What changed in this filing

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2021-03-16 compared with 2020-03-25 · 39 added, 44 removed, 24 unchanged (78% of the section changed)

13 unchanged sentences

of Credit Risk

instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents

and trade accounts receivable.

The Company’s cash and cash equivalents were deposited primarily with U.S.

banks and brokerage

firms and amounted to $1,247,000 at December 31, 2019.

Approximately 35% of the accounts receivable at December 31, 2019 was due

from two customers, 18% from one and 17% from another, who pay their receivables over usual credit periods.

Credit risk with respect

to the balance of trade receivables is generally diversified due to the number of entities comprising the Company’s customer

The Company does not believe there is significant risk of non-performance by these counterparties.

October 2017, OmniMetrix renewed its Loan and Security Agreement with a lender providing OmniMetrix with access to accounts receivable

formula-based financing of the lesser of 75% of eligible receivables or $1.0 million an increase of $500,000 from the previous

Loan and Security Agreement.

Debt incurred under this financing arrangement bore interest at the greater of prime plus 2% or 6%

In addition, OmniMetrix paid a monthly service charge of 0.9% of the average aggregate principal amount outstanding

for the prior month.

OmniMetrix also agreed to maintain a minimum loan balance of $150,000 in its line-of-credit with the lender

for a minimum of one year beginning November 1, 2017.

This Loan and Security Agreement terminated pursuant to its terms October

The balance outstanding under this agreement was paid as of November 6, 2018.

March 2019, OmniMetrix reinstated its Loan and Security Agreement providing OmniMetrix with access to accounts receivable formula-based

financing of the lesser of 75% of eligible receivables or $1 million.

Debt incurred under this financing arrangement bears interest

at the greater of 6% and prime (4.25% at March 20, 2020) plus 1.5% per year.

In addition, OmniMetrix is to pay a monthly service

charge of 0.75% of the average aggregate principal amount outstanding for the prior month, for a current effective rate of interest

on advances of 15%.

OmniMetrix also agreed to continue to maintain a minimum loan balance of $150,000 in its line-of-credit with

the lender for a minimum of two years beginning March 1, 2019.

From time to time, the balance outstanding may fall below $150,000

based on collections applied against the loan balance and the timing of loan draws.

Company’s financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally

of cash and trade accounts receivable.

The Company’s cash was deposited with a U.S.

bank and amounted to approximately $2,063,000

at December 31, 2020.

Approximately 32% of the accounts receivable at December 31, 2020 was due from two customers, 20% from one

and 12% from another, who pay their receivables over usual credit periods.

Credit risk with respect to the balance of trade receivables

is generally diversified due to the number of entities comprising the Company’s customer base.

The Company does not believe

there is significant risk of non-performance by these counterparties.

March 2019, OmniMetrix reinstated its loan and security agreement which provided OmniMetrix with access to accounts receivable

formula-based financing of the lesser of 75% of eligible receivables or $1 million.

Debt incurred under this financing arrangement

bore interest at the greater of 6% and prime plus 1.5% per year.

In addition, OmniMetrix paid a monthly service charge of 0.75%

of the average aggregate principal amount outstanding for the prior month, for an effective rate of interest on advances of 15%.

OmniMetrix also agreed to maintain a minimum loan balance of $150,000 in its line-of-credit with the lender for a minimum of two

years beginning March 1, 2019.

From time to time, the balance outstanding fell below $150,000 based on collections applied against

the loan balance and the timing of loan draws.

We elected not to renew this line of credit and allowed it to expire in accordance

with its terms on February 28, 2021.

OmniMetrix no longer has interest rate risk related to debt.

Pandemic Risk to Supply Chain

3 unchanged sentences

condition, results of operations, business, or prospects.

of the electronic devices and hardware we purchase, like antennas, radios, and GPS modules are very specific to our application;

Some of the electronic devices and hardware we purchase, like antennas,

radios, and GPS modules are very specific to our application;

there are not likely to be practical alternatives.

In some cases, our circuit boards were designed around specific electronic

hardware that met our specifications.

We are working closely with our contract manufacturers and

suppliers in order to mitigate as much as possible the risks to our supply chain for these critical devices and hardware, including

identifying any lead-time issues and any potential alternate sources.

We are also examining all currently open purchase orders

in an effort to identify whether we need to issue additional orders to secure product that is critical, already has questionable

lead times and/or is unique to our requirements.

Alternate sources may not be available or may result

in delays in shipments to us from our supply chain and subsequently to our customers, each of which would affect our results of

In some cases,

our circuit boards were designed around specific electronic hardware that met our specifications.

We continue to work closely

with our contract manufacturers and suppliers in order to mitigate as much as possible the risks to our supply chain for these

critical devices and hardware, including identifying any lead-time issues and any potential alternate sources.

We also continue

to examine all currently open purchase orders in an effort to identify whether we need to issue additional orders to secure product

that is critical, already has questionable lead times and/or is unique to our requirements.

Alternate sources may not be available

or may result in delays in shipments to us from our supply chain and subsequently to our customers, each of which would affect

our results of operations.

Further, if our customers’

businesses are similarly affected as a result of the pandemic, they might delay or

reduce purchases from us, which could adversely affect our results of operations.

businesses are similarly affected as a result of the pandemic, they

might delay or reduce purchases from us, which could adversely affect our results of operations.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk