Item 1. Business
Item
1 - BUSINESS
Overview
of the Company
The
Company is a leading manufacturer of flexible metal hose, which is used in a variety of ways to carry gases and liquids within their
particular applications. Some of the more prominent uses include:
●
carrying
fuel gases within residential and commercial buildings;
●
carrying
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;
●
using
copper-alloy corrugated piping in medical or health care facilities to carry medical gases (oxygen, nitrogen, vacuum) or pure gases
for pharmaceutical applications; and
●
industrial
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.
The
Company’s business is managed as a single operating segment that consists of the manufacture and sale of flexible metal hose (also
described as corrugated tubing), as well as the sale of the Company’s related proprietary fittings and a vast array of accessories.
The
Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania and Houston, Texas in the United States (U.S.), and
in Banbury, Oxfordshire in the United Kingdom (U.K.). The Company primarily sells its products through distributors, wholesalers and
to original equipment manufacturers (“OEMs”) throughout North America and Europe, and to a lesser extent other global markets.
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Industry
Overview
The
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. Because of its simple and ubiquitous nature, flexible metal hose has been applied to a number
of different applications across a broad range of industries.
The
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 metal hose. The residential
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. The Company produces corrugated
copper tubing for medical gases in medical care facilities, including hospitals, clinics, dental and veterinary offices, and long-term
care facilities. The general industrial market includes all the processing industries, the most important of which include primary steel,
petrochemical, pharmaceutical, and specialty applications for the transfer of fluids at both extremely low and high temperatures, (such
as the conveying of cryogenic liquids) and a highly fragmented OEM market, as well as the maintenance and repair market.
None
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
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 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 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. 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. 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. Based
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.
Development
of Business
Incorporated
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. (Mestek).
In
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.”
Over
the years, most of the Company’s business has been concentrated in North America, but the Company also has foreign subsidiaries
located in the U.K. and France, which are largely focused on European and other international markets. The Company also has a U.S. subsidiary
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.
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Overview
of Current Business
Strategy
The
Company’s strategy has been, and continues to be, focused on its core strengths in the development, manufacture, and sale of flexible
metal hose for use in a variety of applications. 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 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.
Sales,
Products and Customers
We
sell our products to customers scattered across a wide and diverse set of industries ranging from construction to pharmaceutical. 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 ® 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 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 3% to 4% of our total sales during the last two 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.
TracPipe ®
CSST
The
Company has had the most success within the residential construction industry with its flexible gas piping products, TracPipe ®
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
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.
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The
flexibility of the tube allows it to be bent by hand without any tools when a change in direction in the line is required. In contrast,
black iron pipe requires that each bend in the pipe have a separate fitting attached. This requires the installer to thread the ends
of the black iron pipe, apply an adhesive to the threads, and then screw on the fitting, all of which is labor intensive and costly,
including testing and rework if the work is not done properly. As a result of these advantages, the Company estimates that CSST now commands
over one-half of the market for fuel gas piping in new and remodeled residential construction in the U.S., and the use of rigid iron
pipe, and to a lesser degree copper tubing, accounts for the remainder of the market. The Company plans to continue its growth trend
by demonstrating its advantages against other technologies, in both the residential and commercial markets, in both the U.S. and overseas
in geographic areas that have access to natural gas distribution systems.
CounterStrike ®
CSST
As
previously mentioned, in 2004, the Company introduced a new brand of flexible gas piping sold under the registered trademark “CounterStrike ®” .
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
to reach ground, may arc between metal systems that have different electrical resistance, and arcing can cause damage to the metal systems.
In standard CSST systems, an electrical bond between the CSST and the building’s grounding electrode would address this issue,
but lightning is an extremely powerful and unpredictable force. CounterStrike ® CSST is designed to be electrically conductive
and therefore disperse the energy of any electrical charge over the entire surface of the CounterStrike ® line. In 2007,
the Company introduced a new version of CounterStrike ® CSST that was tested to be even more resistant to damage from electrical
arcing than the original version, and substantially more effective than standard CSST products. As a result of its robust performance,
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.
DoubleTrac ®
Piping
In
2008, the Company introduced its first double containment piping product – DoubleTrac ® . DoubleTrac ®
double containment piping has earned stringent industry certifications for its ability to safely contain and convey liquid fuels. DoubleTrac ®
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® 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. In addition,
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.
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DEF-Trac ®
Piping
DEF-Trac ®
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). 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. 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.
MediTrac ®
Corrugated Medical Tubing
In
2019, the Company commercialized MediTrac ® corrugated medical tubing (“CMT”), following its 2018 launch with
several beta sites. Developed for the healthcare industry, the product can be used in hospitals, ambulatory care centers, dental, physician
and veterinary clinics, laboratories, and any facility that uses medical gases (oxygen, nitrogen, carbon dioxide, etc.). Made from a
copper alloy with an exterior fire-retardant jacket, MediTrac ® is made and sold in long continuous-length rolls. MediTrac ®
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. MediTrac ®
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
hand tools. 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). MediTrac ®
CMT also meets Canadian standard Z7396.1, Medical Gas Pipeline Systems.
