−Removed: Risks Related to Our Financial Performance
−Removed: We have not been historically profitable, which may recur in the future.
−Removed: Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter.
−Removed: We were profitable in fiscal 2024, however, we have recorded net losses for the prior three fiscal years.
−Removed: We may not be profitable in fiscal 2025 or future years.
−Removed: While we achieved profitable results in fiscal 2024, we cannot be certain that we will sustain profitability in future years.
−Removed: There remains uncertainty in our business, which makes it difficult to evaluate our business and future prospects.
−Removed: In addition, our operating results historically have been difficult to predict and have at times fluctuated from quarter to quarter due to a variety of factors, many of which are outside of our control.
−Removed: As a result of all of these factors, comparing our operating results on a period-to-period basis may not be meaningful, and you should not rely on our past results as an indication of our future performance.
−Removed: In addition, we have in the past provided, and may continue to, provide public guidance on our expected operating and financial results for future periods.
−Removed: Such guidance is comprised of forward-looking statements subject to the risks and uncertainties described in this Annual Report on Form 10-K and in our other public filings and statements.
−Removed: Our actual results may not always be in line with or exceed the guidance we have provided.
−Removed: If our revenue or operating results fall below the expectations of investors or any securities analysts that follow our company in any period or we do not meet our guidance, the trading price of our common stock would likely decline.
−Removed: Our operating expenses do not always vary directly with revenue and may be difficult to adjust in the short term.
−Removed: As a result, if revenue for a particular quarter is below our expectations, we may not be able to proportionately reduce operating expenses for that quarter, and therefore such a revenue shortfall would have a disproportionate effect on our operating results for that quarter.
−Removed: While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us.
−Removed: At March 31, 2025, we had approximately $85.4 million of cash, cash equivalents and restricted cash, and during the fiscal year ended March 31, 2025, $28.3 m illion in cash was provided by our operating activities.
−Removed: In the current period, we experienced net income and positive operating cash flows.
−Removed: In prior years, we have experienced net losses and negative operating cash flows.
−Removed: We plan to continue to closely monitor our expenses and, if required, will further reduce operating costs and capital spending to enhance liquidity.
−Removed: Our liquidity is highly dependent on our ability to profitably grow our revenues, control our operating costs, and secure additional financing, if required.
−Removed: We may require additional capital to conduct our business and adequately respond to future business challenges or opportunities, including, but not limited to, the need to develop new products or enhance existing products, maintain or expand research and development projects, collateralize performance bonds or letters of credit, acquire new businesses or assets, and the need to build inventory or to invest other cash to support business growth.
−Removed: In order to raise additional capital, we may offer shares of our common stock or other securities convertible into or exchangeable for our common stock.
−Removed: To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of each of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders.
−Removed: In the event that additional liquidity is required, there can be no assurance that such financing would be available or, if available, that such financing could be obtained upon terms acceptable to us, which would have a material adverse effect on our business, financial condition and prospects.
−Removed: In addition, the Company maintains the majority of its cash and cash equivalents in accounts with major U.S.
−Removed: and multi-national financial institutions, and our deposits at certain institutions exceed insured limits.
−Removed: Market conditions can impact the viability of these institutions.
−Removed: In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.
−Removed: Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business.
−Removed: In recent years, there has been significant litigation involving patents and other intellectual property rights in many technology-related industries.
−Removed: There may be patents or patent applications in the United States or other countries that are pertinent to our products or business of which we are not aware.
−Removed: The technology that we incorporate into and use to develop and manufacture our current and future products, including the technologies we license, may be subject to claims that they infringe the patents or proprietary rights of others.
−Removed: The success of our business will also depend on our ability to develop new technologies without infringing or misappropriating the proprietary rights of others.
−Removed: Third parties may allege that we infringe patents, trademarks or copyrights, or that we misappropriated trade secrets.
−Removed: These allegations could result in significant costs and diversion of the attention of management.
−Removed: If a successful claim were brought against us and we are found to infringe a third party’s intellectual property rights, we could be required to pay substantial damages, including treble damages if it is determined that we have willfully infringed such rights, or be enjoined from using the technology deemed to be infringing, or using, making or selling products deemed to be infringing.
−Removed: If we have supplied infringing products or technology to third parties, we may be obligated to indemnify these third parties for damages they may be required to pay to the patent holder and for any losses they may sustain as a result of the infringement.
−Removed: In addition, we may need to attempt to license the intellectual property right from such third party or spend time and money to design around or avoid the intellectual property.
−Removed: Any such license may not be available on reasonable terms, or at all.
−Removed: An adverse determination may subject us to significant liabilities and/or disrupt our business.
−Removed: Changes in exchange rates could adversely affect our results of operations.
−Removed: Currency exchange rate fluctuations could have an adverse effect on our revenues and results of operations, and we could experience losses with respect to hedging activities.
−Removed: In fiscal 2024, 31% of our revenues were recognized from sales outside of the United States.
−Removed: In addition, approximately 16% of our revenues in fiscal 2024 were derived under sales contracts where prices were denominated in the Euro.
−Removed: Unfavorable currency fluctuations could require us to increase prices to foreign customers, which could result in a lesser value of orders, and therefore lower revenues, from such customers.
−Removed: Alternatively, if we do not adjust the prices for our products in response to unfavorable currency fluctuations, our results of operations could be adversely affected.
−Removed: In addition, most sales made by our foreign subsidiaries are denominated in the currency of the country in which these products are sold, and the currency they receive in payment for such sales could be less valuable at the time of receipt as a result of exchange rate fluctuations.
−Removed: However, we cannot be certain that our efforts will be adequate to protect us against significant currency fluctuations or that such efforts will not expose us to additional exchange rate risks.
−Removed: If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data .
−Removed: Maintaining effective internal control over financial reporting is necessary for us to produce reliable financial statements.
−Removed: If material weaknesses or significant deficiencies in our internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to restate our financial results.
−Removed: If we are unable to maintain effective internal controls, we may not have adequate, accurate or timely financial information, and we may be unable to meet our reporting obligations or comply with the requirements of the SEC or the Sarbanes-Oxley Act of 2002, which could result in the imposition of sanctions, including the inability of registered broker dealers to make a market in our common stock, or an investigation by regulatory authorities.
−Removed: Any such action or other negative results caused by our inability to meet our reporting requirements or to comply with legal and regulatory requirements or by our disclosure of an accounting, reporting or control issue could adversely affect the trading price of our securities and our business.
−Removed: Significant deficiencies or material weaknesses in our internal control over financial reporting could also reduce our ability to obtain financing or could increase the cost of any financing we obtain.
−Removed: We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds.
−Removed: While we have been required to provide performance bonds in the form of surety bonds or other forms of security and letters of credit in the past, the size of the bonds and letters of credit was not material.
