In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition, cash flows or future results.
−Removed: Any one of these factors could cause the Company’s actual results to vary materially from recent results or from anticipated future results.
+Added: Any one of these factors could cause the Company’s actual results to vary materially from recent results or from anticipated future results.
The risks described below are not the only risks facing our Company.
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Risks Related to Our Strategy
−Removed: Lower levels of economic activity in our end markets could adversely affect our operating results. 
−Removed: Our operating results may be adversely affected by unfavorable economic, political and market conditions. 
+Added: Lower levels of economic activity in our end markets could adversely affect our operating results.
The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations.
−Removed: The markets in which we operate are subject to competitive pressures that could affect selling prices, and therefore could adversely affect our operating results. 
−Removed: We have a concentration of net sales to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business. 
+Added: The markets in which we operate are subject to competitive pressures that could affect selling prices, and therefore could adversely affect our operating results.
+Added: Two of our largest market verticals are to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business.
The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits.
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Risks Related to our Operations
−Removed: Sudden or unexpected changes in a customer’s creditworthiness could result in significant accounts receivable write-offs.
−Removed: Price increases, significant shortages of raw materials and components, shortages in transportation and an increase in fuel prices could adversely affect our operating margin. 
+Added: Sudden or unexpected changes in a customer’s creditworthiness could result in significant accounts receivable write-offs.
+Added: Price increases in, and significant shortages of, raw materials and components;
+Added: and shortages in transportation and increased fuel prices could adversely affect our operating margin.
Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control .
Labor shortages or increases in labor costs could adversely impact our business and results of operations.
−Removed: If the Company’s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims.
−Removed: Changes in a customer’s demands and commitment to proprietary inventory could result in significant inventory write-offs.
+Added: If the Company’s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims.
+Added: Changes in a customer’s demands and commitment to proprietary inventory could result in significant inventory write-offs.
The turnover of independent commissioned sales representatives could cause a significant disruption in sales volume.
The Company may be unable to sustain significant customer and/or channel partner relationships.
−Removed: A loss of key personnel or inability to attract qualified personnel could have an adverse effect on our operating results. 
+Added: A loss of key personnel or inability to attract qualified personnel could have an adverse effect on our operating results.
Changes in a shift in product mix can have a significant impact on our gross margins.
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trade policies could have a material adverse effect on the Company.
+Added: Changes in our tax rates and exposures to additional income tax liabilities could have an unfavorable effect on the Company’s reported results.
+Added: Emphasis on environmental, social, and governance (“ESG”) matters by various stakeholders could negatively affect our business.
Risks Related to Financial Matters
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Anti-takeover provisions in our organizational documents and in Ohio law could make difficult or delay a change in management or negatively impact our share price.
+Added: Due to inherent limitations, there can be no assurance that our system of disclosure and internal controls and procedures will be successful in preventing all errors, theft, and fraud, or in informing management of all material information in a timely manner.
RISKS RELATED TO OUR STRATEGY
Lower levels of economic activity in our end markets could adversely affect our operating results.
−Removed: Our businesses operate in several market segments including the refueling and convenience store markets, parking lot and garage markets, quick-service restaurant market, retail and grocery store markets, the automotive market, the warehouse market, and the sports complex market.
+Added: Our businesses operate in several vertical market segments including the refueling and convenience store markets, parking lot and garage markets, quick-service restaurant market, retail and grocery store markets, the automotive market, the warehouse market, and the sports complex market.
Operating results can be negatively impacted by volatility in these markets.
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In addition, customer difficulties in the future could result from economic declines or issues arising from the cyclical nature of their business and, in turn, result in decreases in product demand, increases in bad debt write-offs, decreases in timely collection of accounts receivable and adjustments to our allowance for credit losses, resulting in material reductions to our revenues and net earnings.
−Removed: Our operating results may be adversely affected by unfavorable economic, political and market conditions.
−Removed: Economic and political conditions worldwide have from time to time contributed to slowdowns in our industry at large, as well as to the specific markets in which we operate.
−Removed: When combined with ongoing customer consolidation activity, an uncertain macro-economic and political climate, including but not limited to a recession or inflationary pressures, and the effects of possible weakness in domestic and foreign financial and credit markets, could lead to reduced demand from our customers and increased price competition for our products, increased risk of excess and obsolete inventories and uncollectible receivables, and higher overhead costs as a percentage of revenue.
