Item 1A. Risk Factors
Item 1A.
Risk
Factors
Except
as discussed below, there have been no material changes in the risk factors set forth in Part I, Item 1A, “Risk Factors”
in our 2019 Annual Report.
The
impacts of the coronavirus pandemic could adversely affect our business, and other similar crises could result in similar or other
harms.
The
outbreak of the novel coronavirus (COVID-19) pandemic has resulted in widespread travel and transportation restrictions and closures
of commercial spaces, industrial facilities and other spaces and businesses in and across the United States and the world, including
in the locations we operate or target sales. As a result, our business has been impacted and we could face continued or more adverse
effects. In addition, our results and financial condition may be adversely affected by federal or state legislation, or other
similar laws, regulations, orders or other governmental or regulatory actions or best practices, that would impose new restrictions
on our ability to operate our business or customers to operate their businesses. For example, our sales and technical field forces
have been restricted from traveling or limited in travel, which adversely affects our ability to sell our products and complete
field studies. While we have implemented cautionary procedures at our manufacturing facility, there may be disruptions to our
ability to manufacture due to current and additional workplace controls. Our customers may be less inclined or unable to purchase
our products or continue product studies due to restrictions under which they may be operating. Those restrictions are more severe
in some jurisdictions, such as California. If financial markets continue to tighten, we may have more limited ability to raise
necessary financing. The COVID-19 pandemic is also placing a significant budgetary burden on federal, state and local governments,
which may impede or delay their ability to purchase our products. We source some of our critical raw materials from Asia, and
the coronavirus has caused supply chain disruptions, which could limit a timely supply of materials. Each of these could have
negative effects on our business, results of operations, financial condition and cash flows. Even if the coronavirus pandemic
passes, another crisis with similar effects could develop and harm our business, financial results and liquidity. The degree to
which the COVID-19 pandemic may impact our results of operations and financial condition is unknown at this time and will depend
on future developments, including the ultimate severity and the duration of the pandemic, and further actions that may be taken
by governmental authorities or businesses or individuals on their own initiatives in response to the pandemic.
Item 2.
Unregistered
Sales of Equity Securities and Use of Proceeds
None.
Item 3.
Defaults
Upon Senior Securities
None.
Item 4.
Mine
Safety Disclosures
Not
applicable.
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