Item 1A. Risk Factors
Item 1A. Risk Factors
Foreign Currency Risk
Optilan, our wholly-owned subsidiary which is
responsible for a large portion of our revenues is located in the United Kingdom. Foreign sales of products and services are primarily
denominated in the British pound sterling, which is subject to fluctuations due to changes in foreign currency exchange rates. Accordingly,
we are subject to exposure from changes in the exchange rates of local currencies. Consequently, changes in the exchange rates of the
currencies may impact the translation of the foreign subsidiaries’ statements of operations into U.S. dollars, which may in turn
affect our consolidated statement of operations.
We have
not entered into any financial derivative instruments that expose us to material market risk, including any instruments designed
to hedge the impact of foreign currency exposures. We may, however, hedge such exposure to foreign currency exchange rate fluctuations
in the future.
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