What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-03-11 compared with 2023-03-10 · 179 added, 225 removed, 256 unchanged (61% of the section changed)

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fuel gases within residential and commercial buildings;

gasoline and diesel gasoline products (both above and below the ground) in a double containment piping to contain any possible leaks,

which is used in automotive and marina refueling, and fueling for back-up generation;

copper-alloy corrugated piping in medical or health care facilities to carry medical gases (oxygen, nitrogen, vacuum) or pure gases

for pharmaceutical applications;

applications where the customer requires the piping to have both a degree of flexibility and/or an ability to carry corrosive compounds

or mixtures, or to carry at both very high and very low (cryogenic) temperatures.

gasoline and diesel gasoline products (both above and below the ground) in a double containment

piping to contain any possible leaks, which is used in automotive and marina refueling, and

fueling for back-up generation;

copper-alloy corrugated piping in medical or health care facilities to carry medical gases

(oxygen, nitrogen, vacuum) or pure gases for pharmaceutical applications;

applications where the customer requires the piping to have both a degree of flexibility

and/or an ability to carry corrosive compounds or mixtures, or to carry at both very high

and very low (cryogenic) temperatures.

Company’s business is managed as a single operating segment that consists of the manufacture and sale of flexible metal hose (also

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to original equipment manufacturers (“OEMs”) throughout North America and Europe, and to a lesser extent other global markets.

flexible metal hose industry is highly fragmented and diverse, with more than 10 companies producing flexible metal hose in the U.S.,

flexible metal hose industry is highly fragmented and diverse, with more than eight companies producing flexible metal hose in the U.S.,

and at least that many in Europe and Asia.

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of different applications across a broad range of industries.

major market categories for flexible metallic hose include (1) automotive, (2) aerospace, (3) residential, commercial, and institutional

major market categories for flexible metal hose include (1) automotive, (2) aerospace, (3) residential, commercial, and institutional

construction, and (4) general industrial.

Omega Flex participates in the latter two markets for flexible metallic hose.

Omega Flex participates in the latter two markets for flexible metal hose.

The residential

and commercial construction markets utilize corrugated stainless steel tubing (CSST) primarily for flexible gas piping, double containment

and commercial construction market utilizes corrugated stainless steel tubing (CSST) primarily for flexible gas piping, double containment

piping for conveying diesel fuel and gasoline from a storage tank to a dispenser or back-up generator.

The Company utilizes corrugated

The Company produces corrugated

copper tubing for medical gases in medical care facilities, including hospitals, clinics, dental and veterinary offices, and long-term

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of our competitors appear to be dominant in more than one market.

We are a leading supplier of flexible metal hose in each of the markets

in which we participate.

We believe that we are a leading supplier of flexible metal hose in

each of the U.S.

markets in which we participate.

Our assessment of our overall competitive position is based on several factors.

The flexible gas piping market

flexible gas piping market in the U.S.

is currently concentrated in the residential housing market.

Based on the reports issued by the national trade groups on

housing construction, the level of acceptance of flexible gas piping in the construction market, and the average usage of flexible gas

piping in a residential building, we believe that we can estimate with a reasonable level of accuracy the size of the total gas piping

In addition, the Company is a member of an industry trade group comprised of the largest manufacturers of CSST in the U.S., which

compiles and distributes sales volume statistics for its members relative to flexible gas piping.

Based on our sales and the statistics

described above, the Company believes it can estimate its position within that market.

For other applications, industry trade groups

collect, and report data related to these markets, and we can then compare and estimate our status within that group as a whole.

the customer base for the products that we sell, and the identity of the manufacturers aligned with those customers is fairly well known,

which again allows the Company to extract information and estimate its market position.

Lastly, the term “leading” implies

a host of factors other than sales volume and market share position.

It includes the range and capability of the product line, history

of product development and new product launches, all of which information is in the public domain.

Based on all this information, the

Company is reasonably confident that it is indeed a leader in the major market segments in which it participates.

Based on the reports issued by the

national trade groups on housing construction, the level of acceptance of flexible gas piping in the construction market, and the average

usage of flexible gas piping in a residential building, we believe that we can estimate with a reasonable level of accuracy the size

of the total gas piping market.

