral part of these consolidated financial statements.

3

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands except share amounts)

(Unaudited)

					Capital		Accumulated
	Common Stock				in Excess		Other									Non-
	Number of				of Par		Comprehensive			Accumulated			Treasury			Controlling
	Shares		Amount		Value		Income (Loss)			Deficit			Stock			Interest		Total
Balance – December 31, 2023		20,783,607	$	2,078	$	189,160	$	(3,660	)	$	(40,754	)	$	(21,492	)	$	95	$	125,427
Net income											2,891						13		2,904
Stock option exercises		103,839		11		674													685
Stock-based compensation – stock options						156													156
Stock-based compensation -restricted stock						5													5
Foreign currency translation adjustments								(232	)										(232	)
Balance – March 31, 2024		20,887,446	$	2,089	$	189,995	$	(3,892	)	$	(37,863	)	$	(21,492	)	$	108	$	128,945
Balance – December 31, 2024		21,069,079	$	2,107	$	191,828	$	(4,006	)	$	(34,442	)	$	(21,492	)	$	192	$	134,187
Net income											1,865						14		1,879
Stock-based compensation – stock options						188													188
Stock-based compensation -restricted stock						39													39
Foreign currency translation adjustments								311											311
Balance – March 31, 2025		21,069,079	$	2,107	$	192,055	$	(3,695	)	$	(32,577	)	$	(21,492	)	$	206	$	136,604

The accompanying notes are an integral part of these consolidated financial statements.

4

ULTRALIFE CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands except share and per share amounts)

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Ultralife Corporation and its subsidiaries (the “Company” or “Ultralife”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all the information and notes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and related notes thereto contained in our Form 10-K for the year ended December 31, 2024.

The December 31, 2024 consolidated balance sheet information referenced herein was derived from audited financial statements but does not include all disclosures required by GAAP.

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation.

Recently Adopted Accounting Guidance

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” to expand the disclosure requirements for reportable segments. The standard expands reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment operating profit (loss). This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this new accounting standard did not have an impact on the Company's results of operations, financial position or cash flows.

Recent Accounting Guidance Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for the Company’s annual reporting period beginning January 1, 2025, however, these disclosures are not required for interim periods. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. The Company is currently evaluating the impact that ASU 2023-09 will have on its consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” which requires public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Company’s annual reporting period beginning January 1, 2027 and interim reporting periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact that ASU 2024-03 will have on its consolidated financial statements.

2. ACQUISITION

On October 31, 2024, the Company completed the acquisition of all issued and outstanding shares of Electrochem Solutions, Inc., a Massachusetts corporation (“Electrochem”), pursuant to a stock purchase agreement (the “Agreement”) with Greatbatch Ltd., a New York corporation (the “Seller”), dated September 27, 2024 (the “Acquisition”). The Agreement established a purchase price of $50,000 for the Acquisition subject to customary working capital adjustments. The Company completed the Acquisition for $48,022 in cash, inclusive of working capital adjustments of $1,978.

5

Based in Raynham, MA and with over forty years of battery technology experience in critical applications, Electrochem designs and manufactures primary lithium metal and ultracapacitor cells and battery packs serving energy, military and various environmental, industrial and utility end markets on a global basis. Acquiring Electrochem advances our strategy of more fully realizing the operating leverage of our business model through scale and manufacturing cost efficiencies. Electrochem brings a blue-chip customer base with little or no overlap with Ultralife’s customers, long-tenured technical resources which we plan to utilize in progressing our global new product initiatives, and a complimentary portfolio of highly engineered thionyl, sulfuryl and bromine chloride cells and packs which can be commercially cost prohibitive to substitute or switch out. We view this acquisition as an avenue to create highly attractive opportunities to drive revenue growth through heightened cross-selling platforms and extend our reach into underserved adjacent markets that demand uncompromised safety, service, reliability and quality. In addition, the combination of Electrochem and Ultralife creates achievable opportunities for gross margin expansion through the realization of vertical integration, supply chain synergies and lean initiatives. With Electrochem we are increasing our value to our customers and significantly strengthening our competitive position in our end markets.

The Company funded the purchase price for the Acquisition through the New Credit Agreement (refer to Note 3).

The Acquisition was accounted for in accordance with the accounting treatment of a business combination pursuant to FASB ASC Topic 805, Business Combinations (“ASC 805”). Accordingly, the purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of the separately identifiable assets acquired and liabilities assumed was allocated to goodwill. Management is responsible for determining the acquisition date fair value of the assets acquired and liabilities assumed, which requires the use of various assumptions and judgments that are inherently subjective. The purchase price allocation presented below reflects all known information about the fair value of the assets acquired and liabilities assumed as of the acquisition date. The purchase price allocation is subject to change should additional information existing as of the acquisition date about the fair value of the assets acquired and liabilities assumed become known. The final purchase price allocation may reflect material changes in the valuation of assets acquired and liabilities assumed, including but not limited to intangible assets, fixed assets, deferred taxes, and residual goodwill.

Accounts receivable	$	5,270
Inventories		9,172
Prepaid expenses and other current assets		251
Property, plant and equipment		20,735
Goodwill		7,558
Other intangible assets		10,500
Other noncurrent assets		237
Accounts payable		(2,231	)
Accrued compensation and related benefits		(1,561	)
Accrued expenses and other current liabilities		(904	)
Deferred tax liability, net		(748	)
Other noncurrent liabilities		(257	)
Net assets acquired	$	48,022

The goodwill included in the Company’s purchase price allocation presented above represents the value of Electrochem’s assembled and trained workforce, the incremental value that Excell engineering and technology will bring to the Company and the revenue growth which is expected to occur over time which is attributable to increased market penetration from future new products and customers. The goodwill acquired in connection with the acquisition is not deductible for income tax purposes.

Other intangible assets were valued using the income approach which requires a forecast of all expected future cash flows and the use of certain assumptions and estimates. The following table summarizes the estimated fair value and annual amortization for each of the identifiable intangible assets acquired.

					Annual Amortization
	Estimated Fair Value		Amortization Period (Years)		Year 1		Year 2		Year 3		Year 4		Year 5
Trade name	$	5,300		15	$	353	$	353	$	353	$	353	$	353
Customer relationships		5,100		15		340		340		340		340		340
Patents and technology		100		5		20		20		20		20		20
Total	$	10,500			$	713	$	713	$	713	$	713	$	713

6

We acquired right-of-use assets and assumed operating lease liabilities of $230. Right-of-use assets are classified as other noncurrent assets, and current and long-term lease liabilities are classified as accrued expenses and other current liabilities and other noncurrent liabilities, respectively, on the Company’s consolidated balance sheets.

The operating results and cash flows of Electrochem are reflected in the Company’s consolidated financial statements from the date of acquisition. Electrochem is included in the Battery & Energy Products segment.

For the three-month period ended March 31, 2025, Electrochem contributed revenue of $7,622 and net income of $743, inclusive of amortization expense of $178 on acquired identifiable intangible assets and a $60 increase in cost of products sold for the fair value step-up of acquired finished goods inventory sold during the period.

During the three-month period ended March 31, 2025, the Company incurred transaction costs and other non-recurring expenses of $125 directly attributable to the acquisition, including accounting and legal services. These costs are included in selling, general and administrative expense on the consolidated statement of income and comprehensive income for the three-month period ended March 31, 2025.

3. DEBT

On October 31, 2024, Ultralife, SWE, CLB, Excell USA, and Electrochem, as borrowers, and certain other subsidiaries of the Company, entered into a new Credit and Security Agreement with KeyBank National Association (“KeyBank” or the “Bank”), as lender and administrative agent (the “New Credit Agreement”). The proceeds of the loans under the New Credit Agreement were used, in part, to repay outstanding indebtedness under the Company’s Amended Credit Agreement.

The New Credit Agreement, among other things, provides in its term loan provisions for a 5-year, $55 million senior secured term loan (the “Term Loan” or “Term Loan Facility”). The Term Loan is subject to repayment in quarterly installments commencing March 31, 2025 in amounts as set forth in the New Credit Agreement. Interest is payable on the unpaid principal outstanding under the Term Loan. All amounts of unpaid principal and accrued and unpaid interest remaining due under the Term Loan are scheduled to be paid in full October 31, 2029.

Upon closing of the Acquisition on October 31, 2024, the Company borrowed the full amount of the Term Loan Facility.

As of March 31, 2025, the Company had $54,313 outstanding principal on the Term Loan, $3,094 of which is included in current portion of long-term debt on the consolidated balance sheets, and no amounts outstanding on the Revolving Credit Facility. As of March 31, 2025, unamortized debt issuance costs associated with the Term Loan of $709 are classified on the consolidated balance sheets as a reduction of long-term debt, and unamortized debt issuance costs associated with the Revolving Credit Facility of $488 are classified on the consolidated balance sheets as other noncurrent assets. Debt issuance costs include lender fees and certain costs paid to third parties, including legal and accountant fees, and are amortized to interest expense over the term of the New Credit Agreement.

The New Credit Agreement also provides under its revolving credit provisions for revolving loans, letters of credit, and swing loans (“Revolving Credit Facility”). Upon the effectiveness of the New Credit Agreement, any amounts outstanding under letters of credit issued pursuant to the Amended Credit Agreement became issued under the New Credit Agreement. The availability under the Revolving Credit Facility is subject to certain borrowing base limits based on trade receivables and inventories. All unpaid principal and accrued and unpaid interest with respect to the Revolving Credit Facility is due and payable in full on October 31, 2029.

The Company may voluntarily prepay principal amounts outstanding under the New Credit Agreement at any time subject to certain advance notifications and other restrictions.

In addition to the customary affirmative and negative covenants, the Company must maintain a consolidated fixed charge coverage ratio, as defined in the New Credit Agreement, of equal to or greater than 1.15 to 1.00 for the fiscal quarter ending March 31, 2025, and for each fiscal quarter thereafter, as calculated for the four (4) consecutive fiscal quarters ending on such date, and a consolidated senior leverage ratio, as defined in the New Credit Agreement, not to exceed (i) 3.50 to 1.00 for the fiscal quarters ending March 31, 2025 through December 31, 2025, (ii) 3.25 to 1.00 for the fiscal quarters ending March 31, 2026 through December 31, 2026, (iii) 3.00 to 1.00 for the fiscal quarter ending March 31, 2027 and on the last day of each fiscal quarter thereafter, for the remaining term of the New Credit Agreement. The Company was in full compliance with its covenants under the New Credit Agreement as of March 31, 2025.

7

Borrowings under the New Credit Agreement are secured by substantially all the assets of the Company and certain of its present and future subsidiaries who are or become parties to, or guarantors under the new Credit Agreement.

Interest will accrue on outstanding indebtedness under the Term Loan Facility and Revolving Credit Facilities at a variable rate of interest based on designated interest rate benchmarks plus a varying margin determined by reference to the consolidated senior leverage ratio in effect from time to time. Our borrowing rate was 6.79% as of March 31, 2025.

The Company must pay a fee of twenty, twenty-five or thirty basis points (depending on the consolidated senior leverage ratio in effect from time to time) based on the average daily unused availability under the Revolving Credit Facility.

The Company must make payments to the extent borrowings exceed the maximum amount then permitted to be borrowed and from the proceeds of certain transactions. Upon the occurrence of an event of default, the outstanding obligations may be accelerated, and the Bank will have other customary remedies including resort to the security interest the Company provided to the Bank.

Future minimum principal repayment obligations on our Amended Credit Facilities as of March 31, 2025 are as follows:

2025	$	2,063
2026		4,125
2027		5,500
2028		5,500
2029		37,125
Total	$	54,313

8

4. EARNINGS PER SHARE

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) attributable to Ultralife Corporation by the weighted average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method.

For the three-month period ended March 31, 2025, there were 314,704 outstanding stock options included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 46,793 potential common shares included in the calculation of diluted EPS. There were 778,717 outstanding stock options and 35,486 unvested restricted stock awards for the three-month period ended March 31, 2025 not included in the calculation of diluted weighted average shares outstanding, as the effect would be anti-dilutive.

For the comparable three-month period ended March 31, 2024, there were 539,358 outstanding stock options and 5,229 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 122,515 potential common shares included in the calculation of diluted EPS. There were 524,502 outstanding stock options for the three-month period ended March 31, 2024 not included in the calculation of diluted weighted average shares outstanding, as the effect would be anti-dilutive.

5. SUPPLEMENTAL BALANCE SHEET INFORMATION

Fair Value Measurements and Disclosures

The fair value of financial instruments approximated their carrying values at March 31, 2025 and December 31, 2024. The fair value of cash, accounts receivable, accounts payable, accrued liabilities, and the current portion of long-term debt approximates carrying value due to the short-term nature of these instruments.

Inventories, Net

Inventories are stated at the lower of cost or net realizable value, net of obsolescence reserves, with cost determined under the first-in, first-out (FIFO) method. The composition of inventories, net was:

	March 31,		December 31,
	2025		2024
Raw materials	$	34,173	$	36,035
Work in process		5,190		4,501
Finished goods		8,490		10,827
Total	$	47,853	$	51,363

Property, Plant and Equipment, Net

Major classes of property, plant and equipment consisted of the following:

	March 31,			December 31,
	2025			2024
Land	$	1,273		$	4,693
Buildings and leasehold improvements		33,534			30,109
Machinery and equipment		61,533			60,986
Furniture and fixtures		3,073			3,067
Computer hardware and software		8,052			7,990
Construction in process		2,244			2,077
		109,709			108,922
Less: Accumulated depreciation		(69,432	)		(68,437	)
Property, plant and equipment, net	$	40,277		$	40,485

9

Depreciation expense for property, plant and equipment was $950 and $740 for the three-month periods ended March 31, 2025 and March 31, 2024, respectively.

