Item 1A. Risk Factors
Item 1A. Risk Factors
Please carefully consider the information set
forth in this Quarterly Report on Form 10-Q and the risk factors discussed in Part I, Item I A. of our Annual Report on Form 10-K
for the year ended September 30, 2020, which could materially affect our business, financial condition or future results. In evaluating
our business, you should carefully consider the risk factors discussed in our Annual Report on Form 10-K, as updated by our subsequent
filings under the Exchange Act. The occurrence of any of the risks discussed in such filings, or other events that we
do not currently anticipate or that we currently deem immaterial, could harm
our business, prospects, financial condition and results of operations. In that case, the trading price of our common stock could
decline, and you may lose all or part of your investment.
Navigating the demand, supply and operational
challenges associated with the ongoing coronavirus (COVID-19) pandemic unsuccessfully may affect our financial condition and results
of operations.
COVID-19
has spread worldwide, resulting in shutdowns of manufacturing and commerce. COVID-19 has resulted in government authorities
implementing numerous measures to try to contain it, such as travel bans and restrictions, quarantines, shelter-in-place orders,
and shutdowns. These measures have impacted, and may further impact, our workforce and operations, the operations of our customers
and our partners, and those of our respective vendors and suppliers. Our critical business operations, including our headquarters,
and many of our key suppliers, are located in regions which have been impacted by COVID-19. Our customers and suppliers worldwide
have also been affected and may continue to be affected by COVID-19 related restrictions and closures.
The manufacture
of product components, the final assembly of our products, and other critical operations are concentrated in certain geographic
locations that have been impacted by COVID-19, and local governments continue to take measures to try to contain the pandemic.
There is considerable uncertainty regarding the impact of such measures and potential future measures, including restrictions on
manufacturing facilities, on our support operations or workforce, or on our customers, partners, vendors and suppliers. Such measures,
as well as restrictions or disruptions of transportation, such as reduced availability or increased cost of air transport, port
closures, and increased border controls or closures, could limit our capacity to meet customer demand and have a material adverse
effect on our financial condition and results of operations.
The spread
of COVID-19 has caused us to modify our business practices as the Company complies with state mandated requirements for safety
in the workplace to ensure the health, safety, and welling-being of our employees. These measures include personal protective equipment,
social distancing, cleanliness of the facilities, and daily monitoring of the health of employees in our facilities, as well as
modifying our policies on employee travel and the cancellation of physical participation in meetings, events, and conferences.
We may take further actions as required by government authorities or that we determine are in the best interests of our employees,
customers, partners, and suppliers. However, we have not developed a specific and comprehensive contingency plan designed to address
the challenges and risks presented by the COVID-19 pandemic and, even if and when we do develop such a plan, there can be no assurance
that such plan will be effective in mitigating the potential adverse effects on our business, financial condition, and results
of operations.
In
addition, while the extent and duration of the COVID-19 pandemic on the global economy and our business in particular is
difficult to assess or predict, the pandemic has resulted in, and may continue to result in, significant disruption of global
financial markets, which may reduce our ability to access capital or our customers’ ability to pay us for past or
future purchases, which could negatively affect our liquidity. A recession or financial market correction resulting from the
lack of containment and spread of COVID-19 could impact overall spending, adversely affecting demand for our products
and services, our business, and the value of our common stock.
The
ultimate impact of the COVID-19 pandemic or a similar health epidemic is highly uncertain and subject to change. The extent
of the impact of the COVID-19 pandemic on our operational and financial performance, including our ability to execute our
business strategies and initiatives in the expected time frame, will depend on future developments, including, but not limited
to, the duration and continued spread of the pandemic, its severity, the actions to contain the disease or treat its impact, further
related restrictions on travel, and the duration, timing, and severity of the impact on customer spending, including any recession
resulting from the pandemic, all of which are uncertain and cannot be predicted. An extended period of global supply chain and
economic disruption as a result of the COVID-19 pandemic could have a material negative impact on our business, results of
operations, access to sources of liquidity and financial condition, though the full extent and duration is uncertain.
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