What changed in this filing

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Item 1. Business

2021-06-01 compared with 2020-06-01 · 184 added, 206 removed, 84 unchanged (82% of the section changed)

In this annual report on Form 10-K, Mesa Laboratories, Inc., a Colorado corporation, together with its subsidiaries is collectively referred to as “we,” “us,” “our,” the “Company” or “Mesa Labs.” Mesa Labs was organized in 1982 as a Colorado corporation.

Mesa Labs is a multinational manufacturer, developer, and marketer of quality control products and services, many of which are sold into niche markets that are driven by regulatory requirements.

We have manufacturing operations in North America and Europe and our products are marketed by our sales personnel in the U.S., Canada, Europe, Japan, and by distributors in these areas as well as throughout the rest of the world.

In this annual report on Form 10-K, Mesa Laboratories, Inc., a Colorado corporation, together with its subsidiaries is collectively referred to as “we,”

“us,”

“our,”

the “Company”

or “Mesa Labs.” Mesa Labs was organized in 1982 as a Colorado corporation.

We are a multinational manufacturer, developer, and seller of quality control products and services, many of which are sold into niche markets that are driven by regulatory requirements.

We have manufacturing operations in the United States and Europe, and our products are marketed by our sales personnel in North America, Europe, and Asia, and by independent distributors in these areas as well as throughout the rest of the world.

We prefer markets in which we can establish a strong presence and achieve high gross margins.

As of March 31, 2020, we managed our operations in four reportable segments, or divisions.

As of March 31, 2021, we managed our operations in four reportable segments, or divisions.

Our Sterilization and Disinfection Control division manufactures and sells biological, cleaning, and chemical indicators which are used to assess the effectiveness of sterilization and disinfection processes in the hospital, dental, medical device, and pharmaceutical industries.

The division also provides testing and laboratory services, mainly to the dental industry.

Our Instruments Division designs, manufactures, and markets quality control hardware and disposable products utilized in the healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, and environmental air sampling industries.

With the acquisition of Gyros Protein Technologies Holding AB ("GPT" and the "GPT Acquisition") during the third quarter of our fiscal year ending March 31, 2020 (which we refer to as "fiscal year 2020"), which is discussed further in Note 4.

"Significant Transactions" within Item 8.

Financial Statements and Supplemental Data, we added a new reportable segment:

Biopharmaceutical Development.

Our Biopharmaceutical Development Division develops, manufactures, and sells automated systems for protein analysis (immunoassays) and peptide synthesis solutions.

Our Instruments division designs, manufactures, and markets quality control hardware and disposable products utilized in the healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, and environmental air sampling industries.

During the year ended March 31, 2020, we added a new reportable segment:

Biopharmaceutical Development as a result of our acquisition of Gyros Protein Technologies Holding AB ("GPT" or the "GPT acquisition"), which is discussed further in Note 4. "Significant Transactions." Our Biopharmaceutical Development division develops, manufactures, and sells automated systems for protein analysis (immunoassays) and peptide synthesis solutions.

Immunoassays and peptide synthesis solutions accelerate the discovery, development, and manufacturing of biotherapeutic drugs.

Our Continuous Monitoring Division (formerly Cold Chain Monitoring) designs, develops, and markets systems which are used to monitor various environmental parameters such as temperature, humidity, and differential pressure to ensure that critical storage and processing conditions are maintained in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and laboratory environments.

Non-reportable operating segments (including our Cold Chain Packaging Division which ceased operations during the year) and unallocated corporate expenses are reported within Corporate and Other.

We are headquartered in Lakewood, Colorado and our common stock is listed for trading on the Nasdaq Global Market (“Nasdaq”) under the symbol MLAB.

Novel Coronavirus Pandemic

During March 2020, the impact from the spreading of a novel strain of coronavirus ("COVID-19") was declared a global pandemic by the World Health Organization and a National Public Health Emergency in the United States.

The consequences of the outbreak and impact to the economy continues to evolve and the full extent of the impact is uncertain as of the date of this filing.

The pandemic has affected our operating segments in various ways.

Some of our operating segments have encountered challenges, while headwinds in the Sterilization and Disinfection Control division have been offset by temporary advanced buying by certain customers to protect their supply chains.

During January and February, some of the instrument sales in our Biopharmaceutical Development Division were delayed as a result of government restrictions in China that postponed non-emergency health care activities, prohibiting us from delivering products to businesses there.

Additionally, gatherings such as industry conferences were cancelled, and our sales force was no longer allowed to go on-site at many of our potential customers' locations to demonstrate or install products, resulting in declining sales leads.

As March progressed, we were able to deliver some instruments in China.

However, as COVID-19 spread globally, the impact initially experienced in China expanded to other countries in Asia and Europe in late February, and more broadly across Europe and the U.S.

during the last few weeks of March.

As the broader healthcare industry and academia in these countries curtailed operations or shifted their resources to fighting COVID-19, leads and sales of products in our Biopharmaceutical Development, Continuous Monitoring, and Instruments divisions declined.

Our Continuous Monitoring and Biopharmaceutical Development divisions also experienced slower sales growth during March and continuing into the quarter ending June 30, 2020 as a result of an inability to go to customer sites to install or service products because of government regulations or customer's restrictions in effect.

Our Instruments division has experienced sales declines beginning in March and continuing into our quarter ending June 30, 2020 as our customers began to limit discretionary spending in response to economic uncertainty.

Due to the critical nature of many of our products, we anticipate a gradual return to more normal demand for our products as the broader healthcare industry and other served industry verticals slowly return to more normal levels.

Additionally, we believe that COVID-19-related restrictions will continue to have a negative impact during the fiscal year that we are unable to quantify at this time.

Our Sterilization and Disinfection Control division increased sales throughout our fourth quarter as the consumable and critical nature of the products sold in that division makes it necessary for customers to continue to purchase them to continue to meet regulatory requirements.

Additionally, a few products in this division are used in connection with healthcare equipment deployed in the fight against COVID-19;

for example, certain products can be used to confirm the efficacy of sterilization procedures for personal protective equipment which in some cases is now being washed and reused.

As COVID-19 has continued to spread and significantly affect markets around the world, we implemented plans that are focused on ensuring the safety of our employees, while continuing to deliver our goods to customers across the world.

Due to the critical nature of our products and services, we are generally exempt from governmental orders in the U.S.

and other countries requiring businesses to suspend operations.

Nevertheless, the pandemic brought a material disruption to the operations of the Company.

To protect employees and comply with regulations and recommendations to limit gatherings and increase social distancing, we require office-based employees to work remotely, and we implemented enhanced safety protocols at our manufacturing facilities, including operating with split shifts to reduce the size of the workforce on premises, performing temperature checks at the start of shifts, and maximizing the amount of space between workspaces.