Goodwill

The following table summarizes the goodwill activity by segment for the three-month period ended March 31, 2025.

	Battery & Energy		Communications
	Products		Systems		Total
Balance – December 31, 2024	$	33,513	$	11,493	$	45,006
Effect of foreign currency translation		135		-		135
Balance – March 31, 2025	$	33,648	$	11,493	$	45,141

Other Intangible Assets, Net

The composition of other intangible assets was:

	at March 31, 2025
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,231	$	7,580	$	10,651
Trade names		9,954		940		9,014
Patents and technology		5,722		5,491		231
Trademarks		3,399		-		3,399
Other		1,500		610		890
Total other intangible assets	$	38,806	$	14,621	$	24,185

	at December 31, 2024
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,154	$	7,296	$	10,858
Trade names		9,942		813		9,129
Patents and technology		5,690		5,428		262
Trademarks		3,399		-		3,399
Other		1,500		591		909
Total other intangible assets	$	38,685	$	14,128	$	24,557

The change in the cost of total intangible assets from December 31, 2024 to March 31, 2025 is the effect of foreign currency translations.

Amortization of other intangible assets was included in the following financial statement captions:

	Three-month period ended
	March 31, 2025		March 31, 2024
Selling, general and administrative expense	$	376	$	203
Research and development expense		29		25
Total	$	405	$	228

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6. STOCK-BASED COMPENSATION

We recorded non-cash stock compensation expense in each period as follows:

	Three-month period ended
	March 31,		March 31,
	2025		2024
Stock options	$	188	$	156
Restricted stock grants		39		5
Total	$	227	$	161

We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of March 31, 2025, there was $921 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.4 years.

The following table summarizes stock option activity for the three-month period ended March 31, 2025:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2025		1,106,436		$	7.15
Granted		-			-
Exercised		-			-
Forfeited or expired		(13,015	)	$	7.11
Outstanding at March 31, 2025		1,093,421		$	7.15		4.26	$	25
Vested and expected to vest at March 31, 2025		994,263		$	7.17		4.09	$	23
Exercisable at March 31, 2025		628,327		$	7.16		2.93	$	16

Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended March 31, 2025 and March 31, 2024 was $0 and $685, respectively.

Restricted stock awards vest in equal annual installments over three (3) years. Unrecognized compensation cost related to unvested restricted stock awards at March 31, 2025 and March 31, 2024, respectively, was $216 and $31.

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7. INCOME TAXES

Our effective tax rate for the three-month periods ended March 31, 2025 and March 31, 2024 was 23.2% and 19.5%, respectively. The period-over-period change was primarily attributable to the geographic mix of our operating results.

As of December 31, 2024, we have domestic net operating loss (“NOL”) carryforwards of $15,000, which expire 2031 through 2035, and domestic tax credits of $3,200, which expire 2028 through 2044, available to reduce future taxable income. As of March 31, 2025, management has concluded it is more likely than not that these domestic NOL and credit carryforwards will be fully utilized.

As of March 31, 2025, for certain past operations in the U.K., we continue to report a valuation allowance for NOL carryforwards of approximately $9,600, nearly all of which can be carried forward indefinitely. Utilization of the net operating losses may be limited due to the change in the past U.K. operation and cannot currently be used to reduce taxable income at our other U.K. subsidiary, Accutronics Ltd. There are no other deferred tax assets related to the past U.K. operations.

As of March 31, 2025, we have not recognized a valuation allowance against our other foreign deferred tax assets, as realization is considered to be more likely than not.

As of March 31, 2025, the Company maintains its assertion that all foreign earnings will be indefinitely reinvested in those operations, other than earnings generated in the U.K.

There were no unrecognized tax benefits related to uncertain tax positions at March 31, 2025 and December 31, 2024.

As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for 2021 thru 2023 remain subject to IRS examination. Our U.S. tax matters for 2001-2002, 2005-2007, 2009, and 2011-2015 also remain subject to IRS examination due to the remaining availability of net operating loss carryforwards generated in those years. Our U.S. tax matters for 2014 thru 2023 remain subject to examination by various state and local tax jurisdictions. Our tax matters for the years 2014 thru 2023 remain subject to examination by the respective foreign tax jurisdiction authorities.

8. OPERATING LEASES

The Company has operating leases predominantly for operating facilities. As of March 31, 2025, the remaining lease terms on our operating leases range from approximately one (1) year to seven (7) years. Lease terms include renewal options reasonably certain of exercise. There is no transfer of title or option to purchase the leased assets upon expiration. There are no residual value guarantees or material restrictive covenants.

The components of lease expense for the current and prior-year comparative periods were as follows:

	Three-month period ended March 31,
	2025		2024
Operating lease cost	$	296	$	262
Variable lease cost		24		28
Total lease cost	$	320	$	290

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Supplemental cash flow information related to leases was as follows:

	Three-month period ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	314	$	265
Right-of-use assets obtained in exchange for lease liabilities:	$	-	$	-

Supplemental consolidated balance sheet information related to leases was as follows:

	Balance sheet classification	March 31, 2025			December 31, 2024
Assets:
Operating lease right-of-use asset	Other noncurrent assets	$	3,905		$	4,153
Liabilities:
Current operating lease liability	Accrued expenses and other current liabilities	$	1,125		$	1,138
Operating lease liability, net of current portion	Other noncurrent liabilities		2,782			2,998
Total operating lease liability		$	3,907		$	4,136
Weighted-average remaining lease term (years)			4.3			4.5
Weighted-average discount rate			6.7	%		6.7	%

Future minimum lease payments as of March 31, 2025 are as follows:

Maturity of operating lease liabilities
2025	$	873
2026		1,038
2027		984
2028		968
2029		508
Thereafter		107
Total lease payments		4,478
Less: Imputed interest		(571	)
Present value of remaining lease payments	$	3,907

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9. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

As of March 31, 2025, we have made commitments to purchase approximately $828 of production machinery and equipment.

Product Warranties

We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Changes in our product warranty liability during the first three months of 2025 and 2024 were as follows:

	Three-month period ended March 31,
	2025			2024
Accrued warranty obligations – beginning	$	887		$	547
Accruals for warranties issued		93			141
Settlements made		(6	)		(49	)
Accrued warranty obligations – ending	$	974		$	639

Contingencies and Legal Matters

We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of any such matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, recognizing that legal matters are subject to inherent uncertainties, there exists the possibility that ultimate resolution of these matters could have a material adverse impact on the Company’s financial position, results of operations or cash flows. We are not aware of any such situations at this time.

10. REVENUE RECOGNITION

Revenues are generated from the sale of products. Performance obligations are met and revenue is recognized upon transfer of control to the customer, which is generally upon shipment. When contract terms require transfer of control upon delivery at a customer’s location, revenue is recognized on the date of delivery. For products shipped under vendor-managed inventory arrangements, revenue is recognized and billed when the product is consumed by the customer, at which point control has transferred and there are no further obligations by the Company. Revenue is measured as the amount of consideration we expect to receive in exchange for shipped product. Sales, value-added and other taxes billed and collected from customers are excluded from revenue. Customers, including distributors, do not have a general right of return.

Separately priced extended warranty contracts are offered on certain Communications Systems products for a duration of up to eight (8) years. Extended warranties are treated as separate performance obligations and recognized to revenue evenly over the term of the respective contract. Revenue not yet recognized on extended warranty contracts is recorded as deferred revenue on the consolidated balance sheet. For the three-month periods ended March 31, 2025 and March 31, 2024, revenue recognized on extended warranties was $74 and $72, respectively.

As of March 31, 2025, there was deferred revenue on extended warranty contracts of $1,078, comprised of $298 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheet, and $780 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet.

As of December 31, 2024, there was deferred revenue on extended warranty contracts of $1,153, comprised of $298 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheets, and $855 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet.

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As of March 31, 2025 and December 31, 2024, the Company had no other unsatisfied performance obligations for contracts with an original expected duration of greater than one year. Pursuant to Topic 606, we have applied the practical expedient with respect to disclosure of the deferral and future expected timing of revenue recognition for transaction price allocated to remaining performance obligations.

11. BUSINESS SEGMENT INFORMATION

Operating segments represent a component of the Company that engages in business activities from which it may recognize revenues and incur expenses whose operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  Once operating segments are identified, the Company determined which of those operating segments are required to be presented as reportable segments based on the quantitative thresholds.

We structure our operations primarily around the products we sell and report our financial results in the following two reportable segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.

Our CODM is Mike Manna, President & Chief Executive Officer.  Both of our operating segments are regularly reviewed by the CODM through weekly revenue, gross margin and consolidated financial forecast updates, bi-weekly business and financial reviews to assess business performance, top priorities, utilization of resources and to regularly communicate with segment management, who are part of the CODM’s executive leadership team, and monthly meetings with the executive leadership team.  In his role as CODM, Mr. Manna is deeply involved in business operations through daily updates by the segment management and ongoing financial, revenue and operations discussions.

The primary financial measures used by the CODM to monitor and evaluate the performance of the operating segments is segment contribution, as defined by gross profit less direct selling, general and administrative (“SG&A”) and research and development expenses. This metric is used as a consistent benchmark for comparison across reporting periods.

Corporate general and administrative (“G&A”) expenses, including costs associated with our acquisitions, include corporate functions including board of directors, executive officers, accounting & finance, human resources, legal, information technology and their related functional expenses. These costs are not directly allocable to the operating segments.

Three-month period ended March 31, 2025:

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	46,321		$	4,425		$	-		$	50,746
Cost of products sold		(34,881	)		(3,120	)		-			(38,001	)
Gross profit		11,440			1,305			-			12,745
Direct SG&A expenses		(3,865	)		(366	)		-			(4,231	)
Research and development		(1,591	)		(813	)		-			(2,404	)
Segment contribution		5,984			126			-			6,110
Corporate G&A expenses								(2,711	)		(2,711	)
Operating income											3,399
Other expenses, net								(953	)		(953	)
Income tax provision								(567	)		(567	)
Non-controlling interest								(14	)		(14	)
Net income attributable to Ultralife										$	1,865

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Three-month period ended March 31, 2024:

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	34,989		$	6,938		$	-		$	41,927
Cost of products sold		(26,003	)		(4,454	)		-			(30,457	)
Gross profit		8,986			2,484			-			11,470
Direct SG&A expenses		(2,907	)		(394	)					(3,301	)
Research and development		(1,001	)		(755	)					(1,756	)
Segment contribution		5,078			1,335			-			6,413
Corporate G&A expenses								(2,350	)		(2,350	)
Operating income											4,063
Other expenses, net								(456	)		(456	)
Income tax provision								(703	)		(703	)
Non-controlling interest								(13	)		(13	)
Net income attributable to Ultralife										$	2,891

The following tables disaggregate our business segment revenues by major source and geography.

Commercial and Government/Defense Revenue Information:

Three-month period ended March 31, 2025:

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	46,321	$	29,659		$	16,662
Communications Systems		4,425		-			4,425
Total	$	50,746	$	29,659		$	21,087
				58	%		42	%

Three-month period ended March 31, 2024:

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	34,989	$	24,140		$	10,849
Communications Systems		6,938		-			6,938
Total	$	41,927	$	24,140		$	17,787
				58	%		42	%

U.S. and Non-U.S. Revenue Information¹:

Three-month period ended March 31, 2025:

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	46,321	$	35,182		$	11,139
Communications Systems		4,425		4,287			138
Total	$	50,746	$	39,469		$	11,277
				78	%		22	%

Three-month period ended March 31, 2024:

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	34,989	$	19,603		$	15,386
Communications Systems		6,938		4,858			2,080
Total	$	41,927	$	24,461		$	17,466
				58	%		42	%

¹ Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This report contains certain forward-looking statements and information that are based on the beliefs of management as well as assumptions made by management and information currently available to management. The statements contained in this report relating to matters that are not historical facts are forward-looking statements that involve risks and uncertainties, including, but not limited to, changes in economic conditions including inflation, tariffs, interest rates and supply chain disruptions affecting our business, revenues and earnings adversely; our reliance on certain key customers for a significant portion of our revenues; reductions or delays in U.S. and foreign military spending; our efforts to develop new products or new commercial applications for our products; potential disruptions in our supply of raw materials and components or material increases in their costs due to business conditions, new or additional tariffs, global conflicts or other factors not under our control; our resources being overwhelmed by our growth; breaches in information systems security and other disruptions in our information technology systems; our ability to recruit and retain top management and key personnel; the unique risks associated with our China operations; fluctuations in the price of oil and the resulting impact on the demand for downhole drilling; possible future declines in demand for the products that use our batteries or communications systems; safety risks, including the risk of fire inherent in the manufacture, use and transportation of Lithium batteries; variability in our quarterly and annual results and the price of our common stock; rising interest rates increasing the cost of our variable borrowings; purchases by our customers of product quantities not meeting the volume expectations in our supply agreements;  the continued impact of COVID-19, or other pandemics that may arise, causing delays in the manufacture and delivery of our mission critical products to end customers;  potential costs attributable to the warranties we supply with our products and services; our inability to comply with changes to the regulations for the shipment of our products; our entrance into new end-markets which could lead to additional financial exposure; negative publicity concerning Lithium-ion batteries; our exposure to foreign currency fluctuations; our ability to utilize our net operating loss carryforwards; the risk that we are unable to protect our proprietary and intellectual property; rules and procedures regarding contracting with the U.S. and foreign governments; possible impairments of our goodwill and other intangible assets; our ability to comply with government regulations including the use of “conflict minerals”; exposure to possible violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act or other anti-corruption laws; known and unknown environmental matters;  possible audits of our contracts by the U.S. and foreign governments and their respective defense agencies; and other risks and uncertainties, certain of which are beyond our control.  Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those forward-looking statements described herein. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” “seek,” “project,” “intend,” “plan,” “may,” “will,” “should,” “foresee,” “could,” “likely,” or words of similar import are intended to identify forward-looking statements. For further discussion of certain of the matters described above and other risks and uncertainties, see Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements do not guarantee future performance and that our actual results of operations, financial condition and liquidity and developments in the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained herein. In addition, even if our results of operations, financial condition and liquidity and the development of the industries in which we operate are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statements that we make herein speak only as of the date of those statements, and we undertake no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Undue reliance should not be placed on our forward-looking statements. Except as required by law, we disclaim any obligation to update any risk factors or to publicly announce the results of any revisions to any of the forward-looking statements to reflect new information or risks, future events or other developments.

