26 unchanged sentences
As a subcontractor, the Company is reliant on a few large customers that generally hold the ultimate contract with the U.S.
−Removed: During fiscal 2022, Northrop Grumman Company, Lockheed Martin Corporation and BAE Systems each accounted for more than 10% of the Company’s consolidated revenues.
+Added: During fiscal year 2023, Lockheed Martin, Northrop Grumman, Office of Naval Research and BAE Systems each accounted for more than 10% of the Company’s consolidated revenues.
These customers typically incorporate our products into larger programs.
39 unchanged sentences
Customers may elect a less expensive product, even where it offers lower performance, in cases where that performance difference becomes less, compared to our current products.
−Removed: Specifically, the emergence of numerous low earth orbit (LEO) commercial satellite systems that have significantly lower requirements for life in orbit may result in new products based on commercial parts and processes not required for the high performance and/or longer lived geo-synchronous orbit (GEO) satellites for which the Company has typically developed products.
+Added: Specifically, the emergence of numerous LEO commercial satellite systems that have significantly lower requirements for life in orbit may result in new products based on commercial parts and processes not required for the high performance and/or longer lived geo-synchronous orbit (GEO) satellites for which the Company has typically developed products.
This may result in a migration to less capable, but less expensive products compared to what the Company has traditionally produced.
2 unchanged sentences
Many of our customers have in-house capability to develop products comparable to ours and may opt to do so.
−Removed: Accordingly, if we are unable to continue to compete successfully against our current or future competitor, we may experience declines in future revenues and market share, which could have a material adverse effect on our financial position, results of operations and/or cash flows.
+Added: Accordingly, if we are unable to continue to compete successfully against our current or future competitors, we may experience declines in future revenues and market share, which could have a material adverse effect on our financial position, results of operations and/or cash flows.
Our products, which are often incorporated into larger systems, are technologically complex and require state-of-the-art technology and manufacturing expertise.
5 unchanged sentences
We are dependent on numerous suppliers for various parts, materials, test services, facility operations and infrastructure.
−Removed: If these suppliers fail to perform or we are unable to procure or experience significant delays with respect to needed products, materials or services, our financial position, results of operations and/or cash flows could be materially adversely effected.
+Added: If these suppliers fail to perform or we are unable to procure or experience significant delays with respect to needed products, materials or services, our financial position, results of operations and/or cash flows could be materially adversely affected.
We are dependent on numerous suppliers for various parts, materials, test services, facility operations and infrastructure who may, in turn, be affected by factors such as raw material availability, skilled personnel shortages, pandemics, major weather events or natural disasters and other impacts that affect their ability to provide the goods and services we require.
4 unchanged sentences
The time and cost associated with resolution of these issues may impact our financial performance.
−Removed: Consolidation of industry can result in elimination of suppliers or discontinuation of certain product lines upon which we are reliant, necessitating lifetime buys of components or the need to redesign electronics to incorporate different components, having a negative effect on our financial position, results of operations and/or cash flows.
+Added: Consolidation of the industry can result in elimination of suppliers or discontinuation of certain product lines upon which we are reliant, necessitating lifetime buys of components or the need to redesign electronics to incorporate different components, having a negative effect on our financial position, results of operations and/or cash flows.
Furthermore, latent supply chain quality issues may affect our product performance and reliability, which may damage our reputation and impact future business.
7 unchanged sentences
If we were to experience an unanticipated attrition with respect to these employees, it will be difficult for us to replace them on a timely basis.
−Removed: Adverse changes in global economic or geopolitical conditions may adversely effect of business operations and financial condition.
+Added: Adverse changes in global economic or geopolitical conditions may adversely affect business operations and financial condition.
Global economic and geopolitical conditions may adversely affect our business operations and financial condition.
32 unchanged sentences
We are subject to various investigations, claims, disputes, enforcement actions, litigation, and other legal proceedings that could ultimately be resolved against us.
−Removed: We have and may in the future become subject to investigations, claims, disputes, enforcement actions and administrative, civil or criminal litigation, arbitration or other legal proceedings across a broad array of matters, including government contracts, commercial transactions, false claims, false statements, compliance with government orders, mischarging, contract performance, fraud, procurement integrity, securities laws and requirements, products liability, warranties, hazardous materials, personal injury claims, environmental, stockholder derivative actions, acquisitions and divestitures, intellectual property, tax, corporate law and obligations, employment (including our prior litigation with our founder and former President, Chief Scientist and director), export/import, anti-corruption, debt and equity, labor, health and safety, the COVID-19 pandemic and the Company’s response to it, accidents, and employee benefits and plans, including plan administration, improper payments, and issues related to privacy and security (cyber and physical).