We have taken aggressive steps to limit the exposure and enhance the safety of our facilities for employees working so that we can continue to supply products and services to hospitals and other customers, and we implemented strict travel restrictions.

Additionally, we are working closely with our suppliers to develop contingency plans for potential supply interruptions.

We believe that we have the liquidity required to continue operations during this volatile period.

As of March 31, 2020, we had a cash balance of $81.4 million, and the principle on our convertible debt is not due until 2025.

However, we are taking steps to reduce cash outlays and expenses, including limiting travel, freezing wage increases, and reducing the hiring of new employees.

Additionally, we believe that we have access to equity and credit markets if necessary.

However, additional equity or debt financing, or other transactions, may not be available on acceptable terms, if at all.

Given the uncertainty regarding the spread of the virus and the timing of economic recovery, the related financial impact cannot be reasonably predicted or estimated at this time.

We strive to create shareholder value and further our purpose of Protecting the Vulnerable™ by growing our business both organically and through further acquisitions, by improving our operating efficiency, and by continuing to hire, develop and retain top talent.

As a business, we commit to our purpose of Protecting the Vulnerable™ every day by taking a customer-focused approach to developing, building, and delivering our products.

We serve a broad set of industries that require dependable quality control and calibration solutions to ensure the safety and efficacy of the products they use, and by delivering the highest quality products possible, we are committed to protecting environment, products, and people.

Our revenues come from product sales, which includes hardware and software, and consumables;

as well as services, which include installation, discrete maintenance services, and ongoing maintenance contracts.

We grow our revenues organically by expanding our customer base, increasing sales volumes, and implementing price increases;

and inorganically, through acquisitions.

We continue to focus on improving our operating efficiency The Mesa Way , which is our customer-centric, lean based system for continuously improving and operating a set of high-margin, niche businesses.

The Mesa Way is based on four pillars:

Our Continuous Monitoring division designs, develops, and markets systems which are used to monitor various environmental parameters such as temperature, humidity, and differential pressure to ensure that critical storage and processing conditions are maintained in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies, and laboratory environments. 

Non-reportable operating segments (including our Cold Chain Packaging division which ceased operations during the year ended March 31, 2020) and unallocated corporate expenses are reported within Corporate and Other.

We are headquartered in Lakewood, Colorado and our common stock is listed for trading on the Nasdaq Global Market (“Nasdaq”) under the symbol MLAB.

We strive to create shareholder value and further our purpose of Protecting the Vulnerable® by growing our business both organically and through further strategic acquisitions, by improving our operating efficiency, and by continuing to hire, develop and retain top talent.

As a business, we commit to our purpose of Protecting the Vulnerable® every day by taking a customer-focused approach to developing, building, and delivering our products.

Our revenues come from product sales, which include hardware and software, and consumables;

as well as services, which include installation, discrete maintenance services, software subscriptions and ongoing maintenance contracts. We grow our revenues organically by expanding our customer base, increasing sales volumes, and implementing price increases;

and inorganically, through acquisitions. 

We continue to focus on improving our operating efficiency 

The Mesa Way , which is our customer-centric, lean based system for continuously improving and operating a set of high-margin, niche businesses.

The Mesa Way  is based on four pillars:

M easure what matters:

We use “True North,” our customer’s perspective, to measure what matters most to customers and to set high standards for performance.

We use “True North,”

our customer’s perspective, to measure what matters most to customers and to set high standards for performance.

We manage to leading indicators, whenever possible, which drives us to proactively avoid problems before they are apparent to our customers.

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We leverage a common and proven set of lean-based tools to identify the root cause of opportunities, prioritize our biggest opportunities, and enable change to be embraced and implemented quickly.

A lways Learn:

We ensure that improvements are sustained, enabling us to raise performance expectations and repeat the cycle of improvement.

Equally, this cycle strengthens the Mesa team by providing endless learning opportunities for our employees and helps us to become an employer of choice in our communities.

Finally, we hire, develop, and retain top talent, capable of taking on new challenges using a team approach to continuously improve our products, our services, and ourselves, resulting in long-term value creation for our shareholders.

We report our financial performance in four reportable segments:

(1) Sterilization and Disinfection Control, (2) Instruments, (3) Biopharmaceutical Development (new in fiscal year 2020 and was added as a result of the acquisition of GPT), and (4) Continuous Monitoring (formerly Cold Chain Monitoring).

Our Cold Chain Packaging operating segment ceased operations and is no longer considered a reportable segment.

Although the disposal of the Cold Chain Packaging division represents a strategic shift in our business, the division represented our smallest reportable segment with no major effect on our operations or financial results;

as such, its disposal did not qualify to be reported as a discontinued operation.

Cold Chain Packaging results, along with any unallocated corporate expenses, are reported within Corporate and Other.

Finally, we hire, develop, and retain top talent capable of taking on new challenges using a team approach to continuously improve our products, our services, and ourselves, resulting in long-term value creation for our shareholders.  

We report our financial performance in four reportable segments:

(1) Sterilization and Disinfection Control, (2) Instruments, (3) Biopharmaceutical Development, and (4) Continuous Monitoring. Unallocated corporate expenses are reported within Corporate and Other.

Financial information of each of our segments is included in Note 16.

"Segment Data" to the consolidated financial statements within Item 8.

Financial Statements and Supplementary Data of this Annual Report on Form 10-K ("annual report").

"Segment Data" to the consolidated financial statements within Item 8. 

Financial Statements and Supplementary Data  of this Annual Report on Form 10-K ("annual report"). 

Sterilization and Disinfection Control

Our Sterilization and Disinfection Control division provides testing services, along with the manufacture and marketing of biological, chemical and cleaning indicators used to assess the effectiveness of sterilization processes, including steam, gas, hydrogen peroxide, ethylene oxide and radiation, in the hospital, dental, medical device and pharmaceutical industries.

Our biological indicators are developed and manufactured according to International Standards Organization (“ISO”) 11138 (Sterilization of health care products) under a quality system that complies with ISO 13485 (Medical devices) and 21 CFR 820 (Quality System Regulation).

Our biological indicator products are manufactured by growing microbiological spores from raw materials, forming the finished products and testing the finished biological indicators using established quality control tests.

Our dental sterilizer testing products are assembled into kits containing biological indicator spore strips and our microbiological laboratory tests these kits when they are returned to us to determine the effectiveness of our customer’s sterilization process.

Our cleaning indicator products are manufactured by inoculating a test soil onto a stainless-steel coupon.

The test soil is designed to mimic the challenge of removing blood and tissue from surgical instruments and evaluates the effectiveness of our customer’s cleaning process.