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The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the consolidated financial statements and notes thereto in Part I, Item 1 of this Form 10-Q, and the consolidated financial statements and notes thereto and risk factors in our Annual Report on Form 10-K for the year ended December 31, 2024.

The financial information in this MD&A is presented in thousands of dollars, except for share and per share amounts, unless otherwise specified.

General

We offer products and services ranging from power solutions to communications and electronics systems to customers across the globe in the government, defense and commercial sectors. With an emphasis on strong engineering and a collaborative approach to problem solving, we design and manufacture power and communications systems including rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems and accessories, and custom engineered systems related to those product lines. We continually evaluate ways to grow, including the design, development and sale of new products, expansion of our sales force to penetrate new markets and territories, as well as seeking opportunities to expand through acquisitions.

We sell our products worldwide through a variety of trade channels, including original equipment manufacturers (“OEMs”), industrial and defense supply distributors, and directly to U.S. and foreign defense departments. We enjoy strong name recognition in our markets under our Ultralife®, Ultralife HiRate®, Ultralife Thin Cell®, Ultralife Batteries Inc.®, Lithium Power®, McDowell Research®, AMTI^TM, ABLE^TM, ACCUTRONICS™, ACCUPRO™, ENTELLION™, SWE Southwest Electronic Energy Group™, SWE SEASAFE™, Excell Battery Group™ and Criterion Gauge™ brands, among others. We have sales, operations and product development facilities in North America, Europe and Asia.

We report our results in two operating segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical, thin cell and other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design. We believe that segment contribution, as defined by gross profit less direct selling, general and administrative (“SG&A”) and research and development expenses, is the best indicator of segment performance. As such, we report segment results at the segment contribution level. Refer to Note 10 in the notes to Consolidated Financial Statements in Item 1 of Part 1 of this Form 10-Q.

Our website address is www.ultralifecorporation.com. We make available free of charge via a hyperlink on our website (see Investor Relations link on the website) our annual reports on Form 10-K, proxy statements, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports and statements as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission (“SEC”). We will provide copies of these reports upon written request to the attention of Philip A. Fain, CFO, Treasurer and Secretary, Ultralife Corporation, 2000 Technology Parkway, Newark, New York, 14513. Our filings with the SEC are also available through the SEC website at www.sec.gov or at the SEC Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 or by calling 1-800-SEC-0330.

Overview

Consolidated revenues of $50,746 for the three-month period ended March 31, 2025, increased by $8,819 or 21.0%, over $41,927 for the three-month period ended March 31, 2024, reflecting the inclusion of Electrochem and an increase in government/defense sales of 18.6% partially offset by a 12.3% decrease in medical sales.

Gross profit was $12,745, or 25.1% of revenue, for the three-month period ended March 31, 2025, compared to $11,470, or 27.4% of revenue, for the same quarter a year ago. The 230-basis point decline primarily resulted from sales product mix.

Operating expenses were $9,346 for the three-month period ending March 31, 2025, compared to $7,407 for the three-month period ended March 31, 2024, reflecting the inclusion of Electrochem, a 24.0% increase in new product development costs related to continued investment in our product offering, the strengthening of our sales and marketing leadership team to expedite organic growth and further leverage our global brand and resources, and certain one-time, non-recurring costs.  Operating expenses for the 2025 period were 18.4% of revenue compared to 17.7% of revenue for the year-earlier period.

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Operating income for the three-month period ended March 31, 2025 was $3,399, or 6.7% of revenues, compared to $4,063, or 9.7% of revenues, for the year-earlier period. The decrease in operating income primarily resulted from the decline in gross margin resulting from sales product mix and the increase in operating expenses, including $402 in one-time, non-recurring costs and purchase accounting adjustments.

Net income attributable to Ultralife Corporation was $1,865, or $0.11 per share – basic and diluted, for the three-month period ended March 31, 2025, compared to $2,891, or $0.18 per share – basic and diluted, for the three-month period ended March 31, 2024.

Adjusted EBITDA, defined as net income attributable to Ultralife Corporation before net interest expense, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expenses/income that we do not consider reflective of our ongoing operations, amounted to $5,448, or 10.7% of revenues, for the first quarter of 2025, compared to $5,243, or 12.5% of revenues, for the first quarter of 2024. See the section “Adjusted EBITDA” on page 21 for a reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation.

We are confident in our ability to deliver and sustain profitable growth, generating incremental cash flow to reduce acquisition-related debt, and continuing to invest in strategic product development. Our strong backlog replenishment this quarter, combined with a growing pipeline of innovative products targeting high-growth markets, positions us to scale efficiently and capitalize on market demand. With enhanced sales and marketing leadership in place, we’re accelerating organic growth and maximizing the value of our global brand and resources.

Results of Operations

Three-Month Periods Ended March 31, 2025 and March 31, 2024

Revenues. Consolidated revenues for the three-month period ending March 31, 2025 were $50,746, an increase of $8,819, or 21.0%, over $41,927 for the three-month period ended March 31, 2024. Overall, government/defense sales increased 18.6% and commercial sales decreased 8.7%, when excluding the 2025 sales of Electrochem.

Battery & Energy Products revenues increased $11,332, or 32.4%, from $34,989 for the three-month period ended March 31, 2024 to $46,321 for the three-month period ended March 31, 2025. The revenue growth was primarily attributable to the inclusion of Electrochem and organic growth of 10.6% driven by a 53.6% increase in government/defense sales reflecting strong demand from our U.S.-based global prime, partially offset by a 12.3% decrease in medical battery sales.

Communications Systems sales decreased $2,513, or 36.2%, from $6,938 for the three-month period ended March 31, 2024 to $4,425 for the three-month period ended March 31, 2025. The decrease was primarily attributable to shipments in the prior year of integrated systems of amplifiers and radio vehicle mounts to a major international defense contractor.

Cost of Products Sold / Gross Profit. Cost of products sold totaled $38,001 for the quarter ended March 31, 2025, an increase of $7,544, or 24.8%, from the $30,457 reported for the same three-month period a year ago. Consolidated cost of products sold as a percentage of total revenue increased from 72.6% for the three-month period ended March 31, 2024 to 74.9% for the three-month period ended March 31, 2025. Correspondingly, consolidated gross margin decreased from 27.4% for the three-month period ended March 31, 2024, to 25.1% for the three-month period ended March 31, 2025, primarily reflecting unfavorable sales mix for both segments.

For our Battery & Energy Products segment, gross profit for the first quarter of 2025 was $11,440, an increase of $2,454 or 27.3% from gross profit of $8,986 for the first quarter of 2024. Battery & Energy Products’ gross margin of 24.7% decreased by 100-basis points from the 25.7% gross margin for the year-earlier period, primarily due to sales mix reflecting the 12.3% decline in medical battery sales.

For our Communications Systems segment, gross profit for the first quarter of 2025 was $1,305 or 29.5% of revenues, compared to gross profit of $2,484 or 35.8% of revenues for the first quarter of 2024. The 630-basis point decrease in gross margin was primarily due to unfavorable sales mix and the 36.2% revenue decline reducing factory volume.

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Operating Expenses. Operating expenses for the three-month period ended March 31, 2025 were $9,346, an increase of $1,939 or 26.2% from the $7,407 for the three-month period ended March 31, 2024. The increase is primarily attributable to the inclusion of $1,060 for Electrochem, a 24.0% increase in new product development costs related to continued investment in our product offering, the strengthening of our sales and marketing leadership team to expedite organic growth and further leverage our global brand and resources, and certain one-time, non-recurring expenses which include costs related to our acquisition of Electrochem. Both periods reflected continued tight control over discretionary spending.

Overall, operating expenses were 18.4% of revenue for the quarter ending March 31, 2025 compared to 17.7% of revenue for the quarter ended March 31, 2024.  Amortization expense associated with intangible assets related to our acquisitions was $405 for the first quarter of 2025 ($376 in selling, general and administrative expenses and $29 in research and development costs), compared with $228 for the first quarter of 2024 ($203 in selling, general, and administrative expenses and $25 in research and development costs). Research and development costs were $2,403 for the three-month period ended March 31, 2025, an increase of $647 or 36.8%, from $1,756 for the three-month period ended March 31, 2024. The increase is attributable to the inclusion of Electrochem and a 24.0% increase in new product development costs related to continued investment in our product offering as we aggressively pursue both government/defense and commercial opportunities. Selling, general, and administrative expenses were $6,943 for the three-month period ended March 31, 2025, an increase of $1,292 or 22.9% from $5,651 for the first quarter of 2024. The period-over-period increase was primarily attributable to the inclusion of Electrochem, the strengthening of our sales and marketing leadership team to expedite organic growth and further leverage our global brand and resources, and certain one-time, non-recurring expenses which include costs related to our acquisition of Electrochem.

Other Expense. Other expense totaled $953 for the three-month period ended March 31, 2025 compared to $456 for the three-month period ended March 31, 2024. Interest and financing expense increased $512, or 98.5%, from $520 for the first quarter of 2024 to $1,032 for the comparable period in 2025 resulting from the financing of the Electrochem acquisition on October 31, 2024. Miscellaneous income amounted to $79 for the first quarter of 2025 compared to $64 for the first quarter of 2024, primarily attributable to interest income recognized in the 2025 period on the Employee Retention Credit under the Coronavirus Aid, Relief and Economic Security Act filed on June 22^nd 2023 and approved for payment by the Internal Revenue Service on March 31, 2025 and foreign exchange gains and losses due to fluctuations in foreign currency exchange rates.

Income Taxes. For the three-month period ended March 31, 2025, Ultralife recognized an income tax provision of $567, comprised of a current provision of $223 expected to be paid on income primarily in foreign jurisdictions and a deferred tax provision of $344 which primarily represents non-cash charges for U.S. taxes that we expect will be fully offset by net operating loss carryforwards and other tax credits for the foreseeable future. This compares to a provision of $703 comprised of a current provision of $53 and a deferred tax provision of $650 for the three-month period ended March 31, 2024. Our effective tax rate was 23.2% for the first quarter of 2025 as compared to 19.5% for the first quarter of 2024, primarily attributable to the geographic mix of our operating results. See Note 7 to the consolidated financial statements in Item 1 of Part I of this Form 10-Q for additional information regarding our income taxes.

Net Income Attributable to Ultralife Corporation. Net income attributable to Ultralife Corporation was $1,865, or $0.11 per share – basic and diluted, for the three-month period ended March 31, 2025, compared to $2,891, or $0.18 per share – basic and diluted, for the three-month period ended March 31, 2024.  Adjusted EPS was $0.13 per share on a diluted basis for the first quarter of 2025, compared to an adjusted $0.21 per share for the 2024 period.  Adjusted EPS for 2025 excludes the provision for deferred income taxes of $344 which represents non-cash charges primarily for U.S. income taxes that we expect will be fully offset by net operating loss carryforwards and other tax credits for the foreseeable future. Adjusted EPS for 2024 excludes the deferred income taxes of $650 which represents non-cash charges primarily for U.S. net operating losses and temporary tax differences which are expected to offset future U.S. taxable income. See section “Adjusted Earnings Per Share” on page 22 for a reconciliation of adjusted EPS to EPS.  Weighted average shares outstanding used to compute diluted earnings per share increased from 16,518,389 for the first quarter of 2024 to 16,679,758 for the first quarter of 2025.  The increase is attributable to the exercise of stock options and the vesting of restricted stock since the first quarter of 2024.

