What changed in this filing

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Item 1A. Risk Factors

2026-03-30 compared with 2025-03-19 · 70 added, 74 removed, 415 unchanged (26% of the section changed)

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Related to Sales and Product Development.

related to manufacturing and supply chain

related to cybersecurity, intellectual property and regulatory compliance

related to financial and accounting matters

related to product liability

related to our stock

related to sales and product development

Historically,

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a material adverse effect on our business and results of operations.

2024, one customer represented 29.5% of our total revenues.

The loss of a major customer would have to be replaced by others, and our

inability to do so may have a material adverse effect on our business and financial condition.

We expect that contracts or orders from

a relatively limited number of customers will, at times, continue to account for a substantial portion of our business.

The mix and type

of customers, and sales to any single customer, may vary significantly from quarter to quarter and from year to year.

If any major customer

did not place orders, or if they substantially reduced, delayed, or cancelled orders, we may not be able to replace the business in a

timely manner or at all, which can and has had a material adverse effect on our results of operations and financial condition.

2025, two customers represented 27.6% and 13.7% of our total revenues, respectively.

The loss of a major customer would have to be replaced

by others, and our inability to do so may have a material adverse effect on our business and financial condition.

We expect that contracts

or orders from a relatively limited number of customers will, at times, continue to account for a substantial portion of our business.

The mix and type of customers, and sales to any single customer, may vary significantly from quarter to quarter and from year to year.

If any major customer did not place orders, or if they substantially reduced, delayed, or cancelled orders, we may not be able to replace

the business in a timely manner or at all, which can and has had a material adverse effect on our results of operations and financial

lengthy and variable sales cycle makes it difficult to predict our financial results.

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industries in which we operate are characterized by ongoing factors, including:

and regional economic developments and conditions including in Europe and Asia;

and regional economic and geopolitical developments and conditions including in Europe, Asia, and Middle East;

budgetary and political constraints;

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effects of supply chain disruptions.

these and other reasons, our results of operations for past periods may not necessarily be indicative of future operating results.

these and other reasons, demand for our products may fluctuate significantly and, consequently, our results of operations for past periods

may not necessarily be indicative of future operating results.

business might be adversely affected by our dependence on foreign business.

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trade policies

will change in the future, including as a result of changes by the new U.S.

presidential administration.

A significant proportion of

our materials and components are manufactured in China and other regions outside of the United States.

will change in the future.

A significant proportion of our materials and components are manufactured in China and other regions outside

of the United States.

Accordingly, such U.S.

changes have made it and may continue to make it difficult or more expensive for us to obtain certain products manufactured outside the

United States, which could affect our revenue and profitability.

Any of these factors could depress economic activity and restrict our

access to suppliers or customers and could have a material adverse effect on our business, financial condition, and results of operations.

policy changes have made it and may continue to make it difficult or more expensive for

us to obtain certain products manufactured outside the United States, which could affect our revenue and profitability.

factors could depress economic activity and restrict our access to suppliers or customers and could have a material adverse effect on

our business, financial condition, and results of operations.

reputation and operating performance may be negatively affected if our products are not timely delivered.

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We must be able

to introduce these products and product enhancements into the market in a timely manner, in response to customer’s demands for

to introduce these products and product enhancements into the market in a timely manner, in response to customers’ demands for

higher-performance research and assembly equipment, customized to address rapid technological advances in capital equipment designs.

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To maintain our success in the marketplace,

we may have to substantially increase our expenditures on research and development.

If we do not develop and introduce new products,

technologies or uses for existing products in a timely manner and continually find ways to reduce the cost of developing and producing

them in response to changing market conditions or customer requirements, our business could be seriously harmed.

we may have to substantially increase our expenditure on research and development.

If we do not develop and introduce new products, technologies

or uses for existing products in a timely manner and continually find ways to reduce the cost of developing and producing them in response

to changing market conditions or customer requirements, our business could be seriously harmed.

face significant competition, and we are relatively small in size and have fewer resources in comparison with many of our competitors.

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financial resources may decrease prices, thereby putting us under financial pressure.

related to manufacturing and our supply chain

Related to Manufacturing and Supply Chain

Manufacturing

interruptions or delays could affect our ability to meet customer demand and lead to higher costs, while the failure to estimate customer

demand accurately could result in excess or obsolete inventory.

interruptions or delays could affect our ability to meet customer demand and lead to higher costs, while the failure to accurately estimate

customer demand could result in excess or obsolete inventory.

business depends on timely supply of equipment, services and related products that meet the rapidly changing technical and volume requirements

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chain delays and cost increases that may adversely affect our business, including potential cost increases from the imposition of tariffs.

developments across Europe and Asia have and may continue to restrict our ability to procure raw materials and components such as nickel

and integrated circuits.

Since 2021, we have experienced increased costs on certain components as well as delays in supply chain delivery,

which may also impact our ability to recognize revenue and reduce our gross profit margins, as well as extend our manufacturing lead

developments across Europe, Asia and Middle East have and may continue to restrict our ability to procure raw materials and components

such as nickel and integrated circuits.

We have experienced increased costs on certain components as well as delays in supply chain delivery,

which may also impact on our ability to recognize revenue and reduce our gross profit margins, as well as extend our manufacturing lead

times and reduce our manufacturing efficiencies.

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which may affect our supply chain and the costs of components and materials.

Any significant increases in tariffs on components and

materials that we purchase could negatively affect our business and results of operations.

We have begun placing orders with more lead

time to help mitigate the manufacturing delays, as well as assessing other suppliers or components to attempt to mitigate the potential

cost impacts In addition, we are utilizing our in-house flexible manufacturing to attempt to further mitigate both potential schedule

delivery delays and material cost increase, as well as increasing sales prices.