Our Sterilization and Disinfection Control division manufactures and sells  biological, chemical and cleaning indicators used to assess the effectiveness of sterilization processes, including steam, gas, hydrogen peroxide, ethylene oxide and radiation, in the hospital, dental, medical device and pharmaceutical industries, and also provides related testing services. 

Biological indicators are used to validate equipment and monitor the effectiveness of a process in any industrial or healthcare setting which uses sterilization. 

Biological indicators consist of resistant spores of certain microorganisms that are applied on a convenient substrate, such as a small piece of filter paper.

The spores are well characterized in terms of purity, numbers and resistance to sterilization.

In use, the biological indicator is exposed to a sterilization process and then tested to determine the presence of surviving organisms.

Our biological indicators include (1) spore strips, which require post-processing transfer to a growth media, (2) self-contained products, which have the growth media already pre-packaged in crushable ampoules, (3) culture media, and (4) process challenge devices (“PCDs”) which increase the resistance of biological indicators, mimicking the packaging or other unique characteristics of a product being sterilized.

Biological indicators are used to validate equipment and monitor the effectiveness of a process in any industrial or healthcare setting which uses sterilization.

Key markets include:

industrial, such as medical device and pharmaceutical manufacturers;

and healthcare such as dental offices and hospitals.

Our biological indicators are distinguished in the marketplace by their high level of quality, consistency and flexibility.

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Debris left on an instrument may interfere with microbial inactivation and can compromise the disinfection or sterilization process.

Cleaning indicators compliment sterilization and disinfection processes within central sterile supply departments in hospitals.

Our Bozeman, Montana and Munich, Germany locations manufacture our Sterilization and Disinfection Control Division products which include the EZTest®, ProSpore, PCD®, Apex® and Simicon biological and cleaning indicators, while our Bozeman, Montana, facility also provides sterility assurance testing services to dental offices in the United States and Canada.

Cleaning indicators compliment sterilization and disinfection processes within central sterile supply departments in hospitals. Our cleaning indicator products are manufactured by inoculating a test soil onto a stainless-steel coupon. 

The test soil is designed to mimic the challenge of removing blood and tissue from surgical instruments and evaluates the effectiveness of our customer’s cleaning process. Biological indicators are used to validate equipment and monitor the effectiveness of a process in any industrial or healthcare setting which uses sterilization.

Our Bozeman, Montana and Munich, Germany locations manufacture our Sterilization and Disinfection Control Division products which include the EZTest®, ProSpore®, PCD®, Apex®

and Simicon biological and cleaning indicators, while our Bozeman, Montana, facility also provides sterility assurance testing services to dental offices in the United States and Canada. 

Sterilization and disinfection control products are disposable and are used on a routine basis, thus product sales are less sensitive to general economic conditions.

Domestically, we generate sales to end users through our sales and marketing staff and distributors.

Customers include hospitals, dental offices, contract sterilization providers and various industrial users involved in pharmaceutical and medical device manufacturing.

Our Sterilization and Disinfection Control Division products compete with 3M, Crosstex, Terragene, and Steris, among others.

Our Instruments division designs, manufactures and markets quality control instruments and disposable products used in the healthcare, pharmaceutical, medical device, food and beverage, industrial hygiene, and environmental air sampling industries.

Generally, our instrument products are used for testing, quality control, safety, validation and regulatory compliance.

Our Instruments division products include:

(1) Data loggers, which are used in critical manufacturing and quality control processes in the pharmaceutical, medical device, food and tool industries;

(2) Medical meters and calibration solutions, which are used for quality control in dialysis clinics and dialysis machine manufacturing operations;

(3) Gas flow calibration and air sampling equipment, which are used for industrial hygiene monitoring, calibration of gas metering equipment and environmental air assessments by a variety of organizations, including metrology labs, manufacturing companies and government agencies;

and 4) Torque testing systems, which are used to measure bottle cap tightness in the pharmaceutical and beverage industries.

Our Lakewood, Colorado, Hanover, Germany, and Butler, New Jersey, facilities manufacture our Instruments division products which include the DataTrace®, DialyGuard®, DryCal®, Torqo®, SureTorque®, IBP Medical, and BGI brands.

Instrument products have a relatively long life and their purchase by our customers is discretionary, so sales are more sensitive to general economic conditions.

Service demand is driven by our customers’ quality control and regulatory environments, which require periodic repair and recalibration or certification of our instrument products.

We conduct product development, manufacturing and support of our Instruments division products from our facilities in Lakewood, Colorado, Hanover Germany, and Butler, New Jersey.

Our instrument products are manufactured primarily by assembling the products from purchased components and calibrating the final products prior to release.

Our Instruments division commercial efforts focus on offering quality products to our customers that will aid them in containing cost, improving the quality of their products and services, and helping them meet their regulatory requirements.

We generate sales through our sales and marketing staff as well as distributors.

Customers include dialysis clinics, pharmaceutical, medical device and food and beverage manufacturers, contract sterilizing services, governmental agencies and environmental testing labs.

Companies with which our Instruments division products compete include the Myron L Company, Amphenol Corporation, Ellab, TMI Orion, Fortive Corporation, Thermo Fisher Scientific, Inc., Mecmesin, Steinfurth, Met One Instruments, Inc.

and Tisch Environmental.

Our data logger products are self-contained, wireless, high precision instruments that are used in critical manufacturing, quality control and validation applications.

They are used to measure temperature, humidity and pressure inside a process or a product during manufacturing.

In addition, data loggers can be used to validate the proper operation of laboratory or manufacturing equipment, either during its installation or for annual re-certifications.

The products consist of individual data loggers, a personal computer (“PC”) interface, software and various accessories.

A customer typically purchases a large number of data loggers along with a single PC interface and the software package.

In practice, using the PC interface, the user programs the loggers to collect environmental data at a pre-determined interval, places the data loggers in the product or process, and then collects stored process data from the data logger either through the PC interface or wirelessly via a radio link.

The user can then prepare tabular and graphical reports using the software.

Unique aspects of our data loggers are their ability to operate at elevated temperatures and in explosive environments – important differentiating factors in the marketplace and, consequently, they are used by companies to control their most critical processes, such as sterilization.

Industries using the data loggers include pharmaceutical and medical device manufacturers, and food processors.

We generate sales to end users through our direct sales personnel and independent distributors.

Customers include hospitals, dental offices, contract sterilization providers and various industrial users involved in pharmaceutical and medical device manufacturing. 

Our sterilization and disinfection control products operate in a highly regulated industry and compete on the basis of quality, cost effectiveness, and suitability for the intended use.