−Removed: In recent years, we have entered into contracts that require us to post bonds and to deliver letters of credit of significant magnitude.
−Removed: Similarly, in many other instances, we have been required to deposit cash in escrow accounts as collateral for these instruments, which is unavailable to us for general use for significant periods of time.
−Removed: Should we be unable to obtain performance bonds or letters of credit in the future, significant future potential revenue could become unavailable to us.
−Removed: Further, should our working capital situation deteriorate, we would not be able to access the restricted cash to meet working capital requirements.
Risks Related to Our Operations
+Added: If we fail to implement our business strategy successfully, our financial performance could be harmed.
+Added: Our future financial performance and success are dependent in large part upon our ability to implement our business strategy successfully.
+Added: Our business strategy envisions several initiatives, including driving revenue growth and enhancing operating results by increasing customer adoption of our products by targeting high-growth segments with commercial and system-level products as well as identifying and completing opportunistic acquisitions.
+Added: We may not be able to implement our business strategy successfully or achieve the anticipated benefits of our business plan.
+Added: If we are unable to do so, our long-term growth and profitability may be adversely affected.
+Added: Even if we are able to implement some or all of the initiatives of our business plan successfully, our operating results may not improve to the extent we anticipate, or at all.
+Added: In addition, to the extent we have misjudged the nature and extent of industry trends or our competition, we may have difficulty in achieving our strategic objectives.
+Added: Any failure to implement our business strategy successfully may adversely affect our business, financial condition and results of operations.
+Added: In addition, we may decide to alter or discontinue certain aspects of our business strategy at any time.
+Added: Our ability to implement our business strategy could also be affected by a number of factors beyond our control, such as increased competition, legal developments, government regulation, general economic conditions, including as a result of the ongoing wars between Russia and Ukraine and in the Middle East and trade conflicts, or increased operating costs or expenses.
We may not realize all of the sales expected from our backlog of orders and contracts.
8 unchanged sentences
In addition, current and future suppliers may be less likely to grant us credit, resulting in a negative impact on our working capital and cash flows.
−Removed: If we fail to implement our business strategy successfully, our financial performance could be harmed.
−Removed: Our future financial performance and success are dependent in large part upon our ability to implement our business strategy successfully.
−Removed: Our business strategy envisions several initiatives, including driving revenue growth and enhancing operating results by increasing customer adoption of our products by targeting high-growth segments with commercial and system-level products.
−Removed: We may not be able to implement our business strategy successfully or achieve the anticipated benefits of our business plan.
−Removed: If we are unable to do so, our long-term growth and profitability may be adversely affected.
−Removed: Even if we are able to implement some or all of the initiatives of our business plan successfully, our operating results may not improve to the extent we anticipate, or at all.
−Removed: In addition, to the extent we have misjudged the nature and extent of industry trends or our competition, we may have difficulty in achieving our strategic objectives.
−Removed: Any failure to implement our business strategy successfully may adversely affect our business, financial condition and results of operations.
−Removed: In addition, we may decide to alter or discontinue certain aspects of our business strategy at any time.
−Removed: Our ability to implement our business strategy could also be affected by a number of factors beyond our control, such as increased competition, legal developments, government regulation, general economic conditions, including as a result of the ongoing wars between Russia and Ukraine and Israel and Hamas and trade conflicts, or increased operating costs or expenses.
We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business.
6 unchanged sentences
complying with such expectations may cause us to incur additional costs, subject us to increased scrutiny, reduce the number of acceptable suppliers, or otherwise impact our business or operations.
−Removed: In addition, any event that negatively impacts our supply, including, among others, wars, terrorist activities, cyberattacks, natural disasters and outbreaks of infectious disease, could delay or suspend shipments of products or the release of new products or could result in the delivery of inferior products.
+Added: In addition, any event that negatively impacts our supply, including, among others, wars, terrorist activities, cyberattacks, natural disasters, trade policy and outbreaks of infectious disease, could delay or suspend shipments of products or the release of new products or could result in the delivery of inferior products.
Our revenues from the affected products would decline or we could incur losses until such time as we are able to restore our production processes or put in place alternative contract manufacturers or suppliers.
Even though we carry business interruption insurance policies, we may suffer losses as a result of business interruptions that exceed the coverage available under our insurance policies.
+Added: We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits.
+Added: Our recent acquisitions have required substantial integration and management efforts.
+Added: As a result of any additional acquisition we pursue, management’s attention and resources may be further diverted from our other businesses.
+Added: An acquisition may also involve the payment of a significant purchase price, which could reduce our cash position or dilute our stockholders and require significant transaction-related expenses.
+Added: Achieving the benefits of any acquisition involves additional risks, including:
+Added: difficulty integrating acquired operations, technologies and personnel;
+Added: inability to retain management and other key personnel of the acquired business;
+Added: changes in management or other key personnel that may harm relationships with the acquired business’s customers and employees;
+Added: unforeseen liabilities of the acquired business;
+Added: diversion of management’s and employees’ attention from other business matters as a result of the integration process;
+Added: mistaken assumptions about volumes, revenues and costs associated with the acquired business, including synergies;
+Added: limitations on indemnification from the seller;
+Added: mistaken assumptions about the overall costs of equity or debt used to finance the acquisition;
+Added: unforeseen difficulties operating in new product areas, with new customers, or in new geographic areas, including in emerging markets.
+Added: We cannot provide any assurance that we will realize any of the anticipated benefits of any acquisition, including our acquisition of Comtrafo Indústria de Transformadores Elétricos S.A.
+Added: (“Comtrafo”), completed in December 2025, and Megatran Industries, Inc.
+Added: including its subsidiaries, completed in August 2024, and if we fail to realize these anticipated benefits, our operating performance could suffer.
+Added: Our business and operations may be materially adversely impacted in the event of a failure or security breach of our or any critical third parties' IT Systems or Confidential Information.
+Added: We rely upon the capacity, reliability, and security of information technology hardware and software infrastructure and networks (collectively, "IT Systems"), and our ability to expand and update such IT Systems in response to our changing needs.
+Added: We manage certain IT Systems but also rely on IT Systems and various products and services provided by critical third-party vendors and others in the supply chain.
+Added: We also collect, store, and otherwise process sensitive, personal and confidential information ("Confidential Information") in the ordinary course of our business.
+Added: Any failure to manage, expand, or update our IT Systems or Confidential Information or any disruption to or failure in the operation of such IT Systems or Confidential Information could materially harm our business.
+Added: In addition, the costs associated with updating and securing our IT Systems or Confidential Information are likely to increase as such security measures become more complex, which may harm our operating results and financial condition.
+Added: We face numerous and evolving cybersecurity risks that threaten the confidentiality, integrity and availability of our IT Systems and Confidential Information.