20

Adjusted EBITDA

In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance. We define adjusted EBITDA as net income attributable to Ultralife Corporation before interest expense, provision for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We also use adjusted EBITDA as a supplemental measure to review and assess our operating performance and to enhance comparability between periods. We believe the use of adjusted EBITDA facilitates investors’ understanding of operating performance from period to period by backing out potential differences caused by variations in such items as capital structures (affecting relative interest expense and stock-based compensation expense), the amortization of intangible assets acquired through our business acquisitions (affecting relative amortization expense and provision (benefit) for income taxes), the age and book value of facilities and equipment (affecting relative depreciation expense) and one-time charges/benefits relating to income taxes. We also present adjusted EBITDA from operations because we believe it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. We reconcile adjusted EBITDA to net income attributable to Ultralife Corporation, the most comparable financial measure under GAAP.

We use adjusted EBITDA in our decision-making processes relating to the operation of our business together with GAAP financial measures such as operating income (loss). We believe that adjusted EBITDA permits a comparative assessment of our operating performance, relative to our performance based on our GAAP results, while eliminating the effects of depreciation and amortization, which may vary from period to period without any correlation to underlying operating performance, and of stock-based compensation, which is a non-cash expense that varies widely among companies. We believe that by presenting adjusted EBITDA, we assist investors in gaining a better understanding of our business on a going forward basis. We provide information relating to our adjusted EBITDA so that securities analysts, investors and other interested parties have the same data that we employ in assessing our overall operations. We believe that trends in our adjusted EBITDA are a valuable indicator of our operating performance on a consolidated basis and of our ability to produce operating cash flows to fund working capital needs, to service debt obligations and to fund capital expenditures.

The term adjusted EBITDA is not defined under GAAP and is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. Our adjusted EBITDA has limitations as an analytical tool, and when assessing our operating performance, adjusted EBITDA should not be considered in isolation or as a substitute for net income attributable to Ultralife Corporation or other consolidated statement of operations data prepared in accordance with GAAP. Some of these limitations include, but are not limited to, the following:

● Adjusted EBITDA does not reflect (1) our cash expenditures or future requirements for capital expenditures or contractual commitments; (2) changes in, or cash requirements for, our working capital needs; (3) the interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; (4) income taxes or the cash requirements for any tax payments; and (5) all of the costs associated with operating our business;

● Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA from continuing operations does not reflect any cash requirements for such replacements;

● While stock-based compensation is a component of cost of products sold and operating expenses, the impact on our consolidated financial statements compared to other companies can vary significantly due to such factors as assumed life of the stock-based awards and assumed volatility of our common stock; and

● Other companies may calculate adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

We compensate for these limitations by relying primarily on our GAAP results and using adjusted EBITDA only on a supplemental basis. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net loss attributable to Ultralife Corporation.

Adjusted EBITDA is calculated as follows for the periods presented:

	Three-month period ended
	March 31,		March 31,
	2025		2024
Net income attributable to Ultralife Corporation	$	1,865	$	2,891
Adjustments:
Interest expense		1,032		520
Income tax provision		567		703
Depreciation expense		950		740
Amortization of intangible assets		405		228
Stock-based compensation expense		227		161
Severance costs for plant closure		150		-
Acquisition and other non-recurring costs		192		-
Non-cash purchase accounting adjustments		60		-
Adjusted EBITDA	$	5,448	$	5,243

21

Adjusted Earnings Per Share

In evaluating our business, we consider and use adjusted earnings per share (“EPS”), a non-GAAP financial measure, as a supplemental measure of our business performance. We define adjusted EPS as net income (loss) attributable to Ultralife Corporation excluding the provision (benefit) for deferred income taxes divided by our weighted average shares outstanding on both a basic and diluted basis. We believe that this information is useful in providing period-to-period comparisons of our results by reflecting the portion of our tax provision that will be predominantly offset by our U.S. net operating loss carryforwards and other tax credits for the foreseeable future. We reconcile adjusted EPS to EPS, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EPS as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EPS to EPS and net income (loss) attributable to Ultralife Corporation.

Adjusted EPS is calculated as follows for the periods presented:

	Three-month period ended
	March 31, 2025						March 31, 2024
	Amount		Per basic share		Per diluted share		Amount		Per basic share		Per diluted share
Net income attributable to Ultralife Corporation	$	1,865	$	.11	$	.11	$	2,891	$	.18	$	.18
Deferred tax provision		344		.02		.02		650		.04		.04
Adjusted net income	$	2,209	$	.13	$	.13	$	3,541	$	.22	$	.22
Weighted average shares outstanding				16,633		16,680				16,396		16,518

22

Liquidity and Capital Resources

As of March 31, 2025, cash totaled $8,719, an increase of $1,865 as compared to $6,854 of cash held at December 31, 2024.

For the three-month period ended March 31, 2025, cash generated from operations was $3,368, as compared to $81 cash used for the three-month period ended March 31, 2024. For the 2025 period, cash generated from operations was comprised of net income of $1,879, plus non-cash items totaling $1,991 for depreciation, amortization, stock-based compensation, and deferred taxes, less $502 attributable to changes in working capital.

Cash used in investing activities for the three months ended March 31, 2025 was $895 for capital expenditures, primarily reflecting investments in equipment for new products transitioning to high-volume manufacturing.

Cash used in financing activities for the three months ended March 31, 2025 was $687, representing principle payments due on our term loan.

We continue to have significant U.S. net operating loss carryforwards available to utilize as an offset to future taxable income. See Note 7 to the consolidated financial statements in Item 1 of Part 1 of this Form 10-Q for additional information.

Going forward, we expect positive operating cash flow and the availability of borrowings under our Revolving Credit Facility will be sufficient to meet our general funding requirements for the foreseeable future.

To provide flexibility in accessing the capital markets, on March 30, 2021, the Company filed a shelf registration statement on Form S-3 (File No. 333-254846) (the “Prior Registration Statement”) registering securities in an aggregate amount of $100,000,000. None of the $100,000,000 of registered securities were sold under the Prior Registration Statement (the “Unsold Securities”). Under the rules of the Securities and Exchange Commission (the “SEC”) the Prior Registration Statement was set to expire on April 2, 2024. Therefore, on March 29, 2024, the Company filed a new shelf registration statement on Form S-3 (File No. 333-278360) (the “New Registration Statement”) to replace the Prior Registration Statement. The New Registration Statement includes all $100,000,000 of the Unsold Securities registered on the Prior Registration Statement. The SEC declared the New Registration Statement effective May 7, 2024. Pursuant to Rule 415(a)(6) under Securities Act of 1933, as amended (the “Securities Act”), the offering of the Unsold Securities under the Prior Registration Statement was deemed terminated as of the date of effectiveness of the New Registration Statement. Upon the filing of an appropriate prospectus supplement or supplements under the New Registration Statement, we may offer and sell our securities from time to time in one or more offerings, at our discretion. We intend to use the net proceeds resulting from any sales of these securities for general corporate purposes which may include, but are not limited to, potential acquisitions of complementary businesses or technologies, strategic capital expenditures to expand and protect our competitive position, and investments in the development of transformational, competitively differentiated products for attractive growth markets.

Commitments

As of March 31, 2025, the Company had $54,313 outstanding on the Term Loan and no amounts outstanding on the Revolving Credit Facility. The Company is in full compliance with its debt covenants under the Credit Facilities.

As of March 31, 2025, we have made commitments to purchase approximately $828 of production machinery and equipment.

23

Critical Accounting Policies

Management exercises judgment in making important decisions pertaining to choosing and applying accounting policies and methodologies in many areas. Not only are these decisions necessary to comply with GAAP, but they also reflect management’s view of the most appropriate manner in which to record and report our overall financial performance. All accounting policies are important, and all policies described in Note 1 to the consolidated financial statements in our 2024 Annual Report on Form 10-K should be reviewed for a greater understanding of how our financial performance is recorded and reported.

During the first three months of 2025, there were no significant changes in the manner in which our significant accounting policies were applied or in which related assumptions and estimates were developed.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, under the supervision and with the participation of our President and Chief Executive Officer (principal executive officer) and our Chief Financial Officer and Treasurer (principal financial officer), has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of the end of the period covered by this quarterly report. Management has concluded that our disclosure control and procedures were not effective as of March 31, 2025 because of the existing material weakness in our internal control over financial reporting as previously reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Notwithstanding the material weakness identified, management believes that the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q are fairly stated in all material respects in accordance with U.S. generally accepted accounting principles for each of the periods presented.

Remediation Efforts to Address Material Weaknesses

Management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control - Integrated Framework (2013). Based on our evaluation, management concluded that there is a material weakness in our internal control over financial reporting attributable to our need for additional accounting personnel to provide a full complement of accounting and reporting expertise commensurate with the growth of the Company both organic and through acquisitions.  As a result of the material weakness identified, management concluded that our internal control over financial reporting was not effective as of December 31, 2024. The material weakness was not yet fully remediated as of March 31, 2025.

A material weakness is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our financial statements will not be prevented or detected on a timely basis.

Management has already taken steps to remediate our identified material weakness and will continue to take further steps until the remediation is complete. The Company is currently seeking to hire additional personnel including certified public accountants to augment the experience and expertise of our accounting team and provide for a full complement of resources commensurate with the Company’s continued growth. During the fourth quarter of 2024, we hired a highly experienced individual as VP of Financial Growth, Transition & Efficiency and in the first quarter of 2025 we hired a Controller for Electrochem. Until all of the necessary resources are in place, expected to occur in 2025, the current members of our accounting team will continue their best efforts to provide additional oversight. We believe that with this interim additional oversight, coupled with the additional personnel we are in the process of recruiting and hiring, will allow us to execute business process controls more quickly and ensure a greater level of monitoring whether controls are present and functioning.

Remediation will be deemed complete once our corrective actions are fully implemented and further evaluation is performed, including testing, to conclude that our internal control over financial reporting is effective.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Securities Exchange Act Rule 13a-15(f)) that occurred during the fiscal quarter covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

24

PART II.         OTHER INFORMATION

Item 6. Exhibits

Exhibit Index	Exhibit Description	Incorporated by Reference from
31.1	Rule 13a-14(a) / 15d-14(a) CEO Certifications	Filed herewith
31.2	Rule 13a-14(a) / 15d-14(a) CFO Certifications	Filed herewith
32	Section 1350 Certifications	Furnished herewith
101.INS	Inline XBRL Instance Document	Filed herewith
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Filed herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	Filed herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	Filed herewith

Attached as Exhibit 101 to this report are the following formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, (ii) Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2025 and 2024, (iii) Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024, (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2025 and 2024, and (v) Notes to Consolidated Financial Statements.

25

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ULTRALIFE CORPORATION
		(Registrant)
Date: May 12, 2025	By:	/s/ Michael E. Manna
		Michael E. Manna
		President and Chief Executive Officer
		(Principal Executive Officer)
Date: May 12, 2025	By:	/s/ Philip A. Fain
		Philip A. Fain
		Chief Financial Officer and Treasurer
		(Principal Financial Officer and
		Principal Accounting Officer)

26

EX-31.1

Exhibit 31.1

I, Michael E. Manna, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ultralife Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 12, 2025	By: /s/ Michael E. Manna
	Michael E. Manna
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Philip A. Fain, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ultralife Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 12, 2025	By: /s/ Philip A. Fain
	Philip A. Fain
	Chief Financial Officer and Treasurer

EX-32

Exhibit 32

Section 1350 Certification

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), Michael E. Manna and Philip A. Fain, the President and Chief Executive Officer and Chief Financial Officer and Treasurer, respectively, of Ultralife Corporation, certify that (i) the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Ultralife Corporation.

