MARINEMAX INC 10-Q

ITEM 1. LEGAL PROCEEDINGS We are party to various legal actions arising in the ordinary course of business. While it is not feasible to determine the actual outcome of these actions as of March 31, 2022, we do not believe that these matters will have a material adverse effect on our unaudited condensed consolidated financial condition, result of operations, or cash flows. 26 ITEM 1A. RI SK FACTORS The Ukraine crisis could have a significant adverse effect on our business, results of operations, financial condition, and cash flow in the future. The Ukraine crisis raises a host of potential threats and risk factors to consider even though we do not conduct significant business directly in Ukraine or Russia. Sanctions brought against Russia will impact the import, export, sale, and supply of goods and services with companies located in the U.S. and other regions. Many companies have ceased all operations in Russia with significant expected short-term and long-term losses. This will likely have a negative impact on the global economy and will likely affect economic and capital markets. A downturn in the economy could adversely affect our financial performance. In light of the dramatic sanctions imposed against Russia, we also need to consider the threat of a cyber-attack. The U.S. Cyber-security and Infrastructure Security Agency recently issued a warning of the risk of Russian cyber-attacks on U.S. networks and critical infrastructure. While we do not think we are a likely target of a cyber-attack, we will be diligent in our controls over IT and strive to ensure the protection of our company's, employees', vendors', and customers' data. If we do fall victim to such attack, it could have an adverse effect on our business operations.