In addition, the Company is a member of an industry trade group comprised of the largest manufacturers

of CSST in the U.S., which compiles and distributes sales volume statistics for its members relative to flexible gas piping.

our sales and the statistics described above, the Company believes it can estimate its position within that market.

For other applications,

industry trade groups collect, and report data related to these markets, and we can then compare and estimate our status within that

group as a whole.

In addition, the customer base for the products that we sell, and the identity of the manufacturers aligned with those

customers is fairly well known, which again allows the Company to extract information and estimate its market position.

Lastly, the term

“leading” implies a host of factors other than sales volume and market share position.

It includes the range and capability

of the product line, history of product development and new product launches, all of which information is in the public domain.

on all this information, the Company is reasonably confident that it is indeed a leader in the major U.S.

market segments in which it

participates.

in 1975 under the name of Tofle America, Inc., the Company was originally established as the subsidiary of a Japanese manufacturer of

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Inc., and in 1996, the Company was acquired by Mestek, Inc.

January 2005, Mestek announced its intention to distribute its equity ownership in our common stock to Mestek shareholders.

A registration

statement for the Omega Flex common stock was filed with the Securities and Exchange Commission (the “SEC”) and the registration

statement was declared effective on July 22, 2005.

The Company also listed its common stock on the NASDAQ National Market (now the NASDAQ

Global Market) under the stock symbol “OFLX” and began public trading of the common stock on August 1, 2005.

2005, Mestek distributed its equity ownership in our common stock to Mestek shareholders and the shares of our common stock started trading

on The NASDAQ Stock Market LLC under the stock symbol “OFLX.”

the years, most of the Company’s business has been concentrated in North America, but the Company also has foreign subsidiaries

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metal hose for use in a variety of applications.

The Company is uniquely situated to exploit its capabilities in this area due to its

long experience in engineering and bringing new products to market, and its proprietary rotary process, which permits the Company to

manufacture flexible metal hose with superior quality and efficiency as compared to its competitors.

The Company’s strategy is

to develop flexible metal products in new and developing markets that would recognize and compensate for the value-added propositions

We believe the Company is uniquely situated to exploit its capabilities in this area

due to its long experience in engineering and bringing new products to market, and its proprietary rotary process, which permits the

Company to manufacture flexible metal hose with superior quality and efficiency as compared to its competitors.

The Company’s strategy

is to develop flexible metal products in new and developing markets that would recognize and compensate for the value-added propositions

that each product brings to that industry.

Typically, this would involve a new flexible metal hose that replaces traditional rigid products,

and thereby improve the quality of the installed product, increase installation efficiency, and provide an overall cost and time savings.

Examples of such new products are our flexible gas piping sold under the TracPipe ® CounterStrike ® trademarks,

our new MediTrac ® corrugated medical gas tubing, and our DoubleTrac ® double-containment piping.

instance, the products we bring to market offers customers superior quality, expanded applications due to the product’s flexibility,

and reduced total costs.

The Company seeks to protect its investments in product development by seeking and obtaining patent protection

for new and unique features of its products.

and thereby improves the quality of the installed product, increases installation efficiency, and provides an overall cost and time savings.

Examples of such products are our flexible gas piping sold under the TracPipe ® CounterStrike ® trademarks,

our MediTrac ® corrugated medical gas tubing, our DoubleTrac ® double-containment piping, and DEF-Trac ®

flexible piping.

In each instance, we believe that the products we bring to market offer customers superior quality, expanded applications

due to the products’ flexibility, and reduced total costs.

The Company seeks to protect its investments in product development

by obtaining patent protection for new and unique features of its products.

Products and Customers

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has one significant distribution customer, whose various branches had sales in the range of 12% to 14% of total sales during the periods

of 2020 to 2022 and was in the range of 7% to 19% of the Company’s accounts receivable balance over the last two years.

this business is done on a purchase order basis for immediate resale commitments or stocking, and there are no long-term purchase commitments.

In the event we were to lose an account, we would not expect any long-term reduction in our sales due to the broad end-user acceptance

of our products.

We would anticipate that in the event of a loss of any one or more distributors, that after an initial transition period,

the sales of our products would resume at or near their historical levels.