In
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
and emergency medical centers used MediTrac ® CMT to quickly install medical gas lines in tent hospitals or in converted
facilities to handle the surging demand. For example, MediTrac ® medical gas piping was installed in a City of New York
temporary hospital located in Central Park and in the Cleveland Clinic for patients with COVID-19 infections and in need of supplemental
oxygen treatments. 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 ® CMT
to be installed in all facilities in the U.S.
In
2024, the Company formed a new U.S. subsidiary, Flex-Trac, Inc., for the MediTrac ® CMT product line.
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Additional
Market Applications
In
addition to the flexible gas piping and other previously described markets, our flexible metal hose is used in a wide variety of other
applications. Our involvement in these markets is important because just as the flexible gas piping applications have sprung from our
expertise in manufacturing metal hose, other applications may also evolve from our participation in the industry. Flexible metal hose
is used in a wide variety of industrial and processing applications where the characteristics of the flexible hose in terms of its flexibility,
and its ability to absorb vibration and thermal expansion and contraction, have substantial benefits over rigid piping. For example,
in certain pharmaceutical processing applications, the process of developing the specific pharmaceutical may require rapid freezing of
various compounds through the use of liquefied gases, such as liquefied nitrogen, helium or hydrofluorocarbons. The use of flexible metal
tubing is particularly appropriate in these types of applications. Flexible metal hose can accommodate the thermal expansion caused by
the liquefied gases carried through the hose, and the total length of the hose will not significantly vary. In contrast, fixed or rigid
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. Alternatively, within certain industrial or commercial applications using steam, either as
a heat source or in the industrial process itself, the pumps used to transfer the liquid or steam within the system are subject to varying
degrees of vibration. Additionally, flexible metal hoses can also be used as connections between the pump and the intake of the fluids
being transferred to eliminate the vibration effects of the pumps on the piping transfer system. All of these areas provide opportunities
for the flexible metal hose arena, and thus the Company continues to participate in these markets, as it seeks new innovative solutions
which will generate additional revenue streams for the future.
In
each instance, whether the application is for CSST for fuel gases, flexible metal hose for handling specialty chemicals or gases, flexible
double containment piping, unique industrial applications requiring the ability to withstand wide variations in temperature and vibration,
or copper alloyed CMT for medical facilities, all of our success rests on our metal hose. Most of our flexible metal hoses range in diameter
from 1/4” to 2” while certain applications require diameters of up to 16”. All of our smaller diameter pipe (2”
inner diameter and smaller) are made by a proprietary process that is known as the rotary process. The proprietary process that we use
to manufacture our annular hose is the result of a long-term development effort begun in 1995. Through continuous improvement over the
years, we have developed and fine-tuned the process so that we can manufacture annular flexible metal hose on a high speed, continuous
process. We believe that our own rotary process for manufacturing annular corrugated metal hose is the most cost efficient method in
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 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.
Markets
and Competition
There
are approximately eight manufacturers or importers of flexible metal hose in the U.S., and at least that many in Europe and Asia. The
U.S. 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
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. 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 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.
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Due
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
for our products on a competitive basis. 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.
Resources
and Raw Materials
We
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 ® 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. 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 ®
CMT. 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.
Government
Regulations, Including Environmental Regulations
The
Company believes that its businesses and operations, including its manufacturing plants and equipment, are in substantial compliance
with all applicable government laws and regulations, including those related to environmental, consumer protection, international trade,
labor and employment, human rights, tax, anti-bribery, and competition matters. Any additional measures to maintain compliance are not
expected to materially affect the Company’s capital expenditures (including expenditures for environmental control facilities),
competitive position, financial position, or results of operations.
Various
legislative and administrative regulations applicable to the Company in the matters noted above have become effective or are under consideration
in many parts of the world. To date, such developments have not had a substantial adverse impact on the Company. However, if new or amended
laws or regulations impose significant operational restrictions and compliance requirements upon the Company or its products, the Company’s
business, capital expenditures, results of operations, financial condition and competitive position could be negatively impacted. Refer
to Item 1A. Risk Factors for further information.
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Human
Capital
As
of December 31, 2024, the Company and its subsidiaries had approximately 175 full-time employees and no part-time employees.
Intellectual
Property
We
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.
Available
Information
You
may learn more about our Company by visiting our website at www.omegaflex.com. Among other things, you can access our filings with the
SEC on our website free of charge. These filings include proxy statements, annual reports (Form 10-K), quarterly reports (Form 10-Q),
and current reports (Form 8-K), as well as Section 16 reports filed by our officers and directors (Forms 3, 4 and 5). All of these reports
will be available on our website as soon as reasonably practicable after we file the reports with the SEC. In addition, we have made
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 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.