We compete with various other sterilization and cleaning indicator providers for healthcare, medical device, and biopharmaceutical clients.

Additional products using new technologies that may be competitive with our products may also be introduced.

Generally, our instrument products are used for testing, quality control, safety, validation and regulatory compliance. 

As of March 31, 2021, our Lakewood, Colorado, Hanover, Germany, and Butler, New Jersey, facilities manufacture our Instruments division products which include the DataTrace®, DialyGuard®, DryCal®, Torqo®, SureTorque®, IBP Medical, and BGI brands.

During the three months ending June 30, 2021, we are closing our Butler, New Jersey location and moving manufacturing operations to Lakewood, Colorado. 

Instrument products have a relatively long life and their purchase by our customers is discretionary, so sales are more sensitive to general economic conditions.

Service demand is driven by our customers’

quality control and regulatory environments, which require periodic repair and recalibration or certification of our instrument products. Our instrument products are manufactured primarily by assembling the products from purchased components and calibrating the final products prior to release. Our Instruments division's commercial efforts focus on offering quality products to our customers that will aid them in containing cost, improving the quality of their products and services, and helping them meet their regulatory requirements.

We generate sales through our direct sales personnel and independent distributors.

Customers include dialysis clinics, pharmaceutical, medical device and food and beverage manufacturers, contract sterilizing services, governmental agencies and environmental testing labs. 

Dialysate Meters and Calibration Solutions

Our medical meters are used to test various parameters of the dialysis fluid (dialysate), and the proper calibration and operation of the dialysis machine.

Each meter measures some combination of temperature, pressure, pH, conductivity and flow to ensure that the dialysate has the proper composition to promote the transfer of waste products from the blood to the dialysate.

Our medical meters are used to test various parameters of the dialysis fluid (dialysate), the proper calibration and operation of the dialysis machine in dialysis clinics.

Each meter measures some combination of temperature, pressure, pH, conductivity and flow to ensure that the dialysate has the proper composition to promote the transfer of waste products from the blood to the dialysate.

The meters provide a digital readout that the technician uses to verify that the dialysis machine is working within prescribed limits and delivering properly prepared dialysate.

We manufacture two styles of medical meters:

those designed for use by dialysis machine manufacturers and biomedical technicians, and those used primarily by dialysis clinicians.

The meters for technicians are characterized by exceptional accuracy, stability and flexibility, and are used by the industry as the primary standard for the calibration of dialysis machines.

The meters designed for use by dialysis clinicians are known primarily for their ease of use and incorporate a previously patented, built-in syringe sampling system.

We manufacture two styles of medical meters: those designed for use by dialysis machine manufacturers and biomedical technicians, and those used primarily by dialysis clinicians.

The meters for technicians are characterized by exceptional accuracy, stability and flexibility, and are used by the industry as the primary standard for the calibration of dialysis machines and water system testing.

The meters designed for use by dialysis clinicians are known primarily for their ease of use and incorporate a previously patented, built-in syringe sampling system.

These meters are used as the final quality control check on the dialysate just prior to starting a treatment.

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These standard solutions are regularly consumed by the dialysis clinics;

thus, along with calibration services that we also provide, are less impacted by general economic conditions than dialysate meters sales.

thus, along with calibration services that we also provide, are less impacted by general economic conditions than dialysate meters sales.

Customers that utilize these products include dialysis facilities, medical device manufacturers, and biomedical service companies.

In addition to competition in the dialysis meter business, our products face regulatory and technological challenges.

Our data loggers are self-contained, wireless, high precision instruments used in critical manufacturing and quality control processes in the pharmaceutical, medical device, food and tool industries.

They are used to measure temperature, humidity and pressure inside a process or a product during manufacturing.

In addition, data loggers can be used to validate the proper operation of laboratory or manufacturing equipment, either during its installation or for annual re-certifications.

The products consist of individual data loggers, a personal computer (“PC”) interface, software and various accessories.

A customer typically purchases a large number of data loggers along with a single PC interface and the software package.

The user can then prepare tabular and graphical reports using the software.

Unique aspects of our data loggers are their ability to operate at elevated temperatures and in explosive environments –

important differentiating factors in the marketplace and, consequently, they are used by companies to control their most critical processes, such as sterilization.

Industries using the data loggers include pharmaceutical and medical device manufacturers and food processors.

Market-wide demand for data loggers has decreased slightly as a result of macroeconomic conditions during the year ended March 31, 2021, but we do not expect that decreases will be sustained.

We face competition in data logger sales from several other companies, some of which have well-established commercial organizations, particularly in Europe.

Gas Flow Calibration and Air Sampling Equipment

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The primary products include air samplers, particle separators and pumps.

In the environmental area, our particle samplers were some of the first on the market and they were recognized early-on as “reference samplers” by the U.S.

While both the public and private sector continue to focus on air quality and its impact on the environment and the health of populations, technological advances in real-time monitoring have made the traditional air sampling market more limited.

In the environmental area, our particle samplers were some of the first on the market and they were recognized early-on as “reference samplers”

Environmental Protection Agency.

This product has a competitive advantage in the market because our particle separation cyclones hold the only “federal reference method”

distinction for the measurement of PM 2.5 in ambient air and are sold to most manufacturers of ambient particulate measurement instrumentation.

We also manufacture gas flow calibration instruments to support the use of our air sampling equipment, and for broader industrial applications.

Our gas flow calibration instruments provide the precise standards required by laboratories and industry in the design, development, manufacture, installation and calibration of various gas flow meters and air sampling devices.

Our flow calibrators are used in many industries where professionals require the superior accuracy, reliability and ease of operation that they provide, including (1) industrial hygienists, (2) calibration and research laboratories, (3) manufacturers who design, develop and manufacture gas flow metering devices, and (4) industrial engineering and manufacturing companies that utilize gas flow metering devices.

Our flow calibrators are used by professionals in many industries, including (1) industrial hygienists and environmental technicians, (2) calibration and research laboratories, (3) manufacturers who design, develop and manufacture gas flow metering devices, and (4) industrial engineering and manufacturing companies that utilize gas flow metering devices.

The market for gas flow calibration has been expanding as the markets that heavily use and measure process gas are growing.

There is competition in gas flow calibration, however, our products are distinguished against the competition by their unique dry piston technology and industry-leading accuracy and certifications.

Torque Testing Systems

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The primary advantages of our torque instruments are their high accuracy and long-term consistency of measurement.

Unlike manual torque testing instruments, our motorized torque systems eliminate the effects on the measurement results of different operators and different cap removal speeds.

With a motorized torque testing system, the force applied to a cap is precisely the same in each testing cycle, regardless of who may be operating the machine, or how strong they may be.