Furthermore, in the case of certain national distribution

chains, which is the case regarding the Company’s largest customer noted above, and other distributors, it is possible that there

would continue to be purchasing activity from one or more regional or branch distribution customers.

We sell our products within North

America, primarily in the U.S.

and Canada, and we also sell our products internationally, primarily in Europe through our manufacturing

facility located in Banbury, U.K.

Our sales outside of North America were in the range of 5% to 7% of our total sales during the last

three years, with most of the sales occurring in the U.K.

of 2021 to 2023 and was 19% of the Company’s accounts receivable balance over the last two years.

All of this business is done

on a purchase order basis for immediate resale commitments or stocking, and there are no long-term purchase commitments.

we were to lose an account, we would not expect any long-term reduction in our sales due to the broad end-user acceptance of our products.

We would anticipate that in the event of a loss of any one or more distributors, that after an initial transition period, the sales of

our products would resume at or near their historical levels.

Furthermore, in the case of certain national distribution chains, which

is the case regarding the Company’s largest customer noted above, and other distributors, it is possible that there would continue

to be purchasing activity from one or more regional or branch distribution customers.

We sell our products within North America, primarily

and Canada, and we also sell our products internationally, primarily in Europe through our manufacturing facility located

in Banbury, U.K.

Our sales outside of North America were in the range of 4% to 7% of our total sales during the last three years, with

most of the sales occurring in the U.K.

and elsewhere in Europe.

We do not have a material portion of our long-lived

assets located outside of the U.S.

We do not have a material portion of our long-lived assets located outside

mentioned previously, we sell our products primarily through independent outside sales organizations, including independent sales representatives,

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have enjoyed wide acceptance due to their reliability and durability.

Within the residential construction industry, the flexible gas

piping products that we offer, and similar products offered by our competitors have sought to overcome the use of black iron pipe that

has traditionally been used by the construction industry in the U.S.

In late 2023, we discontinued the AutoSnap ® fitting,

due to overwhelming market acceptance of the AutoFlare ® fitting.

Within the residential construction industry, the flexible

gas piping products that we offer, and similar products offered by our competitors have sought to overcome the use of black iron pipe

that has traditionally been used by the construction industry in the U.S.

and Canada for the piping of fuel gases within a building.

to the introduction of the first CSST system in 1989, nearly all construction in the U.S.

and Canada used traditional black iron pipe

for gas piping.

However, the advantages of CSST in areas subject to high incidence and likelihood of seismic events had been first demonstrated

In seismic testing, the CSST was shown to withstand the stresses on a piping system created by the shifting and movement of

an earthquake better than rigid pipe.

The advantages of CSST over the traditional black iron pipe also include lower overall installation

costs because it can be installed in long uninterrupted lines within the building.

Prior to the introduction of the first CSST system in 1989, nearly all construction in the U.S.

and Canada used traditional black iron

pipe for gas piping.

However, the advantages of CSST in areas subject to high incidence and likelihood of seismic events had been first

demonstrated in Japan.

In seismic testing, the CSST was shown to withstand the stresses on a piping system created by the shifting and

movement of an earthquake better than rigid pipe.

The advantages of CSST over the traditional black iron pipe also include lower overall

installation costs because it can be installed in long uninterrupted lines within the building.

flexibility of the tube allows it to be bent by hand without any tools when a change in direction in the line is required.

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for the product.

Additionally, DoubleTrac® is fully compliant with UL 1369, which is the bi-national USA and Canada standard for

Additionally, DoubleTrac® is fully compliant with UL 1369, which is the bi-national U.S.

and Canada standard for

aboveground piping for flammable and combustible liquids.

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market for automotive fueling applications.

September 2013, the Company announced that it would be releasing a newly developed fitting, AutoSnap ® , as part of its

flexible gas piping product line.

After successfully completing all required testing by independent testing agencies, as well as extensive

field trials across the U.S.

by trained TracPipe ® CounterStrike ® installers, AutoSnap ® was

officially introduced to the market in January 2014 to wide acceptance.

With its patent-pending design, the product simplified the installation

process, and addressed installer preferences for both speed and ease of installation.

The AutoSnap ® fitting now commands

a significant portion of the Company’s fittings demand.

Corrugated Medical Tubing

2019, the Company commercialized MediTrac ® corrugated medical tubing (“CMT”), following its 2018 launch with

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copper alloy with an exterior fire-retardant jacket, MediTrac ® is made and sold in long continuous-length rolls.