While we have taken actions to mitigate the potential

negative impacts to our revenue and profitability, there can be no assurance of the ultimate impact and the length of time that the supply

chain factors, including tariffs, may impact our revenues and profitability.

Any significant increases in tariffs on components and materials

that we purchase could negatively affect our business and results of operations.

We have begun placing orders with more lead time to

help mitigate the manufacturing delays, as well as assessing other suppliers or components to attempt to mitigate the potential cost

In addition, we are utilizing our in-house flexible manufacturing to attempt to further mitigate both potential schedule delivery

delays and material cost increase, as well as increasing sales prices.

While we have taken actions to mitigate the potential negative

impacts to our revenue and profitability, there can be no assurance of the ultimate impact and the length of time that the supply chain

factors, including tariffs, may impact our revenues and profitability.

has and may continue to adversely affect our business, financial condition, and results of operations.

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our suppliers.

Because of the variability and uniqueness of our customer’s orders, we try to avoid maintaining an extensive inventory

Because of the variability and uniqueness of our customers’ orders, we try to avoid maintaining an extensive inventory

of materials and components for manufacturing.

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about us, our customer, or other third parties, could expose us, our customers, or other third parties to a risk of loss or misuse of

this information, result in litigation and potential liability for us, damage our reputation, or otherwise harm our business.

financial position and results of operations may be materially harmed if we are unable to recoup our investment in research and development.

this information, resulting in litigation and potential liability for us, damage our reputation, or otherwise harm our business.

financial position and results of operations may be materially harmed if we are unable to recover our investment in research and development.

rapid change in technology in our industry requires that we continue to make substantial investments in research and development and

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Defending our intellectual property rights through litigation could be very costly.

If we are not able to negotiate the

necessary licenses on commercially reasonable terms or successfully defend our position, our ability to utilize such intellectual property

could substantially inhibit our access to certain markets and our ability to compete in these markets which could have a material adverse

effect on our financial position and results of operations.

If we cannot negotiate the necessary

licenses on commercially reasonable terms or successfully defend our position, our ability to utilize such intellectual property could

substantially inhibit our access to certain markets and our ability to compete in these markets which could have a material adverse effect

on our financial position and results of operations.

may be unable to obtain required export licenses for the sale of our products.

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Historically,

demand for our equipment and related consumable products have been volatile because of changes in supply and demand, and other factors

in the manufacturing process.

Our orders tend to be more volatile than our revenue, as any change in demand is reflected immediately

in orders booked, which are net of cancellations, while revenue, tends to be recognized over multiple quarters because of procurement

and production lead times, and the deferral of certain revenue under our revenue recognition policies.

The fiscal period in which we

can recognize revenue is also at times subject to the length of time that our customers require to evaluate the performance of our equipment.

demand for our equipment and related consumable products have been volatile because of changes in supply and demand, our ability to market

and sell our products and other factors in the manufacturing process.

Our orders levels tend to be more volatile than our revenue, as

any change in demand is reflected immediately in orders booked, which are net of cancellations, while revenue, tends to be recognized

over multiple quarters because of procurement and production lead times, and the deferral of certain revenue under our revenue recognition

The fiscal period in which we can recognize revenue is also at times subject to the length of time that our customers require

to evaluate the performance of our equipment.

This could cause our quarterly operating results to fluctuate.

cyclical fluctuations result in lower-than-expected revenue levels, operating results have been and may continue to be materially adversely

affected and cost reduction measures have been and may continue to be necessary for us to remain competitive and financially sound.

a down cycle, we must be able to make timely adjustments to our cost and expense structure to correspond to the prevailing market conditions.

In addition, during periods of rapid growth, we must be able to increase manufacturing capacity and the number of our personnel to meet

customer demand, which may require additional liquidity.

We can provide no assurance, that these objectives can be met in a timely manner

in response to changes within the industry cycles in which we operate.

If we fail to respond to these cyclical changes, our business

could be seriously harmed.

fluctuations in our order levels and backlog result in lower-than-expected revenue levels, operating results have been and may continue

to be materially adversely affected, and cost reduction measures have been and may continue to be necessary for us to remain competitive

and financially sound.

During a down cycle, we must be able to make timely adjustments to our cost and expense structure to correspond

to the prevailing market conditions.

In addition, during periods of rapid growth, we must be able to increase manufacturing capacity

and the number of our personnel to meet customer demand, which may require additional liquidity.

We can provide no assurance that these

objectives can be met in a timely manner in response to changes within the industry cycles in which we operate.

If we fail to respond

to these cyclical changes, our business could be seriously harmed.

do not have long-term volume production contracts with our customers, and we do not control the timing or volume of orders placed by

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of future operations and result in impairment charges to these assets.

If our assets were impaired, our financial condition and results

of operations could be materially and adversely affected.

our assets were impaired, our financial condition and results of operations could be materially and adversely affected.

can result in an increase in our operating costs, divert management’s attention away from other operational matters and expose

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price of our common shares is volatile and could decline significantly.

stock market in general and the market for technology stocks has experienced volatility.

stock market in general and the market for technology stocks have experienced volatility.

If those industry-based market fluctuations

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affect our financial condition, results of operations, and liquidity.

General risks

success is highly dependent on the technical, sales, marketing and managerial contributions of key individuals, including our Chief Executive

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with our direct sales force to technically qualify and perform on new sales opportunities and orders, and to demonstrate our products.

response to the continued fluctuations in our order rates and the recent decline in the bookings of our CVD Equipment division, we have

reduced our workforce during 2025.

These actions could result in an increase in future employee turnover or otherwise impact our ability

to hire and retain qualified personnel.

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

What changed 10-K

Item 1A. Risk Factors