4 unchanged sentences
The risk factors described below do not contain any material changes from those previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 .
+Added: Risks Related to Our Business and Financial Condition
Unpredictable fluctuations in our operating results could cause our stock price to decline.
Our quarterly and annual revenues, expenses and operating results have varied significantly and are likely to vary in the future.
−Removed: For example, in the ten fiscal quarters ended September 30, 2020, we recorded net revenues of as much as $14.7 million and as little as $6.6 million and quarterly operating income of as much as $2.2 million and, in nine quarters, operating losses, including an operating loss of $5.7 million in the quarter ended June 30, 2020.
+Added: For example, in the eleven fiscal quarters ended December 31, 2020, we recorded net revenues of as much as $14.7 million and as little as $6.6 million, including net revenues varying from $6.6 million to $6.8 million in the last three quarters and quarterly operating income of as much as $2.2 million and, in ten quarters, operating losses, including operating losses varying from $5.2 million to $5.7 million in the last three quarters ended December 31, 2020.
We therefore believe that period-to-period comparisons of our operating results are not a good indication of our future performance, and you should not rely on them to predict our future performance or the future performance of our stock price.
−Removed: In future periods, we may not have any revenue growth, or our revenues could decline or continue to be further adversely impacted by the COVID-19 global pandemic.
+Added: For the last three consecutive quarters, our net revenues were adversely impacted by the COVID-19 global pandemic.In future periods, we may not have any revenue growth, or our revenues could decline or continue to be further adversely impacted by the COVID-19 global pandemic.
Furthermore, if our operating expenses exceed our expectations, our financial performance could be adversely affected.
18 unchanged sentences
Nokia, our largest customer, purchases our products directly from us and through contract manufacturers and distributors.
−Removed: Purchases by Nokia represented approximately 39%, 38%, 45% and 36% of our net revenues in the six months ended September 30, 2020 and in fiscal 2020, 2019 and 2018, respectively.
−Removed: We expect that our operating results in any given period will continue to depend significantly on orders from our key OEM customers, particularly Nokia, and our future success is dependent to a large degree on the business success of this customer over which we have no control.
+Added: Purchases by Nokia represented approximately 40%, 38%, 45% and 36% of our net revenues in the nine months ended December 31, 2020 and in fiscal 2020, 2019 and 2018, respectively.
+Added: We expect that our
+Added: operating results in any given period will continue to depend significantly on orders from our key OEM customers, particularly Nokia, and our future success is dependent to a large degree on the business success of this customer over which we have no control.
We do not have long-term contracts with Nokia or any of our other major OEM customers, distributors or contract manufacturers that obligate them to purchase our products.
−Removed: We expect that
−Removed: future direct and indirect sales to Nokia and our other key OEM customers will continue to fluctuate significantly on a quarterly basis and that such fluctuations may substantially affect our operating results in future periods.
+Added: We expect that future direct and indirect sales to Nokia and our other key OEM customers will continue to fluctuate significantly on a quarterly basis and that such fluctuations may substantially affect our operating results in future periods.
The decline in economic activity resulting from the COVID-19 global pandemic is expected to cause a continued reduction in orders from Nokia and our other key OEM customers.
8 unchanged sentences
We have instituted many preventative measures and are regularly evaluating those measures and others as we continue to better understand our current and future operating environment.
−Removed: Except for our employees located in Taiwan, the majority of our employees are working from home around the world, and productivity remains high.
+Added: Except for our employees located in Taiwan, the majority of our employees are working from home around the world.
We have maintained a substantial portion of our manufacturing operational capacity at our primary manufacturing support facility located in Hsin Chu, Taiwan where our suppliers are located and where all of our products are manufactured.
3 unchanged sentences
Our revenues have been and are expected to continue to be impacted by changes in customer buying patterns and communication limitations related to shelter in place restrictions that require a significant number of our customer contacts to work from home.
−Removed: We may experience a number of adverse impacts as a result of the COVID-19 global pandemic, including reductions in demand for our products, delays and cancellations of orders, difficulties in obtaining raw materials and components, shortages of labor to manufacture products, inefficiencies caused by remote worker’s difficulties in performing their normal work outputs, closures of the facilities of some of our suppliers and customers, delays in shipments and delays in collecting accounts receivable.
−Removed: Although we cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it is expected to have an adverse effect on our results of operations, financial position, and liquidity during fiscal year 2021.
