Item 1A. Risk Factors
Item 1A. Risk Factors
There have been no material changes in, except as noted below, the risk factors set forth in Item 1A to Part I of our Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed on June 11, 2024, and the 10-K/A for the fiscal year ended March 31, 2024 as filed with the SEC on June 28, 2024.
Tariffs imposed by the United
States government could have a material adverse effect on our results of
operations.
The
U.S. government has placed tariffs on certain goods imported from China and
other countries and may impose new tariffs on goods imported from China and
other countries, including products that we import. In retaliation, China and
other countries responded by imposing tariffs on a wide range of products
imported from the U.S. and by adjusting the value of its currency. The U.S government
has recently imposed new tariffs on additional countries, including Mexico and
Canada from which we remanufacture and distribute products, and we have
operations. Such tariffs could significantly increase the cost of the products
that we import and may materially impact our cost of goods and business.
If
renegotiations of existing tariffs are unsuccessful or additional tariffs or
trade restrictions are implemented by the U.S. or other countries in connection
with a global trade war, the resulting escalation of trade tensions could have
a material adverse effect on world trade and the global economy. Even in the
absence of further tariffs or trade restrictions, the related uncertainty and
the market's fear of an economic slowdown could lead to a decrease in consumer
spending, and we may experience lower net sales than expected. Reduced net
sales may result in reduced operating cash flows if we are not able to
appropriately manage inventory levels or leverage expenses.
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