1 unchanged sentence
The Company’s business is subject to a number of risks, some of which are beyond its control.
−Removed: In addition to the other information set forth in this Quarterly Report on Form 10-Q, the Company’s shareholders should carefully consider the risk factors discussed in Part I, Item 1A “Risk Factors” of the Company’s 2019 Form 10-K, as amended by Part II, Item 1A, “Risk Factors” of the Company’s Quarterly Report on Form 10-Q filed on May 6, 2020.
+Added: In addition to the other information set forth in this Quarterly Report on Form 10-Q, the Company’s shareholders should carefully consider the risk factors discussed in Part I, Item 1A “Risk Factors” of the Company’s 2019 Form 10-K, as amended by Part II, Item 1A, “Risk Factors” of the Company’s Quarterly Reports on Form 10-Q filed on May 6, 2020 and August 5, 2020.
These risk factors could have a material adverse effect on the Company’s business, results of operations, financial condition and/or liquidity and could cause our operating results to vary significantly from period to period.
−Removed: In light of recent developments relating to the COVID-19 pandemic, the Company is supplementing the risk factors previously disclosed in Part I, Item 1A, “Risk Factors” in our 2019 Form 10-K, as amended by Part II, Item 1A, “Risk Factors” of the Company’s Quarterly Report on Form 10-Q filed on May 6, 2020, to include the following risk factor:
+Added: In light of recent developments relating to the COVID-19 pandemic, the Company is supplementing the risk factors previously disclosed in Part I, Item 1A, “Risk Factors” in our 2019 Form 10-K, as amended by Part II, Item 1A, “Risk Factors” of the Company’s Quarterly Reports on Form 10-Q filed on May 6, 2020 and August 5, 2020, to include the following risk factor:
+Added: RISK RELATED TO COVID-19
The Company’s business has been and is expected to continue to be negatively impacted by the ongoing coronavirus (COVID-19) pandemic.
As a result of the COVID-19 pandemic, the Company has experienced and can be expected to continue to experience disruptions to its business, its operations, the delivery of its products and customer demand for its products, including the following:
−Removed: The Company has operations in Shanghai and Dongguan, China that have been adversely affected by the impact of COVID-19.
−Removed: The virus interfered with the ability of Company employees and suppliers to conduct business.We source approximately 15% of our products and components from China.As a result of government mandated shutdowns at the Company’s and its suppliers’ factories in China, many of the products ordered have been delayed by approximately 4 to 6 weeks, which has resulted and will continue to result in corresponding delays in delivery of the Company’s products to its customers.
−Removed: These delays have had and are likely to continue to have an adverse impact on our business, operations, fulfillment of production requirements and operating results.
−Removed: On March 11, 2020, the World Health Organization declared the rapidly spreading COVID-19 outbreak to be a global pandemic, and shortly thereafter government authorities in the United States began closing non-essential business.The majority of the Company’s businesses are considered essential and have remained open but are operating at reduced levels.This reduction in operations has exacerbated delays in delivery of customer orders and, to the extent we continue to operate at reduced levels, is likely to cause further delays.
+Added: The Company has operations in Shanghai and Dongguan, China that were adversely affected by the impact of COVID-19.
+Added: The virus interfered with the ability of Company employees and suppliers to conduct business.
+Added: We source approximately 10% of our products and components from China.
+Added: As a result of government mandated shutdowns at the Company’s and its suppliers’ factories in China, many of the products ordered were delayed by approximately 4 to 6 weeks, which resulted in corresponding delays in delivery of the Company’s products to its customers.
+Added: These delays had an adverse impact on our business, operations, fulfillment of production requirements and operating results.
+Added: There may be similar delays in the future as a result of the COVID-19 pandemic, which may have an adverse impact on our business, operations, fulfillment of production requirements and operating results.
+Added: On March 11, 2020, the World Health Organization declared the rapidly spreading COVID-19 outbreak to be a global pandemic, and shortly thereafter government authorities in the United States began closing non-essential business.
+Added: The majority of the Company’s businesses are considered essential and have remained open but are operating at reduced levels.
+Added: This reduction in operations has exacerbated delays in delivery of customer orders and, to the extent we continue to operate at reduced levels, is likely to cause further delays.
Any sustained reduction in operations could impair the Company’s ability to meet production requirements in a timely manner or at all.
These effects have had and are likely to continue to have an adverse impact on the Company’s business, financial condition and operating results.
−Removed: Many of the Company’s customers in both automotive and non-automotive industries experienced varying degrees of shutdowns beginning in the last week of March 2020, with some of these customers tentatively expected to begin reopening as soon as May 4, 2020.These temporary shutdowns have had and, for so long as they remain in place, are likely to continue to have, an adverse impact on demand for our products.
+Added: Many of the Company’s customers in both automotive and non-automotive industries experienced varying degrees of shutdowns beginning in the last week of March 2020, with some of these customers tentatively expected to begin reopening as soon as May 4, 2020.
+Added: These temporary shutdowns have had and, for so long as they remain in place, are likely to continue to have, an adverse impact on demand for our products.
A sustained decrease in demand would negatively impact our business, financial condition and operating results.
14 unchanged sentences
Such an increase in indebtedness could adversely affect the Company’s financial results or ability to incur additional debt and could negatively impact credit ratings.
−Removed: The continuing impact of the COVID-19 pandemic, including any resrgences, could also negatively impact the Company’s compliance with the financial covenants under the Credit Agreement or the interest rate of borrowings under the Credit Agreement.
+Added: The continuing impact of the COVID-19 pandemic, including any resurgences, could also negatively impact the Company’s compliance with the financial covenants under the Credit Agreement or the interest rate of borrowings under the Credit Agreement.
In addition, as a result of the risks described above, the Company may in the future be required to raise additional debt or equity financing, and the availability, terms and cost of such financing would depend on, among other things, global economic conditions, conditions in the global financing markets, trading prices of the Company’s common stock, the credit ratings of the Company, and the outlook for the industries in which the Company operates, all of which could be negatively impacted by the COVID-19 pandemic, including the extent of any resurgences.
11 unchanged sentences
We do not yet know and cannot predict the full extent of potential impacts on the business, operations, financial results and capital resources of the Company.
−Removed: In addition, any of the risks and uncertainties set forth in Part I, Item 1A of the 2019 Form 10-K, as amended by Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q filed on May 6, 2020, can be expected to be further heightened by the COVID-19 pandemic and have a material adverse effect on the Company’s business, prospects, financial condition, results of operations and capital resources.
+Added: In addition, any of the risks and uncertainties set forth in Part I, Item 1A of the 2019 Form 10-K, as amended by Part II, Item 1A of the Company’s Quarterly Reports on Form 10-Q filed on May 6, 2020 and August 5, 2020, can be expected to be further heightened by the COVID-19 pandemic and have a material adverse effect on the Company’s business, prospects, financial condition, results of operations and capital resources.
The Company may also disclose changes to risk factors or disclose additional risk factors from time to time in its future filings with the SEC.
5 unchanged sentences
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.