−Removed: If the markets in which we participate experience further economic downturns, as well as a slow recovery period, this could negatively impact our sales and revenue generation, margins, and operating expenses, and consequently have a material adverse effect on our business, financial condition and results of operations.
+Added: In addition, economic and political conditions worldwide have from time to time contributed to slowdowns in our industry at large, as well as to the specific markets in which we operate.
+Added: If the markets in which we participate experience economic downturns, as well as a slow recovery period, this could negatively impact our sales and revenue generation, margins, and operating expenses, and consequently have a material adverse effect on our business, financial condition and results of operations.
The inability to effectively execute our business strategies could adversely affect our financial condition and results of operations.
Various uncertainties and risks are associated with our approach to strategically penetrate existing and new market verticals, including but not limited to, the development, marketing and selling of new products and solutions, new product development, and the overall development, marketing, and selling of lighting and display solutions.
−Removed: Those uncertainties and risks include but are not limited to diversion of management’s attention;
+Added: Those uncertainties and risks include but are not limited to diversion of management’s attention;
difficulty in retaining or attracting employees;
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Accordingly, currency fluctuations could cause our U.S.
−Removed: dollar-priced products to be less competitive than our competitors’
−Removed: products which are priced in other currencies.
+Added: dollar-priced products to be less competitive than our competitors’ products which are priced in other currencies.
Aggressive pricing actions of our competitors could affect prices we charge our customers or demand for our products, which could adversely affect our operating results.
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We may not have sufficient resources to continue to make such investments and we may be unable to maintain our competitive position.
−Removed: We have a concentration of net sales to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business.
+Added: Two of our largest market verticals are to the refueling and convenience store and grocery markets, and any substantial change in these markets could have an adverse effect on our business.
The Company has a concentration of sales in the refueling and convenience store and grocery markets.
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The operating environment for the grocery market continues to be characterized by the fragmentation of local, regional, and national retailers, including both retail and digital formats, market consolidation, intense competition, and entry of non-traditional competitors.
−Removed: Customer behavior shifted quickly and considerably during the pandemic, including a shift from dining away from home to food at home.
The changing operating environment along with changes in customer behaviors within the grocery market could have an adverse impact on the purchasing decisions by one or more of our larger customers in this market.
−Removed: In addition, actions by our competitors, our customer’s financial constraints, and industry factors or otherwise, could have an adverse effect on our business in either of these markets.
+Added: In addition, actions by our competitors, our customer’s financial constraints, and industry factors or otherwise, could have an adverse effect on our business in either of these markets.
The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits
−Removed: The Company has grown and strengthened its business through strategic acquisitions and will continue to do so as opportunities arise in the future in order to meet the Company’s growth objectives.
+Added: The Company has grown and strengthened its business through strategic acquisitions and will continue to do so as opportunities arise in the future in order to meet the Company’s growth objectives.
The Company will benefit from such activity only to the extent that it can effectively leverage and integrate the assets or capabilities of the acquired businesses including, but not limited to, personnel, technology, and operating processes.
−Removed: Moreover, unanticipated events, negative revisions to valuation assumptions and estimates, diversions of resources and management’s attention from other business concerns, and difficulties in attaining synergies, among other factors, could adversely affect the Company’s ability to recover initial and subsequent investments, particularly those related to acquired goodwill and intangible assets, which in turn could result in the impairment of the acquired company’s goodwill and related assets.
−Removed: In addition, such investment transactions may limit the Company’s ability to invest in other activities, which could be more profitable or advantageous.
+Added: Moreover, unanticipated events, negative revisions to valuation assumptions and estimates, diversions of resources and management’s attention from other business concerns, and difficulties in attaining synergies, among other factors, could adversely affect the Company’s ability to recover initial and subsequent investments, particularly those related to acquired goodwill and intangible assets, which in turn could result in the impairment of the acquired company’s goodwill and related assets.
+Added: In addition, such investment transactions may limit the Company’s ability to invest in other activities, which could be more profitable or advantageous.
If we do not develop the appropriate new products or if customers do not accept new products, we could experience a loss of competitive position which could adversely affect future revenues.
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Failure to meet these changing demands could result in a loss of competitive position and seriously impact future revenues.
−Removed: Products or technologies developed by others may render the Company’s products or technologies obsolete or noncompetitive.