+Added: Our IT Systems, and those of the third-party vendors we rely on, as well as our Confidential Information, are vulnerable to disruption, compromise and damage from computer viruses (including malware and ransomware), bugs, misconfigurations or vulnerabilities, social engineering/phishing, natural disasters, human or technical error, intentional conduct, cyberattacks, unauthorized access and other similar disruptions.
+Added: Because we rely on certain third party vendors that support our operations, successful cyberattacks that disrupt or result in unauthorized access to third-party IT Systems can materially impact our operations and financial results.
+Added: There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, or the processes of third-party vendors we rely on, will be fully implemented, complied with or effective in protecting our IT Systems and Confidential Information.
+Added: Our business is also subject to break-ins, sabotage, and intentional acts of vandalism by third parties as well as employees.
+Added: We cannot guarantee the security or protection of any IT Systems or Confidential Information.
+Added: Cyberattacks are expected to accelerate on a global basis in frequency and magnitude, particularly as threat actors, such as ransomware groups, are becoming increasingly sophisticated in using techniques and tools, including artificial intelligence, that are designed to circumvent controls, evade detection and remove or obfuscate forensic evidence.
+Added: As a result, we and our third-party providers may be unable to timely or effectively anticipate, detect, investigate, remediate or recover from cyberattacks in the future or avoid material impact to our IT Systems, Confidential Information, and our business.
+Added: We also face increased cyber risk due to the number of our and others' employees who are (and may continue to be) working remotely due to the challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home networks.
+Added: We and certain of our third-party providers regularly experience cyberattacks and other incidents, and we expect such attacks and incidents to continue in varying degrees.
+Added: While to date no incidents have had a material impact on our operations or financial results, we cannot guarantee that material incidents will not occur in the future.
+Added: Any adverse impact to the availability, integrity or confidentiality of our IT Systems or those of third parties upon which we rely could result in disruptions to our operations, and/or loss, damage or compromise Confidential Information.
+Added: Any or all of the foregoing could harm our reputation, result in substantial remediation, incident response, system restoration and compliance costs, lead to lost revenues and business opportunities, lead to regulatory investigations and enforcement and/or litigation (such as class actions), and related fines or penalties, increase our insurance premiums and have other materially adverse effects on our business and results.
+Added: Our insurance policies may not cover, or may be insufficient to cover, any or all costs, losses and liability associated with any cyberattacks, security incidents or other disruptions and we cannot guarantee that applicable insurance will be available to us in the future on economically reasonable terms or at all.
+Added: Any or all of the foregoing could materially adversely affect our business, operating results, and financial condition.
Our contracts with the U.S.
22 unchanged sentences
government is unable to make timely payments.
−Removed: Moreover, the U.S.
−Removed: executive branch has recently created the Department of Government Efficiency, which is identifying ways to cut federal spending.
−Removed: There can be no assurance that we will not be adversely affected by such cost-cutting measures.
+Added: There can be no assurance that we will not be adversely affected by government cost-cutting measures.
We cannot be certain that our U.S.
28 unchanged sentences
government priorities, policies and requirements could have a material adverse effect on our results of operations, financial condition and liquidity.
−Removed: Our business and operations may be materially adversely impacted in the event of a failure or security breach of our or any critical third parties' IT Systems or Confidential Information.
−Removed: We rely upon the capacity, reliability, and security of information technology hardware and software infrastructure and networks (collectively, "IT Systems"), and our ability to expand and update such IT Systems in response to our changing needs.
−Removed: We manage certain IT Systems but also rely on IT Systems and various products and services provided by critical third-party vendors and others in the supply chain.
−Removed: We also collect and store sensitive, personal and confidential information ("Confidential Information") in the ordinary course of our business.
−Removed: Any failure to manage, expand, or update our IT Systems or Confidential Information or any disruption to or failure in the operation of such IT Systems or Confidential Information could harm our business.
−Removed: In addition, the costs associated with updating and securing our IT Systems or Confidential Information are likely to increase as such security measures become more complex, which may harm our operating results and financial condition.
−Removed: We face numerous and evolving cybersecurity risks that threaten the confidentiality, integrity and availability of our IT Systems and Confidential Information.
−Removed: Our IT Systems, and those of the third-party vendors we rely on, as well as our Confidential Information, are vulnerable to disruption, compromise and damage from computer viruses (including malware and ransomware), bugs, misconfigurations or vulnerabilities, social engineering/phishing, natural disasters, human or technical error, intentional conduct, cyberattacks, unauthorized access and other similar disruptions.
−Removed: Because we rely on certain third party vendors that support our operations, successful cyberattacks that disrupt or result in unauthorized access to third party IT Systems can materially impact our operations and financial results.
−Removed: There can also be no assurance that our cybersecurity risk management program and processes, including our policies, controls or procedures, or the processes of third-party vendors we rely on, will be fully implemented, complied with or effective in protecting our IT Systems and Confidential Information.
−Removed: Our business is also subject to break-ins, sabotage, and intentional acts of vandalism by third parties as well as employees.
−Removed: We cannot guarantee the security or protection of any IT Systems or Confidential Information.
−Removed: Cyberattacks are expected to accelerate on a global basis in frequency and magnitude, particularly as threat actors, such as ransomware groups, are becoming increasingly sophisticated in using techniques and tools including artificial intelligence that are designed to circumvent controls, evade detection and remove or obfuscate forensic evidence.
−Removed: As a result, we and our third-party providers may be unable to timely or effectively anticipate, detect, investigate, remediate or recover from cyberattacks in the future or avoid material impact to our IT Systems, Confidential Information, and our business.
−Removed: We also face increased cyber risk due to the number of our and others' employees who are (and may continue to be) working remotely due to the challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home networks.
−Removed: We and certain of our third-party providers regularly experience cyberattacks and other incidents, and we expect such attacks and incidents to continue in varying degrees.
−Removed: While to date no incidents have had a material impact on our operations or financial results, we cannot guarantee that material incidents will not occur in the future.
−Removed: Any adverse impact to the availability, integrity or confidentiality of our IT Systems or those of third parties upon which we rely could result in disruptions to our operations, loss, damage or compromise to our data, or inappropriate disclosure of Confidential Information.
−Removed: Any or all of the foregoing could harm our reputation, result in substantial remediation, incident response, system restoration and compliance costs, lead to lost revenues and business opportunities, lead to regulatory investigations and enforcement and/or litigation (such as class actions), and related fines or penalties, increase our insurance premiums and have other materially adverse effects on our business and results.
−Removed: Our insurance policies may not cover, or may be insufficient to cover, any or all costs, losses and liability associated with any cyberattacks, security incidents or other disruptions and we cannot guarantee that applicable insurance will be available to us in the future on economically reasonable terms or at all.
−Removed: Any or all of the foregoing could materially adversely affect our business, operating results, and financial condition.
−Removed: Failure to comply with evolving data privacy and data protection laws and regulations or to otherwise protect personal data, may adversely impact our business and financial results.
