13D Filing: Philotimo Fund, LP and Data I/O Corp (DAIO)

The following constitutes
Amendment No. 3 to the Schedule 13D filed by the undersigned (“Amendment No. 3”). This Amendment No. 3 amends the Schedule
13D as specifically set forth herein.

Item 3.

Source and Amount of Funds or Other Consideration.

Item 3 is hereby amended
and restated to read as follows:

The Shares purchased
by Kanen Wealth Management, LLC and Mr. Kanen were purchased with working capital (which may, at any given time, include margin
loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted, as set
forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 1,608,282 Shares beneficially
owned by Kanen Wealth Management, LLC is approximately $4,499,865.56, including brokerage
commissions. The aggregate purchase price of the 314,612 Shares beneficially owned by Mr. Kanen is approximately $703,157.70,
including brokerage commissions.

Item 5.

Interest in Securities of the Issuer.

Item 5 is hereby amended and restated to read as follows:

The aggregate percentage
of Shares reported owned by each person named herein is based upon 8,172,491 Shares outstanding, as of July 27, 2017, which is
the total number of Shares outstanding as reported in the Issuer’s Annual Report on Form 10-Q filed with the Securities and
Exchange Commission on August 11, 2017.

A.

Kanen Wealth Management, LLC

(a)

As of the close of business on September 29, 2017, Kanen Wealth Management, LLC beneficially owned 1,608,282 Shares.

Percentage: 19.67%

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 1,608,282 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 1,608,282

(c)

The transactions in the Shares by Kanen Wealth Management, LLC during the past sixty days are set forth in Schedule A and are incorporated herein by reference.

B.

David Kanen

(a)

As of the close of business on September 29, 2017, Mr. Kanen directly beneficially owned 314,612 Shares. Mr. Kanen, as the managing member of Kanen Wealth Management, LLC, may be deemed the beneficial owner of the 1,608,282 Shares owned by Kanen Wealth Management, LLC.

Percentage: 23.53%