Our torque systems provide the information that helps the packaging operation track events, and potential problems during the manufacturing process so that corrections can be performed in a timely fashion.

Our motorized torque systems eliminate the errors associated with manual torque testing.

With a motorized torque testing system, the force applied to a cap is precisely the same in each testing cycle, regardless of the strength of the machine's operator.

Our torque systems provide information that helps the packaging operation track events and potential problems during the manufacturing process so that corrections can be performed in a timely fashion.

Industries utilizing these instruments include beverage, pharmaceutical, and food processing companies.

Given the niche nature of this product, there is relatively low competition for this product line;

however, the growth of this line is limited by the growth of new manufacturing facilities and packaging regulation in pharmaceutical manufacturing.

Biopharmaceutical Development

During the year ended March 31, 2020, we added a new reportable segment:

Biopharmaceutical Development as a result of our acquisition of Gyros Protein Technologies Holding AB ("GPT" or the "GPT acquisition"), which is discussed further in Note 4 “Significant Transactions.”

Our Biopharmaceutical Development division develops, manufactures, and commercializes automated solutions for protein analysis (immunoassays) and peptide synthesis.

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The Biopharmaceutical Development division sells two types of products:

(1) Protein analysis solutions, which are used to test for the existence or concentration of specific proteins in a fluid sample, and (2) Peptide synthesis solutions, which automates the synthesis of peptides from amino acids and are primarily used in biopharmaceutical research, discovery, development and bioprocessing.

Our Biopharmaceutical Development division develops and manufactures Gyrolab ® xPand and Gyrolab xPlore TM hardware and software, as well as Gyrolab Bioaffy TM consumable microfluidic disks (“CDs”), Gyrolab kits and Rexxip ® buffers for Protein Analysis in Sweden, while PurePep™ Chorus, Symphony ® X, and Sonata ® XT hardware and associated software programs for peptide synthesis are developed and manufactured in our Arizona location.

About half of the protein analysis products are consumables and are used on a routine basis, thus sales of these products are less sensitive to general economic conditions.

Approximately 40% of the protein analysis revenue is hardware while 75% of the peptide synthesis solutions revenue is hardware, both of which are discretionary purchases, thus sales are more sensitive to general economic conditions, and the remainder of the sales are related to service and support agreements.

Our Biopharmaceutical Development division is subject to seasonal fluctuations that align with the budget cycles of our customers which is expected to result in slightly higher demand during the third quarter of our fiscal year.

We generate sales through our direct sales organization as well as foreign distributors.

Customers include research and discovery laboratories in academia and biopharmaceutical companies as well as biopharmaceutical development and manufacturing teams at biopharmaceutical companies and their Contract Research Organization and Contract Development and Manufacturing Organization partners The Biopharmaceutical Development division competes with Meso Scale Technologies, LLC, Bio-techne Corporation, Biotage AB and CEM Corporation.

both are primarily used in biopharmaceutical research, discovery and development and bioprocessing. Our Biopharmaceutical Development division develops and manufactures Gyrolab® xPand and Gyrolab xPlore TM  hardware and software, as well as Gyrolab Bioaffy TM  consumable microfluidic disks (“CDs”), Gyrolab kits and Rexxip® buffers for protein analysis in Uppsala, Sweden, while PurePep™

Chorus, Symphony® X, and Sonata® XT hardware and associated software for peptide synthesis are developed and manufactured in our Tucson, Arizona location.  Information about the effects of foreign currency fluctuations on this segment is set forth in “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.” For a discussion of risks related to our non-U.S.

operations and foreign currency exchange, refer to “Item 1A.

Risk Factors.”

About half of the protein analysis products are consumables and are used on a routine basis, thus sales of these products are less sensitive to general economic conditions, although partial and full lab closures that resulted from COVID-19 regulations and policies did affect our ability to engage with new accounts and negatively impact sales of our consumables during the year ended March 31, 2021 as laboratories were not running as many tests using our consumables during their limited operating hours.

Approximately 40% of the protein analysis revenues is hardware while 75% of the peptide synthesis solutions revenues is hardware, both of which are discretionary purchases, thus sales are more sensitive to general economic conditions. The remainder of the sales are related to service and support agreements.

We generate sales through our direct sales organization as well as independent foreign distributors.

Marketing activities include industry conferences, user meetings, educational webinars and all forms of digital marketing, in addition to market sensing and capturing user requirements for the new product roadmap. While most all in-person marketing was limited during the year by COVID-19 restrictions, we pursued digital marketing techniques in this division with some success.

Customers include academic research and development laboratories and biopharmaceutical development and manufacturing teams at biopharmaceutical companies and their and their contract research organization partners.

The Biopharmaceutical Development division’s market success is primarily dependent upon creating innovative, high quality products that customers choose based on available features, cost-effectiveness, and performance. We believe we are one of the leading world-wide suppliers of protein analysis and peptide synthesis equipment to the biologics discovery and development market.

We further believe that the enhancements of our product offerings and new product development driven by our research and development team, the recognized quality of our products and support, and the ability to continue to bring novel, cutting edge products and solutions to the market will allow us to remain competitive in the growing markets that we serve. 

Protein Analysis

We develop, manufacture, and market protein analysis equipment, CDs, kits and buffers that enable the detection and quantification of a target protein in a biological sample.

We develop, manufacture, and market protein analysis equipment, CDs, kits and buffers that enable the detection and quantification of a target protein in a biological or bioprocess sample.

The Gyrolab technology is widely used across human and non-human applications, mainly for therapy discovery, development and bioprocessing.

Customers, which are primarily pharmaceutical and biotech companies who are developing protein-based therapies, use our CDs to deposit their samples for mixing with application specific reagents.

The CDs and reagents are then loaded into one of our hardware for processing and analysis.

Our proprietary software interprets results and provides useful data points.

The hardware, CDs and software accelerate the development and processing of assays to obtain accurate results for pre-clinical and clinical studies as well as in upstream and downstream bioprocessing of biological therapies, thus meeting critical data and time requirements during these studies.

Customers, which are primarily pharmaceutical and biotech companies and their contract research organization partners, who are developing protein-based therapies, use our CDs to deposit their samples for mixing with application specific reagents.

The CDs and reagents are loaded into one of our instruments for processing and analysis.

Our proprietary software interprets results and provides useful data analysis for decision-making.

The hardware, CDs and software accelerate the development and processing of assays to obtain accurate results for pre-clinical and clinical studies as well as in upstream and downstream bioprocessing of biological therapies, thus meeting critical data and time requirements during these studies.

Our analytical protein technologies provide superior data consistency and accuracy as well as reducing labor and the attendant variability of more manual methods.