A signed original of this written statement required by Section 906 has been provided to Ultralife Corporation and will be retained by Ultralife Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

Date: May 12, 2025	By: /s/ Michael E. Manna
	Michael E. Manna
	President and Chief Executive Officer
Date: May 12, 2025	By: /s/ Philip A. Fain
	Philip A. Fain
	Chief Financial Officer and Treasurer

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2025	May 08, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	0-20852
Entity Registrant Name	ULTRALIFE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1387013
Entity Address, Address Line One	2000 Technology Parkway
Entity Address, City or Town	Newark
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14513
City Area Code	315
Local Phone Number	332-7100
Title of 12(b) Security	Common Stock, $0.10 par value per share
Trading Symbol	ULBI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		16,632,965
Entity Central Index Key	0000875657
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets:
Cash	$ 8,719	$ 6,854
Trade accounts receivable, net of allowance for expected credit losses of $408 and $384, respectively	36,061	29,370
Inventories, net	47,853	51,363
Prepaid expenses and other current assets	8,836	9,573
Total current assets	101,469	97,160
Property, plant and equipment, net	40,277	40,485
Goodwill	45,141	45,006
Other intangible assets, net	24,185	24,557
Deferred income taxes, net	8,020	8,413
Other noncurrent assets	4,661	4,830
Total assets	223,753	220,451
Current liabilities:
Accounts payable	16,617	14,160
Current portion of long-term debt	3,094	2,750
Accrued compensation and related benefits	3,207	2,911
Accrued expenses and other current liabilities	8,578	9,470
Total current liabilities	31,496	29,291
Long-term debt, net	50,510	51,502
Deferred income taxes	1,413	1,443
Other noncurrent liabilities	3,730	4,028
Total liabilities	87,149	86,264
Commitments and Contingencies
Stockholders’ equity:
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued	0	0
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 21,069,079 shares at March 31, 2025 and 21,069,079 shares at December 31, 2024; outstanding – 16,632,965 shares at March 31, 2025 and 16,632,965 shares at December 31, 2024	2,107	2,107
Capital in excess of par value	192,055	191,828
Accumulated deficit	(32,577)	(34,442)
Accumulated other comprehensive loss	(3,695)	(4,006)
Treasury stock - at cost; 4,436,114 shares at March 31, 2025 and December 31, 2024	(21,492)	(21,492)
Total Ultralife Corporation equity	136,398	133,995
Non-controlling interest	206	192
Total stockholders’ equity	136,604	134,187
Total liabilities and stockholders’ equity	$ 223,753	$ 220,451

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Trade accounts receivable, allowance for doubtful accounts	$ 408	$ 384
Preferred stock, par value (in dollars per share)	$ 0.1	$ 0.1
Preferred Stock, Shares Authorized (in shares)	1,000,000	1,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.1	$ 0.1
Common Stock, Shares Authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	21,069,079	21,069,079
Common stock, shares outstanding (in shares)	16,632,965	16,632,965
Treasury Stock, Common, Shares (in shares)	4,436,114	4,436,114

XML

Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenues	$ 50,746	$ 41,927
Cost of products sold	38,001	30,457
Gross profit	12,745	11,470
Operating expenses:
Research and development	2,404	1,756
Selling, general and administrative	6,942	5,651
Total operating expenses	9,346	7,407
Operating income	3,399	4,063
Other (expense) income:
Interest and financing expense	1,032	520
Miscellaneous income	(79)	(64)
Total other (expense) income	953	456
Income before income taxes	2,446	3,607
Income tax provision	567	703
Net income	1,879	2,904
Net income attributable to non-controlling interest	14	13
Net income attributable to Ultralife Corporation	1,865	2,891
Other comprehensive loss:
Foreign currency translation adjustments	311	(232)
Comprehensive income attributable to Ultralife Corporation	$ 2,176	$ 2,659
Net income per share attributable to Ultralife common stockholders – basic (in dollars per share)	$ 0.02	$ 0.08
Net income per share attributable to Ultralife common stockholders – diluted (in dollars per share)	$ 0.02	$ 0.08
Weighted average shares outstanding – basic (in shares)	16,633	16,396
Potential common shares (in shares)	47	122
Weighted average shares outstanding - diluted (in shares)	16,680	16,518

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
OPERATING ACTIVITIES:
Net income	$ 1,879	$ 2,904
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	950	740
Amortization of intangible assets	405	228
Amortization of financing fees	65	16
Stock-based compensation	227	161
Deferred income taxes	344	650
Changes in operating assets and liabilities:
Accounts receivable	(6,608)	(3,562)
Inventories	3,614	(1,699)
Prepaid expenses and other assets	725	1,102
Accounts payable and other liabilities	1,767	(621)
Net cash provided by (used in) operating activities	3,368	(81)
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(895)	(372)
Net cash used in investing activities	(895)	(372)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	0	685
Net cash (used in) provided by financing activities	(687)	185
Effect of exchange rate changes on cash	79	89
INCREASE (DECREASE) IN CASH	1,865	(179)
Cash, Beginning of period	6,854	10,278
Cash, End of period	8,719	10,099
Revolving Credit Facility [Member]
FINANCING ACTIVITIES:
Payments on credit facilities	$ (687)	$ (500)

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Including Portion Attributable to Noncontrolling Interest [Member]	Retained Earnings [Member]	Treasury Stock, Common [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Dec. 31, 2023	20,783,607
Balance at Dec. 31, 2023	$ 2,078	$ 189,160	$ (3,660)	$ (40,754)	$ (21,492)	$ 95	$ 125,427
Net income				2,891		13	2,904
Stock Issued During Period, Value, Stock Options Exercised (in shares)	103,839
Stock option exercises	$ 11	674			685
Stock-based compensation – stock options		156					156
Stock-based compensation – restricted stock		5					5
Foreign currency translation adjustments adjustments			(232)				(232)
Balance (in shares) at Mar. 31, 2024	20,887,446
Balance at Mar. 31, 2024	$ 2,089	189,995	(3,892)	(37,863)	(21,492)	108	$ 128,945
Balance (in shares) at Dec. 31, 2024	21,069,079						16,632,965
Balance at Dec. 31, 2024	$ 2,107	191,828	(4,006)	(34,442)	(21,492)	192	$ 134,187
Net income				1,865		14	$ 1,879
Stock Issued During Period, Value, Stock Options Exercised (in shares)							(0)
Stock-based compensation – stock options		188					$ 188
Stock-based compensation – restricted stock		39					39
Foreign currency translation adjustments adjustments			311				$ 311
Balance (in shares) at Mar. 31, 2025	21,069,079						16,632,965
Balance at Mar. 31, 2025	$ 2,107	$ 192,055	$ (3,695)	$ (32,577)	$ (21,492)	$ 206	$ 136,604

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Note 1 - Basis of Presentation

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Business Description and Accounting Policies [Text Block]

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Ultralife Corporation and its subsidiaries (the “Company” or “Ultralife”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Rule 8-03 of Regulation S-X. Accordingly, they do not include all the information and notes for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation of the consolidated financial statements have been included. Results for interim periods should not be considered indicative of results to be expected for a full year. Reference should be made to the consolidated financial statements and related notes thereto contained in our Form 10-K for the year ended December 31, 2024.

The December 31, 2024 consolidated balance sheet information referenced herein was derived from audited financial statements but does not include all disclosures required by GAAP.

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation.

Recently Adopted Accounting Guidance

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” to expand the disclosure requirements for reportable segments. The standard expands reportable segment disclosure requirements for public business entities primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment operating profit (loss). This standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this new accounting standard did not have an impact on the Company's results of operations, financial position or cash flows.

Recent Accounting Guidance Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for the Company’s annual reporting period beginning January 1, 2025, however, these disclosures are not required for interim periods. The amendments are to be applied on a prospective basis, although retrospective adoption is permitted. The Company is currently evaluating the impact that ASU 2023-09 will have on its consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03 “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” which requires public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Company’s annual reporting period beginning January 1, 2027 and interim reporting periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact that ASU 2024-03 will have on its consolidated financial statements.

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Note 2 - Acquisition

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Business Combination [Text Block]

2. ACQUISITION

On October 31, 2024, the Company completed the acquisition of all issued and outstanding shares of Electrochem Solutions, Inc., a Massachusetts corporation (“Electrochem”), pursuant to a stock purchase agreement (the “Agreement”) with Greatbatch Ltd., a New York corporation (the “Seller”), dated September 27, 2024 (the “Acquisition”). The Agreement established a purchase price of $50,000 for the Acquisition subject to customary working capital adjustments. The Company completed the Acquisition for $48,022 in cash, inclusive of working capital adjustments of $1,978.

Based in Raynham, MA and with over forty years of battery technology experience in critical applications, Electrochem designs and manufactures primary lithium metal and ultracapacitor cells and battery packs serving energy, military and various environmental, industrial and utility end markets on a global basis. Acquiring Electrochem advances our strategy of more fully realizing the operating leverage of our business model through scale and manufacturing cost efficiencies. Electrochem brings a blue-chip customer base with little or no overlap with Ultralife’s customers, long-tenured technical resources which we plan to utilize in progressing our global new product initiatives, and a complimentary portfolio of highly engineered thionyl, sulfuryl and bromine chloride cells and packs which can be commercially cost prohibitive to substitute or switch out. We view this acquisition as an avenue to create highly attractive opportunities to drive revenue growth through heightened cross-selling platforms and extend our reach into underserved adjacent markets that demand uncompromised safety, service, reliability and quality. In addition, the combination of Electrochem and Ultralife creates achievable opportunities for gross margin expansion through the realization of vertical integration, supply chain synergies and lean initiatives. With Electrochem we are increasing our value to our customers and significantly strengthening our competitive position in our end markets.

The Company funded the purchase price for the Acquisition through the New Credit Agreement (refer to Note 3).

The Acquisition was accounted for in accordance with the accounting treatment of a business combination pursuant to FASB ASC Topic 805, Business Combinations (“ASC 805”). Accordingly, the purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of the separately identifiable assets acquired and liabilities assumed was allocated to goodwill. Management is responsible for determining the acquisition date fair value of the assets acquired and liabilities assumed, which requires the use of various assumptions and judgments that are inherently subjective. The purchase price allocation presented below reflects all known information about the fair value of the assets acquired and liabilities assumed as of the acquisition date. The purchase price allocation is subject to change should additional information existing as of the acquisition date about the fair value of the assets acquired and liabilities assumed become known. The final purchase price allocation may reflect material changes in the valuation of assets acquired and liabilities assumed, including but not limited to intangible assets, fixed assets, deferred taxes, and residual goodwill.

Accounts receivable	$	5,270
Inventories		9,172
Prepaid expenses and other current assets		251
Property, plant and equipment		20,735
Goodwill		7,558
Other intangible assets		10,500
Other noncurrent assets		237
Accounts payable		(2,231	)
Accrued compensation and related benefits		(1,561	)
Accrued expenses and other current liabilities		(904	)
Deferred tax liability, net		(748	)
Other noncurrent liabilities		(257	)
Net assets acquired	$	48,022

The goodwill included in the Company’s purchase price allocation presented above represents the value of Electrochem’s assembled and trained workforce, the incremental value that Excell engineering and technology will bring to the Company and the revenue growth which is expected to occur over time which is attributable to increased market penetration from future new products and customers. The goodwill acquired in connection with the acquisition is not deductible for income tax purposes.

Other intangible assets were valued using the income approach which requires a forecast of all expected future cash flows and the use of certain assumptions and estimates. The following table summarizes the estimated fair value and annual amortization for each of the identifiable intangible assets acquired.

					Annual Amortization
	Estimated Fair Value		Amortization Period (Years)		Year 1		Year 2		Year 3		Year 4		Year 5
Trade name	$	5,300		15	$	353	$	353	$	353	$	353	$	353
Customer relationships		5,100		15		340		340		340		340		340
Patents and technology		100		5		20		20		20		20		20
Total	$	10,500			$	713	$	713	$	713	$	713	$	713

We acquired right-of-use assets and assumed operating lease liabilities of $230. Right-of-use assets are classified as other noncurrent assets, and current and long-term lease liabilities are classified as accrued expenses and other current liabilities and other noncurrent liabilities, respectively, on the Company’s consolidated balance sheets.

The operating results and cash flows of Electrochem are reflected in the Company’s consolidated financial statements from the date of acquisition. Electrochem is included in the Battery & Energy Products segment.

For the three-month period ended March 31, 2025, Electrochem contributed revenue of $7,622 and net income of $743, inclusive of amortization expense of $178 on acquired identifiable intangible assets and a $60 increase in cost of products sold for the fair value step-up of acquired finished goods inventory sold during the period.

During the three-month period ended March 31, 2025, the Company incurred transaction costs and other non-recurring expenses of $125 directly attributable to the acquisition, including accounting and legal services. These costs are included in selling, general and administrative expense on the consolidated statement of income and comprehensive income for the three-month period ended March 31, 2025.

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Note 3 - Debt

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Debt Disclosure [Text Block]

3. DEBT

On October 31, 2024, Ultralife, SWE, CLB, Excell USA, and Electrochem, as borrowers, and certain other subsidiaries of the Company, entered into a new Credit and Security Agreement with KeyBank National Association (“KeyBank” or the “Bank”), as lender and administrative agent (the “New Credit Agreement”). The proceeds of the loans under the New Credit Agreement were used, in part, to repay outstanding indebtedness under the Company’s Amended Credit Agreement.

The New Credit Agreement, among other things, provides in its term loan provisions for a 5-year, $55 million senior secured term loan (the “Term Loan” or “Term Loan Facility”). The Term Loan is subject to repayment in quarterly installments commencing March 31, 2025 in amounts as set forth in the New Credit Agreement. Interest is payable on the unpaid principal outstanding under the Term Loan. All amounts of unpaid principal and accrued and unpaid interest remaining due under the Term Loan are scheduled to be paid in full October 31, 2029.

Upon closing of the Acquisition on October 31, 2024, the Company borrowed the full amount of the Term Loan Facility.

As of March 31, 2025, the Company had $54,313 outstanding principal on the Term Loan, $3,094 of which is included in current portion of long-term debt on the consolidated balance sheets, and no amounts outstanding on the Revolving Credit Facility. As of March 31, 2025, unamortized debt issuance costs associated with the Term Loan of $709 are classified on the consolidated balance sheets as a reduction of long-term debt, and unamortized debt issuance costs associated with the Revolving Credit Facility of $488 are classified on the consolidated balance sheets as other noncurrent assets. Debt issuance costs include lender fees and certain costs paid to third parties, including legal and accountant fees, and are amortized to interest expense over the term of the New Credit Agreement.

The New Credit Agreement also provides under its revolving credit provisions for revolving loans, letters of credit, and swing loans (“Revolving Credit Facility”). Upon the effectiveness of the New Credit Agreement, any amounts outstanding under letters of credit issued pursuant to the Amended Credit Agreement became issued under the New Credit Agreement. The availability under the Revolving Credit Facility is subject to certain borrowing base limits based on trade receivables and inventories. All unpaid principal and accrued and unpaid interest with respect to the Revolving Credit Facility is due and payable in full on October 31, 2029.

The Company may voluntarily prepay principal amounts outstanding under the New Credit Agreement at any time subject to certain advance notifications and other restrictions.

In addition to the customary affirmative and negative covenants, the Company must maintain a consolidated fixed charge coverage ratio, as defined in the New Credit Agreement, of equal to or greater than 1.15 to 1.00 for the fiscal quarter ending March 31, 2025, and for each fiscal quarter thereafter, as calculated for the four (4) consecutive fiscal quarters ending on such date, and a consolidated senior leverage ratio, as defined in the New Credit Agreement, not to exceed (i) 3.50 to 1.00 for the fiscal quarters ending March 31, 2025 through December 31, 2025, (ii) 3.25 to 1.00 for the fiscal quarters ending March 31, 2026 through December 31, 2026, (iii) 3.00 to 1.00 for the fiscal quarter ending March 31, 2027 and on the last day of each fiscal quarter thereafter, for the remaining term of the New Credit Agreement. The Company was in full compliance with its covenants under the New Credit Agreement as of March 31, 2025.

Borrowings under the New Credit Agreement are secured by substantially all the assets of the Company and certain of its present and future subsidiaries who are or become parties to, or guarantors under the new Credit Agreement.

Interest will accrue on outstanding indebtedness under the Term Loan Facility and Revolving Credit Facilities at a variable rate of interest based on designated interest rate benchmarks plus a varying margin determined by reference to the consolidated senior leverage ratio in effect from time to time. Our borrowing rate was 6.79% as of March 31, 2025.

The Company must pay a fee of twenty, twenty-five or thirty basis points (depending on the consolidated senior leverage ratio in effect from time to time) based on the average daily unused availability under the Revolving Credit Facility.

The Company must make payments to the extent borrowings exceed the maximum amount then permitted to be borrowed and from the proceeds of certain transactions. Upon the occurrence of an event of default, the outstanding obligations may be accelerated, and the Bank will have other customary remedies including resort to the security interest the Company provided to the Bank.

Future minimum principal repayment obligations on our Amended Credit Facilities as of March 31, 2025 are as follows:

2025	$	2,063
2026		4,125
2027		5,500
2028		5,500
2029		37,125
Total	$	54,313

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Note 4 - Earnings Per Share

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

4. EARNINGS PER SHARE

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) attributable to Ultralife Corporation by the weighted average shares outstanding during the period. Diluted EPS includes the dilutive effect of securities, if any, and is calculated using the treasury stock method.

For the three-month period ended March 31, 2025, there were 314,704 outstanding stock options included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 46,793 potential common shares included in the calculation of diluted EPS. There were 778,717 outstanding stock options and 35,486 unvested restricted stock awards for the three-month period ended March 31, 2025 not included in the calculation of diluted weighted average shares outstanding, as the effect would be anti-dilutive.

For the comparable three-month period ended March 31, 2024, there were 539,358 outstanding stock options and 5,229 unvested restricted stock awards included in the calculation of diluted weighted average shares outstanding, as such securities were dilutive, resulting in 122,515 potential common shares included in the calculation of diluted EPS. There were 524,502 outstanding stock options for the three-month period ended March 31, 2024 not included in the calculation of diluted weighted average shares outstanding, as the effect would be anti-dilutive.

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Note 5 - Supplemental Balance Sheet Information

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

5. SUPPLEMENTAL BALANCE SHEET INFORMATION

Fair Value Measurements and Disclosures

The fair value of financial instruments approximated their carrying values at March 31, 2025 and December 31, 2024. The fair value of cash, accounts receivable, accounts payable, accrued liabilities, and the current portion of long-term debt approximates carrying value due to the short-term nature of these instruments.

Inventories, Net

Inventories are stated at the lower of cost or net realizable value, net of obsolescence reserves, with cost determined under the first-in, first-out (FIFO) method. The composition of inventories, net was:

	March 31,		December 31,
	2025		2024
Raw materials	$	34,173	$	36,035
Work in process		5,190		4,501
Finished goods		8,490		10,827
Total	$	47,853	$	51,363

Property, Plant and Equipment, Net

Major classes of property, plant and equipment consisted of the following:

	March 31,			December 31,
	2025			2024
Land	$	1,273		$	4,693
Buildings and leasehold improvements		33,534			30,109
Machinery and equipment		61,533			60,986
Furniture and fixtures		3,073			3,067
Computer hardware and software		8,052			7,990
Construction in process		2,244			2,077
		109,709			108,922
Less: Accumulated depreciation		(69,432	)		(68,437	)
Property, plant and equipment, net	$	40,277		$	40,485

Depreciation expense for property, plant and equipment was $950 and $740 for the three-month periods ended March 31, 2025 and March 31, 2024, respectively.

Goodwill

The following table summarizes the goodwill activity by segment for the three-month period ended March 31, 2025.

	Battery & Energy		Communications
	Products		Systems		Total
Balance – December 31, 2024	$	33,513	$	11,493	$	45,006
Effect of foreign currency translation		135		-		135
Balance – March 31, 2025	$	33,648	$	11,493	$	45,141

Other Intangible Assets, Net

The composition of other intangible assets was:

	at March 31, 2025
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,231	$	7,580	$	10,651
Trade names		9,954		940		9,014
Patents and technology		5,722		5,491		231
Trademarks		3,399		-		3,399
Other		1,500		610		890
Total other intangible assets	$	38,806	$	14,621	$	24,185

	at December 31, 2024
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,154	$	7,296	$	10,858
Trade names		9,942		813		9,129
Patents and technology		5,690		5,428		262
Trademarks		3,399		-		3,399
Other		1,500		591		909
Total other intangible assets	$	38,685	$	14,128	$	24,557

The change in the cost of total intangible assets from December 31, 2024 to March 31, 2025 is the effect of foreign currency translations.

Amortization of other intangible assets was included in the following financial statement captions:

	Three-month period ended
	March 31, 2025		March 31, 2024
Selling, general and administrative expense	$	376	$	203
Research and development expense		29		25
Total	$	405	$	228

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Note 6 - Stock-based Compensation

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

6. STOCK-BASED COMPENSATION

We recorded non-cash stock compensation expense in each period as follows:

	Three-month period ended
	March 31,		March 31,
	2025		2024
Stock options	$	188	$	156
Restricted stock grants		39		5
Total	$	227	$	161

We have stock options outstanding from various stock-based employee compensation plans for which we record compensation cost relating to share-based payment transactions in our financial statements. As of March 31, 2025, there was $921 of total unrecognized compensation cost related to outstanding stock options, which is expected to be recognized over a weighted average period of 1.4 years.

The following table summarizes stock option activity for the three-month period ended March 31, 2025:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2025		1,106,436		$	7.15
Granted		-			-
Exercised		-			-
Forfeited or expired		(13,015	)	$	7.11
Outstanding at March 31, 2025		1,093,421		$	7.15		4.26	$	25
Vested and expected to vest at March 31, 2025		994,263		$	7.17		4.09	$	23
Exercisable at March 31, 2025		628,327		$	7.16		2.93	$	16

Cash received from stock option exercises under our stock-based compensation plans for the three-month periods ended March 31, 2025 and March 31, 2024 was $0 and $685, respectively.

Restricted stock awards vest in equal annual installments over three (3) years. Unrecognized compensation cost related to unvested restricted stock awards at March 31, 2025 and March 31, 2024, respectively, was $216 and $31.

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Note 7 - Income Taxes

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. INCOME TAXES

Our effective tax rate for the three-month periods ended March 31, 2025 and March 31, 2024 was 23.2% and 19.5%, respectively. The period-over-period change was primarily attributable to the geographic mix of our operating results.

As of December 31, 2024, we have domestic net operating loss (“NOL”) carryforwards of $15,000, which expire 2031 through 2035, and domestic tax credits of $3,200, which expire 2028 through 2044, available to reduce future taxable income. As of March 31, 2025, management has concluded it is more likely than not that these domestic NOL and credit carryforwards will be fully utilized.

As of March 31, 2025, for certain past operations in the U.K., we continue to report a valuation allowance for NOL carryforwards of approximately $9,600, nearly all of which can be carried forward indefinitely. Utilization of the net operating losses may be limited due to the change in the past U.K. operation and cannot currently be used to reduce taxable income at our other U.K. subsidiary, Accutronics Ltd. There are no other deferred tax assets related to the past U.K. operations.

As of March 31, 2025, we have not recognized a valuation allowance against our other foreign deferred tax assets, as realization is considered to be more likely than not.

As of March 31, 2025, the Company maintains its assertion that all foreign earnings will be indefinitely reinvested in those operations, other than earnings generated in the U.K.

There were no unrecognized tax benefits related to uncertain tax positions at March 31, 2025 and December 31, 2024.

As a result of our operations, we file income tax returns in various jurisdictions including U.S. federal, U.S. state and foreign jurisdictions. We are routinely subject to examination by taxing authorities in these various jurisdictions. Our U.S. tax matters for 2021 thru 2023 remain subject to IRS examination. Our U.S. tax matters for 2001-2002, 2005-2007, 2009, and 2011-2015 also remain subject to IRS examination due to the remaining availability of net operating loss carryforwards generated in those years. Our U.S. tax matters for 2014 thru 2023 remain subject to examination by various state and local tax jurisdictions. Our tax matters for the years 2014 thru 2023 remain subject to examination by the respective foreign tax jurisdiction authorities.

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Note 8 - Operating Leases

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8. OPERATING LEASES

The Company has operating leases predominantly for operating facilities. As of March 31, 2025, the remaining lease terms on our operating leases range from approximately one (1) year to seven (7) years. Lease terms include renewal options reasonably certain of exercise. There is no transfer of title or option to purchase the leased assets upon expiration. There are no residual value guarantees or material restrictive covenants.

The components of lease expense for the current and prior-year comparative periods were as follows:

	Three-month period ended March 31,
	2025		2024
Operating lease cost	$	296	$	262
Variable lease cost		24		28
Total lease cost	$	320	$	290

Supplemental cash flow information related to leases was as follows:

	Three-month period ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	314	$	265
Right-of-use assets obtained in exchange for lease liabilities:	$	-	$	-

Supplemental consolidated balance sheet information related to leases was as follows:

	Balance sheet classification	March 31, 2025			December 31, 2024
Assets:
Operating lease right-of-use asset	Other noncurrent assets	$	3,905		$	4,153
Liabilities:
Current operating lease liability	Accrued expenses and other current liabilities	$	1,125		$	1,138
Operating lease liability, net of current portion	Other noncurrent liabilities		2,782			2,998
Total operating lease liability		$	3,907		$	4,136
Weighted-average remaining lease term (years)			4.3			4.5
Weighted-average discount rate			6.7	%		6.7	%

Future minimum lease payments as of March 31, 2025 are as follows:

Maturity of operating lease liabilities
2025	$	873
2026		1,038
2027		984
2028		968
2029		508
Thereafter		107
Total lease payments		4,478
Less: Imputed interest		(571	)
Present value of remaining lease payments	$	3,907

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Note 9 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

As of March 31, 2025, we have made commitments to purchase approximately $828 of production machinery and equipment.

Product Warranties

We estimate future warranty costs to be incurred for product failure rates, material usage and service costs in the development of our warranty obligations. Estimated future costs are based on actual past experience and are generally estimated as a percentage of sales over the warranty period. Changes in our product warranty liability during the first three months of 2025 and 2024 were as follows:

	Three-month period ended March 31,
	2025			2024
Accrued warranty obligations – beginning	$	887		$	547
Accruals for warranties issued		93			141
Settlements made		(6	)		(49	)
Accrued warranty obligations – ending	$	974		$	639

Contingencies and Legal Matters

We are subject to legal proceedings and claims that arise from time to time in the normal course of business. We believe that the final disposition of any such matters will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, recognizing that legal matters are subject to inherent uncertainties, there exists the possibility that ultimate resolution of these matters could have a material adverse impact on the Company’s financial position, results of operations or cash flows. We are not aware of any such situations at this time.

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Note 10 - Revenue Recognition

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

10. REVENUE RECOGNITION

Revenues are generated from the sale of products. Performance obligations are met and revenue is recognized upon transfer of control to the customer, which is generally upon shipment. When contract terms require transfer of control upon delivery at a customer’s location, revenue is recognized on the date of delivery. For products shipped under vendor-managed inventory arrangements, revenue is recognized and billed when the product is consumed by the customer, at which point control has transferred and there are no further obligations by the Company. Revenue is measured as the amount of consideration we expect to receive in exchange for shipped product. Sales, value-added and other taxes billed and collected from customers are excluded from revenue. Customers, including distributors, do not have a general right of return.

Separately priced extended warranty contracts are offered on certain Communications Systems products for a duration of up to eight (8) years. Extended warranties are treated as separate performance obligations and recognized to revenue evenly over the term of the respective contract. Revenue not yet recognized on extended warranty contracts is recorded as deferred revenue on the consolidated balance sheet. For the three-month periods ended March 31, 2025 and March 31, 2024, revenue recognized on extended warranties was $74 and $72, respectively.

As of March 31, 2025, there was deferred revenue on extended warranty contracts of $1,078, comprised of $298 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheet, and $780 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet.