+Added: We have experienced, and expect to continue to experience, a number of adverse impacts as a result of the COVID-19 global pandemic, including reductions in demand for our products, delays and cancellations of orders, difficulties in obtaining raw materials and components, shortages of labor to manufacture products, inefficiencies caused by remote worker’s difficulties in performing their normal work outputs, closures of the facilities of some of our suppliers and customers, delays in shipments and delays in collecting accounts receivable.
+Added: Although we cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it is expected to have an adverse effect on our results of operations, financial position, and liquidity during fiscal year 2021 and into fiscal year 2022.
This includes results from new information that may emerge concerning COVID-19 and any actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets.
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We have incurred significant losses.
−Removed: We incurred net losses of $10.3 million and $4.5 million during fiscal 2020 and 2018, respectively.
+Added: We incurred net losses of $10.3 million and $4.5 million during fiscal 2020 and 2018, respectively, and a net loss of $16.5 million during the nine months ended December 31, 2020.
There can be no assurance that our Very Fast SRAMs will continue to receive broad market acceptance, that our new product development initiatives will be successful or that we will be able to achieve sustained revenue growth or profitability.
6 unchanged sentences
Our future success is substantially dependent on the successful development of new in-place associative computing products which entails significant risks.
−Removed: Since 2015, our principal strategic objective has been the development of a new category of in-place associative computing products based on patented technology that we acquired in the acquisition.
+Added: Since 2015, our principal strategic objective has been the development of a new category of in-place associative computing products.
We have devoted, and are continuing to devote, substantial efforts and resources to this development effort.
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Our failure to compete successfully in these or other areas could harm our business.
−Removed: Current unfavorable economic and market conditions, domestically and internationally, may adversely affect our business, financial condition, results of operations and cash flows.
−Removed: We have significant customer sales both in the United States and internationally.
−Removed: We also rely heavily on our suppliers in Asia.
−Removed: We are therefore susceptible to adverse U.S.
−Removed: and international economic and market conditions, including the economic difficulties resulting from the COVID-19 global pandemic that currently exist in the United States and worldwide.
−Removed: If any of our manufacturing partners, customers, distributors or suppliers experiences serious financial difficulties or ceases operations, our business could be adversely affected.
We are dependent on a number of single source suppliers, and if we fail to obtain adequate supplies, our business will be harmed and our prospects for growth will be curtailed.
1 unchanged sentence
If any of these suppliers cannot provide components on a timely basis, at the same price or at all, our ability to manufacture our products will be constrained and our business will suffer.
−Removed: For example, due to the COVID-19 global pandemic, we could see additonal disruptions in our supply chain beyond the longer leadtimes for the purchase of wafers and assembly services that we are currently experiencing.
+Added: For example, due to the COVID-19 global pandemic, we could see additional disruptions in our supply chain beyond the longer lead-times for the purchase of wafers and assembly services that we are currently experiencing.
Most significantly, we obtain wafers for our Very Fast SRAM and APU products from a single foundry, TSMC, and most of them are packaged at ASE.
8 unchanged sentences
A significant percentage of our sales are made to distributors and to contract manufacturers who incorporate our products into end products for OEMs.
−Removed: For example, in the six months ended September 30, 2020 and in fiscal 2020, 2019 and 2018, our largest distributor Avnet Logistics accounted for 31.5%, 34.3%, 31.3% and 35.3%, respectively, of our net revenues.
+Added: For example, in the nine months ended December 31, 2020 and in fiscal 2020, 2019 and 2018, our largest distributor Avnet Logistics accounted for 31.0%, 34.3%, 31.3% and 35.3%, respectively, of our net revenues.
Avnet Logistics and our other existing distributors may choose to devote greater resources to marketing and supporting the products of other companies.
2 unchanged sentences
These conflicts may harm our business or reputation.
+Added: Because we outsource our wafer manufacturing and independent wafer foundry capacity is limited, we may be required to enter into costly long-term supply arrangements to secure foundry capacity.
+Added: We do not have a long-term supply agreement with TSMC, but instead obtain our wafers on a purchase order basis.
+Added: In order to secure future wafer supply from TSMC or from other independent foundries, we may be required to enter into various arrangements with them, which could include:
+Added: ● contracts that commit us to purchase specified quantities of wafers over extended periods;
+Added: ● investments in and joint ventures with the foundries;
+Added: ● non-refundable deposits with or prepayments or loans to foundries in exchange for capacity commitments.
