Item 1A. Risk Factors
ITEM 1A. RISK FACTORS AND CYBERSECURITY
In addition to the disclosure below, we incorporate by reference the risk factors disclosed in our 2024 10-K. See also "Liquidity and Capital Resources" above.
Rising threats of international tariffs may have an adverse impact on our business.
We rely on several suppliers for purchasing the raw materials used in the manufacture and production of our goods. In fiscal year 2024 and the nine months ending March 31, 2025, approximately 16% and 20%, respectively, of our materials were sourced from foreign suppliers, including 5% and 8% in fiscal year 2024 and the nine months ending March 31, 2025, respectively, from China. The Trump Administration has imposed steep tariffs on the import of goods from several countries from which we purchase raw materials and finished goods. This increase in tariffs could adversely affect our business and our results of operations. The imposition of additional tariffs fluctuates dramatically, creating uncertainty in global markets. These tariffs apply directly to a small portion of our materials. As a result, we may be forced to implement price increases to adjust to the higher costs of production and sale of our products in the future, which carries the risk of reduced demand for such products, thus lowering sales and resulting revenue. Additionally, future tariffs or any additional costs or restrictions imposed on imported materials that lead to an increase in our prices may result in a loss of customers and harm our business.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
Except as otherwise previously disclosed, the Company did not sell any unregistered securities during the period covered by this report.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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