+Added: Our performance on contracts with the U.S.
+Added: Department of Defense may result in restrictions to our ability to repurchase our common stock or U.S.
+Added: government denial of Foreign Military Sales or ceasing of assistance for international Direct Commercial Sales.
+Added: On January 7, 2026, the President of the United States signed an Executive Order titled "Prioritizing the Warfighter in Defense Contracting," (the "Executive Order") which directs the Secretary of Defense to identify contractors for critical weapons, supplies, and equipment that have engaged in stock repurchases or dividend distributions and are underperforming on their contracts, not investing capital into necessary production capacity, not prioritizing contract performance, or whose production speed is insufficient (collectively, "Underperformance").
+Added: Contractors that fail to remediate their Underperformance may be subject to enforcement actions under the Defense Production Act or contract law.
+Added: Future defense contract awards will contain provisions prohibiting stock repurchases or dividend distributions and capping executive base salaries during periods of Underperformance as determined by the Secretary of Defense, and will require that executive incentive compensation be linked to on-time delivery of work under defense contracts, increased production, and facilitation of investments and operating improvements.
+Added: The Secretary of Defense may also deny new advocacy cases for Foreign Military Sales or cease ongoing advocacy efforts for international Direct Commercial Sales for Underperforming contractors.
+Added: Our failure to sufficiently perform and prioritize our U.S.
+Added: defense contracts, invest capital into production, capacity, or perform our contracts at the appropriate speed could result in restrictions to our ability to repurchase our common stock, issue dividends, or compete for International Foreign Military Sales or Direct Commercial Sales Contracts.
+Added: In addition, the U.S.
+Added: government could terminate our existing contracts or withhold payment for completed work due to Underperformance.
+Added: government could also cap the base salaries for our executives based upon the Secretary of Defense's finding of Underperformance.
+Added: Given the recency of the Executive Order, it is unclear how the U.S.
+Added: government will implement its enforcement provisions or what metrics or conditions the Secretary of Defense will use to identify Underperforming defense contractors.
+Added: If any of the foregoing were to occur, it could materially harm our business, result in reduced revenue and profitability, damage our reputation and customer relationships, or affect our stock price and increase its volatility.
+Added: Failure to comply with evolving data privacy and data protection laws, regulations, and other obligations, or to otherwise protect personal data, may adversely impact our business and financial results.
In connection with running our business, we receive, store, use and otherwise process information that relates to individuals and/or constitutes “personal data,” “personal information,” “personally identifiable information,” or similar terms under applicable data privacy laws (collectively, “Personal Data”).We are therefore subject to many rapidly evolving privacy and data protection laws and regulations in the United States, Europe and around the world.
1 unchanged sentence
The scope of these laws are changing, subject to differing interpretations, and may be inconsistent among jurisdictions.
−Removed: For example, the European and United Kingdom General Data Protection Regulation, the California Consumer Privacy Act, and the data protection and security laws of other jurisdictions impose onerous obligations — including around transparency, data subject rights, contractual requirements, data breach reporting, and international data transfers — with respect to our processing Personal Data.
+Added: For example, the European and United Kingdom General Data Protection Regulation, the California Consumer Privacy Act, and the data protection and security laws of other jurisdictions impose onerous obligations — including around transparency, data subject rights, contractual requirements, data breach reporting, and international data transfers — with respect to our processing of Personal Data.
We are also subject to certain contractual obligations related to privacy, data protection and data security that may also impose onerous obligations.
9 unchanged sentences
Losing the services of any of our executive officers or key employees could materially and adversely impact our business.
−Removed: We may acquire additional complementary businesses or technologies, which may require us to incur substantial costs for which we may never realize the anticipated benefits.
−Removed: Our recent acquisitions have required substantial integration and management efforts.
−Removed: As a result of any additional acquisition we pursue, management’s attention and resources may be further diverted from our other businesses.
−Removed: An acquisition may also involve the payment of a significant purchase price, which could reduce our cash position or dilute our stockholders and require significant transaction-related expenses.
−Removed: Achieving the benefits of any acquisition involves additional risks, including:
−Removed: difficulty integrating acquired operations, technologies and personnel;
−Removed: inability to retain management and other key personnel of the acquired business;
−Removed: changes in management or other key personnel that may harm relationships with the acquired business’s customers and employees;
−Removed: unforeseen liabilities of the acquired business;
−Removed: diversion of management’s and employees’ attention from other business matters as a result of the integration process;
−Removed: mistaken assumptions about volumes, revenues and costs associated with the acquired business, including synergies;
−Removed: limitations on indemnification from the seller;
−Removed: mistaken assumptions about the overall costs of equity or debt used to finance the acquisition;
−Removed: unforeseen difficulties operating in new product areas, with new customers, or in new geographic areas.
−Removed: We cannot provide any assurance that we will realize any of the anticipated benefits of any acquisition, including our acquisition of Megatran Industries, Inc.
−Removed: including its subsidiaries, completed in August 2024, and if we fail to realize these anticipated benefits, our operating performance could suffer.
A significant portion of our Wind segment revenues are derived from a single customer.
13 unchanged sentences
If these business collaborators fail to deliver their products or perform their obligations on a timely basis or fail to generate sufficient demand for the systems they manufacture, our revenue from the project may be delayed or decreased, and we may not be successful in selling our products.
−Removed: Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share.
+Added: Problems with product quality or product performance may cause us to incur warranty expenses or product liability charges and may damage our market reputation and prevent us from achieving increased sales and market share.
Consistent with customary practice in our industry, we provide various warranties or guarantees relating to our products, such as that our products and/or services will be free from defects in material and workmanship under normal use and service.
2 unchanged sentences
The possibility of future product failures or issues related to services we provided could cause us to incur substantial expenses to repair or replace defective products or re-perform such services potentially in excess of our reserves.
−Removed: Furthermore, widespread product failures may damage our market reputation and reduce our market share and cause sales to decline.
+Added: Furthermore, widespread product failures or other shortcomings of our products may damage our market reputation, reduce our market share, create product liability obligations or cause sales to decline.
Many of our customers outside of the United States may be either directly or indirectly related to governmental entities, and we could be adversely affected by violations of the United States Foreign Corrupt Practices Act and similar worldwide anti-bribery laws outside the United States.
7 unchanged sentences
Violations of these laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on our business, results of operations and financial condition.
−Removed: We have had limited success marketing and selling our superconductor products and system-level solutions, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow .
−Removed: To date, we have had limited success marketing and selling our superconductor products and system-level solutions.
+Added: We have had limited success marketing and selling our superconductor products and system-level solutions, including our REG system, and our failure to more broadly market and sell our products and solutions could lower our revenue and cash flow .
+Added: To date, we have had limited success marketing and selling our superconductor products and system-level solutions and there has been no widespread commercial use of the REG system.
