4 unchanged sentences
If any of these risks actually occurs, our business, financial condition or results of operations may be materially adversely affected.
−Removed: In such case, the trading price of our Common Stock could decline and investors in our Common Stock could lose all or part of their investment.
+Added: In such a case, the trading price of our Common Stock could decline and investors in our Common Stock could lose all or part of their investment.
Risks Related to Our Business
4 unchanged sentences
The repercussions of the COVID-19 global pandemic resulted in a significant impact to our customers, specifically those in the entertainment and cinema industries.
−Removed: Through 2020 and 2022 the theatres reopened as soon as local restrictions and the status of the COVID-19 pandemic would allow.
+Added: Starting in 2020 and going into 2022 the theatres reopened as soon as local restrictions and the status of the COVID-19 pandemic would allow.
As of June 30, 2024, a large majority of domestic and international theatres were open.
The industry’s recovery to historical levels of new film content, both in terms of the number of new films and box office performance, is still underway, as the industry also continues to adjust to evolving theatrical release windows, competition from streaming and other delivery platforms, supply chain delays, inflationary pressures, labor shortages, wage rate pressures and other economic factors.
−Removed: On September 7, 2022, Regal Cinema’s (our customer) parent company, Cineworld, filed for bankruptcy protection due to the slow recovery following the effects of COVID on the industry resulting in a canceled order.
−Removed: On August 1, 2023, Cineworld emerged from bankruptcy.
Based on our current estimates of recovery, we believe we have, and will generate, sufficient cash to sustain operations.
6 unchanged sentences
However, the cinema industry has historically shown incredible resilience in such economic downturns, as it remains a regional and affordable out of home experience.
−Removed: These economic conditions may also impact the financial condition of one or more of our key suppliers, which could affect our ability to secure product to meet our customers’ demand.
+Added: These economic conditions may also impact the financial condition of one or more of our key suppliers, which could affect our ability to secure products to meet our customers’ demands.
In addition, a downturn in the cinema market could impact the valuation and collectability of certain receivables held by us.
17 unchanged sentences
As we operate in a dynamic environment characterized by rapidly changing technologies and industry and legal standards, our products and services are subject to changing consumer preferences that cannot be predicted with certainty.
−Removed: We must continually introduce new products and services, identify future products and product lines that complement existing products and product lines and that respond to our customers’ needs and improve and enhance our existing products and services to maintain or increase our sales.
+Added: We must continually introduce new products and services, identify future products and product lines that complement existing products and product lines and that respond to our customers’ needs and improve and enhance our existing
+Added: products and services to maintain or increase our sales.
We may not be able to compete effectively unless our product selection keeps up with trends in the markets in which we compete or trends in new products.
9 unchanged sentences
If our distributors, dealers and resellers are not successful in selling our products, our revenue would decrease.
−Removed: Specifically, the shutdowns of local and state economies as a result of the COVID-19 pandemic have and may continue in the future to adversely affected the operations of our dealers and resellers.
+Added: Specifically, the shutdowns of local and state economies as a result of the COVID-19 pandemic have and may continue in the future to adversely affect the operations of our dealers and resellers.
In addition, our success in expanding and entering into new markets internationally will depend on our ability to establish relationships with new distributors.
1 unchanged sentence
Our operating results could be materially harmed if we are unable to accurately forecast consumer demand for our products and services and adequately manage our inventory.
−Removed: To ensure adequate inventory supply, we must forecast inventory needs and expenses and place orders sufficiently in advance with our suppliers and contract manufacturers based on our estimates of future demand for particular products.
+Added: To ensure an adequate inventory supply, we must forecast inventory needs and expenses and place orders sufficiently in advance with our suppliers and contract manufacturers based on our estimates of future demand for particular products.
Our ability to accurately forecast demand for our products and services could be affected by many factors, including an increase or decrease in customer demand for our products and services or for products and services of our competitors, product and service introductions by competitors, unanticipated changes in general market conditions, effects of the COVID-19 pandemic and the weakening of economic conditions or consumer confidence in future economic conditions.
4 unchanged sentences
Our business is subject to significant pressure on pricing and costs caused by many factors, including intense competition, the cost of components used in our products, labor costs, constrained sourcing capacity, inflationary pressure, pressure from customers to reduce the prices we charge for our products and services, and changes in consumer demand.
−Removed: Costs for the raw materials used in the manufacture of our products are affected by, among other things, energy prices, consumer demand, fluctuations in commodity prices
−Removed: and currency, and other factors that are generally unpredictable and beyond our control.
