7 unchanged sentences
Government programs, from which we derived approximately 98% and 95% of our sales in fiscal 2024 and fiscal 2023, respectively.
−Removed: These U.S Government programs may be only partially or incrementally funded and are subject to potential termination, may be subject to funding reductions and/or delays due to changes in government priorities or other factors.
+Added: These U.S Government programs may be only partially or incrementally funded and are subject to potential termination.
+Added: These programs may also be subject to funding reductions and/or delays due to changes in government priorities or other factors.
Whether direct contracts with the U.S.
6 unchanged sentences
If appropriations are delayed or a government shutdown was to occur and was to continue for an extended period of time, we could be at risk of program or contract cancellations and other disruptions and nonpayment.
−Removed: Finally, shifting funding priorities or federal budget changes, could also result in reductions in overall spending on our contracts and projects, which could adversely impact our business.
+Added: Finally, shifting funding priorities or federal budget changes, could also result in reductions in overall spending on our contracts and projects, which could adversely impact our business, financial condition, results of operations and/or cash flows.
Changes in funding priorities could reduce opportunities in existing programs and in future programs where we intend to compete.
19 unchanged sentences
Changes in estimated contract revenues and/or changes in costs can affect our profitability and our overall financial position.
−Removed: Contract accounting requires significant judgment by the Company’s management with respect to estimating contract revenues and costs.
+Added: Contract accounting requires significant judgment by the Company’s management with respect to estimating contract revenues and costs and making assumptions for possible schedule and technical issues.
+Added: These costs include planned costs for all phases of the contract and, if needed, costs for any technical issues that arise.
Due to the nature and complexity of many of our contracts, the estimation of total revenues and costs at completion is subject to many variables and often difficult to predict accurately.
21 unchanged sentences
We operate in a highly competitive industry focused on very high-performance products.
−Removed: Many of our competitors are larger, have greater financial resources and have larger research and development and marketing staffs.
−Removed: While we also maintain a robust internal research and development program that is intended to maintain our technical edge, the Company is limited in its resources and ultimately may not be able to successfully compete.
+Added: Many of our competitors are larger, have greater financial resources and have larger R&D and marketing staffs.
+Added: While we also maintain a robust internal R&D program that is intended to maintain our technical edge, the Company is limited in its resources and ultimately may not be able to successfully compete.
Technology is advancing rapidly, and if we are unable to respond effectively to competition, we may lose existing customers, fail to win future business or experience undue pricing pressures that could affect our financial performance.
2 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 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 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.
29 unchanged sentences
Global economic and geopolitical conditions may adversely affect our business operations and financial condition.
−Removed: Turmoil in world financial markets may impact our supply chain resulting in unavailability of key components and materials increasing costs due to delays, need to redesign certain electronics in order to mitigate shortages or schedule impacts and costs to establish alternate qualified suppliers.
−Removed: These impacts may affect our business due to customer cancellations, reduced demand for our products and increased costs, which impact our financial condition.
+Added: Turmoil in world financial markets may impact our supply chain resulting in unavailability of key components and materials, increasing costs due to delays, need to redesign certain electronics in order to mitigate shortages or schedule impacts and increasing costs to establish alternate qualified suppliers.
+Added: These impacts may adversely affect our business due to customer cancellations, reduced demand for our products and increased costs, which could impact our financial condition.
We are also subject to inflation and recessionary pressures.
4 unchanged sentences
Employees work in close proximity to one another.
−Removed: When an employee is positive for COVID-19 or suspected of being infected, other employees he or she has come in contact with may also be infected, with a cascading effect on the workforce.
−Removed: In addition to the time off to recover (or pass the CDC guideline isolation period), there is a need to clean and disinfect the areas where the employee was working and had frequented in the facility.
+Added: Therefore, if an employee is infected with a communicable disease, such as COVID-19, or suspected of being infected, other employees he or she has come in contact with may also be infected, with a cascading effect on the workforce.
+Added: In addition to the time off to recover, there is a need to clean and disinfect the areas where the employee was working and had frequented in the facility.
The nature of the Company’s business requires mostly “hands-on” activities related to design, manufacturing and testing.
30 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.
−Removed: 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 ” ).
−Removed: 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.
−Removed: An ineffective control environment and could result in material misstatements in future consolidated financial statements.
+Added: The Company has identified a material weakness in its internal control over financial reporting for the fiscal year ended April 30, 2024.
+Added: Although the Company ’ s failure to establish and maintain effective internal control over financial reporting has not resulted in a material misstatement of the Company ’ s prior annual or interim consolidated financial statements, such failure could result in material misstatements in future consolidated financial statements.
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.
Maintaining effective internal control over financial reporting is necessary for us to produce reliable financial statements.
−Removed: 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.
−Removed: 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.
−Removed: 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: As more fully disclosed in Part II, Item 9A “Controls and Procedures,” in the course of preparing the audited consolidated financial statements for this Annual Report on Form 10-K, the Company an identified error related to the calculation of the provision for losses on contracts.
+Added: We determined that we did not maintain adequate controls over to the review of the calculation of the loss provision, which the Company concluded constituted a material weakness in the Company’s internal control over financial reporting as of April 30, 2024.
+Added: Under standards established by the 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.
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.
−Removed: 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.
−Removed: 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.
−Removed: The material weaknesses were due to revisions related to the calculations, and errors related to the presentation of contract assets and contract liabilities.
−Removed: In response, the Company implemented the following remediation steps to address the material weaknesses:
−Removed: 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.
−Removed: As of April 30, 2023, the Company’s management believes the identified material weaknesses have been remediated.
−Removed: The Company cannot assure you that new material weaknesses in our internal control over financial reporting will not arise in the future.
−Removed: 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.
+Added: To remediate the material weakness, the Company has implemented changes to its loss provision calculation and enhanced its controls over the review of the loss provision calculation to ensure appropriateness.
+Added: The Company believes that its remediation plan will be sufficient to remediate the identified material weakness and strengthen its internal control over financial reporting.
+Added: The Company believes by April 30, 2025, the Company’s next annual reporting date, is sufficient time to remediate the material weakness fully or, if not fully remediated, to complete testing of the remediated controls.
+Added: As the Company continues to evaluate and work to improve its internal control over financial reporting, management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan.
+Added: Moreover, the Company cannot assure you that additional material weaknesses will not arise in the future.
+Added: Any failure to remediate the material weakness, or the development of 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
20 unchanged sentences
Due to the relatively low trading volume of our shares of common stock, the sale of a large number of shares of our outstanding common stock may significantly depress the price of our common stock.
−Removed: Unresolved Staff Comments
−Removed: Not Applicable.
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.