+Added: We may not be able to make any of these arrangements in a timely fashion or at all, and these arrangements, if any, may not be on terms favorable to us.
+Added: Moreover, even if we are able to secure independent foundry capacity, we may be obligated to use all of that capacity or incur penalties.
+Added: These penalties may be expensive and could harm our financial results.
+Added: If we are unable to offset increased wafer fabrication and assembly costs by increasing the average selling prices of our products, our gross margins will suffer.
+Added: If there is a significant upturn in the demand for the manufacturing and assembly of semiconductor products as has incurred in recent months as a result of the COVID-19 global pandemic, the available supply of wafers and packaging services may be limited.
+Added: As a result, we could be required to obtain additional manufacturing and assembly capacity in order to meet increased demand.
+Added: Securing additional manufacturing and assembly capacity may cause our wafer fabrication and assembly costs to increase.
+Added: If we are unable to offset these increased costs by increasing the average selling prices of our products, our gross margins will decline.
+Added: The average selling prices of our products are expected to decline, and if we are unable to offset these declines, our operating results will suffer.
+Added: Historically, the average unit selling prices of our products have declined substantially over the lives of the products, and we expect this trend to continue.
+Added: A reduction in overall average selling prices of our products could result in reduced revenues and lower gross margins.
+Added: Our ability to increase our net revenues and maintain our gross margins despite a decline in the average selling prices of our products will depend on a variety of factors, including our ability to introduce lower cost versions of our existing products, increase unit sales volumes of these products, and introduce new products with higher prices and greater margins.
+Added: If we fail to accomplish any of these objectives, our business will suffer.
+Added: To reduce our costs, we may be required to implement design changes that lower our manufacturing costs, negotiate reduced purchase prices from our independent foundries and our independent assembly and test vendors, and successfully manage our manufacturing and subcontractor relationships.
+Added: Because we do not operate our own wafer foundry or assembly facilities, we may not be able to reduce our costs as rapidly as companies that operate their own foundries or facilities.
+Added: Current unfavorable economic and market conditions, domestically and internationally, may adversely affect our business, financial condition, results of operations and cash flows.
+Added: We have significant customer sales both in the United States and internationally.
+Added: We also rely heavily on our suppliers in Asia.
+Added: We are therefore susceptible to adverse U.S.
+Added: and international economic and market conditions, including the economic difficulties resulting from the COVID-19 global pandemic that currently exist in the United States and worldwide.
+Added: If any of our manufacturing partners, customers, distributors or suppliers experience serious financial difficulties or ceases operations, our business could be adversely affected.
System security risks, data protection, cyber-attacks and systems integration issues could disrupt our internal operations or the operations of our business partners, and any such disruption could harm our reputation or cause a reduction in our expected revenue, increase our expenses, negatively impact our results of operation or otherwise adversely affect our stock price.
16 unchanged sentences
A small number of customers generally account for a significant portion of our accounts receivable in any period, and if any one of them fails to pay us, our financial position and operating results will suffer.
−Removed: At September 30, 2020, three customers accounted for 36%, 36% and 14% of our accounts receivable, respectively.
+Added: At December 31, 2020, three customers accounted for 41%, 23% and 19% of our accounts receivable, respectively.
If any of these customers do not pay us, our financial position and operating results will be harmed.
Generally, we do not require collateral from our customers.
−Removed: Because we outsource our wafer manufacturing and independent wafer foundry capacity is limited, we may be required to enter into costly long-term supply arrangements to secure foundry capacity.
−Removed: We do not have a long-term supply agreement with TSMC, but instead obtain our wafers on a purchase order basis.
−Removed: In order to secure future wafer supply from TSMC or from other independent foundries, we may be required to enter into various arrangements with them, which could include:
−Removed: ● contracts that commit us to purchase specified quantities of wafers over extended periods;
−Removed: ● investments in and joint ventures with the foundries;
−Removed: ● non-refundable deposits with or prepayments or loans to foundries in exchange for capacity commitments.
−Removed: We may not be able to make any of these arrangements in a timely fashion or at all, and these arrangements, if any, may not be on terms favorable to us.
−Removed: Moreover, even if we are able to secure independent foundry capacity, we may be obligated to use all of that capacity or incur penalties.
−Removed: These penalties may be expensive and could harm our financial results.
