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.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
There
were no unregistered sales of the Company’s equity securities during the 2021 Quarter that were not previously disclosed in a Current
Report on Form 8-K.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not Applicable.
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