What changed in this filing

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Item 1A. Risk Factors

2026-03-02 compared with 2025-02-19 · 108 added, 58 removed, 152 unchanged (52% of the section changed)

ITEM 1A—RISK FACTORS

1A—RISK FACTORS

The Company’s operations could be affected

6 unchanged sentences

following risk factors, as well as other information in this report, should be carefully considered.

Changes in government policies and firearms

legislation could adversely affect the Company’s financial results.

Changes in government

policies and firearms legislation could adversely affect the Company’s financial results.

The sale, purchase, ownership, and use of firearms

15 unchanged sentences

The Company believes the PLCAA merely codifies common sense and long standing tort principles.

If the PLCAA is repealed

or efforts to circumvent it are successful and lawsuits similar to those filed by cities and agenda-driven individuals in the late 1990s

and early 2000s are allowed to proceed, it could have a material adverse impact on the Company.

Several state legislatures

have recently enacted laws specifically designed to circumvent the PLCAA.

These laws define a firearm industry member’s failure

to implement undefined “reasonable controls” to prevent criminal misuse of firearms as a public nuisance.

This type of law

is novel and untested, but if successfully used against the Company, could have a material adverse impact on the Company.

is repealed or continuing efforts to circumvent it are successful and lawsuits similar to those filed by cities and agenda-driven individuals

in the late 1990s and early 2000s are allowed to proceed, it could have a material adverse impact on the Company.

Currently, federal and several states’ legislatures

2 unchanged sentences

Enacted legislation and proposed bills are numerous and extremely varied, but many seek to limit magazine capacity,

restrict or ban the sale and, in some cases, the ownership of various types of firearms, or ban commonly owned firearms with certain features.

Other legislation seeks to require new technologies, such as microstamping and so-called “smart gun” technology, which are

not proven, reliable or feasible.

restrict or ban the sale and, in some cases, the ownership of various

types of firearms, or ban commonly owned firearms

with certain features.

Other legislation seeks to require new technologies, such as microstamping and so-called “smart gun”

technology, which are not proven, reliable or feasible.

The Company believes that the lawful private ownership

8 unchanged sentences

firearms and/or ammunition.

The Company’s results of operations could

be further adversely affected if legislation with diverse requirements is enacted .

The Company’s

results of operations could be further adversely affected if legislation with diverse requirements is enacted .

With literally thousands of laws being proposed

2 unchanged sentences

existing products.

The Company’s results of operations could be adversely affected

by litigation.

The Company’s results of operations

could be adversely affected by litigation.

The Company faces risks arising from various asserted

7 unchanged sentences

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

financial results.

Company’s financial results.

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

The Company relies upon relationships with

financial institutions.

The Company relies

upon relationships with financial institutions.

The Company utilizes the services of numerous

7 unchanged sentences

investment, share repurchases, and potential acquisitions.

The Company’s insurance may be insufficient to protect us

from claims or losses.

The Company’s insurance may

be insufficient to protect us from claims or losses.

The Company maintains insurance coverage with

8 unchanged sentences

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

The Company’s results of operations could

be adversely affected by a decrease in demand for Company products.

The Company’s

results of operations could be adversely affected by a decrease in demand for Company products.

If demand for the Company’s products decreases

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

The financial health of the Company’s independent distributors

is critical to its success.

The financial health of the Company’s

independent distributors is critical to its success.

Over 90% of the Company’s sales are made

7 unchanged sentences

its accounts receivable on a timely basis, which would have an adverse impact on its operating results and financial condition.

The Company must comply with various laws and

regulations pertaining to workplace safety and environment, environmental matters, and firearms manufacturing.

The Company must

comply with various laws and regulations pertaining to workplace safety and environment, environmental matters, and firearms manufacturing.

In the normal course of its manufacturing operations,

4 unchanged sentences

have a material adverse impact on the Company.

Misconduct of the Company’s employees

or contractors could cause the Company to lose customers and could have a significant adverse impact on its business and reputation.

Misconduct of

the Company’s employees or contractors could cause the Company to lose customers and could have a significant adverse impact on

its business and reputation.

Misconduct, fraud or other improper activities

3 unchanged sentences

of personal information, laws and regulations relating to antitrust and any other applicable laws or regulations.

Product quality and performance is important

to the Company’s success.

Product quality

and performance is important to the Company’s success.

The Company has a long

5 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.

to develop and produce new products is important to the Company’s success.

The Company has a long

7 unchanged sentences

results and financial condition.

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

The Company may be impacted by the

actions of its competitors.

The Company remains focused on the long-term goal

8 unchanged sentences

and financial condition.

Business disruptions at one of the Company’s

manufacturing facilities could adversely affect the Company’s financial results.

Business disruptions

at one of the Company’s manufacturing facilities could adversely affect the Company’s financial results.

The Newport, New Hampshire, Prescott, Arizona,

Mayodan, North Carolina, and Earth City, Missouri facilities are critical to the Company’s success.

These facilities house the Company’s

principal production, research, development, engineering, design, and shipping operations.

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

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

The Company relies on its information and communications

systems in its operations.

Security breaches and other disruptions could adversely affect its business and results of operations.

Mayodan, North Carolina, Hebron, Kentucky, and Earth City, Missouri facilities are critical to the Company’s success.