−Removed: The average selling prices of our products are expected to decline, and if we are unable to offset these declines, our operating results will suffer.
−Removed: Historically, the average unit selling prices of our products have declined substantially over the lives of the products, and we expect this trend to continue.
−Removed: A reduction in overall average selling prices of our products could result in reduced revenues and lower gross margins.
−Removed: Our ability to increase our net revenues and maintain our gross margins despite a decline in the average selling prices of our products will depend on a variety of factors, including our ability to introduce lower cost versions of our existing products, increase unit sales volumes of these products, and introduce new products with higher prices and greater margins.
−Removed: If we fail to accomplish any of these objectives, our business will suffer.
−Removed: To reduce our costs, we may be required to implement design changes that lower our manufacturing costs, negotiate reduced purchase prices from our independent foundries and our independent assembly and test vendors, and successfully manage our manufacturing and subcontractor relationships.
−Removed: Because we do not operate our own wafer foundry or assembly facilities, we may not be able to reduce our costs as rapidly as companies that operate their own foundries or facilities.
+Added: Demand for our products may decrease if our OEM customers experience difficulty manufacturing, marketing or selling their products.
+Added: Our products are used as components in our OEM customers’ products, including routers, switches and other networking and telecommunications products.
+Added: Accordingly, demand for our products is subject to factors affecting the ability of our OEM customers to successfully introduce and market their products, including:
+Added: ● capital spending by telecommunication and network service providers and other end-users who purchase our OEM customers’ products;
+Added: ● the competition our OEM customers face, particularly in the networking and telecommunications industries;
+Added: ● the technical, manufacturing, sales and marketing and management capabilities of our OEM customers;
+Added: ● the financial and other resources of our OEM customers;
+Added: ● the inability of our OEM customers to sell their products if they infringe third-party intellectual property rights.
+Added: As a result, if OEM customers reduce their purchases of our products, our business will suffer.
+Added: Our products have lengthy sales cycles that make it difficult to plan our expenses and forecast results.
+Added: Our products are generally incorporated in our OEM customers’ products at the design stage.
+Added: However, their decisions to use our products often require significant expenditures by us without any assurance of success, and often precede volume sales, if any, by a year or more.
+Added: If an OEM customer decides at the design stage not to incorporate our products into their products, we will not have another opportunity for a design win with respect to that customer’s product for many months or years, if at all.
+Added: Our sales cycle can take up to 24 months to complete, and because of this lengthy sales cycle, we may experience a delay between increasing expenses for research and development and our sales and marketing efforts and the generation of volume production revenues, if any, from these expenditures.
+Added: Moreover, the value of any design win will largely depend on the commercial success of our OEM customers’ products.
+Added: There can be no assurance that we will continue to achieve design wins or that any design win will result in future revenues.
+Added: Any significant order cancellations or order deferrals could adversely affect our operating results.
+Added: We typically sell products pursuant to purchase orders that customers can generally cancel or defer on short notice without incurring a significant penalty.
+Added: Any significant cancellations or deferrals in the future could materially and adversely affect our business, financial condition and results of operations.
+Added: Cancellations or deferrals could cause us to hold excess inventory, which could reduce our profit margins, increase product obsolescence and restrict our ability to fund our operations.
+Added: We generally recognize revenue upon shipment of products to a customer.
+Added: If a customer refuses to accept shipped products or does not pay for these products, we could miss future revenue projections or incur significant charges against our income, which could materially and adversely affect our operating results.
Claims that we infringe third party intellectual property rights could seriously harm our business and require us to incur significant costs.
10 unchanged sentences
Although patent disputes in the semiconductor industry have often been settled through cross-licensing arrangements, we may not be able in any or every instance to settle an alleged patent infringement claim through a cross-licensing arrangement in part because we have a more limited patent portfolio than many of our competitors.
−Removed: If a successful claim is made against us or any of our customers and a license is not made available to us on
−Removed: commercially reasonable terms or we are required to pay substantial damages or awards, our business, financial condition and results of operations would be materially adversely affected.
+Added: If a successful claim is made against us or any of our customers and a license is not made available to us on commercially reasonable terms or we are required to pay substantial damages or awards, our business, financial condition and results of operations would be materially adversely affected.
Our acquisition of companies or technologies could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results.
26 unchanged sentences
The failure to recruit and retain necessary technical, managerial, sales, marketing and administrative personnel could harm our business and our ability to obtain new OEM customers and develop new products.
