Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is not significantly exposed to the impact
of interest rate changes or foreign currency fluctuations. The Company has not used derivative financial instruments.
The COVID-19 pandemic presents several risks for the
Company. The Company is part of the Defense Industrial Base and thus has remained open and operating throughout the pandemic. The primary
risks resulting from the pandemic are potential declines in customer demand due to government-mandated business closures and increased
operating costs resulting from pandemic-related factors such as increased freight costs and increased employee absenteeism causing labor
inefficiencies and increased use of overtime.
The COVID-19 pandemic affected financial results for
the quarter ended March 27, 2021 mainly due to its impact on one of our major customers. The Company expects to see continuing improvement
in upcoming quarters, but believes the pandemic will continue to provide headwinds to more substantial growth at least through the next
quarter or two.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.