These facilities

house the Company’s principal production, research, development, engineering, design, and shipping operations.

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

The Company relies

on its information and communications systems in its operations.

Security breaches and other disruptions could adversely affect its business

and results of operations.

Cybersecurity threats are significant and evolving

and include, among others, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that

could lead to disruptions in mission critical systems, unauthorized release of confidential or otherwise protected information and corruption

In addition to security threats, the Company is also subject to other systems failures, including network, software or hardware

failures, whether caused by the Company, third-party service providers, natural disasters, power shortages, terrorist attacks or other

and include, among others, malicious software, attempts to gain unauthorized access to data, ransomware, social engineering technologies

and other electronic security breaches that could lead to disruptions in mission critical systems, unauthorized release of confidential

or otherwise protected information and corruption of data.

addition to security threats, the Company is also

subject to other systems failures, including network, software or hardware failures, whether caused by the Company, third-party service

providers, cloud platforms, software vendors, vulnerabilities, natural disasters, power shortages, terrorist attacks or other events.

The unavailability of the Company’s information or communications systems, the failure of these systems to perform as anticipated

or any significant breach of data security could cause loss of data, disrupt Company operations, lead to financial losses from remedial

actions, require significant management attention and resources, and negatively impact the Company’s reputation among its customers

and the public, which could have a negative impact on the Company’s financial condition, results of operations and liquidity.

The lack of available raw materials or component

parts could disrupt or even cease the Company’s manufacturing operations.

Even if manufacturing operations are not disrupted, increased

costs of raw materials and component parts could adversely affect the Company’s financial results.

actions, require significant management attention and resources, expose the Company to legal claims, regulatory investigations, penalties,

compliance costs, and negatively impact the Company’s reputation among its customers and the public, which could have a negative

impact on the Company’s financial condition, results of operations and liquidity.

The lack of available

raw materials or component parts could disrupt or even cease the Company’s manufacturing operations.

Even if manufacturing operations

are not disrupted, increased costs of raw materials and component parts could adversely affect the Company’s financial results.

Third parties supply the Company with various

6 unchanged sentences

could be materially adversely affected.

The Company relies

primarily on third parties for transportation of the products it manufactures as well as delivery of its raw materials.

Company relies primarily on third parties for transportation of the products it manufactures as well as delivery of its raw materials.

Any increase in the cost

5 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

and have a material adverse effect on its financial position and results of operations.

Availability and retention

of the Company’s labor force, especially its key management, is critical to the success of the Company.

and retention of the Company’s labor force, especially its key management, is critical to the success of the Company.

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

5 unchanged sentences

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

The Company’s business may be adversely

affected by tariffs, trade sanctions or similar government actions.

The actual or threatened imposition of tariffs, sanctions

or other restrictions on goods exported from the United States or imported into the United States, or countermeasures imposed in response

to such government actions, could increase the Company’s cost of products sold or reduce its ability to sell products globally,

which may adversely affect its operating results and financial condition.

While the Company sources the majority of its materials domestically,

the imposition of tariffs could lead to increased demand and pricing on domestic materials, which could result in an increase to the Company’s

cost of products sold and a reduction in its gross margin.

So far, these new tariffs and trade policies have not had a significant impact

on the Company’s business operations and financial results.

However, there is no guarantee that the Company can avoid the impact

of tariff and related economic effects in the future, and these trade measures and retaliations may directly impair its business by increasing

trade-related costs or disrupting established supply chains.

The Company’s

Rights Plan could discourage, delay, or prevent a change in control over us and may affect the trading price of our Common Stock .

On October 14, 2025, the Company’s Board

of Directors approved the adoption of the Rights Plan and authorized and declared a dividend of one common stock purchase right (a “Right”)

for each share of Common Stock outstanding at the close of business on October 24, 2025 and that may become outstanding between such date

and the Distribution Date (as defined in the Rights Plan) or the earlier Expiration Date (as defined in the Rights Plan).

If the Rights

become exercisable, all holders of Rights (other than the person or group triggering the Rights Plan, whose Rights would become void)

will be entitled to acquire shares of Common Stock at a 50% discount to the then-current market price or the Company may exchange each

Right held by such holders for one share of Common Stock.

The Rights Plan may discourage, delay, or prevent a change of control or acquisition

of the Company, even if such action may be considered beneficial by some stockholders of the Company, and could limit the price that investors

would be willing to pay in the future for the Company’s Common Stock.

The foregoing summary of the Rights Plan is qualified in its

entirety by the Rights Plan.

The Company’s

business could be negatively affected as a result of actions of activist stockholders, and such activism could adversely affect the strategic

direction and business results of the Company.

Publicly traded companies are increasingly subject

to activist stockholders advocating corporate actions such as operational, governance, management or social changes, financial restructurings,

increased borrowings, special dividends, stock repurchases, or sales of assets or entire companies to third parties or to the activist

stockholders themselves.

The Company has been and may continue to be subject to actions from activist stockholders or others that may

not align with its business strategies or may not be in the best interests of all of its stockholders.

Actions taken by the Company’s

Board of Directors and management in seeking to maintain constructive engagement with certain stockholders may not be successful to prevent

the occurrence of stockholder activist campaigns or changes that adversely affect the strategic direction or business results of the Company.

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