2 unchanged sentences
The Company is involved in various legal disputes and other legal proceedings that arise from time to time in the ordinary course of business.
−Removed: Based on currently available information, and except as disclosed herein, the Company does not believe that the existence of any of the legal disputes the Company or its subsidiaries is currently involved in will have a material adverse effect upon the Company’s consolidated financial position, results of operations or cash flows, except for the U.S.
−Removed: Consumer Product Safety Commission (“CPSC”) and Department of Justice matters discussed below.
+Added: Based on currently available information, and except as disclosed herein, the Company does not believe that the existence of any of the legal disputes the Company or its subsidiaries is currently involved in will have a material adverse effect upon the Company’s consolidated financial position, results of operations or cash flows.
It is possible that, as additional information becomes available, the impact on the Company of an adverse determination could have a different effect.
4 unchanged sentences
When it is not possible to estimate a specific expected cost to be incurred, the Company evaluates the range of probable loss and records the minimum end of the range.
−Removed: Based on currently available information, and except as set forth herein, the Company does not believe that it is reasonably possible that the disposition of any of the legal disputes the Company or its subsidiaries is currently involved in will have a material adverse effect upon the Company’s consolidated financial condition, results of operations or cash flows, except for the CPSC and Department of Justice matters discussed below.
+Added: Based on currently available information, and except as set forth herein, the Company does not believe that it is reasonably possible that the disposition of any of the legal disputes the Company or its subsidiaries is currently involved in will have a material adverse effect upon the Company’s consolidated financial condition, results of operations or cash flows.
There is a reasonable possibility of loss from contingencies in excess of the amounts accrued by the Company in the accompanying condensed consolidated balance sheets;
13 unchanged sentences
BDEL also requested approval for the CPSC Fast-Track Program for a voluntary product recall to implement this cradle solution.
−Removed: The CPSC approved the recall and entered into a Corrective Action Plan agreement
+Added: The CPSC approved the recall and entered into a Corrective Action Plan agreement with BDEL in March 2021.
+Added: BDEL received a letter from the CPSC, dated October 28, 2021, stating that the CPSC is investigating whether BDEL has timely complied with the reporting requirements of Section 15(b) of the Consumer
CLARUS CORPORATION
−Removed: with BDEL in March 2021.
−Removed: BDEL received a letter from the CPSC, dated October 28, 2021, stating that the CPSC is investigating whether BDEL has timely complied with the reporting requirements of Section 15(b) of the Consumer Protection Safety Act and related regulations regarding certain models of avalanche transceivers switching unexpectedly out of “send” mode.
+Added: Protection Safety Act and related regulations regarding certain models of avalanche transceivers switching unexpectedly out of “send” mode.
Separately, on April 21, 2022, BDEL filed a Section 15(b) report and applied for Fast-Track consideration for a voluntary recall, consisting of free repair or replacement of such malfunctioning models of avalanche transceivers, which would not switch from “send” mode to “search” mode due to an electronic malfunction in the reed switch or foil.
17 unchanged sentences
On January 23, 2025, in connection with a criminal investigation, the Company and BDEL were each served with grand jury subpoenas from the United States Department of Justice requiring the production of documents relating to avalanche transmitters distributed by BDEL.
−Removed: The Company and BDEL are cooperating with the investigation and have produced all relevant documents.
−Removed: The DOJ has sent letters to Mr.
+Added: The Company and BDEL cooperated with the investigation and produced all relevant documents.
+Added: The DOJ had sent letters to Mr.
Walbrecht and Rick Vance (BDEL’s former Director of Quality) advising them that they are targets in its investigation of possible criminal conduct.
−Removed: The DOJ has since served two subpoenas upon a current and former employee of BDEL for grand jury testimony, as well as grand jury subpoenas for documents to an advisory entity and to the Company’s former public relations firm and asked to speak with the successor to Mr.
+Added: The DOJ also had served two subpoenas upon a current and former employee of BDEL for grand jury testimony, as well as grand jury subpoenas for documents to an advisory entity and to the Company’s former public relations firm and asked to speak with the successor to Mr.
Vance’s position.
The Company’s Board of Directors has approved indemnity and payment of legal fees for current and former employees subpoenaed by the DOJ, in the same manner and subject to the same conditions described above for Mr.
−Removed: On March 13, 2025, the Company received a letter from the CPSC requesting various categories of documents and information in connection with an investigation into whether BDEL sold products that were subject to a recall.
+Added: On June 4, 2026, the Company received a letter from the DOJ advising that based on information presently known to the government and the principles of federal prosecution, the DOJ has closed this investigation as to the Company and BDEL.
+Added: On the same date, Messrs.
+Added: Walbrecht and Vance received similar letters from the DOJ advising each of them that the DOJ
CLARUS CORPORATION
−Removed: Company has cooperated with that investigation, substantially completed document production, and delivered a narrative explanatory letter to the CPSC on June 18, 2025.
+Added: had closed the investigation as to them.
+Added: The Company has not received any further correspondence from the CPSC relating to the above matters.
+Added: On March 13, 2025, the Company received a letter from the CPSC requesting various categories of documents and information in connection with an investigation into whether BDEL sold products that were subject to a recall.
+Added: The Company has cooperated with that investigation, substantially completed document production, and delivered a narrative explanatory letter to the CPSC on June 18, 2025.
On January 28, 2026, the CPSC closed its investigation into this specific matter without taking further action.
−Removed: Based on currently available information, the Company believes an unfavorable outcome with the CPSC is probable, however, we cannot reasonably estimate on what terms this matter will be resolved with the CPSC or the U.S.
−Removed: Department of Justice.
−Removed: During the year ended December 31, 2024, the Company recorded a liability of $2,500,000 representing the low end of the range of our estimated exposure.
−Removed: The Company does not have a better estimate of the loss;
−Removed: therefore the low-end of the range was recorded as an accrued liability during the first quarter of 2024 and a corresponding expense was included in legal costs and regulatory matter expenses in the consolidated statements of comprehensive loss.
−Removed: Any penalties imposed by the CPSC or other regulators, could be costly to us and could damage our business and reputation as well as have a material adverse effect on the Company’s liquidity, stock price, consolidated financial position, results of operations and/or cash flows.
Clarus Corporation v.
18 unchanged sentences
The Company intends to defend that action and argue that any fees he may recover are limited to services performed prior to the Company’s direct action against Caption.
+Added: There have been no material changes in our risk factors from those disclosed in Part I, Item 1A.
+Added: of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Part II, Item 1A.
+Added: of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
CLARUS CORPORATION
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.