LEGAL PROCEEDINGS
−Removed: Neogen is subject to certain legal proceedings in the normal course of business that, in the opinion of management, should not have a material effect on our future results of operations or financial position.
−Removed: On March 6, 2020, the Company received an administrative subpoena from the U.S.
−Removed: Treasury Department’s Office of Foreign Assets Control (OFAC) regarding activities or transactions involving parties located in Iran.
−Removed: The Company subsequently conducted an internal investigation under the direction of outside legal counsel and disclosed information concerning certain genomic testing services provided to an unrelated U.S.-based party engaged in veterinary activities involving an Iranian party.
−Removed: The Company continues to cooperate with OFAC’s investigation and is currently examining whether certain of these activities may be eligible for OFAC General Licenses authorizing agricultural and veterinary activities.
−Removed: In addition to responding to the administrative subpoena, the Company has implemented additional compliance measures to prevent inadvertent dealings with restricted countries or parties.
−Removed: These measures further enhance the Company’s international trade compliance program, which is designed to assure that the Company does not conduct business directly or indirectly with any countries or parties subject to economic sanctions and export control laws of the U.S.
−Removed: and other applicable jurisdictions.
−Removed: Although it is too early to predict what action, if any, that OFAC will take, the Company does not currently have any reason to believe that OFAC’s pending investigation will have a meaningful impact on its operations, the results of operations for any future period, or its overall financial condition.
−Removed: In fiscal 2020, the Company took a charge to expense and recorded a reserve of $600,000 to provide for potential fines or penalties on this matter.
−Removed: At this time, the Company believes that it is adequately reserved for this issue.
−Removed: MINE SAFETY DISCLOSURES — NOT APPLICABLE
+Added: The litigation process is subject to many uncertainties, and the outcome of individual matters is not predictable with assurance.
+Added: “Commitments and Contingencies”
+Added: to the consolidated financial statements included in Item 15.
+Added: “Exhibits and Financial Statement Schedules”
+Added: of this Report for discussion of loss contingencies.
+Added: MINE SAFETY DISCLOSURES —
+Added: NOT APPLICABLE
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.