Item 1A. Risk Factors
Item 1A. Risk Factors.
For information regarding additional risk factors
that could affect our results of operations, financial condition and liquidity, other than set forth below, refer to the section entitled
“Risk Factors” in Part I, Item 1A in our annual report on Form 10-K for the year ended June 30, 2024.
Changes in U.S. Tariff Policy and Related
Trade Actions Could Adversely Affect Our International Supply Chain, Costs, and Competitive Position
Our business is subject to risks associated with
changes in U.S. tariff policy and related trade actions, which could materially and adversely affect our operations, financial condition,
and results of operations. We rely on a global supply chain for the procurement of specialized optical components and assemblies, many
of which are sourced from overseas suppliers. The imposition of new tariffs, increases in existing tariffs, or other trade restrictions
by the United States government on goods imported from certain countries—including, but not limited to, China and other key trading
partners—could increase our cost of goods sold and disrupt the availability of critical components necessary for our products.
In response to evolving U.S. trade policy, affected
countries may implement retaliatory tariffs or other trade barriers on U.S. goods, which could further impact our ability to source materials
at competitive prices or to sell our products in certain international markets. These developments may also result in increased volatility
in global markets, supply chain disruptions, and reduced demand for our products due to higher prices or decreased competitiveness relative
to foreign and domestic competitors not subject to similar tariffs.
While we seek to mitigate the impact of tariffs
through supply chain diversification and price negotiations, such measures may not be successful or may result in increased costs, delays,
or operational inefficiencies. Sustained or additional tariffs could require us to raise prices, which may reduce customer demand and
adversely affect our revenues and market share. Furthermore, uncertainty regarding future U.S. trade policy and the potential for further
changes in tariffs or trade agreements may make it more difficult for us to plan and conduct our business effectively.
Any significant increase in tariffs, expansion
of trade restrictions, or prolonged uncertainty regarding U.S. trade policy could materially adversely affect our ability to source components,
manage costs, and compete effectively in our markets, which could have a material adverse effect on our business, financial condition,
and results of operations.
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures.
Not applicable.
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