Once our products and solutions are ready for widespread commercial use, we will have to develop a marketing and sales organization that will effectively demonstrate the advantages of our products over more traditional products, competing superconductor products and other technologies.
2 unchanged sentences
By entering into marketing and sales alliances, the financial benefits to us of commercializing our products will be dependent on the efforts of others.
+Added: Even if a project is funded, completion of projects can be delayed as a result of other factors.
+Added: It is possible that the market demands we currently anticipate for our products and solutions will not develop and that they will never achieve widespread commercial acceptance.
+Added: In such event, we would not be able to implement our strategy, and our results of operations could be adversely affected.
+Added: Even if a commercial market were to develop, commercial terms requested by third parties, such as relating to bonding requirements, limitations of liability, warranty periods, or other contractual provisions, may not be acceptable to us, which could impede our ability to enter into contractual arrangements for the sale of our products and systems.
We or third parties on whom we depend may be adversely affected by natural disasters, including events resulting from climate change, and our business continuity and disaster recovery plans may not adequately protect us or our value chain from such events .
5 unchanged sentences
In addition, changes in climate change-related laws or regulations, including laws relating to greenhouse gas emissions, could lead to new or additional compliance requirements and expenditures, and subject us to additional operational costs and restrictions, including increased energy and raw material costs and other compliance requirements which could negatively impact our reputation, business, capital expenditures, results of operations and financial position.
−Removed: For more information, please refer to our risk factor titled “The increasing focus on environmental sustainability and social initiatives could increase our costs, and inaction could harm our reputation and adversely impact our financial results."
+Added: For more information, please refer to our risk factor titled “Evolving and varied expectations on environmental sustainability and social initiatives could adversely impact our financial results."
Uncertainty surrounding our prospects and financial condition may have an adverse effect on our customer and supplier relationships.
4 unchanged sentences
adversely impact our business, financial condition and results of operations
−Removed: The occurrence or reoccurrence of regional epidemics, a global pandemic or other public health crises, such as COVID-19, may adversely affect our operations, financial condition, and results of operations.
+Added: The occurrence or reoccurrence of regional epidemics, a global pandemic or other public health crises may adversely affect our operations, financial condition, and results of operations.
The extent to which a public health crisis impacts our business going forward will depend on factors such as the duration and scope;
2 unchanged sentences
Measures to contain a public health crisis may intensify other risks described in these Risk Factors.
+Added: Risks Related to Our Financial Performance
+Added: Changes in valuation allowance of deferred tax assets may affect our future operating results.
+Added: We are required to periodically review our deferred tax assets and determine whether, based on available evidence, a valuation allowance is necessary.
+Added: In fiscal 2025, based on our evaluation of all available positive and negative evidence, we concluded that it was more-likely-than not that a significant portion of our federal and state deferred tax assets would be realized.
+Added: Accordingly, we released the valuation allowance against these deferred tax assets.
+Added: The assessment of the realizability of future tax assets involved considerable management judgement and required evaluation of all available evidence, including cumulative recent financial performance and forecasts of future taxable income.
+Added: As a result of this assessment, we recognized a deferred income tax benefit of $118.4 million in fiscal 2025.
+Added: Our judgement regarding the likelihood of realization of these deferred tax assets could change in future periods, which could result in a material impact to our income tax provision expense and our results of operations in the period in which the valuation allowance is adjusted.
+Added: If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data.
+Added: Maintaining effective internal control over financial reporting is necessary for us to produce reliable financial statements.
+Added: A material weakness is 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 the financial statements will not be prevented or detected on a timely basis.
+Added: During the fourth quarter of fiscal 2025, in connection with the preparation of our financial statements for this Annual Report on Form 10-K, management identified the following material weakness:
+Added: We did not maintain effective internal controls over preparation and review of the initial purchase accounting and the continuing fair value accounting associated with the Comtrafo Acquisition to ensure the accurate and timely reporting of our financial results related to this acquisition.
+Added: Specifically, errors went undetected in amounts initially recorded to the opening balance sheet due to controls not operating at the appropriate level of precision during management's review process which could have led to a reasonable possibility of material misstatement to account balances or disclosures.
+Added: Notwithstanding the material weakness, we believe that our financial statements contained in this Annual Report on Form 10-K fairly present our financial position, results of operations and cash flows for the periods covered by this report in all material respects.
+Added: Our management, with the oversight of our audit committee, has initiated steps and plans to take additional measures to remediate the underlying causes of the material weakness, which we currently believe will be primarily through the development and implementation of new levels of precision of management review controls around business acquisitions.
+Added: If we are unable to maintain effective internal controls, we may not have adequate, accurate or timely financial information, and we may be unable to meet our reporting obligations or comply with the requirements of the SEC or the Sarbanes-Oxley Act of 2002, which could result in the imposition of sanctions, including the inability of registered broker dealers to make a market in our common stock, or an investigation by regulatory authorities.
+Added: Any such action or other negative results caused by our inability to meet our reporting requirements or to comply with legal and regulatory requirements or by our disclosure of an accounting, reporting or control issue could adversely affect the trading price of our securities and our business.
+Added: Significant deficiencies or material weaknesses in our internal control over financial reporting could also reduce our ability to obtain financing or could increase the cost of any financing we obtain.
+Added: We have not been historically profitable, and there can be no assurance that we will sustain our recent profitability.
+Added: Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter.
+Added: While we achieved profitable results in fiscal
+Added: 2024, our ability to sustain profitability depends on numerous factors, many of which are outside of our control.
+Added: If we are unable to maintain profitability, we could be required to take charges, including the potential restoration of some or all of the valuation allowance against our deferred tax assets, which could materially affect our financial condition and results of operations.
+Added: There remains uncertainty in our business, which makes it difficult to evaluate our business and future prospects.
+Added: In addition, our operating results historically have been difficult to predict and have at times fluctuated from quarter to quarter due to a variety of factors, many of which are outside of our control.
+Added: As a result of all of these factors, comparing our operating results on a period-to-period basis may not be meaningful, and you should not rely on our past results as an indication of our future performance.
+Added: In addition, we have in the past provided, and may continue to, provide public guidance on our expected operating and financial results for future periods.
+Added: Such guidance is comprised of forward-looking statements subject to the risks and uncertainties described in this Annual Report on Form 10-K and in our other public filings and statements.
+Added: Our actual results may not always be in line with or exceed the guidance we have provided.
+Added: If our revenue or operating results fall below the expectations of investors or any securities analysts that follow our company in any period or we do not meet our guidance, the trading price of our common stock would likely decline.
+Added: Our operating expenses do not always vary directly with revenue and may be difficult to adjust in the short term.
+Added: As a result, if revenue for a particular quarter is below our expectations, we may not be able to proportionately reduce operating expenses for that quarter, and therefore such a revenue shortfall would have a disproportionate effect on our operating results for that quarter.