MediTrac ® ’s

flexible nature and storage in rolls allows it to be transported to and installed in health care facilities much more easily and quickly

than traditional medical grade rigid copper pipe, which comes in 20 foot long sections.

MediTrac ® is unrolled from a spool

and installed in a medical facility in one long continuous length and is bent by hand when a change in direction is needed.

lengths and ability to change direction with ease eliminates labor that would otherwise be needed to braze connections to straight sections

of copper pipe or elbows or tees for changes in direction, while increasing installation efficiency and operational safety and minimizing

downtime for healthcare facilities.

Easy to assemble axial swaged brass fittings connect with all K, L and DWV medical tubing that is

sized from ½” to 2” in diameter and provides a leak-tight seal using ordinary hand tools.

The patent-pending fitting

also prevents tampering or disassembly using a tamper-proof sleeve that is required by the Health Care Facilities Code (NFPA 99 –

2018 edition).

Rated at 185 psig, MediTrac ® can deliver the necessary volume of gas wherever it is needed across a facility.

A recent case study comparing the installation of rigid copper pipe and MediTrac ® showed that MediTrac ®

increases installation efficiency by a factor of five (i.e., a 500% increase in efficiency).

By reducing the number of joints and brazed

connections, MediTrac ® also reduces possible contamination into the medical gas system along with the fire risk associated

with brazing.

MediTrac ® is currently listed at UL 1365 and has an ASTM E84 rating of 25/50 and meets all 2018 requirements

of the Health Care Facilities Code (NFPA 99 – 2018).

MediTrac ® also meets Canadian standard Z7396.1, Medical Gas

Pipeline Systems.

2020, the MediTrac ® product line experienced significant growth in use and acceptance in the marketplace resulting from

its ability to be quickly and safely installed to meet the unprecedented crisis caused by the COVID-19 pandemic.

CMT’s flexible nature and storage in rolls allows it to be transported to and installed in health care facilities much more

easily and quickly than traditional medical grade rigid copper pipe, which generally comes in 20 foot long sections.

CMT is unrolled from a spool and installed in a medical facility in one long continuous length and is bent by hand when a change

in direction is needed.

The long lengths and ability to change direction with ease eliminates labor that would otherwise be needed to

braze connections to straight sections of copper pipe or elbows or tees for changes in direction, while increasing installation efficiency

and operational safety and minimizing downtime for healthcare facilities.

Easy to assemble axial swaged brass fittings connect with all

K, L and DWV medical tubing that is sized from ½” to 2” in diameter and provides a leak-tight seal using ordinary

The patented fitting also prevents tampering or disassembly using a tamper-proof sleeve that is required by the Health Care

Facilities Code (NFPA 99 – 2018 edition).

Rated at 185 psig, MediTrac ® CMT can deliver the necessary volume of gas

wherever it is needed across a facility.

A recent case study comparing the installation of rigid copper pipe and MediTrac ®

CMT showed that MediTrac ® CMT increases installation efficiency by a factor of five (i.e., a 500% increase in efficiency).

By reducing the number of joints and brazed connections, MediTrac ® CMT also reduces possible contamination into the medical

gas system along with the fire risk associated with brazing.

MediTrac ® CMT is currently listed at UL 1365 and has an ASTM

E84 rating of 25/50 and meets all 2018 requirements of the Health Care Facilities Code (NFPA 99 – 2018).

CMT also meets Canadian standard Z7396.1, Medical Gas Pipeline Systems.

2020, the MediTrac ® product line experienced increased sales in use and acceptance in the marketplace resulting from its

ability to be quickly and safely installed to meet the unprecedented crisis caused by the COVID-19 pandemic.

Numerous medical institutions

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On September 25, 2020, the Centers for Medicare & Medicaid Services (CMS) issued a waiver allowing the use of

CMT in new and existing healthcare facilities based on the provisions in NFPA 99 – 2018, allowing MediTrac ® to be

installed in all facilities in the U.S.

CMT in new and existing healthcare facilities based on the provisions in NFPA 99 – 2018, allowing MediTrac ® CMT

to be installed in all facilities in the U.S.

