Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
Our business, future
financial condition and results of operations are subject to a
number of factors, risks and uncertainties, which are
disclosed in Item 1A , entitled “Risk
Factors” in Part I of our Annual Report on Form 10-K
for our fiscal year ended June 30, 2021, as well as any amendments thereto or additions and changes thereto contained in this quarterly
report on Form 10-Q for the quarter ended December 31, 2021. Additional information regarding some of those risks
and uncertainties is contained in the notes to the condensed financial statements included elsewhere in this report and in Part I, Item
2, of this report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
The risks and uncertainties disclosed in our Form 10-K , our quarterly
reports on Form 10-Q and other reports filed with the SEC are not necessarily all of the
risks and uncertainties that may affect our business, financial condition and results
of operations in the future.
There have
been no material changes to the risk factors as disclosed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2021, except
as provided in any amendments thereto and those set forth below.
During calendar 2021 and continuing
into calendar 2022 we began seeing challenges in our supply chain in the form of delayed shipments, longer lead times and surcharges,
much of which our suppliers indicate have been caused by the COVID-19 pandemic. If these conditions persist they could have a material
adverse effect on our business.
While the COVID-19 pandemic has
yet to have an adverse impact on our business or results of operations and we have successfully managed to maintain safety stock of our
long-lead inventory items, we are starting to see instances where supply disruptions may start impacting our ability to ship products
to our customers timely. We are also continuing to see surcharges and price escalations that we may or may not be able to pass on to our
customers, many of whom have price protections in place under long-term contracts. If we are unable to deliver customer orders timely,
or are unable to increase selling prices, our future results of operations could be negatively impacted.
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