+Added: While we generated positive operating cash flow in fiscal 2025 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us.
+Added: March 31, 2026, we had approximately $
+Added: 147.6 million of cash, cash equivalents and restricted cash, and during the fiscal year ended
+Added: March 31, 2026, $
+Added: 23.1 million in cash was provided by our operating activities.
+Added: In the current period, we experienced net income and positive operating cash flows.
+Added: In prior years, we have experienced net losses and negative operating cash flows.
+Added: Our liquidity is highly dependent on our ability to profitably grow our revenues, control our operating costs, and secure additional financing, if required.
+Added: We may require additional capital to conduct our business and adequately respond to future business challenges or opportunities, including, but not limited to, the need to develop new products or enhance existing products, maintain or expand research and development projects, collateralize performance bonds or letters of credit, acquire new businesses or assets, and the need to build inventory or to invest other cash to support business growth.
+Added: In order to raise additional capital, we may offer shares of our common stock or other securities convertible into or exchangeable for our common stock.
+Added: To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of each of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders.
+Added: In the event that additional liquidity is required, there can be no assurance that such financing would be available or, if available, that such financing could be obtained upon terms acceptable to us, which would have a material adverse effect on our business, financial condition and prospects.
+Added: In addition, the Company maintains the majority of its cash and cash equivalents in accounts with major U.S.
+Added: and multi-national financial institutions, and our deposits at certain institutions exceed insured limits.
+Added: Market conditions can impact the viability of these institutions.
+Added: In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.
+Added: Changes in exchange rates could adversely affect our results of operations.
+Added: Currency exchange rate fluctuations could have an adverse effect on our revenues and results of operations, and we could experience losses with respect to hedging activities.
+Added: 52% of our revenues were recognized from sales outside of the United States.
+Added: In addition, approximately
+Added: 7% of our revenues in fiscal
+Added: 2025 were derived under sales contracts where prices were denominated in the Euro and Real, respectively.
+Added: Unfavorable currency fluctuations could require us to increase prices to foreign customers, which could result in a lesser value of orders, and therefore lower revenues, from such customers.
+Added: Alternatively, if we do not adjust the prices for our products in response to unfavorable currency fluctuations, our results of operations could be adversely affected.
+Added: In addition, most sales made by our foreign subsidiaries are denominated in the currency of the country in which these products are sold, and the currency they receive in payment for such sales could be less valuable at the time of receipt as a result of exchange rate fluctuations.
+Added: However, we cannot be certain that our efforts will be adequate to protect us against significant currency fluctuations or that such efforts will not expose us to additional exchange rate risks.
+Added: We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds.
+Added: While we have been required to provide performance bonds in the form of surety bonds or other forms of security and letters of credit in the past, the size of the bonds and letters of credit was not material.
+Added: In recent years, we have entered into contracts that require us to post bonds and deliver letters of credit of significant magnitude.
+Added: Similarly, in many other instances, we have been required to deposit cash in escrow accounts as collateral for these instruments, which is unavailable to us for general use for significant periods of time.
+Added: Should we be unable to obtain performance bonds or letters in the future, significant future potential revenue could become unavailable to us.
+Added: Further, should our working capital situation deteriorate, we would not be able to access the restricted cash to meet working capital requirements.
Risks Related to Our Markets
6 unchanged sentences
Similarly, inflationary pressures have increased and may increase our costs or force us to increase prices for our products.
−Removed: In particular, in fiscal 2023, we experienced substantial inflationary pressure in our supply chain.
−Removed: Sustained higher prices continued throughout fiscal 2024, although we believe inflationary pressures were more stable.
−Removed: These events have resulted or could in the future result in higher product costs, reductions in sales of our products, longer sales cycles, slower adoption of new technologies, increased accounts receivable and inventory write-offs and increased price competition.
+Added: These economic events have resulted or could in the future result in higher product costs, reductions in sales of our products, longer sales cycles, slower adoption of new technologies, increased accounts receivable and inventory write-offs and increased price competition.
If recessionary conditions exist and continue for an extended period of time, our business and results of operations may be materially adversely affected.
2 unchanged sentences
Any of these events would likely harm our business, results of operations and financial condition.
+Added: The ongoing conflict between the United States, Israel, and Iran has disrupted global energy markets and supply chains and could adversely affect our business, financial condition, and results of operations
+Added: In February 2026, the United States and Israel launched coordinated military strikes against Iran, which retaliated with missile attacks across the region.
+Added: Although we do not have material operations in the Middle East, the ongoing conflict and any further escalation has and could continue to lead to significant disruption of global energy supplies and increases in global energy prices, which could affect demand for our Grid and Wind products and solutions in multiple ways.
+Added: Higher energy prices and energy market volatility may alter utility and industrial customer spending patterns and priorities, potentially accelerating investment in grid infrastructure and resilience in certain markets while constraining capital budgets in others.
+Added: The conflict could also increase the cost or reduce the availability of commodity-based raw materials we depend on, including stainless steel, nickel, and copper, and disrupt global supply chains on which we and our suppliers rely.
+Added: In addition, further escalation could heighten inflationary pressures on our input costs, adversely affect global financial markets, increase currency exchange rate volatility, including with respect to Brazilian Real and the Euro, in which a significant portion of our revenues and costs are denominated, and elevate interest rates, which could increase the cost of future debt financing and affect our ability to execute our acquisition-driven growth strategy on favorable terms.
+Added: The conflict could also affect U.S.
+Added: defense spending priorities and appropriations, which could positively or negatively impact funding for our ship protection systems and other defense-related programs with the U.S.
+Added: Finally, increased geopolitical instability in the Middle East could adversely affect our ability to pursue business opportunities in the region, including in countries where we have existing or prospective customer relationships.
+Added: While the impacts of the conflict between the United States, Israel, and Iran may have an adverse effect on our business, financial condition, and results of operations, we are unable to predict the extent or nature of these impacts at this time.
Our international operations are subject to risks that we do not face in the United States, which could have an adverse effect on our operating results.
2 unchanged sentences
We also manufacture certain of our products and purchase a portion of our raw materials and components from suppliers in other foreign countries.
−Removed: The ongoing wars between Ukraine and Russia and Israel and Hamas have caused increased raw material costs and material shortages and, as a result, adversely impacted certain of our suppliers.
+Added: The ongoing wars between Ukraine and Russia and the Middle East have caused increased raw material costs and material shortages and, as a result, adversely impacted certain of our suppliers.
Our international operations are subject to a variety of risks that we do not face in the United States, including:
13 unchanged sentences
These new tariffs or any additional tariffs or other trade barriers may cause our costs to increase, our products to be less competitive, and our business, results of operations and financial position to be materially adversely affected.
