What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-07 compared with 2024-03-11 · 174 added, 211 removed, 224 unchanged (63% 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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The residential

and commercial construction market utilizes 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 and double containment

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

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as the conveying of cryogenic liquids) and a highly fragmented OEM market, as well as the maintenance and repair market.

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

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

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

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participates.

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

flexible metal hose.

For a number of years, the Company was a manufacturer of flexible metal hose that was sold primarily to customers

using the hose for incorporation into finished assemblies for industrial applications.

The Company later changed its name to Omega Flex,

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

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

of a Japanese manufacturer of flexible metal hose.

For a number of years, the Company was a manufacturer of flexible metal hose that

was sold primarily to customers using the hose for incorporation into finished assemblies for industrial applications.

The Company later

changed its name to Omega Flex, Inc., and in 1996, the Company was acquired by Mestek, Inc.

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

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The Company also has a U.S.

which owns the Company’s Exton, Pennsylvania real estate.

which owns the Company’s Exton, Pennsylvania real estate and, in October 2024, formed a new U.S.

subsidiary, Flex-Trac, Inc., for

its MediTrac ® corrugated medical gas tubing products.

of Current Business

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Products and Customers

sell our products to customers scattered across a wide and diverse set of industries ranging from construction to pharmaceutical with

close to 10,800 customers on record.

These sales channels include sales through independent sales representatives, distributors, OEM,

and direct sales.

We utilize various distribution companies in the sale of our TracPipe ® and Counterstrike ® flexible

gas piping, and these distribution customers in the aggregate represent a significant portion of our business.

In particular, the Company

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

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.

sell our products to customers scattered across a wide and diverse set of industries ranging from construction to pharmaceutical.

sales channels include sales through independent sales representatives, distributors, OEM, and direct sales.

We utilize various distribution

companies in the sale of our TracPipe ® and Counterstrike ® CSST, and these distribution customers in the

aggregate represent a significant portion of our business.

In particular, the Company has one significant distribution customer, whose

various branches had sales in the range of 14% to 15% of total sales during the periods of 2023 to 2024 and were 23% and 19% of the Company’s

accounts receivable balance as of December 31, 2024 and 2023, respectively.

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.

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 we also sell our products internationally, primarily in Europe through our manufacturing facility located in Banbury, U.K.

outside of North America were in the range of 3% to 4% of our total sales during the last two years, with most of the sales occurring

and elsewhere in Europe.

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,

distributors, fabricating distributors, wholesalers, and OEMs.

We have a limited internal sales function that sells our products to key

accounts, including OEMs and distributors of bulk hose.

We believe that within each geographic market in which the independent sales

representative, distributor or wholesaler is located that our outside sales organizations are the first or second most successful outside

sales organization for the particular product line within that geographic area.

We do not have a material portion of our long-lived assets located outside of the U.S.

Company has had the most success within the residential construction industry with its flexible gas piping products, TracPipe ®

which was introduced in 1997, and its more robust counterpart TracPipe ® CounterStrike ® , which came to market

Partnered with the development of our AutoFlare ® and AutoSnap ® fittings and accessories, both

have enjoyed wide acceptance due to their reliability and durability.

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.

CSST, which was introduced in 1997, and its more robust counterpart TracPipe ® CounterStrike ® CSST,

which came to market in 2004.

Partnered with the development of our AutoFlare ® and AutoSnap ® fittings and

accessories, both have enjoyed wide acceptance due to their reliability and durability.

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

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.

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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previously mentioned, in 2004, the Company introduced a new brand of flexible gas piping sold under the registered trademark “CounterStrike ®” .

CounterStrike ® is designed to be more resistant to damage from transient electrical arcing.

In a lightning strike, the

electrical energy of the lightning can energize all metal systems and components in a building.

CounterStrike ® CSST is designed to be more resistant to damage from transient electrical arcing.

In a lightning strike,

the electrical energy of the lightning can energize all metal systems and components in a building.

This electrical energy, in attempting

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As a result of its robust performance,

the new version of CounterStrike ® has been widely accepted in the market, and thus during 2011, the Company made the decision

to sell exclusively CounterStrike ® within the U.S.

This move demonstrated the Company’s commitment to innovation

and safety, and further enhanced its leadership in the marketplace.

the new version of CounterStrike ® CSST has been widely accepted in the market, and thus during 2011, the Company made

the decision to sell exclusively CounterStrike ® CSST within the U.S.

This move demonstrated the Company’s commitment

to innovation and safety and further enhanced its leadership in the marketplace.

2008, the Company introduced its first double containment piping product – DoubleTrac ® .

double containment piping has earned stringent industry certifications for its ability to safely contain and convey liquid fuels.

received certification from Underwriters Laboratory, the testing and approval agency, that our product is fully compliant with

UL 971A, which is the product standard in the U.S.

for metallic underground fuel piping, ULc S679 which is the product standard in Canada

for metallic underground fuel piping, as well as approvals from other relevant state agencies that have more stringent testing procedures

for the product.

piping received certification from Underwriters Laboratory, the testing and approval agency, that our product is fully compliant

with UL 971A, which is the product standard in the U.S.

for metallic underground fuel piping, ULc S679 which is the product standard

in Canada for metallic underground fuel piping, as well as approvals from other relevant state agencies that have more stringent testing

procedures for the product.

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.

DoubleTrac® is one of a select few piping systems having listings and approvals

for both belowground and aboveground piping systems.

Similar to our flexible gas piping, DoubleTrac ® provides advantages

over older rigid pipe technologies.

DoubleTrac ® is made and can be installed in long continuous runs, eliminating the

need for manually assembling rigid pipe junctions at the end of a pipe or at a turn in direction.

In addition, DoubleTrac ®

has superior performance in terms of its ability to safely convey fuel from the storage tank to the dispenser, primarily because DoubleTrac ®

is essentially a zero permeation piping system, far exceeding the most stringent government regulations.

Originally designed for

applications involving automotive fueling stations running from the storage tank to the fuel dispenser, the ability of DoubleTrac ®

to handle a variety of installation challenges has broadened its applications to include refueling at marinas, fuel lines for back-up

generators, and corrosive liquids at waste treatment plants.

In short, in applications where double containment piping is required to

handle potentially contaminating fluids or corrosive fluids, DoubleTrac ® is engineered to handle those demanding applications.

a complementary product which is very similar to DoubleTrac ® , was brought to the marketplace in 2011.

piping is specifically engineered to handle the demanding requirements for diesel emissions fluid (DEF).

Federal regulations require

all diesel engines to use DEF to reduce the particulate contaminants from the diesel combustion process.

However, DEF is highly corrosive

and cannot be pre-mixed with diesel fuel.

This requires that new diesel trucks and automobiles must have separate tanks built into the

vehicle so that the diesel emissions fluid can be injected into the catalytic converter after the point of combustion.

Similarly, a large

portion of fueling stations carrying diesel fuel are now also selling DEF through a separate dispenser.

In addition to being highly corrosive,

DEF also has a high freezing temperature, requiring a heat trace in the piping in applications in northern areas of the U.S.

flexible piping is uniquely suited to handle all of these challenges, as the stainless steel inner core is corrosion resistant,

and DEF-Trac ® also comes with options for heat trace that is extruded directly into the wall of the product.

DEF-Trac ® provides a complete solution to the demanding requirements of this unique application, as such, DEF-Trac ®

has been met with wide acceptance from the industry that was searching for a solution to the new environmental requirement.

advantageous market position of DEF-Trac ® has leveraged the penetration of DoubleTrac ® into the broader

market for automotive fueling applications.

and Canada standard

for aboveground piping for flammable and combustible liquids.

DoubleTrac® piping is one of a select few piping systems having listings

and approvals for both belowground and aboveground piping systems.

Similar to our flexible gas piping, DoubleTrac ® piping

provides advantages over older rigid pipe technologies.

DoubleTrac ® piping is made and can be installed in long continuous

runs, eliminating the need for manually assembling rigid pipe junctions at the end of a pipe or at a turn in direction.

DoubleTrac ® piping has superior performance in terms of its ability to safely convey fuel from the storage tank to the

dispenser, primarily because DoubleTrac ® piping is essentially a zero permeation piping system, far exceeding the most

stringent government regulations.

Originally designed for applications involving automotive fueling stations running from the storage

tank to the fuel dispenser, the ability of DoubleTrac ® piping to handle a variety of installation challenges has broadened

its applications to include refueling at marinas, fuel lines for back-up generators, and corrosive liquids at waste treatment plants.

In short, in applications where double containment piping is required to handle potentially contaminating fluids or corrosive fluids,

DoubleTrac ® piping is engineered to handle those demanding applications.

piping, a complementary product which is very similar to DoubleTrac ® piping, was brought to the marketplace in 2011.

DEF-Trac ® piping is specifically engineered to handle the demanding requirements for diesel emissions fluid (DEF).

regulations require all diesel engines to use DEF to reduce the particulate contaminants from the diesel combustion process.

DEF is highly corrosive and cannot be pre-mixed with diesel fuel.

This requires that new diesel trucks and automobiles must have separate

tanks built into the vehicle so that the diesel emissions fluid can be injected into the catalytic converter after the point of combustion.

Similarly, a large portion of fueling stations carrying diesel fuel are now also selling DEF through a separate dispenser.

to being highly corrosive, DEF also has a high freezing temperature, requiring a heat trace in the piping in applications in northern

areas of the U.S.

DEF-Trac ® flexible piping is uniquely suited to handle all of these challenges, as the stainless steel

inner core is corrosion resistant, and DEF-Trac ® piping also comes with options for heat trace that is extruded directly

into the wall of the product.

In summary, DEF-Trac ® piping provides a complete solution to the demanding requirements

of this unique application, as such, DEF-Trac ® piping has been met with wide acceptance from the industry that was searching

for a solution to the new environmental requirement.