−Removed: A fundamental shift in technologies in key product markets could have a material adverse effect on the Company’s operating results and competitive position within the industry.
+Added: Products or technologies developed by others may render the Company’s products or technologies obsolete or noncompetitive.
+Added: A fundamental shift in technologies in key product markets could have a material adverse effect on the Company’s operating results and competitive position within the industry.
More specifically, the development of new or enhanced products is a complex and uncertain process requiring the anticipation of technological and market trends.
−Removed: Rapidly changing product technologies could adversely impact operating results due to potential technological obsolescence of certain inventories or increased warranty expense related to newly developed LED lighting products or any of the Company’s other products and services.
+Added: Rapidly changing product technologies could adversely impact operating results due to potential technological obsolescence of certain inventories or increased warranty expense related to newly developed LED lighting products or any of the Company’s other products and services.
We may experience design, manufacturing, marketing, or other difficulties, such as an inability to attract a sufficient number of experienced engineers which could delay or prevent our development, introduction or marketing of new products or enhancements and result in unexpected expenses.
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RISKS RELATED TO OUR OPERATIONS
−Removed: Sudden or unexpected changes in a customer ’
−Removed: s creditworthiness could result in significant accounts receivable write-offs.
+Added: Sudden or unexpected changes in a customer ’ s creditworthiness could result in significant accounts receivable write-offs.
The Company takes a conservative approach when extending credit to its customers.
−Removed: Customers are granted an appropriate credit limit based upon the due diligence performed on the customer which includes, among other things, the review of the company’s financial statements and banking information, various credit checks, and payment history the customer has with the Company.
+Added: Customers are granted an appropriate credit limit based upon the due diligence performed on the customer which includes, among other things, the review of the company’s financial statements and banking information, various credit checks, and payment history the customer has with the Company.
At any given time, the Company can have a significant amount of credit exposure with its larger customers.
While the Company is frequently monitoring its outstanding receivables with its customers, the risk does exist that a customer with large credit exposure is unable to make payment on its outstanding receivables which could result in a significant write-off of accounts receivable.
−Removed: Price increases, significant shortages of raw materials and components, shortages in transportation and an increase in fuel prices could adversely affect our operating margin.
+Added: Price increases in, and significant shortages of, raw materials and components;
+Added: and shortages in transportation and increased fuel prices could adversely affect our operating margin.
The Company purchases large quantities of raw materials and components such as steel, aluminum, aluminum castings, fabrications, LEDs, power supplies, powder paint, steel tubing, wire harnesses, acrylic, silicon and glass lenses, inks, various graphics substrates such as Aluminum Composite Material (ACM), Expanded PVC sheet (EPVC), vinyl film, styrene, foamboards, wood and wood laminates, condensing units, and digital screens.
−Removed: Materials comprise the largest component of costs, representing approximately 63% and 66% of the cost of sales in 2023 and 2022, respectively.
−Removed: The Company’s operating results could be affected by the availability and price fluctuations of these materials.
−Removed: The Company’s strategic sourcing plans include mitigating supply chain risk by utilizing multiple suppliers for a commodity to avoid significant dependence on any single supplier.
+Added: The Company’s operating results could be affected by the availability and price fluctuations of these materials.
+Added: The Company’s strategic sourcing plans include mitigating supply chain risk by utilizing multiple suppliers for a commodity to avoid significant dependence on any single supplier.
Although an interruption of these supplies and components could disrupt our operations, we believe generally that alternative sources of supply exist and could be readily arranged.
−Removed: To mitigate the risk of disruptions in the supply chain, we have on occasion increased our safety stock in certain components in order to mitigate a potential disruption to our operations resulting from an anticipated shortage of these same components.
−Removed: With regard to price fluctuations of our raw material and component purchases, the price risk for materials the Company purchases is related to price increases in commodity items that affect all users of the materials, including the Company’s competitors.
−Removed: Significant tariffs or increases in the price of these raw materials and components could further increase the Company’s operating costs and materially adversely affect margins.
+Added: With regard to price fluctuations of our raw material and component purchases, the price risk for materials the Company purchases is related to price increases in commodity items that affect all users of the materials, including the Company’s competitors.
+Added: Significant tariffs or increases in the price of these raw materials and components could further increase the Company’s operating costs and materially adversely affect margins.