+Added: Moreover, in February 2026, the United States Supreme Court ruled that the use of the International Emergency Economic Powers Act ("IEEPA") to impose tariffs was not permitted, invalidating a significant portion of U.S.
+Added: tariffs that had been in effect since April 2025.
+Added: The Administration responded by invoking a 10% global tariff pursuant to section 122 of the Trade Act of 1974 for 150 days, effective February 24, 2026.
+Added: The Administration also initiated trade investigations that could result in additional future tariffs.
+Added: The ruling, and the Administration's subsequent actions, have created substantial uncertainty regarding the tariff environment, including with respect to (i) the timing and scope of any new tariffs that may be imposed under alternative mechanisms and (ii) the potential for further legal challenges to any such tariffs.
Our overall success in international markets depends, in part, upon our ability to succeed in differing legal, regulatory, economic, social and political conditions.
4 unchanged sentences
In addition, as our target markets develop, other large industrial companies may enter these fields and compete with us.
−Removed: We face competition from other companies offering FACTS systems similar to our D-VAR products.
−Removed: These include adaptive VAR compensators, Dynamic voltage restorers (“DVRs”), and STATCOMs produced by ABB, Hitachi, Ingeteam, Mitsubishi, RXHK, and Siemens, and battery-based uninterruptable power supply (“UPS”) systems offered by various companies around the world.
−Removed: We face competition from other companies offering medium-voltage metal-enclosed power capacitor banks and harmonic filter banks for use on electric power systems similar to our NEPSI products.
−Removed: These include Southern States, Controllix, Powerside, Elgin Power Solutions (formally Gilbert), Scott Manufacturing Solutions, and QVARx.
−Removed: We face competition from other companies offering DC power supply systems similar to our Neeltran products.
−Removed: These include SCR Controlled Rectifiers, IGBT-controlled choppers produced by ABB, Siemens, Friem, Dynapower, and Nidec offering systems around the world.
−Removed: We face competition from other companies offering transformers and power supplies similar to our NWL products.
−Removed: These include industrial and military transformers produced by Espey Manufacturing & Electronics Corp .
−Removed: , Hammond and Ocrev, and power supplies offered by Kraft Powercon, Andritz, Lonking Holdings, and Rico.
+Added: We face competition across our product lines from companies like ABB, Hitachi, Ingeteam, Mitsubishi and Siemens.
+Added: We face more local competition in a subset of our business like power quality by companies that include, Southern States, Controllix, Powerside, Elgin Power, Scott Manufacturing and QVARx.
+Added: Additionally, we face competition on our power transformers and power supplies from companies like Friem, Dynapower, Nidec, Espey Manufacturing, Hammond, WEG S.A., and Kraft Powercon.
With our HTS-based REG product, we are offering a new approach that provides alternatives to utilities for power system design.
6 unchanged sentences
If we are unable to compete successfully, it may harm our business, which in turn may limit our ability to acquire or retain customers.
−Removed: With respect to our Wind business, other companies that serve the wind turbine components industry include ABB and Hopewind.
−Removed: We also face indirect competition in the wind energy market from global manufacturers of wind turbines, such as Siemens Gamesa, Vestas, Envision and Suzlon.
+Added: With respect to our Wind business, other companies that serve the wind turbine components industry include ABB.
+Added: We also face indirect competition in the wind energy market from global manufacturers of wind turbines, such as Siemens, Vestas, and Suzlon.
We face competition for the supply of wind turbine engineering design services from design engineering firms such as Aerovide and W2E.
2 unchanged sentences
They may also devote greater resources to the development, promotion and sale of their products than we do.
−Removed: Our success depends significantly upon our ability to enhance our products and technologies and to develop and introduce, on a timely and cost-effective basis, new products and features that meet changing customer requirements and incorporate technological enhancements.
+Added: Our success depends significantly upon our ability to enhance our products and technologies and to develop and introduce, on a timely and cost-effective basis, new products and features that meet changing customer requirements and incorporate technological enhancements, which may include artificial intelligence, machine learning, and other advanced digital technologies that are increasingly central to product development, manufacturing efficiency, and customer engagement.
If we are unable to develop new products and enhance functionalities or technologies to adapt to these changes, our business will suffer.
We can provide no assurance that we will continue to effectively compete against our current competitors or additional companies that may enter our markets.
−Removed: We have operations in, and depend on sales in, emerging markets, including India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets.
−Removed: Changes in India’s political, social, regulatory and economic environment may affect our financial performance.
−Removed: We have operations in India.
−Removed: Our financial performance depends upon our ability to carry on our operations and sell our products in markets such as India, as well as other emerging markets around the world.
+Added: We have operations in, and depend on sales in, emerging markets, including Latin America and India, and global conditions could negatively affect our operating results or limit our ability to expand our operations outside of these markets.
+Added: Changes in Brazil's or India’s political, social, regulatory and economic environment may affect our financial performance.
+Added: We have operations in emerging markets, including Brazil and India.
+Added: Our financial performance depends upon our ability to carry on our operations and sell our products in such emerging markets.
We are, and will continue to be, subject to financial, political, economic and business risks in connection with our operations and sales in these emerging markets.
3 unchanged sentences
Unexpected or uncontrollable events or circumstances in any of these markets could have a material adverse effect on our financial results and cash flows.
−Removed: Our financial performance could be affected by the political and social environment in India.
+Added: Our financial performance could be affected by the political and social environment in Brazil and India.
In recent years, India has experienced civil unrest and terrorism and has been involved in conflicts with neighboring countries.
14 unchanged sentences
If we were to lose market share or customers or face pricing pressure due to consolidation of our customers, our results of operations and financial condition could be adversely affected.
−Removed: Our success could depend upon the commercial adoption of the REG system, which is currently limited, and a widespread commercial market for our REG products may not develop.
−Removed: To date, there has been no widespread commercial use of the REG system.
−Removed: It is uncertain whether a robust commercial market for those new and unproven products will ever develop.
−Removed: In addition, we believe in-grid demonstrations of REG systems are necessary to convince utilities and power grid operators of the benefits of this technology.
−Removed: Even if a project is funded, completion of projects can be delayed as a result of other factors.
−Removed: It is possible that the market demands we currently anticipate for our REG system will not develop and that they will never achieve widespread commercial acceptance.
−Removed: In such event, we would not be able to implement our strategy, and our results of operations could be adversely affected.
−Removed: Even if a commercial market for our REG systems were to develop, commercial terms requested by utilities and power grid operators relating to bonding requirements, limitations of liability, warranty periods, or other contractual provisions, may not be acceptable to us, which could impede our ability to enter into contractual arrangements for the sale of our REG system.
−Removed: Increasing focus and scrutiny on environmental sustainability and social initiatives could adversely impact our business and financial results .
−Removed: There has been increasing public focus by investors, customers, environmental activists, the media and governmental and nongovernmental organizations on climate, human capital, and other environmental, social and similar sustainability matters.