As of December 31, 2024, there was deferred revenue on extended warranty contracts of $1,153, comprised of $298 expected to be recognized as revenue within one (1) year and classified as accrued expenses and other current liabilities on our consolidated balance sheets, and $855 expected to be recognized as revenue over the remaining duration of the respective contracts and classified as other noncurrent liabilities on our consolidated balance sheet.

As of March 31, 2025 and December 31, 2024, the Company had no other unsatisfied performance obligations for contracts with an original expected duration of greater than one year. Pursuant to Topic 606, we have applied the practical expedient with respect to disclosure of the deferral and future expected timing of revenue recognition for transaction price allocated to remaining performance obligations.

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Note 11 - Business Segment Information

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. BUSINESS SEGMENT INFORMATION

Operating segments represent a component of the Company that engages in business activities from which it may recognize revenues and incur expenses whose operating results are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.  Once operating segments are identified, the Company determined which of those operating segments are required to be presented as reportable segments based on the quantitative thresholds.

We structure our operations primarily around the products we sell and report our financial results in the following two reportable segments: Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.

Our CODM is Mike Manna, President & Chief Executive Officer.  Both of our operating segments are regularly reviewed by the CODM through weekly revenue, gross margin and consolidated financial forecast updates, bi-weekly business and financial reviews to assess business performance, top priorities, utilization of resources and to regularly communicate with segment management, who are part of the CODM’s executive leadership team, and monthly meetings with the executive leadership team.  In his role as CODM, Mr. Manna is deeply involved in business operations through daily updates by the segment management and ongoing financial, revenue and operations discussions.

The primary financial measures used by the CODM to monitor and evaluate the performance of the operating segments is segment contribution, as defined by gross profit less direct selling, general and administrative (“SG&A”) and research and development expenses. This metric is used as a consistent benchmark for comparison across reporting periods.

Corporate general and administrative (“G&A”) expenses, including costs associated with our acquisitions, include corporate functions including board of directors, executive officers, accounting & finance, human resources, legal, information technology and their related functional expenses. These costs are not directly allocable to the operating segments.

Three-month period ended March 31, 2025:

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	46,321		$	4,425		$	-		$	50,746
Cost of products sold		(34,881	)		(3,120	)		-			(38,001	)
Gross profit		11,440			1,305			-			12,745
Direct SG&A expenses		(3,865	)		(366	)		-			(4,231	)
Research and development		(1,591	)		(813	)		-			(2,404	)
Segment contribution		5,984			126			-			6,110
Corporate G&A expenses								(2,711	)		(2,711	)
Operating income											3,399
Other expenses, net								(953	)		(953	)
Income tax provision								(567	)		(567	)
Non-controlling interest								(14	)		(14	)
Net income attributable to Ultralife										$	1,865

Three-month period ended March 31, 2024:

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	34,989		$	6,938		$	-		$	41,927
Cost of products sold		(26,003	)		(4,454	)		-			(30,457	)
Gross profit		8,986			2,484			-			11,470
Direct SG&A expenses		(2,907	)		(394	)					(3,301	)
Research and development		(1,001	)		(755	)					(1,756	)
Segment contribution		5,078			1,335			-			6,413
Corporate G&A expenses								(2,350	)		(2,350	)
Operating income											4,063
Other expenses, net								(456	)		(456	)
Income tax provision								(703	)		(703	)
Non-controlling interest								(13	)		(13	)
Net income attributable to Ultralife										$	2,891

The following tables disaggregate our business segment revenues by major source and geography.

Commercial and Government/Defense Revenue Information:

Three-month period ended March 31, 2025:

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	46,321	$	29,659		$	16,662
Communications Systems		4,425		-			4,425
Total	$	50,746	$	29,659		$	21,087
				58	%		42	%

Three-month period ended March 31, 2024:

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	34,989	$	24,140		$	10,849
Communications Systems		6,938		-			6,938
Total	$	41,927	$	24,140		$	17,787
				58	%		42	%

U.S. and Non-U.S. Revenue Information¹:

Three-month period ended March 31, 2025:

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	46,321	$	35,182		$	11,139
Communications Systems		4,425		4,287			138
Total	$	50,746	$	39,469		$	11,277
				78	%		22	%

Three-month period ended March 31, 2024:

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	34,989	$	19,603		$	15,386
Communications Systems		6,938		4,858			2,080
Total	$	41,927	$	24,461		$	17,466
				58	%		42	%

¹ Sales classified to U.S. include shipments to U.S.-based prime contractors which in some cases may serve non-U.S. projects.

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Insider Trading Arrangements

3 Months Ended

Mar. 31, 2025

Trading Arrangements, by Individual [Table]

Material Terms of Trading Arrangement [Text Block]

PART II.         OTHER INFORMATION

Rule 10b5-1 Arrangement Adopted [Flag]

false

Non-Rule 10b5-1 Arrangement Adopted [Flag]

false

Rule 10b5-1 Arrangement Terminated [Flag]

false

Non-Rule 10b5-1 Arrangement Terminated [Flag]

false

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Note 2 - Acquisition (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Business Combination, Recognized Asset Acquired and Liability Assumed [Table Text Block]

Accounts receivable	$	5,270
Inventories		9,172
Prepaid expenses and other current assets		251
Property, plant and equipment		20,735
Goodwill		7,558
Other intangible assets		10,500
Other noncurrent assets		237
Accounts payable		(2,231	)
Accrued compensation and related benefits		(1,561	)
Accrued expenses and other current liabilities		(904	)
Deferred tax liability, net		(748	)
Other noncurrent liabilities		(257	)
Net assets acquired	$	48,022

Business Combination, Intangible Asset, Acquired, Finite-Lived [Table Text Block]

					Annual Amortization
	Estimated Fair Value		Amortization Period (Years)		Year 1		Year 2		Year 3		Year 4		Year 5
Trade name	$	5,300		15	$	353	$	353	$	353	$	353	$	353
Customer relationships		5,100		15		340		340		340		340		340
Patents and technology		100		5		20		20		20		20		20
Total	$	10,500			$	713	$	713	$	713	$	713	$	713

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Note 3 - Debt (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Schedule of Maturities of Long-Term Debt [Table Text Block]

2025	$	2,063
2026		4,125
2027		5,500
2028		5,500
2029		37,125
Total	$	54,313

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Note 5 - Supplemental Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	March 31,		December 31,
	2025		2024
Raw materials	$	34,173	$	36,035
Work in process		5,190		4,501
Finished goods		8,490		10,827
Total	$	47,853	$	51,363

Property, Plant and Equipment [Table Text Block]

	March 31,			December 31,
	2025			2024
Land	$	1,273		$	4,693
Buildings and leasehold improvements		33,534			30,109
Machinery and equipment		61,533			60,986
Furniture and fixtures		3,073			3,067
Computer hardware and software		8,052			7,990
Construction in process		2,244			2,077
		109,709			108,922
Less: Accumulated depreciation		(69,432	)		(68,437	)
Property, plant and equipment, net	$	40,277		$	40,485

Schedule of Goodwill [Table Text Block]

	Battery & Energy		Communications
	Products		Systems		Total
Balance – December 31, 2024	$	33,513	$	11,493	$	45,006
Effect of foreign currency translation		135		-		135
Balance – March 31, 2025	$	33,648	$	11,493	$	45,141

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	at March 31, 2025
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,231	$	7,580	$	10,651
Trade names		9,954		940		9,014
Patents and technology		5,722		5,491		231
Trademarks		3,399		-		3,399
Other		1,500		610		890
Total other intangible assets	$	38,806	$	14,621	$	24,185

	at December 31, 2024
			Accumulated
	Cost		Amortization		Net
Customer relationships	$	18,154	$	7,296	$	10,858
Trade names		9,942		813		9,129
Patents and technology		5,690		5,428		262
Trademarks		3,399		-		3,399
Other		1,500		591		909
Total other intangible assets	$	38,685	$	14,128	$	24,557

Finite-Lived Intangible Assets Amortization Expense [Table Text Block]

	Three-month period ended
	March 31, 2025		March 31, 2024
Selling, general and administrative expense	$	376	$	203
Research and development expense		29		25
Total	$	405	$	228

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Note 6 - Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]

	Three-month period ended
	March 31,		March 31,
	2025		2024
Stock options	$	188	$	156
Restricted stock grants		39		5
Total	$	227	$	161

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding at January 1, 2025		1,106,436		$	7.15
Granted		-			-
Exercised		-			-
Forfeited or expired		(13,015	)	$	7.11
Outstanding at March 31, 2025		1,093,421		$	7.15		4.26	$	25
Vested and expected to vest at March 31, 2025		994,263		$	7.17		4.09	$	23
Exercisable at March 31, 2025		628,327		$	7.16		2.93	$	16

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Note 8 - Operating Leases (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Lease, Cost [Table Text Block]

	Three-month period ended March 31,
	2025		2024
Operating lease cost	$	296	$	262
Variable lease cost		24		28
Total lease cost	$	320	$	290

Lessee, Lease, Cash Flow Information [Table Text Block]

	Three-month period ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	314	$	265
Right-of-use assets obtained in exchange for lease liabilities:	$	-	$	-

Lessee, Lease, Balance Sheet Information [Table Text Block]

	Balance sheet classification	March 31, 2025			December 31, 2024
Assets:
Operating lease right-of-use asset	Other noncurrent assets	$	3,905		$	4,153
Liabilities:
Current operating lease liability	Accrued expenses and other current liabilities	$	1,125		$	1,138
Operating lease liability, net of current portion	Other noncurrent liabilities		2,782			2,998
Total operating lease liability		$	3,907		$	4,136
Weighted-average remaining lease term (years)			4.3			4.5
Weighted-average discount rate			6.7	%		6.7	%

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

Maturity of operating lease liabilities
2025	$	873
2026		1,038
2027		984
2028		968
2029		508
Thereafter		107
Total lease payments		4,478
Less: Imputed interest		(571	)
Present value of remaining lease payments	$	3,907

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Note 9 - Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Schedule of Product Warranty Liability [Table Text Block]

	Three-month period ended March 31,
	2025			2024
Accrued warranty obligations – beginning	$	887		$	547
Accruals for warranties issued		93			141
Settlements made		(6	)		(49	)
Accrued warranty obligations – ending	$	974		$	639

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Note 11 - Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	46,321		$	4,425		$	-		$	50,746
Cost of products sold		(34,881	)		(3,120	)		-			(38,001	)
Gross profit		11,440			1,305			-			12,745
Direct SG&A expenses		(3,865	)		(366	)		-			(4,231	)
Research and development		(1,591	)		(813	)		-			(2,404	)
Segment contribution		5,984			126			-			6,110
Corporate G&A expenses								(2,711	)		(2,711	)
Operating income											3,399
Other expenses, net								(953	)		(953	)
Income tax provision								(567	)		(567	)
Non-controlling interest								(14	)		(14	)
Net income attributable to Ultralife										$	1,865

	Battery & Energy Products			Communications Systems			Corporate			Total
Revenues	$	34,989		$	6,938		$	-		$	41,927
Cost of products sold		(26,003	)		(4,454	)		-			(30,457	)
Gross profit		8,986			2,484			-			11,470
Direct SG&A expenses		(2,907	)		(394	)					(3,301	)
Research and development		(1,001	)		(755	)					(1,756	)
Segment contribution		5,078			1,335			-			6,413
Corporate G&A expenses								(2,350	)		(2,350	)
Operating income											4,063
Other expenses, net								(456	)		(456	)
Income tax provision								(703	)		(703	)
Non-controlling interest								(13	)		(13	)
Net income attributable to Ultralife										$	2,891

Schedule of Revenues from External Customers by Business Segment Sector [Table Text Block]

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	46,321	$	29,659		$	16,662
Communications Systems		4,425		-			4,425
Total	$	50,746	$	29,659		$	21,087
				58	%		42	%

	Total Revenue		Commercial			Government/ Defense
Battery & Energy Products	$	34,989	$	24,140		$	10,849
Communications Systems		6,938		-			6,938
Total	$	41,927	$	24,140		$	17,787
				58	%		42	%

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	46,321	$	35,182		$	11,139
Communications Systems		4,425		4,287			138
Total	$	50,746	$	39,469		$	11,277
				78	%		22	%

	Total Revenue		United States			Non-United States
Battery & Energy Products	$	34,989	$	19,603		$	15,386
Communications Systems		6,938		4,858			2,080
Total	$	41,927	$	24,461		$	17,466
				58	%		42	%

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Note 2 - Acquisition (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Oct. 31, 2024	Mar. 31, 2025	Mar. 31, 2024
Amortization of Intangible Assets		$ 405	$ 228
Cost of Revenue		38,001	$ 30,457
Electrochem Solutions, Inc. [Member]
Business Combination, Consideration Transferred	$ 50,000
Payments to Acquire Businesses, Gross	48,022
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred	1,978
Business Combination, Recognized Liability Assumed, Lease Obligation	$ 230
Business Combination, Acquiree's Revenue since Acquisition Date, Actual		7,622
Business Combination, Acquiree's Earnings (Loss) since Acquisition Date, Actual		743
Amortization of Intangible Assets		178
Cost of Revenue		60
Business Combination, Acquisition-Related Cost, Expense		$ 125