Market Applications

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the industry, and that our rotary process provides us with a significant advantage in many of the industries in which we participate.

As a result, we can provide our product on a demand basis.

Over the years, the Company has had great success in achieving on-time delivery

performance to the scheduled ship date.

The quick inventory turnover reduces our costs for in-process inventory, and further contributes

to our gross profit levels.

As a result, we can generally provide our product on a demand basis.

Over the years, the Company has had great success in achieving on-time

delivery performance to the scheduled ship date.

The quick inventory turnover reduces our costs for in-process inventory, and further

contributes to our gross profit levels.

We have also improved our productivity on a historical basis.

and Competition

are approximately 10 manufacturers of flexible metal hose in the U.S., and approximately that number in Europe and Asia.

are approximately eight manufacturers of flexible metal hose in the U.S., and at least that many in Europe and Asia.

manufacturers

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We estimate that we are at or near the top

position of the two major categories in which we participate regarding market share.

position of the two major categories in which we participate regarding U.S.

market share.

In the flexible gas piping market, the U.S.

is currently concentrated in the residential housing market.

Based on the reports issued by the national trade groups on housing construction,

the level of acceptance of flexible gas piping in the construction market, and the average usage of flexible gas piping in a residential

building, as well as through our sales position within that market, we can estimate with a high level of accuracy the size of the total

gas piping market.

In addition, the Company is a member of an industry trade group, which compiles and distributes sales statistics for

its members relative to flexible gas piping.

For other applications, industry trade groups collect and report on the size of the relevant

market, and we can estimate our percentage of the relevant market based on our sales as compared to the market as a whole.

of our two markets, the construction industry, has seen a modest decrease in the number of residential housing starts in 2022, as compared

to the previous year.

As discussed elsewhere, black iron pipe or copper tubing was historically used by all builders of commercial and

residential buildings until the advent of flexible gas piping and changes in the relevant building codes.

Since that time, flexible gas

piping has taken an increasing share of the total amount of fuel gas piping used in construction.

market is currently concentrated in the residential housing market.

Based on the reports issued by the national trade groups on housing

construction, the level of acceptance of flexible gas piping in the construction market, and the average usage of flexible gas piping

in a residential building, as well as through our sales position within that market, we can estimate with a high level of accuracy the

size of the total gas piping market.

In addition, the Company is a member of an industry trade group, which compiles and distributes

sales statistics for its members relative to flexible gas piping.

For other applications, industry trade groups collect and report on

the size of the relevant market, and we can estimate our percentage of the relevant market based on our sales as compared to the market

The larger of our two markets, the construction industry, has seen a modest decrease in the number of residential housing

starts in 2023, as compared to the previous year.

As discussed elsewhere, black iron pipe or copper tubing was historically used by all

builders of commercial and residential buildings until the advent of flexible gas piping and changes in the relevant building codes.

Since that time, flexible gas piping has taken an increasing share of the total amount of fuel gas piping used in construction.

to the number of applications in which flexible metal hose may be used, and the number of companies engaged in the manufacture and sale

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competitor is medical grade (Type K or Type L) rigid copper pipe.

MediTrac ® is the only corrugated medical tubing in the

MediTrac ® CMT is the only corrugated medical tubing

that is approved to the stringent requirements of UL 1365.

The general industrial markets within Europe are very mature and tend

to offer opportunities that are interesting to us in niche markets or during periods in which a weak dollar increases the demand for

our products on a competitive basis.

The general industrial markets within Europe are very mature and

tend to offer opportunities that are interesting to us in niche markets or during periods in which a weak dollar increases the demand

for our products on a competitive basis.

Such has been the case for several years and has created new relationships for us.

Currently, we

are not heavily engaged in the manufacture of flexible metal hose for the aerospace or automotive markets, but we continue to review

we are not heavily engaged in the manufacture of flexible metal hose for the aerospace or automotive markets, but we continue to review

opportunities in all markets for our products to determine appropriate applications that will provide growth potential and high margins.

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In other cases, a proprietary

product offering, or superior performance will be the major factors with pricing being secondary, and in some cases, a non-factor.

of our sales are to distributors and wholesalers, and our relationships with these customers are on an arms-length basis in that neither

we nor the customers are so dependent on the other to yield any significant business advantage.

