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: Anyone 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.
Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
−Removed: Risk Factor Summary
RISKS RELATED TO OUR STRATEGY
−Removed: 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: 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.
−Removed: The Company may pursue future growth through strategic acquisitions and investments, which may not yield anticipated benefits.
−Removed: 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.
−Removed: If we are unable to adequately protect our intellectual property, we may lose some of our competitive advantage.
−Removed: 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 in, and significant shortages of, raw materials and components;
−Removed: and shortages in transportation and increased fuel prices could adversely affect our operating margin.
−Removed: Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control .
−Removed: 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.
−Removed: The turnover of independent commissioned sales representatives could cause a significant disruption in sales volume.
−Removed: 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.
−Removed: Changes in a shift in product mix can have a significant impact on our gross margins.
−Removed: We may not recognize all revenues from our backlog or receive all payments anticipated under awarded projects and customer contracts.
−Removed: Risks Related to Legal and Regulatory Matters
−Removed: Potential changes in U.S.
−Removed: trade policies could have a material adverse effect on the Company.
−Removed: Changes in our tax rates and exposures to additional income tax liabilities could have an unfavorable effect on the Company’s reported results.
−Removed: Emphasis on environmental, social, and governance (“ESG”) matters by various stakeholders could negatively affect our business.
−Removed: Risks Related to Financial Matters
−Removed: A significant decline in our stock price could adversely affect our ability to raise additional capital.
−Removed: Recent increases in inflation and interest rates in the United States and elsewhere could adversely affect our business.
−Removed: 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.
−Removed: 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.
−Removed: RISKS RELATED TO OUR STRATEGY
−Removed: Lower levels of economic activity in our end markets could adversely affect our operating results.
−Removed: 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.
−Removed: Operating results can be negatively impacted by volatility in these markets.
−Removed: Future downturns in any of the markets we serve could adversely affect our overall sales, profitability, and cash flow.
−Removed: 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: 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.
−Removed: 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.
−Removed: 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.
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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: 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.
+Added: Two of our largest market verticals are 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 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 customers’ 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
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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.
+Added: Products or technologies developed by others may render the Company’s products or technologies obsolete or non-competitive.
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.
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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.
−Removed: 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.
+Added: We may experience design, manufacturing, marketing, or other difficulties, such as 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.
Such difficulties could cause us to lose business from our customers and could adversely affect our competitive position.
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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: 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.
−Removed: At any given time, the Company can have a significant amount of credit exposure with its larger customers.
−Removed: 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.
Price increases in, and significant shortages of, raw materials and components;
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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.
−Removed: Even when price increases are successful, the timing of such price increases may lag significantly behind the incurrence of higher costs.
+Added: Even when price increases are successful, the timing of such price increases may lag behind the incurrence of higher costs.
Our information technology systems are subject to certain cyber risks and could be subject to interruptions that are beyond our control .
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Our information systems are protected through physical and software security as well as redundant backup systems, however, as cyber-attacks continue to evolve, we are committed to investing in our cyber defenses in order to mitigate the risks.
−Removed: Some of our software systems are provided and/or utilized by third parties who maintain responsibility for mitigating cybersecurity risk We have invested and continue to invest in technology security initiatives, employee training, information technology risk management and disaster recovery plans.
+Added: Some of our software systems are provided and/or utilized by third parties who maintain responsibility for mitigating cybersecurity risk.
+Added: We have invested and continue to invest in technology security initiatives, employee training, information technology risk management and disaster recovery plans.
The development and maintenance of these measures is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become increasingly more sophisticated.
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In as many instances as possible, we require a commitment from the customer before the inventory is produced.
−Removed: Our request for a commitment can range from a single site or store to a large rollout program involving many sites or stores.
+Added: Our request for a commitment may range from a single site or store to a large rollout program involving many sites or stores.
The risk does exist that a customer cannot or will not honor its commitment to us.
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trade policies could have a material adverse effect on the Company.