The Company does, however, seek and qualify new suppliers, negotiate with existing suppliers, and arrange stocking agreements to mitigate risk of supply and price increases.
The Company can also be impacted by shortages and the availability of transportation of our products to our customers, in addition to rising fuel prices.
−Removed: The Company’s Lighting Segment has implemented price increases with customers to offset raw material price increases along, rising transportation costs, and to mitigate the impact of trade tariffs.
−Removed: The Company’s Display Solutions Segment generally establishes new sales prices, reflective of the then current raw material prices and transportation costs, for each program as it begins with further price increases throughout the life of the program when warranted.
+Added: The Company’s Lighting Segment has implemented price increases with customers to offset raw material price increases along, rising transportation costs, and to mitigate the impact of trade tariffs.
+Added: The Company’s Display Solutions Segment generally establishes new sales prices, reflective of the then current raw material prices and transportation costs, for each program as it begins with further price increases throughout the life of the program when warranted.
Although the Company attempts to pass along increased costs in the form of price increases to its customers, the Company may be unsuccessful in doing so for competitive reasons.
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Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control .
−Removed: We depend heavily on the proper functioning and availability of our information, communications, and data processing systems, including operating and financial reporting systems, in operating our business.
+Added: We depend heavily on the proper functioning and availability of our information, communications, and data processing systems, including operating and financial reporting systems, in operating our business.
Our systems and those of our technology and communications providers are vulnerable to interruptions caused by natural disasters, power loss, telecommunication and internet failures, cyber-attack, and other events beyond our control.
Accordingly, information security and the continued development and enhancement of the controls and processes designed to protect our systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority for us.
−Removed: We have been, and in the future may be, targeted by malicious cyber activity.
+Added: We could be targeted by malicious cyber activity.
Any failure to identify address or prevent malicious cyber activity could result in service interruptions, operational difficulties, loss of revenues or market share, liability to our customers or others, the diversion of corporate resources, injury to our reputation and increased service and maintenance costs.
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Rising wages across an improving economy can increase the competition among employers for a scarce labor force and make it difficult for us to attract and retain key personnel.
−Removed: If the Company ’
−Removed: s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims
−Removed: The Company may need to recall products if they are improperly designed, manufactured, packaged, or labeled, and the Company’s insurance may not provide full coverage for such recall events.
+Added: If the Company ’ s products are improperly designed, manufactured, packaged, or labeled, the Company may need to recall those items, may have increased warranty costs, and could be the target of product liability claims
+Added: The Company may need to recall products if they are improperly designed, manufactured, packaged, or labeled, and the Company’s insurance may not provide full coverage for such recall events.
Many of the Company's products and solutions have become complex and include sophisticated and sensitive electronic components.
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The Company may not be able to obtain indemnity or reimbursement from its suppliers or other third parties for the warranty costs or liabilities associated with its products.
−Removed: A significant product recall, warranty claim, or product liability case could also result in adverse publicity, damage to the Company’s reputation, and a loss of consumer confidence in its products.
−Removed: Changes in a customer ’
−Removed: s demands and commitment to proprietary inventory could result in significant inventory write-offs.
−Removed: Upgrading or replacing a customer’s current image requires the manufacture of inventory that is specific to the particular customer.
+Added: A significant product recall, warranty claim, or product liability case could also result in adverse publicity, damage to the Company’s reputation, and a loss of consumer confidence in its products.
+Added: Changes in a customer ’ s demands and commitment to proprietary inventory could result in significant inventory write-offs.
+Added: Upgrading or replacing a customer’s current image requires the manufacture of inventory that is specific to the particular customer.
This is particularly true in the Display Solutions Segment.
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The reasons a customer cannot or will not honor its commitment can range from the bankruptcy of the customer to the change in the image during the rollout program, to canceling the program before its completion and before the inventory is sold to the customer.
−Removed: In each of these instances, we could be left with significant amounts of inventory required to support the customer’s re-imaging.
+Added: In each of these instances, we could be left with significant amounts of inventory required to support the customer’s re-imaging.
While all efforts are made to hold the customer accountable for its commitment, there is the risk that a significant amount of inventory could be deemed obsolete or no longer usable which could result in significant inventory write-offs.
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The Company may be unable to sustain significant customer and/or channel partner relationships.
−Removed: Relationships with customers are directly impacted by the Company’s ability to deliver quality products and services.