−Removed: If we are unable to offset increased wafer fabrication costs by increasing the average selling prices of our products, our gross margins will suffer.
−Removed: If there is a significant upturn in the networking and telecommunications markets that results in increased demand for our products and competing products, the available supply of wafers may be limited.
−Removed: As a result, we could be required to obtain additional manufacturing capacity in order to meet increased demand.
−Removed: Securing additional manufacturing capacity may cause our wafer fabrication costs to increase.
−Removed: If we are unable to offset these increased costs by increasing the average selling prices of our products, our gross margins will decline.
Our business will suffer if we are unable to protect our intellectual property.
18 unchanged sentences
We continuously evaluate the benefits of migrating to smaller geometry process technologies in order to improve performance and reduce costs.
−Removed: Historically, these migrations to new manufacturing processes have resulted in significant initial design and development costs associated with pre-production mask sets for the manufacture of
−Removed: new products with smaller geometry process technologies.
+Added: Historically, these migrations to new manufacturing processes have resulted in significant initial design and development costs associated with pre-production mask sets for the manufacture of new products with smaller geometry process technologies.
For example, in the second quarter of fiscal 2019, we incurred approximately $1.0 million in research and development expense associated with a pre-production mask set that will not be used in production as part of the transition to our new 28 nanometer SRAM process technology for our APU product.
11 unchanged sentences
This write-off adversely affected our operating results for fiscal 2006.
−Removed: Demand for our products may decrease if our OEM customers experience difficulty manufacturing, marketing or selling their products.
−Removed: Our products are used as components in our OEM customers’ products, including routers, switches and other networking and telecommunications products.
−Removed: Accordingly, demand for our products is subject to factors affecting the ability of our OEM customers to successfully introduce and market their products, including:
−Removed: ● capital spending by telecommunication and network service providers and other end-users who purchase our OEM customers’ products;
−Removed: ● the competition our OEM customers face, particularly in the networking and telecommunications industries;
−Removed: ● the technical, manufacturing, sales and marketing and management capabilities of our OEM customers;
−Removed: ● the financial and other resources of our OEM customers;
−Removed: ● the inability of our OEM customers to sell their products if they infringe third-party intellectual property rights.
−Removed: As a result, if OEM customers reduce their purchases of our products, our business will suffer.
−Removed: Our products have lengthy sales cycles that make it difficult to plan our expenses and forecast results.
−Removed: Our products are generally incorporated in our OEM customers’ products at the design stage.
−Removed: However, their decisions to use our products often require significant expenditures by us without any assurance of success, and often precede volume sales, if any, by a year or more.
−Removed: If an OEM customer decides at the design stage not to incorporate our products into their products, we will not have another opportunity for a design win with respect to that customer’s product for many months or years, if at all.
−Removed: Our sales cycle can take up to 24 months to complete, and because of this lengthy sales cycle, we may experience a delay between increasing expenses for research and development and our sales and marketing efforts and the generation of volume production revenues, if any, from
−Removed: these expenditures.
−Removed: Moreover, the value of any design win will largely depend on the commercial success of our OEM customers’ products.
−Removed: There can be no assurance that we will continue to achieve design wins or that any design win will result in future revenues.
−Removed: Any significant order cancellations or order deferrals could adversely affect our operating results.
−Removed: We typically sell products pursuant to purchase orders that customers can generally cancel or defer on short notice without incurring a significant penalty.
−Removed: Any significant cancellations or deferrals in the future could materially and adversely affect our business, financial condition and results of operations.
−Removed: Cancellations or deferrals could cause us to hold excess inventory, which could reduce our profit margins, increase product obsolescence and restrict our ability to fund our operations.
−Removed: We generally recognize revenue upon shipment of products to a customer.
−Removed: If a customer refuses to accept shipped products or does not pay for these products, we could miss future revenue projections or incur significant charges against our income, which could materially and adversely affect our operating results.
If our business grows, such growth may place a significant strain on our management and operations and, as a result, our business may suffer.
7 unchanged sentences
Our international business exposes us to additional risks.
−Removed: Products shipped to destinations outside of the United States accounted for 56.2%, 59.6%, 62.5% and 51.5% of our net revenues in the six months ended September 30, 2020 and in fiscal 2020, 2019 and 2018, respectively.
