8 unchanged sentences
We maintain inventory of some critical wafers, but we have not identified or qualified alternate suppliers for many of the wafers now being obtained from single sources.
−Removed: Most of the dollar volume of our wafer purchases are from foreign manufacturers, some of which have been subject to tariffs and could be subject to larger tariffs or restrictions in the future.
−Removed: Wafer supplies could be affected by acts of God such as floods, typhoons, cyclones, earthquakes, or pandemics, and risks related to extreme weather may be exacerbated by the effects of climate change.
+Added: Most of our wafer purchases are from foreign manufacturers, some of which have been subject to tariffs and could be subject to increased tariffs or restrictions in the future.
+Added: Wafer supplies could be affected by geopolitical conflicts or acts of God such as floods, typhoons, cyclones, earthquakes, or pandemics, and risks related to extreme weather may be exacerbated by the effects of climate change.
Wafer supply interruptions for any reason could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.
7 unchanged sentences
Because of the unique materials our products use, the complexity of some of our products, unique magnetic requirements, and high isolation voltage specifications, many of our products are more challenging to package than conventional integrated circuits.
−Removed: We have alternate vendors or potential alternate vendors for the majority of our products, but it could be expensive, time-consuming, or impractical to convert to another vendor in the event of a supply interruption due to vendors’ business decisions, business conditions, or acts of God, including floods, typhoons, earthquakes, or pandemics.
−Removed: Furthermore, we may not be able to recover work in process or finished goods at a packaging vendor in the event of a disruption.
+Added: We have alternate vendors or potential alternate vendors for the majority of our products, but it could be expensive, time-consuming, or impractical to convert to another vendor in the event of a supply interruption due to vendors’ business decisions, business conditions, U.S.
+Added: import restrictions, geopolitical conflicts, or acts of God, including floods, typhoons, earthquakes, or pandemics.
Supply delays, interruptions, or loss of inventory could seriously jeopardize our ability to provide products that are critical to our business and operations and may cause us to lose revenue.
15 unchanged sentences
Changes in tax law, in our tax rates, or in exposure to additional income tax liabilities may materially and adversely affect our financial condition, results of operations, and cash flows.
−Removed: Changes in law and policy relating to Federal or state corporate taxes, changes in tax rates, or changes in our eligibility for tax credits could materially and adversely affect our financial condition, results of operations, and cash flows.
+Added: Changes in law and policy relating to Federal or state corporate taxes, changes in tax rates, or changes in our eligibility for tax deductions and credits could materially and adversely affect our financial condition, results of operations, and cash flows.
+Added: Changes in state regulatory requirements may materially and adversely affect our financial condition, results of operations, and cash flows.
+Added: Minnesota state legislation effective January 1, 2026 mandated paid family and medical leave, which has increased our employment costs and expenses.
+Added: The provisions may also increase our risk of employee absences.
+Added: Future changes in state regulatory requirements, such as paid leave, mandatory healthcare coverage, or unemployment insurance, may adversely impact our financial results.
Some of our products are incorporated into medical devices, which could expose us to a risk of product liability claims and such claims could seriously harm our business and financial condition.
Certain of our products are used in medical devices, including devices that help sustain human life.
−Removed: We are also marketing our technology to other manufacturers of cardiac pacemakers and ICDs.
Although we have indemnification agreements with certain customers including provisions designed to limit our exposure to product liability claims, there can be no assurance that we will not be subject to losses, claims, damages, liabilities, or expenses resulting from bodily injury or property damage arising from the incorporation of our products in devices sold by our customers.
2 unchanged sentences
A successful product liability claim could require us to pay, or contribute to payment of, substantial damage awards, which would have a significant negative effect on our business and financial condition.
−Removed: We may lose revenue if we are unable to maintain important certifications.
−Removed: Our quality management system is certified to the ISO 9001 standard, and some of our products are also subject to independent certification and listings including by the VDE Institute and UL LLC.
−Removed: These certifications are subject to rigorous conditions.
−Removed: Failure to achieve or maintain any of our certifications or listings could cause us to be disqualified by one or more of our customers and could have a material adverse impact on our business and revenue.
Federal legislation may not protect us against liability for the use of our products in medical devices and a successful liability claim could seriously harm our business and financial condition.
−Removed: Although the Biomaterials Access Assurance Act of 1998 may provide us some protection against potential liability claims, that Act includes significant exceptions to supplier immunity provisions, including limitations relating to negligence or willful misconduct.
+Added: Although the Biomaterials Access Assurance Act of 1998 may provide us some protection against potential liability claims, that Act and related case law provide significant exceptions to supplier immunity provisions, including limitations relating to negligence or willful misconduct.
A successful product liability claim could require us to pay, or contribute to payment of, substantial damage awards, which would have a significant negative effect on our business and financial condition.
4 unchanged sentences
Any damage to our reputation and/or the reputation of our products, or the reputation of our customers or their products could limit the market for our and our customers’ products and harm our results of operations.
+Added: We may lose revenue if we are unable to maintain important certifications.
+Added: Our quality management system is certified to the ISO 9001 standard, and some of our products are also subject to independent certification and listings including by the VDE Institute and UL LLC.
+Added: These certifications are subject to rigorous conditions.
+Added: Failure to maintain any of our certifications or listings could cause us to be disqualified by one or more of our customers and could have a material adverse impact on our business and revenue.
We may lose business and revenue if our critical production equipment fails.
5 unchanged sentences
Risks relating to operating in foreign markets that could impair our results of operations include economic and political instability;
+Added: geopolitical conflicts;
acts of God, including floods, typhoons, cyclones, and earthquakes;
11 unchanged sentences
Our business could be negatively impacted by cybersecurity events or information technology disruptions.
−Removed: We face various cybersecurity threats, including threats to our information technology infrastructure and attempts to gain access to our proprietary or classified information, and denial-of-service attacks.
+Added: We face various cybersecurity threats, including threats to our information technology infrastructure and attempts to gain access to our proprietary or classified information, and denial-of-service and distributed denial-of-service attacks.
Additionally, there is a risk of disruptions due to failures of our information technology infrastructure or service provider outages.
2 unchanged sentences
We face the risk of credit losses
−Removed: Financial Accounting Standards Board Accounting Standards Update No.
−Removed: 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements requires us to measure our allowance for credit losses based on the expected credit losses over the life of our receivables.
+Added: Accounting standards require us to measure our allowance for credit losses based on the expected credit losses over the life of our receivables.
Any increases in our allowance for credit losses would have a negative impact on our financial results, including reducing our net income and net income per share.
16 unchanged sentences
The economic environment could have a material adverse impact on our business and revenue.
−Removed: An international “trade war” could negatively impact the economic environment.
+Added: Geopolitical conflicts or “trade wars” could negatively impact the economic environment.
We sell products in the semiconductor market, which has been especially cyclical.
11 unchanged sentences
Future dividends will be subject to Board approval and will consider factors including our results of operations, cash and marketable security balances, the timing of securities maturations, estimates of future cash requirements, fixed asset requirements, and other factors our Board may deem relevant.
−Removed: Because they are generally more than our current cash flow from operations, recent and declared dividend amounts may be unsustainable.
+Added: Because they are often more than our current cash flow from operations, long-term dividends at current rates may require increased earnings.
Any reduction or discontinuance by us of cash dividends could cause the market price of our common stock to decline.
14 unchanged sentences
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.