Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
There have been no material
changes from the risk factors previously disclosed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended
June 30, 2024, as filed with the SEC on September 27, 2024 (the “Form 10-K”), under the heading “Risk Factors”,
except as set forth below, and investors should review the risks provided in the Form 10-K prior to making an investment in the Company.
The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known
or unknown, including but not limited to those described in the Form 10-K for the year ended June 30, 2024, under “Risk Factors”,
any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to
vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in
part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.
The new Administration
may introduce tariff increases that would apply to the two main raw material components of our products which are sourced from Asian suppliers.
Presently, our two main raw
material components, batteries and inverters, are imported from different Asian suppliers and are subject to fairly low tariff rates that
have been in effect for several years. The newly inaugurated Trump Administration has indicated that it may propose a significant increase
in such tariff rates on various types of goods imported from Asia that could apply to our two main components. In the event that any such
possible tariff increases recently proposed by President Trump on China and two North American countries become enacted, which are applicable
to our two main components, they would significantly increase the cost of our two main imported components whenever the increased rates
become effective. In that case, we would be faced with a decision as to whether we should attempt to pass along such tariff increases
to our customers through higher prices for our products or absorbing them internally, or some combination of those two alternatives.
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