Peptide Synthesizers

Our peptide synthesis solutions enable customers to automate chemically synthesized peptides that are used in the creation of peptide therapies, biomaterials, cosmetics and general research.

Our hardware facilitates the ability to produce more complex and longer peptides with higher purity and are designed to comply with related FDA and EMA requirements.

Customers of our peptide synthesizers include academic and commercial biopharmaceutical laboratories, as well as contract manufacturers of peptides.

Continuous Monitoring

Our peptide synthesis solutions enable customers to automate chemically synthesized peptides that are used in the creation of peptide therapies, biomaterials, cosmetics and general research.

Our hardware and software facilitate the ability to produce more complex and longer peptides with higher purity and are designed to comply with related Food and Drug Administration ("FDA") and European Medicines Agency requirements.

Customers of our peptide synthesizers include academic and commercial biopharmaceutical laboratories, as well as contract manufacturers of peptides. 

Continuous Monitoring 

Our Continuous Monitoring division designs, develops and markets systems which are used to monitor various environmental parameters such as temperature, humidity and differential pressure to ensure that critical storage and processing conditions are maintained.

Continuous monitoring systems are used in controlled environments such as refrigerators, freezers, warehouses, laboratory incubators, clean rooms and a number of other settings.

Our systems are designed to operate continuously, providing data around the clock, 365 days per year.

The continuous monitoring systems consist of wired or wireless sensors that are placed in controlled environments, hardware modules to receive the data, and various software programs to collect, store and process the data. Our systems are designed to operate continuously, providing data around the clock, 365 days per year.

The Continuous Monitoring division’s market success is primarily dependent upon our ability to provide post-installation service and support. For most systems, annual re-calibration of each sensor is required, and we provide this service through our dedicated service organization and SnapCal TM self-managed probe exchange program. Because of the advantages of our continuous monitoring solutions, we have a solid market share and growth in North America but are currently not focused on international expansion.

The manufacture and support of our Continuous Monitoring division systems primarily involve assembling the systems from purchased components and calibrating the sensors, either at the factory or at the point of installation at the customer’s facility. 

Continuous Monitoring products and systems have a relatively long life, and their purchase by our customers is discretionary and typically driven by expansion, so sales are more sensitive to general economic conditions.

Additionally, the installation of many of our products require physical presence at a customers' site; thus, policies or regulations restricting our physical access to customers' facilities (including during Covid-19 restrictions during the year) has a negative impact on our ability to sell these products. Continuous Monitoring products may be sold in conjunction with a perpetual or subscription-based software license, which may be required for the related hardware to function.

Service demand is driven by our customers’

quality control and regulatory environments, which require periodic repair and recalibration or certification of our monitoring systems. 

A critical function of our systems is the ability to provide local alarms and notifications via e-mail, text or telephone, in the case where established environmental conditions are exceeded.

Key markets for our continuous monitoring systems are hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies and laboratory environments.

Our Lakewood, Colorado, facility also manufactures our Continuous Monitoring division products which include CheckPoint®, AmegaView, ViewPoint®, FreshLoc® and Point Six® brands.

Among the important competitive differentiators of our continuous monitoring systems are (1) their high degree of reliability and up-time;

Among the other important competitive differentiators of our continuous monitoring systems are (1) their high degree of reliability and up-time;

(2) a large variety of sensor types to meet the needs of most applications;

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Electronic signatures) validated software program, providing extensive reporting and alarm capability.

An important aspect of our continuous monitoring business is the ability to provide post-installation service and support.

For most systems, annual re-calibration of each sensor is required, and we provide this service through our dedicated service organization.

Our Continuous Monitoring division also provides parameter (primarily temperature) monitoring of products during transport in a cold chain and consulting services such as compliance monitoring and validation or mapping of transport and storage containers.

Our compliance services help customers validate the effectiveness of their cold chain and our monitoring systems record temperature during shipment and provide alarms in case of temperature excursions throughout a cold chain, from point of manufacture or collection, all the way to point of use.

The manufacture and support of our Continuous Monitoring division systems are conducted from our facility in Lakewood, Colorado and primarily involve assembling the systems from purchased components and calibrating the sensors, either at the factory or at the point of installation at the customer’s facility.

Continuous Monitoring products and systems have a relatively long life, and their purchase by our customers is discretionary, so sales are more sensitive to general economic conditions.

Continuous Monitoring products may be sold in conjunction with a perpetual or subscription-based software license, which may be required for the related hardware to function.

Service demand is driven by our customers’ quality control and regulatory environments, which require periodic repair and recalibration or certification of our instrument products, biopharmaceutical development instruments, and cold chain monitoring systems.

Our Continuous Monitoring division systems compete with Rees Scientific Corporation, Amphenol Corporation and Cooper-Atkins/Emmerson, among others.

Key markets for our continuous monitoring systems are hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies and laboratory environments, all located in North America. Our Lakewood, Colorado, facility manufactures our Continuous Monitoring division products which include ViewPoint®, Point Six®, CheckPoint®, AmegaView, and FreshLoc®

brands. 

Corporate and Other

Corporate and other consists of the non-reportable operating segment Cold Chain Packaging division that ceased operations during the third quarter of our fiscal year ended March 31, 2020, unallocated corporate expenses, and other business activities.

We began the process of dissolving our Cold Chain Packaging Division early in fiscal year 2020, making our final sales to customers and incurring our final expenses during the year ended March 31, 2020.

Corporate and other consists of unallocated corporate expenses, the non-reportable operating segment Cold Chain Packaging division that ceased operations during the year ended March 31, 2020, and other business activities. 

Other Matters Relating to our Business as a Whole

Year Ended March 31, 2020 Acquisitions

On October 31, 2019, we completed the acquisition of 100% of the outstanding shares of Gyros Protein Technologies Holding AB ("GPT" or the "GPT acquisition") for adjusted cash consideration of $181.5 million.

The acquisition of GPT expands our presence into a new market--immunoassays and peptide synthesis solutions--that accelerate the discovery, development, and manufacturing of biotherapeutic drugs.

GPT systems include laboratory instruments, consumables, kits, and software that maximize laboratory productivity by miniaturizing and automating immunoassays at nanoliter scale.

On April 1, 2019, we completed a business acquisition (the “IBP Acquisition”) whereby we acquired all of the outstanding shares of IBP Medical GmbH, a company whose business manufactures medical meters used to test various parameters of dialysis fluid (dialysate), and the proper calibration and operation of a dialysis machine.

Year End ed March 31, 2019 Acquisitions

During the year ended March 31, 2019 we completed a business combination (the “Point Six Wireless Acquisition”) whereby we acquired substantially all of the assets and certain liabilities of Point Six Wireless, LLC’s continuous monitoring business, which manufactures wireless sensors that are used in healthcare, hospitality, foodservice, retail, data center, and refrigerated transport applications.