+Added: Costs for the raw materials used in the manufacture of our products are affected by, among other things, energy prices, consumer demand, fluctuations in commodity prices and currency, and other factors that are generally unpredictable and beyond our control.
Increases in the cost of raw materials used to manufacture our products or in the cost of labor and other costs of doing business in the United States and internationally could have an adverse effect on, among other things, the cost of our products, gross margins, operating results, financial condition, and cash flows.
25 unchanged sentences
Trade accounts receivable from these customers represented approximately 62% and 19% of net receivables at June 30, 2024 and 2023, respectively.
−Removed: No customer accounted for more than 10% of the Company’s revenue for the year ended June 30, 2023 or 2022.
+Added: No individual customer accounted for more than 10% of the Company’s revenue for the year ended June 30, 2024 or 2023.
While we believe our relationships with such customers are stable, most arrangements are made by purchase order and are terminable at will by either party.
4 unchanged sentences
Maintaining, promoting, and positioning our brand depends largely on the success of our marketing efforts and our ability to provide consistent, high-quality products and services.
−Removed: Our brand could be harmed
−Removed: if we fail to achieve these objectives or if our public image or brand were to be tarnished by negative publicity.
+Added: Our brand could be harmed if we fail to achieve these objectives or if our public image or brand were to be tarnished by negative publicity.
We also believe that our reputation and brand may be harmed if we fail to maintain a consistently high level of customer service.
7 unchanged sentences
The number of our business customers has grown significantly, which puts additional pressure on our support organization.
−Removed: If we are unable to provide efficient and effective customer support, our ability to grow our operations may be harmed and we may need to hire additional support personnel, which could harm our margins and results of operations.
+Added: If we are unable to provide efficient and effective customer support, our ability to grow our operations may be harmed and we may need to hire additional support personnel, which could harm our margins and the results of operations.
Our sales are highly dependent on our business reputation and on positive recommendations from our existing customers.
14 unchanged sentences
We may not convert all of our backlog into revenue and cash flows.
−Removed: At June 30, 2023, our sales backlog was approximately $12.02 million, which represented orders to be shipped substantially by January 2024.
+Added: At June 30, 2024, our sales backlog was approximately $5.93 million, with planned order shipments by March 2025.
We list signed contracts for theater construction or refurbishing for which revenue has not been recognized as sales backlog prior to the time of revenue recognition.
4 unchanged sentences
Customer requested delays in the construction or refurbishing of theaters in backlog remain a recurring and unpredictable part of our business.
−Removed: Specifically, as a result
−Removed: of the effects of the COVID-19 pandemic, a significant number of our customers had temporarily ceased operations and others have cancelled or pushed back the delivery of pending product orders and/or delayed the start of scheduled theater refurbishing and construction projects.
+Added: Specifically, as a result of the effects of the COVID-19 pandemic, a significant number of our customers had temporarily ceased operations and others have cancelled or pushed back the delivery of pending product orders and/or delayed the start of scheduled theater refurbishing and construction projects.
We operate in a highly competitive market.
12 unchanged sentences
Our international operations subject us to indirect risks, which could adversely affect our operating results.
−Removed: The Company sells internationally thru existing domestic customers.
+Added: The Company sells internationally through existing domestic customers.
Still, our international operations are exposed to the following risks, several of which are out of our control:
45 unchanged sentences
The expansion of our business has placed a significant strain on our limited managerial, operational, and financial resources.
−Removed: We have been and will continue to be required to expand our operational and financial systems significantly and to expand, train and manage our work force to manage the expansion of our operations.
+Added: We have been and will continue to be required to expand our operational and financial systems significantly and to expand, train and manage our workforce to manage the expansion of our operations.
Our future success will largely depend in large part on our ability to attract, train, and retain additional highly skilled executive level management with experience in the digital cinema industry.
Competition is intense for these types of personnel from more established organizations, many of which have significantly larger operations and greater financial, marketing, human, and other resources than we have.
−Removed: We may not be successfully attract and retaining qualified personnel on a timely basis, on competitive terms or at all.
+Added: We may not successfully attract and retain qualified personnel on a timely basis, on competitive terms or at all.
To date we have had to limit the engagement of critical management and other key personnel due in part to limited financial resources.
−Removed: If we are not successful in attracting and retain these personnel, our business, prospects, financial condition and operating results would be materially adversely affected.
+Added: If we are not successful in attracting and retaining these personnel, our business, prospects, financial condition and operating results would be materially adversely affected.
Further, our ability to manage our growth effectively will require us to continue to improve our operational, financial and management controls, reporting systems and procedures, to install new management information and control systems and to train, motivate and manage employees.
12 unchanged sentences
These claims may harm our reputation, cost us money to defend, distract the attention of our management and prevent us from offering some services.
