What changed in this filing

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Item 1A. Risk Factors

2025-02-19 compared with 2024-02-21 · 48 added, 38 removed, 162 unchanged (35% of the section changed)

3 unchanged sentences

Based on current information, the Company believes that the following identifies

the most significant risk factors that could have a material, adverse effect on its business, operating results,

and financial

Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to

anticipate results or trends in future periods.

the most significant risk factors that could have a material, adverse effect on its business, operating results, and financial condition.

Past financial performance may not be a reliable indicator of future performance and historical trends should not be used to anticipate

results or trends in future periods.

In evaluating the Company’s business, the

37 unchanged sentences

for example, limiting the number of firearms that may be purchased in a specified time, increasing the age for ownership, imposing additional

registration requirements, creating additional restrictions on certain, common firearm features, and levying new taxes on

licensing or registration requirements, creating additional restrictions on certain, common firearm features, and levying new taxes on

firearms and/or ammunition.

16 unchanged sentences

A future adverse outcome in any one or more of these matters could have a material adverse effect on the

Company’s financial results.

financial results.

See Note 20 to the financial statements which are included in this Annual Report on Form 10-K.

7 unchanged sentences

on the Company’s business, operating results, and financial condition.

The potential volatility of these relationships may also

impact the Company’s decision making regarding the appropriate allocation of capital to be used for activities such as internal

investment, share repurchases, and potential acquisitions.

The Company’s insurance may be insufficient to protect us

1 unchanged sentence

The Company maintains insurance coverage with

third-party insurers.

third-party insurers and through a wholly-owned captive insurance company with respect to product liability claims, which the Company

established in 2024.

However, not every risk or liability is or can be protected by insurance, and, for those risks it insures, the limits

of coverage it purchases or that are reasonably obtainable in the market may not be sufficient to cover all actual losses or liabilities

Moreover, there is a risk that commercially available liability insurance will not continue to be available to the Company at

a reasonable cost, if at all.

If liability claims or losses exceed the Company’s current or available insurance coverage, its business

may be harmed.

of coverage it purchases, or that are reasonably obtainable in the market, or the funding level of the Company’s wholly-owned captive

insurance company may not be sufficient to cover all actual losses or liabilities incurred.

Moreover, there is a risk that commercially

available liability insurance will not continue to be available to the Company at a reasonable cost, if at all.

If liability claims or

losses exceed the Company’s current or available insurance coverage, its business may be harmed.

The Company’s results of operations could

3 unchanged sentences

Decreased demand could

result from a macroeconomic downturn, or could be specific to the firearms industry as a result of social,

political, or other factors.

result from a macroeconomic downturn, or could be specific to the Company and/or the firearms industry as a result of social, political,

or other factors.

If the decrease in demand occurs abruptly, the adverse impact would be even greater.

34 unchanged sentences

the Company to lose business, and cause the Company to incur significant support and repair costs.

The ability to develop and produce new

products is important to the Company’s success.

The Company has a long

history of designing, engineering, and manufacturing innovative new products.

These new products help to drive growth, excitement, and

profitability and have historically allowed the Company to refrain from having to extend some of the aggressive promotions, discounts,

rebates, and the extension of payment terms offered by its competitors.

While the Company believes it has a strong record of designing,

manufacturing, and selling new, high-quality products, failure to continue to do so in the future could harm its reputation, cause the

Company to lose business, and cause the Company to incur significant promotional costs, which would have an adverse impact on its operating

results and financial condition.

The Company may be impacted by the actions of its competitors.

The Company remains focused on the long-term goal

of creating shareholder value.

Its disciplined pricing and promotion strategy may not always benefit current period sales and profitability,

but endeavors to enhance its long-term performance and promote consistency throughout the distribution channel.

Allowing both independent

distributors and retailers to confidently invest in its inventory is essential to the Company’s long-term success and leadership

in the volatile firearms market.

However, the aggressive promotions, discounts, rebates, and the extension of payment terms offered by

its competitors could negatively impact the Company’s market share, which would have an adverse impact on its operating results

and financial condition.

Business disruptions at one of the Company’s

5 unchanged sentences

Any event that causes a disruption of the operation

of any of these facilities for even a relatively short

period of time could have a material adverse effect on the Company’s ability

of any of these facilities for even a relatively short period of time could have a material adverse effect on the Company’s ability

to produce and ship products and to provide service to its customers.

32 unchanged sentences

In addition, if any of these third parties

were to cease operations or cease doing business with the Company, the Company may be unable to replace them at a reasonable cost.

were to cease

operations or cease doing business with the Company, the Company may be unable to replace them at a reasonable cost.

such failure of a third-party transportation provider could harm the Company’s reputation, negatively affect its customer relationships

3 unchanged sentences

Company has observed an overall tightening and increasingly competitive labor market, which could inhibit its ability to recruit

and retain the employees it requires and could lead to increased costs, such as additional overtime to meet demand and increased wage

rates to attract and retain employees.

and retain the employees it requires and could lead to increased costs, such as additional overtime to meet demand and increased wages

and benefits to attract and retain employees.

The Company relies on the knowledge, experience, and leadership skills of its senior management

The Company’s senior executives are not bound by employment agreements.

The loss of the services of one or more of the Company’s

senior executives or other key personnel could have a significant adverse impact on its business .

A pandemic, like the COVID-19 pandemic, could

have a significant adverse impact on the Company’s operations, financial results, cash flow, and financial condition.

The COVID-19 pandemic created significant uncertainty

and adversely impacted many industries throughout the global economy.

Thus far, the Company has been able to mitigate the impact of COVID-19

through its proactive measures.

The extent to which a future pandemic may impact the Company’s operations, financial results, cash

flow, and financial condition is difficult to predict and dependent upon many factors over which the Company has no control.

These factors

include, but are not limited to, the duration and severity of the pandemic;

government restrictions on businesses and individuals;

significant adverse impacts on the Company’s employees, customers, suppliers, or service providers;

the impact on U.S.

economies and the timing and rate of economic recovery;

and potential adverse effects on the financial markets, any of which could negatively

impact the Company.

The Company’s senior executives are generally not bound by employment agreements.

The loss of the services of one or more

of the Company’s senior executives or other key personnel could have a significant adverse impact on its business .

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 1A. Risk Factors