Year Ended March 31, 2018 Acquisitions

During the year ended March 31, 2018, we completed the following three acquisitions:

In November 2017, we completed a business combination (the “BAG Acquisition”) whereby we acquired substantially all of the assets and certain liabilities of BAG Health Care GmbH’s (“BAG”) Hygiene Monitoring business which is comprised of the distribution of biological, chemical and cleaning indicator products.

In October 2017, we completed a business combination (the “Simicon Acquisition”) whereby we acquired all of the outstanding shares of SIMICON GmbH (“Simicon”), a company whose business manufactures both biological and cleaning indicators.

In May 2017, we completed a business combination (the “Hucker Acquisition”) whereby we acquired substantially all of the assets (other than cash and accounts receivable) and certain liabilities of Hucker & Hucker GmbH’s (“Hucker”) business segment associated with the distribution of our biological indicator products.

Market Factors

Our revenues come from product sales, which include hardware, software, and consumables;

as well as services, which include installation, discrete maintenance services, and ongoing maintenance contracts.

Across all of our reportable segments, product sales (hardware, software, and consumables) are dependent on several factors, including general economic conditions, both domestic and international, customer capital spending trends, competition, introduction of new products, and acquisitions.

As COVID-19 has continued to spread and significantly affect markets around the world, we have been able to continue delivering critical goods to customers across the world, although our financial results for some operating segments have declined compared to prior periods or fallen short of our expectations, as discussed further in "Management's Discussion and Analysis of Financial Condition and Results of Operations" within Item 7.

We typically evaluate costs and pricing annually.

Our policy is to price our products competitively and, where possible, we pass along cost increases in order to maintain our margins.

Manufacturing and Materials

Most of the raw materials, components, and other supplies used in our product lines are available from a number of different suppliers.

We generally maintain multiple sources of supply, but we are dependent on a single source for certain items.

We continue to have an emphasis on reviewing our supply base and designs for single source or sole source suppliers that might affect our ability to supply critical product to our customers.

We have begun assessing the supply chain at GPT with an emphasis on mitigating risk by minimizing single source or sole source suppliers.

On October 31, 2019, we completed the acquisition of 100% of the outstanding shares of Gyros Protein Technologies Holding AB for adjusted cash consideration of $181.5 million. The acquisition of GPT expanded our presence into a new market--immunoassays and peptide synthesis solutions--that accelerate the discovery, development, and manufacturing of biotherapeutic drugs. GPT systems include laboratory instruments, consumables, kits, and software that maximize laboratory productivity by miniaturizing and automating immunoassays at nanoliter scale. 

Year Ended March 31, 2019 Acquisitions

During the year ended March 31, 2019, we completed a business combination (the “Point Six Wireless Acquisition”) whereby we acquired substantially all of the assets and certain liabilities of Point Six Wireless, LLC’s continuous monitoring business, which manufactures wireless sensors that are used in healthcare, hospitality, foodservice, retail, data center, and refrigerated transport applications.

Manufacturing and Materials

Most of the components, raw materials, and other supplies used in our product lines are available from a number of different suppliers. 

We generally maintain multiple sources of supply, but we are dependent on a single source for certain items, particularly in the Biopharmaceutical Development division. 

We continue to have an emphasis on reviewing our supply base and designs for single source or sole source suppliers that might affect our ability to supply critical product to our customers.

We believe that in most cases, alternative sources could be developed, if required, for present single supply sources.

During the ended March 31, 2021, we had no raw material shortages that had a material effect on the business.

Major Customers

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We define backlog as firm orders from customers for products and services where the order will be fulfilled within the next 12 months.

Backlog as of March 31, 2020 and 2019 was approximately $10.1 million and $8.3 million, respectively.

Backlog as of March 31, 2021 and March 31, 2020 was approximately $11.3 million and $10.1 million, respectively.

Research and Development

Research and development ("R&D") activities are primarily directed towards innovating new products and improving the quality and performance of our existing products.

Other R&D efforts also seek to develop or improve software that will be sold, leased, or marketed in the future, and improve manufacturing efficiencies.

Research and development ("R&D") activities are primarily directed towards innovating new products and improving the quality and performance of our existing products.

Other R&D efforts also seek to develop or improve software that will be sold, leased, or marketed in the future, and improve manufacturing efficiencies. 

Intellectual Property

We own numerous patents, trademarks, and customer lists, each of which are important to the various facets of our business.

None of the intellectual property that we own, taken alone or as a group, is so important, however, that its loss would significantly affect our operations as a whole.

Where appropriate, we seek patent protection for inventions and developments made by our personnel that are incorporated into our products or otherwise fall within our fields of interest.

There can be no assurance, however, that any patent will provide adequate protection for the technology, system, product, service or process it covers.

We own numerous patents, trademarks, and other proprietary rights, each of which are important to the various facets of our business.

Where appropriate, we seek patent protection for inventions and developments made by our personnel that are incorporated into our products or otherwise fall within our fields of interest. There can be no assurance, however, that any patent will provide adequate protection for the technology, system, product, service or process it covers.

In addition, the process of obtaining and protecting patents can be long and expensive.

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We consider our trade names, trademarks and brand names to be valuable in the marketing of our products in each segment.

Government Regulation

We do not believe that the loss of any one patent or other proprietary right would have a material adverse effect on our overall business or on any of our reporting segments.

Regulatory Matters

Mesa Labs’

operations are global and are affected by complex state, federal and international laws relating to healthcare, environmental protection, antitrust, anti-corruption, marketing, fraud and abuse, export control, product safety and efficacy, employment, privacy, government contracts acquisition regulations, and other areas.

We are required to comply with certain ISO standards and United States Pharmacopeia standards in order to sell some of our products to certain customers.

While our quality system and manufacturing processes are generally the same throughout the Instruments division, specific products are compliant under ISO 13485, ISO 17025, ISO 9001 and certain U.S.

federal regulations.

Our Uppsala, Sweden and Tucson, Arizona facilities, part of the Biopharmaceutical Development division, are ISO 9001:2015 certified.

Compliance requires us to obtain third party certification for certain products.

Several products in both the Instruments and Sterilization and Disinfection Control divisions are medical devices subject to the provisions of the Federal Food, Drug and Cosmetic Act, as amended by the Medical Device Amendments of 1976 (hereinafter referred to as the “Act”).

The Act requires any company proposing to market a medical device to notify the Food and Drug Administration (“FDA”) of its intention at least 90 days before doing so and in such notification must advise the FDA as to whether the device is substantially equivalent to a device marketed prior to May 28, 1976.