The advantageous market position of DEF-Trac ® has leveraged the penetration

of DoubleTrac ® piping into the broader market for automotive fueling applications.

Corrugated Medical Tubing

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

2024, the Company formed a new U.S.

subsidiary, Flex-Trac, Inc., for the MediTrac ® CMT product line.

Market Applications

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In contrast, fixed or rigid

metal pipe would expand and contract along its length as the liquid gases passed through it, causing stresses on the pipe junctions that

metal pipe would expand and contract along its length as the liquid gases passed through it, causing stress on the pipe junctions that

would over time cause fatigue and failure.

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contributes to our gross profit levels.

We have also improved our productivity on a historical basis.

and Competition

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

manufacturers

include Titeflex Corporation, Ward Manufacturing, Microflex Inc., Hose Master, Pennflex, and several smaller privately held companies.

No one manufacturer, as a general rule, participates in more than two of the major market categories, automotive, aerospace, residential

and commercial construction, and general industrial, with most concentrating on just one.

We estimate that we are at or near the top

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

market share.

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

manufacturers and importers include Titeflex Corporation, Ward Manufacturing, Pro-Flex, Microflex Inc., Hose Master, Pennflex, and

several smaller privately held companies.

No one manufacturer or importer, as a general rule, participates in more than two of the major

market categories, automotive, aerospace, residential and commercial construction, and general industrial, with most concentrating on

We estimate that we are at or near the top position of the two major categories in which we participate regarding U.S.

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

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

of flexible metal hose, the general industrial market is very fragmented, and we estimate that no one company has a predominant market

share of the business over other competitors.

In the market for double containment piping, we compete primarily against rigid pipe systems

that are more costly to install than DoubleTrac ® double containment piping.

For medical tubing applications, the main

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

MediTrac ® CMT is the only corrugated medical tubing

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.

The larger of our two markets, the construction industry, has seen a modest

decrease in the number of residential housing starts in 2024, 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, import

and sale of flexible metal hose, the general industrial market is very fragmented, and we estimate that no one company has a predominant

market share of the business over other competitors.

In the market for double containment piping, we compete primarily against rigid

pipe systems that are more costly to install than DoubleTrac ® double containment piping.

For medical tubing applications,

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

MediTrac ® CMT is the only corrugated medical

tubing in the U.S.

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

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.

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.

In some cases, where the product offering is considered a commodity, price is the overriding competing factor.

In other cases, a proprietary

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.

Currently, 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.

In some cases, where the product offering is considered a commodity, price is the

overriding competing factor.

In other cases, a proprietary 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

use various materials in the manufacture of our products, primarily stainless steel for our flexible metal hose and plastics for our

jacketing material on TracPipe ® CounterStrike ® flexible gas piping and DoubleTrac ® double

containment piping, as well as a copper alloy for our MediTrac ® CMT.

We also purchase all of our proprietary fittings

for use with the TracPipe ® and CounterStrike ® flexible gas piping, DoubleTrac ® double containment

piping, and MediTrac ® CMT.

jacketing material on TracPipe ® CounterStrike ® CSST and DoubleTrac ® double containment piping,

as well as a copper alloy for our MediTrac ® CMT.

We also purchase all of our proprietary fittings for use with the TracPipe ®

and CounterStrike ® CSST, DoubleTrac ® double containment piping, and MediTrac ® CMT.

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 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.

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 ®

Fortunately, the Company was able to maintain reasonably stable margins during 2024 as the cost of these prime materials,

mainly nickel, decreased.

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 2024, 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.

Regulations, Including Environmental Regulations

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Risk Factors for further information.

believe that our employees are the foundation of the innovative ideas necessary for the advancement of our products, and success of our

Our employees are the conduits to successful relationships with our customers, vendors, and various business partners, as well

as the custodians of the safe and efficient operation of our assets ending with a highly satisfied customer.

The Company fosters a collaborative,

inclusive, and safety-minded work environment, with a focus on ingenuity.

We seek to identify the most highly qualified talent for our

organization, enabling us to execute our strategic objectives of providing the most innovative and technologically advanced flexible

metal hose products on the market.

To attract and retain employees, the Company offers competitive wages across all levels, and maintains

a superior package of employee benefits, including medical insurance, life insurance, and retirement and savings programs, for all employees,

as well as executive compensation plans as described in our proxy statement.

of December 31, 2023, the Company had 168 employees.

Most of our employees are located in our manufacturing facilities in Exton, Pennsylvania,

which contain our factory personnel, engineering, finance, human resources and most of our sales staff.

Our factory workforce in Exton,

Pennsylvania, is not party to a collective bargaining agreement.

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

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.

This commitment extends

to providing equal employment and advancement opportunities based on merit and experience.

We continually strive to attract a diverse

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

of December 31, 2024, the Company and its subsidiaries had approximately 175 full-time employees and no part-time employees.

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

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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.

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