+Added: Relationships with customers are directly impacted by the Company’s ability to deliver quality products and services.
The loss of or a substantial decrease in the volume of purchases by certain large customers could significantly harm the Company.
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A loss of key personnel or inability to attract qualified personnel could have an adverse effect on our operating results.
−Removed: The Company’s future success depends on the ability to attract and retain highly skilled technical, managerial, marketing and finance personnel, and, to a significant extent, upon the efforts and abilities of senior management.
−Removed: The Company’s management philosophy of cost-control results in a lean workforce.
+Added: The Company’s future success depends on the ability to attract and retain highly skilled technical, managerial, marketing and finance personnel, and, to a significant extent, upon the efforts and abilities of senior management.
+Added: The Company’s management philosophy of selecting and empowering high levels of talent could result in a lean workforce.
Future success of the Company will depend on, among other factors, the ability to attract and retain other qualified personnel, particularly executive management, research and development engineers, and sales professionals.
−Removed: The loss of the services of any key employees or the failure to attract or retain other qualified personnel could have a material adverse effect on the Company’s results of operations.
+Added: The loss of the services of any key employees or the failure to attract or retain other qualified personnel could have a material adverse effect on the Company’s results of operations.
Changes in a shift in product mix can have a significant impact on our gross margins
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economy, which in turn could adversely impact our business, financial condition, and results of operations.
+Added: Changes in our tax rates and exposures to additional income tax liabilities could have an unfavorable effect on the Company ’ s reported results.
+Added: The Company is subject to income and other taxes in the United States federal jurisdiction and various local, state and foreign jurisdictions.
+Added: The Company’s future effective income tax rates could be unfavorably affected by various factors, including changes in the tax rates as well as rules and regulations in relevant jurisdictions.
+Added: In addition, the amount of income taxes paid is subject to ongoing audits by U.S.
+Added: federal, state and local tax authorities and by non-U.S.
+Added: If these audits result in assessments different from amounts recorded, the Company’s future financial results may include unfavorable adjustments.
+Added: Emphasis on environmental, social, and governance ( “ ESG ” ) matters by various stakeholders could negatively affect our business.
+Added: Customer, investor and employee expectations relating to ESG have been rapidly evolving and increasing.
+Added: In addition, government organizations are enhancing or advancing legal and regulatory requirements specific to ESG matters.
+Added: The heightened stakeholder focus on ESG issues related to our business requires the continuous monitoring of various and evolving laws, regulations, standards and expectations and the associated reporting requirements.
+Added: A failure to adequately meet stakeholder expectations may result in noncompliance, the loss of business, reputational impacts, diluted market valuation, an inability to attract customers and an inability to attract and retain top talent.
+Added: In addition, our adoption of certain standards or mandated compliance to certain requirements could necessitate additional investments that could impact our profitability.
+Added: Climate changes, such as extreme weather conditions, create financial risk to our business.
+Added: Global physical climate changes, including unseasonable weather conditions, could result in reduced demand or product obsolescence for certain of our customers’ products and/or price modifications for our customers’ products and the resources needed to produce them.
+Added: This could in turn put pressure on our manufacturing costs and result in reduced profit margin associated with certain of our customer programs, or loss of customer programs that we may not be able to replace.
RISKS RELATED TO FINANCIAL MATTERS
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Additionally, shareholders may act by written consent without a meeting only if such written consent is signed by all shareholders.
−Removed: UNRESOLVED STAFF COMMENTS
−Removed: We have received no written comments regarding our periodic or current reports from the staff of the Securities and Exchange Commission that were issued 180 days or more preceding the end of our fiscal year 2023 that remain unresolved.
+Added: Due to inherent limitations, there can be no assurance that our system of disclosure and internal controls and procedures will be successful in preventing all errors, theft, and fraud, or in informing management of all material information in a timely manner.
+Added: Management does not expect that our disclosure controls and procedures and internal controls over financial reporting will prevent all errors or fraud.
+Added: A control system is designed to give reasonable, but not absolute, assurance that the objectives of the control system are met.
+Added: In addition, any control system reflects resource constraints and the benefits of controls must be considered relative to their costs.
+Added: Inherent limitations of a control system may include judgments in decision making may be faulty, breakdowns can occur simply because of error or mistake and controls can be circumvented by collusion or management override.
+Added: Due to the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.
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.