Our Uppsala, Sweden and Tucson, Arizona facilities, part of the Biopharmaceutical Development division, are ISO 9001:2015 certified.

We obtain third party certification to remain compliant with ISO standards.

Several products in both the Instruments and the Sterilization and Disinfection Control divisions are medical devices subject to the provisions of the Federal Food, Drug and Cosmetic Act, which requires any company proposing to market a medical device to notify the FDA of its intention at least 90 days before doing so.

We have received permission from the FDA to market all of our products requiring such permission.

Some of our facilities are subject to FDA regulations and inspections, which may be time-consuming and costly.

This includes on-going compliance with the FDA’s current Good Manufacturing Practices regulations that require, among other things, the systematic control of manufacture, packaging and storage of products intended for human use.

This includes ongoing compliance with the FDA’s current Good Manufacturing Practices regulations that require, among other things, the systematic control of manufacture, packaging and storage of products intended for human use.

Failure to comply with these practices renders the product adulterated and could subject us to an interruption of manufacturing and selling these products, and possible regulatory action by the FDA.

The manufacture and sale of medical devices is also regulated by some states.

Although there is substantial overlap between state regulations and the regulations of the FDA, some state laws may apply.

We do not anticipate that complying with state regulations, however, will create any significant problems.

Foreign countries also have laws regulating medical devices sold in those countries, which may cause us to expend additional resources on compliance.

We are also subject to anti-bribery laws in the U.S.

and abroad, and to various U.S.

export/import control and economic sanctions laws.

We are also subject to laws and regulations governing U.S.

federal and state government contracts.

Although there is substantial overlap between state regulations and the regulations of the FDA, compliance with some state laws may require additional cost or effort;

however, we do not anticipate that complying with state regulations will create any significant problems.

Foreign countries also have laws regulating medical devices sold in those countries, which require additional resources on compliance. 

The time required to obtain approval by the FDA and other foreign governmental agencies can be lengthy and the requirements may differ. 

We are subject to data privacy and security laws, regulations, and customer-imposed controls in numerous jurisdictions as a result of having access to and processing confidential, personal or sensitive data in the course of our business, including the EU General Data Protection Regulation which imposes strict requirements on how we collect, transmit, process and retain personal data.

Government Contracts

Although we transact business with various government agencies, no government contract is of such magnitude that a renegotiation of profits or termination of the contracts at the election of the government would have a material adverse effect on our financial results

Working Capital

We maintain an adequate level of working capital to support our business needs.

There are no unusual industry practices or requirements relating to working capital items.

In addition, our sales and payment terms are generally similar to those of our competitors.

On March 31, 2020 , we had 460 employees, of which 214 are employed for manufacturing and quality assurance, 60 for research and development and engineering, 81 for sales and marketing, and 105 for administration.

Although we transact business with various U.S.

government agencies, no government contract or aggregate contracts are of such magnitude that a renegotiation of profits or termination of the contracts at the election of the government would have a material adverse effect on our financial results.

Human Capital Management

As a company, our vision is to Protect the Vulnerable® and we believe that our vision is achieved in large part through the strength of our workforce.

Every day, our talented employees strive to implement lean based tools to find ways to continuously improve our products and services so that we may better serve our customers.

We recruit top talent from all backgrounds using a combination of industry expert recruiters and recruiting tools.

We support employees with compensation, benefits and development programs aimed at ensuring employees are productive and engaged. 

On March 31, 2021, we had 506 employees, of whom 220 are employed for manufacturing and quality assurance, 74 for research and development and engineering, 134 for sales and marketing, and 78 for administration.

Our voluntary employee turnover was 9% during the year ended March 31, 2021.

We believe that our turnover rate indicates that employees remain at Mesa Labs because of the opportunities to grow and develop within the company. 

Diversity and Inclusion

We are committed to diversity and inclusion (“D&I”), and we are always working to improve in this area.

We train our managers annually on anti-discrimination and anti-harassment practices.

We continue to evolve our talent acquisition process to focus on diversity for both external hires and succession planning.

Our recruiting standards require that we consider candidates from two or more underrepresented categories for all director-level or higher positions, and we are in the process of instituting a new global cloud-based human capital management platform that will –

among many other talent-focused features –

enable us to more accurately track employee representation and identify how we can better enhance our diversity around the world.

Our executive officers have committed to help drive further D&I progress during our year ending March 31, 2022 and beyond.

Currently, 43% of our board of directors are from under-represented categories.

Compensation and Benefits

Our compensation and benefits are competitive to market and create incentives to attract and retain employees.

In determining merit increases, we evaluate individual performance—including an individuals’

contribution to company goals and semi-annual performance reviews—to align financial incentives with individual contributions.

 Our compensation package includes market-competitive pay, cash bonuses, stock-based compensation to certain levels of employees, health care and retirement benefits, paid time off and paid family leave, among other benefits.

Communication and Engagement

We believe that our success depends in part on our employees understanding how their work contributes to our company purpose and strategy.

To this end, we utilize a variety of channels to facilitate open and direct communication, including:

(i) quarterly town hall meetings with our executive team;

(ii) internally maintained websites;

(iii) an externally administered, anonymous whistleblower hotline for employment issues and website that is advertised to our employees;

and (iv) quarterly employee engagement surveys.

We also began measuring employee net promoter scores, which is an employee ranking of how likely they are to recommend working at Mesa Labs to a family member or friend, during the year ended March 31, 2021.

Our employee net promoter scores increased during the year ended March 31, 2021, and we will continue tracking and trying to improve the score going forward. 

Available Information

We are subject to the reporting and other information requirements of the Securities Exchange Act of 1934, as amended (Exchange Act).

We are subject to the reporting and other information requirements of the Securities Exchange Act of 1934, as amended ("Exchange Act").

Reports and other information filed with the Securities and Exchange Commission ("SEC") pursuant to the Exchange Act may be inspected and copied at the public reference facility maintained by the SEC in Washington, D.C.

The SEC maintains a website at www.sec.gov containing our reports, proxy materials and other items.

We also maintain a website at mesalabs.com/investor-relations.com on which we provide a link to access our SEC reports free of charge, under the link “Financials Reports.”

Our code of ethics and Board committee charters and policies are also posted on the Investor Relations section of our website.

We also maintain a website at www.investors.mesalabs.com on which we provide a link to access our SEC reports free of charge, under the link “Financials.”

Our code of ethics and Board of Directors committee charters and policies are also posted on the Investor Relations section of our website.

The information on our website is not part of this or any other report Mesa Laboratories, Inc.

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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.

What changed 10-K

Item 1. Business