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Note 2 - Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Oct. 31, 2024
Goodwill	$ 45,141	$ 45,006
Electrochem Solutions, Inc. [Member]
Accounts receivable			$ 5,270
Inventories			9,172
Prepaid expenses and other current assets			251
Property, plant and equipment			20,735
Goodwill			7,558
Other intangible assets			10,500
Other noncurrent assets			237
Accounts payable			(2,231)
Accrued compensation and related benefits			(1,561)
Accrued expenses and other current liabilities			(904)
Deferred tax liability, net			(748)
Other noncurrent liabilities			(257)
Net assets acquired			$ 48,022

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Note 2 - Acquisition - Schedule of Intangible Assets Acquired (Details) - Electrochem Solutions, Inc. [Member] $ in Thousands	Oct. 31, 2024 USD ($)
Estimated Fair Value	$ 10,500
Year 1	713
Year 2	713
Year 3	713
Year 4	713
Year 5	713
Trade Names [Member]
Estimated Fair Value	$ 5,300
Amortization Period (Year)	15 years
Year 1	$ 353
Year 2	353
Year 3	353
Year 4	353
Year 5	353
Customer Relationships [Member]
Estimated Fair Value	$ 5,100
Amortization Period (Year)	15 years
Year 1	$ 340
Year 2	340
Year 3	340
Year 4	340
Year 5	340
Patents and Technology [Member]
Estimated Fair Value	$ 100
Amortization Period (Year)	5 years
Year 1	$ 20
Year 2	20
Year 3	20
Year 4	20
Year 5	$ 20

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Note 3 - Debt (Details Textual) - Amended Credit Agreement [Member] $ in Thousands	Dec. 13, 2021 USD ($)	Mar. 31, 2027	Dec. 31, 2026	Mar. 31, 2025 USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Issuance Costs, Gross				$ 709
Debt Instrument, Interest Rate, Effective Percentage				6.79%
Term Loan Facility [Member] | Long-term Debt, Current Maturities [Member]
Secured Debt, Total				$ 3,094
Term Loan Facility [Member] | KeyBank [Member]
Debt Instrument, Term	5 years
Debt Instrument, Face Amount	$ 55,000
Revolving Credit Facility [Member]
Secured Debt, Total				54,313
Long-Term Line of Credit, Total				0
Debt Issuance Costs, Gross				$ 488
Maximum Consolidated Senior Leverage Ratio					3.5	1.15
Revolving Credit Facility [Member] | Forecast [Member]
Maximum Consolidated Senior Leverage Ratio		3	3.25

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Note 3 - Debt - Future Minimum Principal Repayment Obligations (Details) $ in Thousands	Mar. 31, 2025 USD ($)
2029	$ 37,125
Revolving Credit Facility [Member] | Amended Credit Agreement [Member]
2025	2,063
2026	4,125
2027	5,500
2028	5,500
Total	$ 54,313

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Note 4 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements	46,793	122,515
Share-Based Payment Arrangement, Option [Member]
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements	314,704	539,358
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	778,717	524,502
Restricted Stock [Member]
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements		5,229
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	35,486

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Note 5 - Supplemental Balance Sheet Information (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Depreciation	$ 950	$ 740

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Note 5 - Supplemental Balance Sheet Information - Components of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Raw materials	$ 34,173	$ 36,035
Work in process	5,190	4,501
Finished goods	8,490	10,827
Total	$ 47,853	$ 51,363

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Note 5 - Supplemental Balance Sheet Information - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Property, plant and equipment, gross	$ 109,709	$ 108,922
Less: Accumulated depreciation	(69,432)	(68,437)
Property, plant and equipment, net	40,277	40,485
Land [Member]
Property, plant and equipment, gross	1,273	4,693
Building and Building Improvements [Member]
Property, plant and equipment, gross	33,534	30,109
Machinery and Equipment [Member]
Property, plant and equipment, gross	61,533	60,986
Furniture and Fixtures [Member]
Property, plant and equipment, gross	3,073	3,067
Computer Equipment [Member]
Property, plant and equipment, gross	8,052	7,990
Construction in Progress [Member]
Property, plant and equipment, gross	$ 2,244	$ 2,077

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Note 5 - Supplemental Balance Sheet Information - Summary of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Balance	$ 45,006
Effect of foreign currency translation	135
Balance – March 31, 2024	45,141
Battery & Energy Products Segment [Member]
Balance	33,513
Effect of foreign currency translation	135
Balance – March 31, 2024	33,648
Communications Systems Segment [Member]
Balance	11,493
Effect of foreign currency translation	0
Balance – March 31, 2024	$ 11,493

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Note 5 - Supplemental Balance Sheet Information - Composition of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Cost	$ 38,806	$ 38,685
Accumulated Amortization	14,621	14,128
Net	24,185	24,557
Customer Relationships [Member]
Cost	18,231	18,154
Accumulated Amortization	7,580	7,296
Net	10,651	10,858
Trade Names [Member]
Cost	9,954	9,942
Accumulated Amortization	940	813
Net	9,014	9,129
Patented Technology [Member]
Cost	5,722	5,690
Accumulated Amortization	5,491	5,428
Net	231	262
Trademarks [Member]
Cost	3,399	3,399
Accumulated Amortization	0	0
Net	3,399	3,399
Other Intangible Assets [Member]
Cost	1,500	1,500
Accumulated Amortization	610	591
Net	$ 890	$ 909

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Note 5 - Supplemental Balance Sheet Information - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Amortization of intangible assets	$ 405	$ 228
Research and Development Expense [Member]
Amortization of intangible assets	376	203
Selling, General and Administrative Expenses [Member]
Amortization of intangible assets	$ 29	$ 25

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Note 6 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Proceeds from Stock Options Exercised	$ 0	$ 685
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 921
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	1 year 4 months 24 days
Restricted Stock [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 216	$ 31
Restricted Stock [Member] | The 2014 Long-term Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period	3 years

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Note 6 - Stock-based Compensation - Non-cash Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Stock-based compensation expense	$ 227	$ 161
Share-Based Payment Arrangement, Option [Member]
Stock-based compensation expense	188	156
Restricted Stock [Member]
Stock-based compensation expense	$ 39	$ 5

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Note 6 - Stock-based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares shares
Outstanding, shares (in shares) | shares	1,106,436
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 7.15
Granted, shares (in shares) | shares	0
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Exercised, shares (in shares) | shares	0
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Forfeited or expired, shares (in shares) | shares	(13,015)
Forfeited or expired, weighted average exercise price (in dollars per share) | $ / shares	$ 7.11
Outstanding, shares (in shares) | shares	1,093,421
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 7.15
Outstanding- weighted average remaining contractual term (Year)	4 years 3 months 3 days
Outstanding- aggregate intrinsic value | $	$ 25
Vested and expected to vest, shares (in shares) | shares	994,263
Vested and expected, weighted average exercise price (in dollars per share) | $ / shares	$ 7.17
Vested and expected to vest, weighted average remaining contractual term (Year)	4 years 1 month 2 days
Vested and expected to vest, aggregate intrinsic value | $	$ 23
Exercisable, shares (in shares) | shares	628,327
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 7.16
Exercisable- weighted average remaining contractual term (Year)	2 years 11 months 4 days
Exercisable- aggregate intrinsic value | $	$ 16

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Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Effective Income Tax Rate Reconciliation, Percent	23.20%	19.50%
Unrecognized Tax Benefits, Ending Balance	$ 0		$ 0
Domestic Tax Jurisdiction [Member] | Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards			15,000
Tax Credit Carryforward, Amount			$ 3,200
Open Tax Year	2011 2012 2013 2014 2015
Foreign Tax Jurisdiction [Member]
Deferred Tax Assets, Valuation Allowance	$ 0
Foreign Tax Jurisdiction [Member] | His Majesty's Revenue and Customs (HMRC) [Member]
Operating Loss Carryforwards	$ 9,600
State and Local Jurisdiction [Member]
Open Tax Year	2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Foreign Tax Jurisdiction, Other [Member]
Open Tax Year	2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

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Note 8 - Operating Leases (Details Textual)	Mar. 31, 2025
Minimum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	1 year
Maximum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	7 years

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Note 8 - Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Operating lease cost	$ 296	$ 262
Variable lease cost	24	28
Total lease cost	$ 320	$ 290

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Note 8 - Operating Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Operating cash flows from operating leases	$ 314	$ 265
Right-of-use assets obtained in exchange for lease liabilities:	$ 0	$ 0

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Note 8 - Operating Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Operating lease right-of-use asset	$ 3,905	$ 4,153
Current operating lease liability	1,125	1,138
Operating lease liability, net of current portion	2,782	2,998
Total operating lease liability	$ 3,907	$ 4,136
Weighted-average remaining lease term (years) (Year)	4 years 3 months 18 days	4 years 6 months
Weighted-average discount rate	6.70%	6.70%

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Note 8 - Operating Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
2025	$ 873
2026	1,038
2027	984
2028	968
2029	508
Thereafter	107
Total lease payments	4,478
Less: Imputed interest	(571)
Present value of remaining lease payments	$ 3,907	$ 4,136

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Note 9 - Commitments and Contingencies (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Capital Addition Purchase Commitments [Member]
Long-Term Purchase Commitment, Amount	$ 828

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Note 9 - Commitments and Contingencies - Changes in Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Accrued warranty obligations – beginning	$ 887	$ 547
Accruals for warranties issued	93	141
Settlements made	(6)	(49)
Accrued warranty obligations – ending	$ 974	$ 639

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Note 10 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Extended Product Warranty Accrual	$ 1,078		$ 1,153
Accrued Expenses and Other Current Liabilities [Member]
Extended Product Warranty Accrual, Current	298		298
Other Noncurrent Liabilities [Member]
Extended Product Warranty Accrual, Noncurrent	780		$ 855
Certain Communications Systems Products [Member]
Contract with Customer, Liability, Revenue Recognized	$ 74	$ 72
Certain Communications Systems Products [Member] | Maximum [Member]
Extended Product Warranty, Term	8 years

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Note 11 - Business Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2025
Number of Operating Segments	2

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Note 11 - Business Segment Information - Segment Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenue	$ 50,746	$ 41,927
Cost of products sold	(38,001)	(30,457)
Gross profit	12,745	11,470
Direct SG&A expenses	9,346	7,407
Research and development	(2,404)	(1,756)
Segment contribution	3,399	4,063
Corporate G&A expenses	9,346	7,407
Other expenses, net	(953)	(456)
Income tax provision	(567)	(703)
Non-controlling interest	(14)	(13)
Net income attributable to Ultralife	1,865	2,891
Operating Segments [Member]
Direct SG&A expenses	(4,231)	(3,301)
Segment contribution	6,110	6,413
Corporate G&A expenses	(4,231)	(3,301)
Operating Segments [Member] | Battery & Energy Products Segment [Member]
Revenue	46,321	34,989
Cost of products sold	(34,881)	(26,003)
Gross profit	11,440	8,986
Direct SG&A expenses	(3,865)	(2,907)
Research and development	(1,591)	(1,001)
Segment contribution	5,984	5,078
Corporate G&A expenses	(3,865)	(2,907)
Operating Segments [Member] | Communications Systems Segment [Member]
Revenue	4,425	6,938
Cost of products sold	(3,120)	(4,454)
Gross profit	1,305	2,484
Direct SG&A expenses	(366)	(394)
Research and development	(813)	(755)
Segment contribution	126	1,335
Corporate G&A expenses	(366)	(394)
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Revenue	0	0
Cost of products sold	0	0
Gross profit	0	0
Direct SG&A expenses	(2,711)	(2,350)
Research and development	0
Corporate G&A expenses	(2,711)	(2,350)
Other expenses, net	(953)	(456)
Income tax provision	(567)	(703)
Non-controlling interest	$ (14)	$ (13)

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Note 11 - Business Segment Information - Revenue by Business Segment Sector (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenues	$ 50,746	$ 41,927
UNITED STATES
Revenues	$ 39,469	$ 24,461
Revenue, percentage	78.00%	58.00%
Non-US [Member]
Revenues	$ 11,277	$ 17,466
Revenue, percentage	22.00%	42.00%
Commercial [Member]
Revenues	$ 29,659	$ 24,140
Revenue, percentage	58.00%	58.00%
Government & Defense [Member]
Revenues	$ 21,087	$ 17,787
Revenue, percentage	42.00%	42.00%
Battery & Energy Products Segment [Member]
Revenues	$ 46,321	$ 34,989
Battery & Energy Products Segment [Member] | UNITED STATES
Revenues	35,182	19,603
Battery & Energy Products Segment [Member] | Non-US [Member]
Revenues	11,139	15,386
Battery & Energy Products Segment [Member] | Commercial [Member]
Revenues	29,659	24,140
Battery & Energy Products Segment [Member] | Government & Defense [Member]
Revenues	16,662	10,849
Communications Systems Segment [Member]
Revenues	4,425	6,938
Communications Systems Segment [Member] | UNITED STATES
Revenues	4,287	4,858
Communications Systems Segment [Member] | Non-US [Member]
Revenues	138	2,080
Communications Systems Segment [Member] | Commercial [Member]
Revenues	$ 4,425	0
Communications Systems Segment [Member] | Government & Defense [Member]
Revenues		$ 6,938