Item 1A. Risk Factors
ITEM 1A.
RISK FACTORS
The COVID-19
pandemic has spread across the globe and continues to negatively impact worldwide economic activity and has impacted our
Company in a number of ways. COVID-19 has increased the risk that the Company or its employees, suppliers, customers
and other commercial partners may be prevented from conducting business for an indefinite period of time, including due to
the spread of the disease or shutdowns requested or mandated by governmental authorities. Specifically, COVID-19 has
increased the risk of customers’ inability to pay for our products and services and has the potential to impact
collections of accounts receivable. The Company has transitioned some of its employees to working remotely,
which subjects the Company to increased cybersecurity risks and may reduce workplace efficiency. Business shutdowns have
disrupted our supply chain and the manufacture or shipment of our products and have delayed the rollout of our smart enabled
retail products to big box retail stores.
The full extent of
COVID-19’s negative impact on our business remains uncertain and it is not possible at this time to estimate the full impact
that COVID-19 will have on our business. Any of the issues discussed above could have a material adverse effect on our business
if this continues for an extended period of time. If we incur significant declines in customer orders, increased aging of accounts
receivable or other negative consequences due to COVID-19, the extent of which remains highly uncertain, it will have a material
adverse effect on our business, financial condition and results of operations.
While we attempt
to identify, manage, and mitigate risks and uncertainties associated with our business to the extent practical under the circumstances,
some level of risk and uncertainty will always be present. Item 1A - “Risk Factors” in the Form 10-K describes some
of the risks and uncertainties associated with our business, which we strongly encourage you to review. These risks and uncertainties
have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results,
and future prospects. There have been no material changes in our risk factors from those disclosed in the Form 10-K.
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