−Removed: The discussion of our business, operations, and financial results in this Quarterly Report on Form 10-Q for the period ended March 31, 2020 should be read together with the risk factors contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, filed with the SEC on August 27, 2019, which describe various risks and uncertainties which could materially affect our business, financial condition and results of operations in the future.
−Removed: Except as set forth below, there have been no material changes to the risk factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019.
−Removed: The risks described below and in our Annual Report on Form 10-K are not the only risks we face.
+Added: The discussion of our business, financial condition and results of operations in this Quarterly Report on Form 10-Q for the period ended September 30, 2020 should be read together with the risk factors contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, filed with the SEC on August 21, 2020, which describe various risks and uncertainties that could materially affect our business, financial condition and results of operations in the future.
+Added: There have been no material changes to the risk factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020.
+Added: The risks described in our Annual Report on Form 10-K are not the only risks we face.
Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and results of operations.
−Removed: The novel coronavirus (COVID-19) outbreak has significantly impacted worldwide economic conditions and could adversely impact our business, financial condition and results of operations.
−Removed: Our operations expose us to risks associated with pandemics, epidemics or other public health emergencies, such as the recent outbreak of COVID-19.
−Removed: In March 2020, the World Health Organization categorized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency.
−Removed: The outbreak has resulted in governments around the world implementing increasingly stringent measures to help combat the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, and other measures.
−Removed: Many of our products and services are considered to be essential under federal, state and local guidelines.
−Removed: Accordingly, we currently continue to operate across our global footprint;
−Removed: however, given recent government regulations, many of our global facilities are not able to operate at optimal capacity.
−Removed: Notwithstanding our continued operations, COVID-19 has begun to have and may have further negative impacts on our operations, supply chain, transportation networks and customers, which may compress our margins, including as a result of preventative and precautionary measures that we, other businesses and governments are taking.
−Removed: The COVID-19 outbreak is a widespread public health crisis that is adversely affecting the economies and financial markets of many countries which may result in a period of regional, national, and global economic slowdown or regional, national, or global recessions.
−Removed: Any resulting economic downturn or slowdown could curtail or delay spending, adversely affect demand for our products and contribute to volatile supply and demand conditions affecting prices and volumes in the markets for our products, services and raw materials.
−Removed: The progression of this matter could also negatively impact our business or results of operations through the temporary closure of our operating locations or those of our customers or suppliers, disrupting raw materials to our factories and assembly plants, inhibiting the manufacture and assembly of products at our factories and assembly plants, delaying or preventing deliveries to our customers, and interruption of our ability to provide servicing and installations of equipment due to travel restrictions, among others.
−Removed: In addition, the ability of our employees and employees of our suppliers and customers to work may be significantly impacted by individuals contracting or being exposed to COVID-19, or as a result of the control measures noted above, which may significantly hamper our production throughout the supply chain and constrict sales channels.
−Removed: Our customers may be directly impacted by business curtailments or weak market conditions and may not be willing or able to fulfill their contractual obligations or open letters of credit and may seek to modify or terminate their contracts with us.
−Removed: We may also experience delays in obtaining letters of credit or processing letter of credit payments due to the impacts of COVID-19 on foreign issuing and U.S.
−Removed: intermediary banks.
−Removed: In addition, the COVID-19 pandemic may create an increased risk of customer defaults or delays in payments.
−Removed: Our customers may terminate or amend their agreements for the purchase or service of our products due to bankruptcy, lack of liquidity, lack of funding, operational failures, or other reasons.
−Removed: Further, while we currently do not anticipate issues under our credit agreements, events resulting from the effects of the COVID-19 pandemic may negatively impact our ability to comply with our financial covenants in the future, which could lead us to seek an amendment or waivers from our lenders, limit access to or require accelerated repayment of our existing credit facilities, or require us to pursue alternative financing.
−Removed: We have no assurance that any such alternative financing, if required, could be obtained at terms acceptable to us, or at all, including as a result of the effects of COVID-19 on financial markets at such time.
−Removed: The extent to which COVID-19 may adversely impact our business depends on future developments, which are highly uncertain and unpredictable, including new information concerning the severity of the outbreak and the effectiveness of actions globally to contain or mitigate its effects.
−Removed: As we cannot predict the duration or scope of the COVID-19 pandemic, the estimated negative impact to our results of operations, cash flows and financial position cannot be reasonably estimated but might be material and last for an extended period of time.
−Removed: Substantial declines in crude oil prices or extended periods of low crude oil prices may adversely affect our business, financial condition, and results of operations.
−Removed: Some of our international customers have procurement budgets that are strongly correlated with fluctuations in the price of crude oil.
−Removed: Historically, the market for crude oil has been volatile and unpredictable.
−Removed: Crude oil prices are subject to rapid and significant fluctuations in response to global events and relatively minor changes in supply and demand.
−Removed: Recently, as a result of increased supply and decreased demand, crude oil prices have declined sharply.
−Removed: While factors relating the price of crude oil to demand for our products and services are complex, this period of depressed crude oil prices may adversely affect our business, financial condition, and results of operations.
−Removed: If we are unable to continue or fail to perform on our existing agreements to provide security screening solutions to customers after expending substantial resources, such failure could have a material adverse effect on our business, financial condition and results of operations.
−Removed: Certain of our projects require the expenditure of substantial management and financial resources in anticipation of future revenue generation.
−Removed: For example, our contract with the Mexican government to provide a turnkey security screening solution at various sites throughout Mexico required substantial expenditures for capital equipment and infrastructure and is set to expire on May 13, 2020.
−Removed: While we are actively in discussions with the Mexican government for a renewal of the program, we cannot provide any assurance that this program will be continued and, if the program is continued, upon what terms.
−Removed: If the program is discontinued or continued upon modified terms, our results of operations could be materially and adversely affected.
−Removed: We anticipate that future contracts for turnkey security screening solutions in other territories could also require the outlay and management of substantial financial resources for capital equipment and infrastructure.
−Removed: Turnkey screening solutions projects, in contrast to the sale and installation of security inspection equipment, also require that we hire and manage large numbers of local personnel in jurisdictions where we may not have previously operated.
−Removed: They also require that we establish, adhere to, adapt and monitor operating procedures over periods that last much longer than our other projects.
−Removed: If we are unable to efficiently manage the adaptation and growth of our operations relating to these projects, our operations could be materially and adversely affected.
+Added: Further, COVID-19 and its impact on the global health and economic environment, as well as reactions to resurgences of COVID-19 or other future pandemics, could also amplify the other risk factors described in our Annual Report of Form 10-K and thus materially affect our business, financial condition and results of operations.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
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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.