+Added: Evolving and varied expectations on environmental sustainability and social initiatives could adversely impact our business and financial results .
+Added: There has been evolving and varied expectations by investors, customers, environmental activists, the media and governmental and nongovernmental organizations on climate, human capital, and other environmental, social and similar sustainability matters.
If we are not effective in addressing environmental, social and other sustainability matters affecting our business, including any relevant sustainability goals, our reputation and financial results may suffer.
−Removed: While we may at times engage in voluntary initiatives (such as voluntary disclosures, certifications, or goals, among others) to improve our environmental, social, and governance ("ESG") profile or respond to stakeholder expectations, such initiatives may be costly and may not have the desired effect.
+Added: While we may at times engage in voluntary initiatives (such as voluntary disclosures, certifications, or goals, among others) to improve our environmental, social, and governance ("ESG") profile or respond to certain stakeholder expectations, such initiatives may be costly and may not have the desired effect.
For example, methodologies and data relevant to many ESG matters are evolving, in some cases quite rapidly;
3 unchanged sentences
Stakeholder expectations are not uniform, and both advocates and opponents to certain ESG matters are increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their perspectives.
−Removed: There are also increasing regulatory requirements related to various ESG matters.
−Removed: For example, various policymakers have adopted, or are considering adopting, requirements for the disclosure of climate- or other ESG-related information, or certain substantive considerations regarding ESG in operations, which may require significant additional costs to comply.
+Added: There are also evolving regulatory requirements related to various ESG matters.
+Added: For example, various jurisdictions have adopted, or are considering adopting, requirements for the disclosure of climate- or other ESG-related information, or certain substantive considerations regarding ESG in operations, which may require significant additional costs to comply.
As with other stakeholder expectations, such regulations are divergent and, at times, conflict, which may increase the costs and complexity of compliance and any associated risks.
6 unchanged sentences
Examples of government sponsored financial incentives include capital cost rebates, feed-in tariffs, tax credits, net metering and other incentives to end-users, distributors, system integrators and manufacturers of wind energy products to promote the use of wind energy and to reduce dependency on other forms of energy.
−Removed: In the United States, various legislation and regulations designed to support the growth of wind energy have been implemented or proposed by the federal government, such as the Inflation Reduction Act, Production Tax Credit for Renewable Energy (“PTC”) and the Clean Power Plan.
−Removed: Governments, including the U.S.
−Removed: government, may decide to reduce or eliminate these economic incentives, or curtail legislative programs supportive of wind energy technologies for political, financial or other reasons.
+Added: Governments, however, may decide to reduce or eliminate these economic incentives, or curtail legislative programs supportive of wind energy technologies for political, financial or other reasons.
+Added: In the United States, various legislation and regulations designed to support the growth of wind energy had been implemented or proposed, such as the Inflation Reduction Act, Production Tax Credit for Renewable Energy ("PTC") and the Clean Power Plan.
+Added: However, actions by the current U.S.
+Added: administration, including the One Big Beautiful Bill Act of 2025 (the "OBBBA"), have significantly curtailed those programs and tax credits in the U.S.
+Added: and generally made it more difficult to develop and construct wind energy products.
Any reductions in, or eliminations of, government subsidies, economic incentives or favorable legislative programs before the wind energy industry reaches a sufficient scale to be cost-effective in a non-subsidized marketplace could reduce demand for our products and adversely affect our business prospects and results of operations.
1 unchanged sentence
The wind energy market is affected by the price and availability of other energy sources, including nuclear, coal, natural gas and oil, as well as other sources of renewable energy.
−Removed: To the extent renewable energy, particularly wind energy, becomes less cost-competitive due to reduced government targets, increases in the cost of wind energy, new regulations, incentives that favor alternative renewable energy, cheaper alternatives or otherwise, demand for wind energy and other forms of renewable energy could decrease.
+Added: To the extent renewable energy, particularly wind energy, becomes less cost-competitive due to reduced government targets, increases in the cost of wind energy, new regulations, incentives that favor other energy sources, cheaper alternatives or otherwise, demand for wind energy and other forms of renewable energy could decrease.
Slow growth or a long-term reduction in the demand for renewable energy could have a material adverse effect on our ability to grow our Wind business.
Risks Related to Our Technologies
+Added: Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business.
+Added: In recent years, there has been significant litigation involving patents and other intellectual property rights in many technology-related industries.
+Added: There may be patents or patent applications in the United States or other countries that are pertinent to our products or business of which we are not aware.
+Added: The technology that we incorporate into and use to develop and manufacture our current and future products, including the technologies we license, may be subject to claims that they infringe the patents or proprietary rights of others.
+Added: The success of our business will also depend on our ability to develop new technologies without infringing or misappropriating the proprietary rights of others.
+Added: Third parties may allege that we infringe patents, trademarks or copyrights, or that we misappropriated trade secrets.
+Added: These allegations could result in significant costs and diversion of the attention of management.
+Added: If a successful claim were brought against us and we are found to infringe a third party’s intellectual property rights, we could be required to pay substantial damages, including treble damages if it is determined that we have willfully infringed such rights, or be enjoined from using the technology deemed to be infringing, or using, making or selling products deemed to be infringing.
+Added: If we have supplied infringing products or technology to third parties, we may be obligated to indemnify these third parties for damages they may be required to pay to the patent holder and for any losses they may sustain as a result of the infringement.
+Added: In addition, we may need to attempt to license the intellectual property right from such third party or spend time and money to design around or avoid the intellectual property.
+Added: Any such license may not be available on reasonable terms, or at all.
+Added: An adverse determination may subject us to significant liabilities and/or disrupt our business.
We may be unable to adequately prevent disclosure of trade secrets and other proprietary information.
−Removed: We rely on trade secrets to protect our proprietary technologies, especially where we do not believe patent protection is appropriate or obtainable.
+Added: We rely on trade secrets to protect the majority of our proprietary technologies, especially where we do not believe patent protection is appropriate or obtainable.
However, trade secrets are difficult to protect.
30 unchanged sentences
The market price of our common stock has historically experienced volatility and may continue to experience such volatility in the future.
−Removed: Factors such as our financial performance, liquidity requirements, technological achievements by us and our competitors, the establishment of development or strategic relationships with other companies, strategic acquisitions, new customer orders and contracts, and our introduction of commercial products may have a significant effect on the market price of our common stock.
+Added: Factors such as our financial performance, liquidity requirements, technological achievements by us and our competitors, the establishment of development or strategic relationships with other companies, strategic acquisitions, new customer orders and contracts, and our introduction of commercial products have had and may in the future have a significant effect on the market price of our common stock.
The stock market in general, and the stock of high technology companies, in particular, have, in recent years, experienced extreme price and volume fluctuations, which are often unrelated to the performance or condition of particular companies.
13 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.