See Note 2, Significant Accounting Policies,

under Significant Concentrations, to the Consolidated Financial Statements included in this report for additional details.

From our perspective,

we can maintain a steady demand for our products due to broad acceptance of our products by end users, regardless of which distributor

or wholesaler sells the product.

product offering, or superior performance will be the major factors with pricing being secondary, and in some cases, an even lesser factor.

Most of our sales are to distributors and wholesalers, and our relationships with these customers are on an arms-length basis in that

neither we nor the customers are so dependent on the other to yield any significant business advantage.

See Note 2, Significant Accounting

Policies — Significant Concentrations, to the Consolidated Financial Statements included in this report for additional details.

From our perspective, we can maintain a steady demand for our products due to broad acceptance of our products by end users, regardless

of which distributor or wholesaler sells the product.

and Raw Materials

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piping, and MediTrac ® CMT.

Although we have multiple sources qualified for all of our major raw materials and components,

we have historically used only one to three sources of supply for such raw materials and components.

Our current orders for stainless

steel and fittings are each placed with one or two suppliers.

If any one of these sources of supply were interrupted for any reason,

then we would have to devote additional time and expense to obtain the same volume of supply from our other qualified sources.

This potential

transition, if it were to occur, could affect our operations and financial results during the period of such transition.

the commodity price of nickel was significantly higher, and copper was lower compared to last year.

Nickel is a prime material in stainless

steel which the Company utilizes to manufacture CSST, and copper is a key component of the Company’s brass fittings and our MediTrac ®

We have multiple sources qualified for all of our major raw materials and components.

is a prime material in stainless steel which the Company utilizes to manufacture CSST, and copper is a key component of the Company’s

brass fittings and our MediTrac ® CMT.

Fortunately, the Company was able to maintain reasonably stable margins during 2023.

This was mainly accomplished by implementing

our own pricing actions to help offset the upward movements in the respective material markets.

We believe that with our purchase commitments

for stainless steel, polyethylene and for our proprietary fittings, we have adequate sources of supply for these raw materials and components.

Like most other manufacturers, we had sporadic supply chain issues in 2022, but we believe our multiple suppliers have sufficient raw

materials and capacity minimizing any potential disruption.

We believe that the supply sufficiency of stainless steel will continue until

there is a reduction in global capacity, such as mine closures, which would then cause constriction.

Volatility in the commodities marketplace

and competitive conditions in the sale of our products could potentially restrict us from passing along raw materials or component part

price increases to our customers.

demand for our flexible piping products that are related to construction activity including TracPipe ® , Counterstrike ® ,

DoubleTrac ® and MediTrac ® , may be affected by the construction industry’s demand, which generally

tightens during the winter months of each year due to cold and inclement weather.

Accordingly, sales are usually higher in the spring,

summer, and fall.

This was mainly accomplished by implementing our own pricing actions to help offset the upward movements in the respective material markets.

We believe that with our purchase commitments for stainless steel, polyethylene and for our proprietary fittings, we have adequate sources

of supply for these raw materials and components.

Like most other manufacturers, we had sporadic supply chain issues in 2023, but we

believe our multiple suppliers have sufficient raw materials and capacity minimizing any potential disruption.

We believe that the supply

sufficiency of stainless steel will continue until there is a reduction in global capacity, such as mine closures, which would then cause

constriction.

Volatility in the commodities marketplace and competitive conditions in the sale of our products could potentially restrict

us from passing along raw materials or component part price increases to our customers.

demand for our flexible piping products that are related to construction activity including TracPipe ® and Counterstrike ®

CSST, DoubleTrac ® piping and MediTrac ® CMT, may be affected by the construction industry’s

demand, which generally tightens during the winter months of each year due to cold and inclement weather.

Accordingly, sales are usually

higher in the spring, summer, and fall.

Regulations, Including Environmental Regulations

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A small number of employees work at our facility in Houston, Texas.

We also maintain an office in Middletown, Connecticut where certain management, sales and administrative personnel are assigned.

of individual sales personnel are also scattered across the U.S.

We also maintain a manufacturing facility in Banbury, U.K., which contains

employees of similar functions to those in the U.S., but on a much smaller scale, as well as a small presence in France.

