SCHEDULE 13G/A: Investment Funds and Kanen Wealth Management Disclose Significant Stake in Data I/O Corp, Reaching 9.1% Beneficial Ownership

Philotimo Fund, Philotimo Focused Growth & Income Fund, Kanen Wealth Management LLC, and David L. Kanen have collectively disclosed a beneficial ownership of 9.1% in Data I/O Corp's common stock.

Summary

• Philotimo Fund, LP beneficially owns 487,127 shares, representing approximately 5.3% of Data I/O Corp's outstanding common stock.
• Philotimo Focused Growth & Income Fund (PHLOX) beneficially owns 327,401 shares, representing approximately 3.5% of the outstanding shares.
• Kanen Wealth Management LLC (KWM) beneficially owns 819,528 shares, which includes shares held by Philotimo, PHLOX, and 5,000 shares in separately managed accounts, totaling approximately 8.9% of the outstanding shares.
• David L. Kanen beneficially owns 839,421 shares, comprising 19,893 shares directly owned and shares attributed through his role as managing member of KWM, representing approximately 9.1% of the outstanding shares.
• The reporting persons, Philotimo Fund, PHLOX, KWM, and David L. Kanen, form a group that collectively beneficially owns 839,421 shares, or approximately 9.1% of Data I/O Corp's common stock.
• The percentage of class owned is based on 9,239,731 shares outstanding as of April 30, 2025, as reported in Data I/O Corp's Form 10-Q filed on May 13, 2025.
• The securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain information that would inherently convey positive or negative sentiment regarding the company's performance or prospects. It is a neutral regulatory filing.

Future Outlook

NA

Industry Context

This filing is a standard disclosure of significant beneficial ownership by institutional investors and their affiliates, common across all publicly traded industries. It indicates a notable stake taken by the Philotimo funds and Kanen Wealth Management in Data I/O Corp, a company operating in the technology sector, specifically in device programming and security solutions.

Related Party Transactions

• Kanen Wealth Management LLC is the general partner of Philotimo Fund, LP and the investment manager of Philotimo Focused Growth & Income Fund and certain separately managed accounts.
• David L. Kanen serves as the managing member of Kanen Wealth Management LLC, establishing a control relationship over the entities' holdings.

Stakeholder Impact

• Shareholders: The disclosure of a significant ownership stake by a group of investors, particularly one that states its intent is not to change control (other than potential nominations), can provide transparency regarding the company's shareholder base and potentially signal investor confidence or interest.
• Management: Management will be aware of a significant shareholder group holding 9.1% of the outstanding shares, which could influence future engagement or strategic discussions.

Key Dates

Keywords

Data I/O Corp, Beneficial Ownership, Schedule 13G, SEC Filing, Philotimo Fund, Kanen Wealth Management, Common Stock, Investment Management, Shareholder Disclosure