+Added: We have and may in the future become subject to investigations, claims, disputes, enforcement actions and administrative, civil or criminal litigation, arbitration or other legal proceedings across a broad array of matters, including government contracts, commercial transactions, false claims, false statements, compliance with government orders, mischarging, contract performance, fraud, procurement integrity, securities laws and requirements, products liability, warranties, hazardous materials, personal injury claims, environmental, stockholder derivative actions, acquisitions and divestitures, intellectual property, tax, corporate law and obligations, employment, export/import, anti-corruption, debt and equity, labor, health and safety, the COVID-19 pandemic and the Company’s response to it, accidents, and employee benefits and plans, including plan administration, improper payments, and issues related to privacy and security (cyber and physical).
These matters can divert financial and management resources;
6 unchanged sentences
Accordingly, investigations, claims, disputes, enforcement actions, litigation or other legal proceedings could have a material adverse effect on our financial position, results of operations and/or cash flows.
+Added: The Company ’ s failure to establish and maintain effective internal control over financial reporting resulted in a material misstatement of the audited consolidated financial statements in the Form 10-K for the fiscal year ended April 30, 2022 (the “ 2022 Form 10-K ” ).
+Added: Although we have remediated the material weakness, we cannot assure you that other material weaknesses in internal control over financial reporting will not occur in the future.
+Added: An ineffective control environment and could result in material misstatements in future consolidated financial statements.
+Added: Additionally, the Company ’ s failure to establish and maintain effective internal control over financial reporting could result in the Company ’ s failure to meet its reporting and financial obligations, which in turn could have a negative impact on its financial condition.
+Added: Maintaining effective internal control over financial reporting is necessary for us to produce reliable financial statements.
+Added: In the course of preparing the condensed consolidated financial statements for the second quarter of fiscal 2023, ended October 31, 2022, the Company identified revisions related to the calculations, and errors related to the presentation of contract assets and contract liabilities in the 2022 Form 10-K.
+Added: Following the identification of these prior errors and revisions, management re-evaluated the Company’s internal control over financial reporting as of April 30, 2022 and as of July 31, 2022 and identified certain deficiencies, which the Company concluded constituted material weaknesses in the Company’s internal control over financial reporting as of April 30, 2022 and for the three months ended July 31, 2022.
+Added: Under standards established by the Public Company Accounting Oversight Board (United States) (“PCAOB”), a material weakness is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.
+Added: A material weakness in the design of monitoring controls indicates that the Company has not sufficiently developed and/or documented internal controls by which management can review and oversee the Company’s financial information to detect and correct material errors or that the personnel responsible for performing the review did not have the sufficient skill set or knowledge of the subject matter to perform a proper assessment.
+Added: As a result of the material weaknesses, the Company’s management concluded that the audited consolidated financial statements included in the 2022 Form 10-K were materially misstated.
+Added: Accordingly, the Company filed the amendment to its 2022 Form 10-K in order to correct the audited consolidated financial statements for the fiscal year ended April 30, 2022.
+Added: The material weaknesses were due to revisions related to the calculations, and errors related to the presentation of contract assets and contract liabilities.
+Added: In response, the Company implemented the following remediation steps to address the material weaknesses:
+Added: The Company used additional checks and balances surrounding the calculations and formulas used, as well as additional verification checks regarding the presentation of contract assets and contract liabilities to comply with current reporting requirements.
+Added: As of April 30, 2023, the Company’s management believes the identified material weaknesses have been remediated.
+Added: The Company cannot assure you that new material weaknesses in our internal control over financial reporting will not arise in the future.
+Added: Any failure to maintain existing or implement required new or improved controls, or any difficulties we encounter in their implementation, could result in new material weaknesses in the Company’s internal control over financial reporting, could result in future material misstatements in its consolidated financial statements and cause the Company to fail to meet its reporting and financial obligations, which in turn could have a negative impact on the Company’s financial condition.
Risks Related to Information Technology and Intellectual Property
Our business could be adversely impacted by significant cybersecurity attacks.
−Removed: government defense industry contractor, the Company has experience cybersecurity attacks in the past and may be subjected to significant cybersecurity attacks in the future in an effort to, among other things, steal intellectual property, disrupt operations, embed ransomware, or initiate insider attacks.
+Added: Government defense industry contractor, the Company has experienced cybersecurity attacks in the past and may be subjected to significant cybersecurity attacks in the future in an effort to, among other things, steal intellectual property, disrupt operations, embed ransomware, or initiate insider attacks.
Although we implement various measures and controls to monitor and mitigate risks associated with these threats and to increase the cyber resiliency of our infrastructure and products, there can be no assurance that these processes will be sufficient.
6 unchanged sentences
Our stock price may continue to be volatile.
−Removed: The trading price of our common stock may continue to be volatile, which may adversely affect our investors in our common stock may experience substantial losses.
+Added: The trading price of our common stock may continue to be volatile.
+Added: As a result, investors in our common stock may experience substantial losses.
This volatility may or may not be related to our operating performance.
10 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.