The sales personnel

in England and France handle all sales and service for our products in Europe, most notably the U.K., and most of our transactions with

other international territories.

A number of individual sales personnel are also scattered across the U.S.

We also maintain a manufacturing facility in Banbury, U.K.,

which contains employees of similar functions to those in the U.S., but on a much smaller scale, as well as a small presence in France.

The sales personnel in England and France handle all sales and service for our products in Europe, most notably the U.K., and most of

our transactions with other international territories.

are committed to fostering a work environment in which all employees treat each other with dignity and respect.

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workforce by partnering with local organizations to identify potential candidates to advance and strengthen our human capital management

have a comprehensive portfolio of intellectual property, including approximately 123 patents issued in various countries around the world.

During 2022, the Company allowed some patents to lapse in countries where warranted by market conditions, in particular, where the likelihood

of entering the market is remote.

Our active patents cover (a) pre-sleeved CSST for use in underground applications, (b) an electrically

conductive jacket for flexible gas piping that we sell under the trademark CounterStrike ® , (c) a tubing containment system

for our DoubleTrac ® double containment piping, and (d) fittings for use with our MediTrac® corrugated medical tubing.

Our patent-pending AutoSnap ® fitting is a prominently used product with flexible gas piping because it offers a metal-to-metal

seal between the fitting and the tubing, and because of its robustness and ease of use.

The metal-to-metal contact provides for a longer

lasting and more reliable seal than fittings which use gaskets or sealing compounds that can deteriorate over time.

In applications involving

fuel gases in a building, the ability to maintain the seal and prevent the leaking of such gases over long periods of time is valued

by our customers.

In addition, the AutoSnap ® fitting provides the installer with greater ease of use by preassembling

all the securing elements inside the body of the fitting.

We also have a patent for the composition of the polyethylene jacket used in

the prior version of CounterStrike ® flexible gas piping product, which has increased ability to dissipate electrical energy

in the event of a nearby lightning strike.

The tubing containment system of our DoubleTrac ® double containment piping,

which is also patented in the U.S.

and in other countries, allows for the monitoring and collection of any liquids that may leak from

the stainless steel containment layer.

We have filed patent applications for the MediTrac ® fittings to cover the unique

requirements in the U.S.

for fittings that permanently affix the fitting to the CMT system and provides a tamper-proof connection to

the CMT system.

Several patents covering the prior version of the Counterstrike ® jacket will expire in 2024.

have several patent applications pending in the U.S.

and internationally covering our AutoSnap ® fittings and improvements

to our CounterStrike ® polyethylene jacket.

Finally, and as mentioned above, our unique rotary process for manufacturing

flexible metal hose has been developed over a number of years and constitutes a valuable trade secret.

have a comprehensive portfolio of intellectual property including over 120 patents issued in various countries around the world and trademarks

registered around the world such as OmegaFlex®, AutoFlare®, TracPipe®, CounterStrike®, DoubleTrac®, and MediTrac®.

We also have several patent applications pending in the U.S.

and internationally covering improvements to our CounterStrike ®

and MediTrac® products.

Finally, and as mentioned above, our unique rotary process for manufacturing flexible metal hose has

been developed over a number of years and constitutes a valuable trade secret.

may learn more about our Company by visiting our website at www.omegaflex.com.

7 unchanged sentences

available on our website under the heading “Compliance” the charters for the Audit, Compensation and Nominating/Governance

Committees of our Board of Directors and our Code of Business Ethics.

We intend to make available on our website any future amendments

or waivers to our Code of Business Ethics.

The SEC maintains a website at www.sec.gov that also contains the Company’s various

reports, proxy, and information statements and other filings.

The information contained on or accessible through the websites referred

to above is not incorporated by reference in, or otherwise a part of, this annual report, and any references to these websites are intended

to be inactive textual references only.

Committees of our Board of Directors and our Code of Business Conduct and Ethics.

We intend to make available on our website any future

amendments or waivers to our Code of Business Conduct and Ethics.

The SEC maintains a website at www.sec.gov that also contains

the Company’s various reports, proxy, and information statements and other filings.

The information contained on or accessible

through the websites referred to above is not incorporated by reference in, or otherwise a part of, this annual report, and any references

to these websites are intended to be inactive textual references only.

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