+Added: Products shipped to destinations outside of the United States accounted for 53.3%, 59.6%, 62.5% and 51.5% of our net revenues in the nine months ended December 31, 2020 and in fiscal 2020, 2019 and 2018, respectively.
Moreover, a substantial portion of our products is manufactured and tested in Taiwan, and the software development for our associative computing products occurs in Israel.
18 unchanged sentences
We do not currently engage in currency hedging activities to reduce the risk of financial exposure from fluctuations in foreign exchange rates.
−Removed: The United States could withdraw from or materially modify certain international trade agreements, or change tax provisions related to the global manufacturing and sales of our products.
−Removed: A portion of our business activities are conducted in foreign countries, including Taiwan and Israel.
−Removed: Our business benefits from free trade agreements, and we also rely on various U.S.
−Removed: corporate tax provisions related to international commerce as we develop, manufacture, market and sell our products globally.
−Removed: Any action to withdraw from or materially modify international trade agreements, change corporate tax policy related to international commerce or mandate domestic production of goods, could adversely affect our business, financial condition and results of operations.
Changes in Taiwan’s political, social and economic environment may affect our business performance.
14 unchanged sentences
In addition, our business could be harmed if such an outbreak resulted in travel being restricted, the implementation of stay-at-home or shelter-in-place orders or if it adversely affected the operations of our OEM customers or the demand for our products or our OEM customers’ products.
+Added: The United States could materially modify certain international trade agreements, or change tax provisions related to the global manufacturing and sales of our products.
+Added: A portion of our business activities are conducted in foreign countries, including Taiwan and Israel.
+Added: Our business benefits from free trade agreements, and we also rely on various U.S.
+Added: corporate tax provisions related to international commerce as we develop, manufacture, market and sell our products globally.
+Added: Any action to materially modify international trade agreements, change corporate tax policy related to international commerce or mandate domestic production of goods, could adversely affect our business, financial condition and results of operations.
We may need to raise additional capital in the future, which may not be available on favorable terms or at all, and which may cause dilution to existing stockholders.
16 unchanged sentences
Other countries, including at the federal and state levels in the United States, are also considering similar laws and regulations.
−Removed: Certain electronic products that we maintain in inventory may be rendered obsolete if they are not in compliance with such laws and regulations, which could negatively impact our ability to generate revenue from those products.
+Added: Certain electronic products that we maintain in inventory may be rendered obsolete if they are not in compliance with such laws and regulations, which could negatively impact our ability to generate revenue from
+Added: those products.
Although we cannot predict the ultimate impact of any such new laws and regulations, they will likely result in additional costs, or in the worst case decreased revenue, and could even require that we redesign or change how we manufacture our products.
Such redesigns result in additional costs and possible delayed or lost revenue.
+Added: Risks Relating to Our Common Stock and the Securities Market
The trading price of our common stock is subject to fluctuation and is likely to be volatile.
The trading price of our common stock may fluctuate significantly in response to a number of factors, some of which are beyond our control, including:
+Added: ● the establishment of a market for our new associative computing products;
● actual or anticipated declines in operating results;
16 unchanged sentences
From November 2008 through December 2019 we repurchased and retired an aggregate of 12,004,779 shares of our common stock at a total cost of $60.7 million, including 3,846,153 shares repurchased at a total cost of $25 million pursuant to a modified “Dutch auction” self-tender offer that we completed in August 2014 and additional shares repurchased in the open market pursuant to our stock repurchase program.
−Removed: At September 30, 2020, we had outstanding authorization from our Board of Directors to purchase up to an additional $4.3 million of our common stock from time to time under our repurchase program.
+Added: At December 31, 2020, we had outstanding authorization from our Board of Directors to purchase up to an additional $4.3 million of our common stock from time to time under our repurchase program.
Although our Board has determined that these repurchases are in the best interests of our stockholders, they expose us to certain risks including:
3 unchanged sentences
Our executive officers, directors and entities affiliated with them hold a substantial percentage of our common stock.
−Removed: As of October 31, 2020 , our executive officers, directors and entities affiliated with them beneficially owned approximately 35% of our outstanding common stock.
+Added: As of January 31, 2021 , our executive officers, directors and entities affiliated with them beneficially owned approximately 35% of our outstanding common stock.
As a result, these stockholders will be able to exercise substantial influence over, and may be able to effectively control, matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions, which could have the effect of delaying or preventing a third party from acquiring control over or merging with us.
15 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.