For a complete discussion of the Company's risk factors, you should carefully review the risk factors included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2022.
−Removed: The following risk factors have been added or updated because of developments during the fiscal 2022 interim period.
−Removed: These risks could affect our business, financial position, or results of operations or could cause our actual results and financial condition to differ materially from those projected in the forward-looking statements.
−Removed: Net sales and profitability of our Dental segment are highly dependent on our relationships with a limited number of large distributors.
−Removed: The distribution network in the U.S.
−Removed: dental industry is concentrated, with relatively few distributors of consumable products accounting for a significant share of the sales volume to dentists.
−Removed: Historically, the top three Customers of Cantel's Dental segment accounted for more than 40.0% of its revenues.
−Removed: The loss of a significant amount of business from any of these Customers would have a material adverse effect on our Dental segment.
−Removed: In addition, because our Dental segment products are primarily sold through third-party distributors and not directly to end users, we cannot control the amount and timing of resources that our distributors devote to our products.
−Removed: There can be no assurance that there will not be a loss or reduction in business from one or more of our major Customers.
−Removed: In addition, we cannot assure that revenues from Customers that have accounted for significant revenues in the past, either individually or as a group, will reach or exceed historical levels in any future period.
−Removed: The COVID-19 pandemic has disrupted our operations and could have a material adverse effect on our business and financial condition.
−Removed: The COVID-19 pandemic, along with the response to the pandemic by governmental and other actors, has disrupted our operations.
−Removed: In fiscal 2021, we experienced temporary mandatory and voluntary facility closures in certain jurisdictions in which we operate and less demand for certain of our products and services as a result of deferrals of certain medical procedures, and other factors, which we believe was exacerbated by the impact of stay-at-home orders.
−Removed: Additionally, the COVID-19 outbreak and other factors have caused and continue to cause temporary disruptions in our supply chain and labor scarcity resulting in material and labor cost inflation.
−Removed: Long-term facility closures or other restrictions could materially adversely affect our ability to adequately staff, supply or otherwise maintain our operations.
−Removed: Such restrictions also may have a substantial impact on our Customers and our sales cycles.
−Removed: The COVID-19 pandemic may put pressure on overall spending for our products and services, and may cause our Customers to modify spending priorities or delay or abandon purchasing decisions.
−Removed: Moreover, because a large number of our employees have been working from home, we may be subject to increased vulnerability to cyber and other information technology risks.
−Removed: We have modified, and may further modify, our business practices in response to the risks and negative impacts associated with the COVID-19 pandemic.
−Removed: However, there can be no assurance that these measures will be temporary or successful.
−Removed: The impact of the COVID-19 pandemic continues to evolve.
−Removed: We cannot accurately forecast at this time its ultimate duration, severity and/or disruption to our business, Customers, and supply chain, and the related financial impact to us.
−Removed: Should such disruption continue for an extended period, the adverse effect on our business, results of operations and financial condition could be more severe.
−Removed: Additionally, weak economic conditions, the pace of economic recovery, and rising inflation, could result in variability in demand for our products and services and higher operating costs.
−Removed: Furthermore, future public health crises are possible and could involve some or all of the risks discussed above .
−Removed: Current economic and political conditions make tax rules in an y j urisdiction subject to significant change.
−Removed: Tax Cuts and Jobs Act (“TCJA”) was signed into law on December 22, 2017.
−Removed: Guidance continues to be issued clarifying the application of this legislation and new proposed legislation known as Build Back Better is under consideration within both houses of U.S.
−Removed: Significant business and international provisions have been proposed in various versions of the framework of the bill that could increase our total tax expense.
−Removed: We cannot predict the overall impact that the additional guidance and proposed changes may have on our business.
−Removed: Some jurisdictions have raised tax rates and it is reasonable to expect that other global taxing authorities will be reviewing current legislation for potential modifications in reaction to the implementation of U.S.
−Removed: tax legislation, current economic conditions, and COVID-19 response costs.
−Removed: In addition, further changes in the tax laws of other jurisdictions could arise, including as a result of the base erosion and profit shifting (BEPS) project undertaken by the Organization for Economic Cooperation and Development (OECD).
−Removed: The OECD, which represents a coalition of member countries, has issued recommendations that, in some cases, would make substantial changes to numerous long-standing tax positions and principles.
−Removed: These contemplated changes, to the extent adopted by OECD members and/or other countries, could increase tax uncertainty and may adversely impact our provision for income taxes.
+Added: We use a variety of raw materials, components, and devices in our global supply chains, production and distribution processes;
+Added: significant labor and materials shortages, price increases, inflation or unavailability as a result of the COVID-19 pandemic or related macroeconomic factors could increase our operating costs, require significant capital expenditures, or adversely impact the competitive position of our products .
+Added: Our reliance on certain suppliers and vendors to secure raw materials, components and finished devices for use in our global supply chains, production and distribution processes, exposes us to risks of product shortages and unanticipated increases in prices, whether due to inflationary pressure, regulatory changes or otherwise.
+Added: In addition, several raw materials, components and finished devices are procured from a limited number of suppliers or are single-sourced due to the quality considerations or constraints associated with regulatory requirements.
+Added: Many of these suppliers and vendors are located in regions that have been adversely affected by restrictive government and private enterprise measures implemented in response to the pandemic, or have otherwise been disrupted by associated prevailing macroeconomic trends.
+Added: This has led to product shortages and an increase in raw material and component pricing.
+Added: If these suppliers or vendors are unable or unwilling to deliver these materials, we may not be able to manufacture certain products at reasonable cost, without significant capital expenditures or at all, and our business and results of operations could suffer.
+Added: In such cases, we may not be able to establish additional or replacement suppliers for such materials in a timely or cost-effective manner, including as a result of FDA and other regulations that require, among other things, validation of materials and components prior to their use in our products, which could further negatively impact our business and results of operations.
+Added: In addition, during calendar 2022, the U.S.
+Added: and other markets have experienced significant and increasing inflationary pressures in part due to global supply chain disruptions, labor shortages and other impacts of the COVID-19 pandemic, which we anticipate will continue.
+Added: The existence of inflation in the United States and in many of the countries where we conduct business has resulted in, and may continue to result in, higher interest rates and capital costs, higher shipping costs, increased costs of labor, weakening exchange rates and other similar effects.
+Added: We have experienced and may continue to experience inflationary increases in manufacturing costs and operating expenses as well as negative impacts from weakening exchange rates, caused by the COVID-19 pandemic or as a result of associated prevailing macroeconomic factors, and may not be able to pass these cost increases on to our Customers in a timely manner or at all, which could have a material adverse impact on our profitability and results of operations.
+Added: Inflation may also cause our Customers to reduce or delay orders for our products and services, which could have a material adverse impact on our revenues and results of operations.
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.