−Removed: Confidential intellectual property is increasingly stored or carried on mobile devices, such as laptop computers, which increases the risk of inadvertent disclosure where the mobile devices are lost or stolen and the information has not been adequately
−Removed: safeguarded or encrypted.
+Added: Confidential intellectual property is increasingly stored or carried on mobile devices, such as laptop computers, which increases the risk of inadvertent disclosure where the mobile devices are lost or stolen, and the information has not been adequately safeguarded or encrypted.
This also makes it easier for someone with access to our systems, or someone who gains unauthorized access, to steal information and use it to our disadvantage.
7 unchanged sentences
A significant number of our customers have temporarily ceased operations and others have cancelled or pushed back the delivery of pending product orders and/or delayed the start of scheduled theater refurbishing and construction projects.
−Removed: In addition, we have experienced increased challenges in or cost of acquiring new customers and increased risk in collectability of accounts receivable.
+Added: In addition, we have experienced increased challenges in our cost of acquiring new customers and increased risk in collectability of accounts receivable.
As a result of the aforementioned factors, our financial and operating results for the year ended June 30, 2024 have been and our projected financial and operating results for fiscal 2024 will be adversely affected.
7 unchanged sentences
From time to time, entertainment content providers can have labor disputes, strikes and shutdowns that curtail the production and release of entertainment content featured at the cinema venues that we support.
−Removed: A lack of entertainment content at our customer cinema venues results in revenues losses at the cinema and may impact our customer’s ability to continue with existing or new venue upgrades using our products and services.
+Added: A lack of entertainment content at our customer cinema venues results in revenues losses at the cinema and may impact our customers’ ability to continue with existing or new venue upgrades using our products and services.
A lack of entertainment content featured at the cinema venues that we support as a result entertainment content providers labor disputes, strikes and shutdowns could ultimately have an adverse effect on our financial condition and results of operations.
56 unchanged sentences
This investment may result in increased general and administrative expenses and may divert management’s time and attention from the marketing and sale of our products.
−Removed: We maintain directors’ and officers’ insurance coverage at a level that we believe is customary for similarly situated companies and adequate to provide us with insurance coverage for foreseeable risks, which will increase our insurance cost.
+Added: We maintain directors’ and officers’ insurance coverage at a level that we believe is customary for similarly situated companies and adequate to provide us with insurance coverage for foreseeable risks, which will increase our insurance costs.
In the future, it may be more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage.
66 unchanged sentences
If one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, demand for our securities could decrease, which might cause the trading price of our shares of common stock and trading volume to decline.
+Added: Our business depends on motion picture production and performance and is subject to intense competition, including increases in alternative film delivery methods or other forms of entertainment .
+Added: Our ability to operate successfully depends upon the availability, diversity and appeal of motion pictures, our ability to sell our products to the motion pictures industry and the performance of such motion pictures in our markets.
+Added: The most attended films are usually released during the summer and the calendar year-end holidays, making our business seasonal.
+Added: Poor performance of, or any disruption in the production of these motion pictures (including by reason of a strike or lack of adequate financing), a reduction in, or suspension of, the marketing efforts of the major motion picture studios, the choice by distributors to release fewer feature-length movies theatrically, or the choice to release feature-length movies directly to video streaming or Premium Video on Demand (PVOD) platforms in lieu of a theatrical release, could hurt our business and results of operations.
+Added: Conversely, the successful performance of these motion pictures, particularly the sustained success of any one motion picture, or an increase in effective marketing efforts of the major motion picture studios and extension of the exclusive theatrical release windows, may generate positive results for our business and operations in a specific fiscal quarter or year that may not necessarily be indicative of, or comparable to, future results of operations.
+Added: Motion picture production is highly dependent on labor that is subject to various collective bargaining agreements.
+Added: Stikes by the Writers Guild of America and the Screen Actors Guild-American Federation of Television and Radio Artists during 2023 halted production of motion pictures for several months and are expected to delay or otherwise affect the supply, of certain motion pictures, and thus the demand for our products.
+Added: Other film and content delivery methods, including video streaming, network, syndicated cable and satellite television, as well as video-on-demand, pay-per-view services, subscription streaming services, and social media platforms may also affect our business negatively.
+Added: We also compete for the public’s leisure time and disposable income with other forms of entertainment, including sporting events, video gaming, social media, amusement parks, live music concerts, live theatre, and restaurants.
+Added: An increase in the popularity of these alternative film delivery methods and other forms of entertainment could reduce the demand for our products and materially adversely affect our business and results of operations.]
UNRESOLVED STAFF COMMENTS
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.