−Removed: Changes in the U.S.
−Removed: trade policy, U.S.
−Removed: social, political, regulatory, and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in the territories and countries where we currently purchase component parts and sell products, and any resulting negative sentiments towards the United States as a result of such changes, could have an adverse effect on our business.
+Added: There is uncertainty about the future relationship between the U.S and various other countries with respect to trade policies and tariffs.
+Added: There is also uncertainty as to whether trade between the U.S.
+Added: and other countries, including countries in which we operate along with countries where our customers or suppliers operate, may be impacted by those policy developments.
+Added: Changes in policy or continued uncertainty could depress economic activity and restrict our access to certain suppliers and customers.
+Added: Tariffs implemented on our component parts and certain finished good inventory will increase the cost of our products manufactured at our plants in the U.S.
+Added: and in Canada.
Some of our purchased components are sourced from or manufactured in foreign countries.
−Removed: Import tariffs and potential import tariffs have resulted or may result in increased prices for these imported goods and materials and, in some cases, may result or have resulted in price increases for domestically sourced goods and materials.
+Added: Import tariffs will result in increased prices for imported goods and materials and, in some cases, may result or have resulted in price increases for domestically sourced goods and materials.
Changes in U.S.
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or may cause us to adjust our foreign supply chain.
−Removed: Either of these could require us to increase prices to our customers which may reduce demand, or, if we are unable to increase prices, result in lowering our margin on products sold.
−Removed: We cannot predict future trade policy or the terms of any renegotiated trade agreements and their impacts on our business.
−Removed: The adoption and expansion of trade restrictions, the occurrence of a trade war, or other governmental action related to tariffs or trade agreements, or policies has the potential to adversely impact demand for our products, our costs, our customers, our suppliers, and the U.S.
−Removed: economy, which in turn could adversely impact our business, financial condition, and results of operations.
+Added: Either of these could require us to increase prices to our customers, which may reduce demand, or, if we are unable to increase prices, result in lowering our margin on products sold which in turn could adversely impact our business, financial condition, and results of operations.
Changes in our tax rates and exposures to additional income tax liabilities could have an unfavorable effect on the Company ’ s reported results.
19 unchanged sentences
These market fluctuations, regardless of the cause, may materially and adversely affect our stock price, regardless of our operating results, and this could impact our ability to raise capital.
−Removed: Recent increases in inflation and interest rates in the United States and elsewhere could adversely affect our business.
+Added: Increases in inflation and interest rates in the United States and elsewhere could adversely affect our business.
We are exposed to fluctuations in inflation and interest rates, which could negatively affect our business, financial condition, and results of operations.
−Removed: The United States and other jurisdictions have recently experienced high levels of inflation.
−Removed: If the inflation rate continues to increase, it will likely affect our expenses, including, but not limited to, employee compensation and labor expenses along with the cost of various goods and services the Company purchases, and we may not be successful in offsetting such cost increases.
−Removed: In addition, a continued increase in interest rates will further result in increased interest expense.
+Added: The United States and other jurisdictions have experienced high levels of inflation.
+Added: If the inflation rate increases, it will likely affect our expenses, including, but not limited to, employee compensation and labor expenses along with the cost of various goods and services the Company purchases, and we may not be successful in offsetting such cost increases.
+Added: In addition, an increase in interest rates will further result in increased interest expense.
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.
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The price to be paid would be the greater of the highest price paid by such 15% owner in acquiring its shares or the highest trading price for a period of time prior to such person becoming a 15% owner;
−Removed: the votes of holders of 66 2/3% of all outstanding shares is required to amend our Articles of Incorporation and to approve mergers, reorganizations, and similar transactions;
+Added: the votes of holders of 66 2/3% of all outstanding shares are required to amend our Articles of Incorporation and to approve mergers, reorganizations, and similar transactions;
and advance notice requirements by shareholders for director nominations and actions to be taken at annual meetings.
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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.