What changed in this filing

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Item 1A. Risk Factors

2026-06-17 compared with 2025-06-20 · 81 added, 88 removed, 458 unchanged (27% of the section changed)

11 unchanged sentences

Risks Relating to Economic, Political, Social, Legislative, Regulatory, and Inflationary Factors

Our performance is impacted by a variety of economic, political, social, legislative, regulatory, and inflationary factors.

Our performance is impacted by a variety of economic, political, social, legislative, and regulatory factors.

A variety of economic, political, social, legislative, regulatory, and inflationary factors could materially and adversely affect our business, operating results, and financial condition.

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Concerns about presidential, congressional, state, and local elections, and legislative and public policy shifts resulting from those elections, can adversely affect demand for our products.

For example, we believe demand for our products was negatively impacted by unified Republican control of the executive and legislative branches of the federal government during the first two years of the first Trump administration and we believe demand for our products is currently being, and may continue to be, impacted by unified Republican control of the executive and legislative branches of the federal government, in each case, as a result of the reduced risks of gun control legislation and regulation.

For example, we believe demand for our products was negatively impacted in recent years by unified Republican control of the executive and legislative branches of the federal government as a result of a perceived lower risk of federal gun control legislation and regulation.

In addition, speculation surrounding increased gun control at the federal, state, and local level and heightened fears of crime and terrorism can affect consumer demand for our products.

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mandating the use of certain technologies in a firearm;

removing existing legal defenses in lawsuits;

removing existing legal defenses to lawsuits;

or banning the sale and, in some cases, the ownership of various types of firearms and accessories.

1 unchanged sentence

(ii) restrict magazine capacity;

or (iii) have adopted some form of so called "gun industry accountability" laws that attempt to facilitate the filing of civil lawsuits by the respective state government or private individuals against certain firearm industry participants.

Certain states have also raised the minimum age for buying firearms and begun levying excise taxes on firearm, firearm component, and ammunition sales.

(iii) have raised the minimum age for buying

or (iv) levy excise taxes on firearm, firearm component, and ammunition sales.

Certain states have also adopted so called "gun industry accountability" or "firearm industry responsibility" laws that attempt to facilitate the filing of civil lawsuits by the respective state government or private individuals against firearm industry participants.

These statutes are being actively enforced, and we are a defendant in one such action.

Interest in gun control legislation among federal and state legislatures tends to intensify following significant events, such as mass shootings.

If restrictive laws or restrictive changes to existing laws are adopted, we could find it difficult, expensive, or even impossible to comply with such laws, which could impede our ability to develop new products and distribute existing products, and it may become more difficult or costly to purchase our products.

In addition, gun-control activists may succeed in imposing restrictions or an outright ban on private firearm ownership or particular firearm models, which could have a material adverse effect on our business, operating results, and financial condition.

In addition to these matters, which are largely beyond our control, demand for our products may also be adversely impacted by shortages of ammunition since potential purchasers of our products may choose not to purchase our products unless supplies of ammunition to use with our products are available.

Since we do not manufacture ammunition, the supply of ammunition is also beyond our control.

Since we do not manufacture ammunition, the supply of ammunition is beyond our control.

Our business is subject to extensive regulation.

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The manufacture, sale, and purchase of firearms are subject to extensive federal, state, and local governmental regulation.

The primary federal laws are the National Firearms Act of 1934, or NFA, the Gun Control Act of 1968, or GCA, and the Firearms Owners’ Protection Act of 1986, which have been amended from time to time.

The primary federal laws are the National Firearms Act of 1934, or NFA, the Gun Control Act of 1968, or GCA, and the Firearms Owners’ Protection Act of 1986.

The NFA severely restricts the private ownership of fully automatic weapons and heavily regulates other firearms defined in that law and accompanying regulations, including firearm suppressors.

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Consequently, we may not be able to obtain export licenses or complete profitable contracts as a result of political or other reasons that are beyond our control.

In May 2024, new BIS rules took effect that, among other things, led to the revocation of certain of our previously valid licenses that authorized firearm exports to non-government end users in countries deemed "high risk" by the State Department and otherwise imposed significant changes on the licensing requirements for many firearms exports.

These new restrictions negatively impacted our international sales.

For example, in 2024, new BIS rules took effect that negatively impacted our international sales – these rules were rescinded in 2025.

Failure to receive required licenses or authorizations, or the termination or suspension of our export privileges, could have a material adverse effect on our business, operating results, and financial condition.

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Some states or other governmental entities have enacted, and others are considering, laws restricting or prohibiting the ownership, use, sale, or importation of certain categories of firearms, firearm suppressors, ammunition, and ammunition feeding devices.

For example, certain states have adopted restrictions on the sale of modern sporting

rifles, and other states are considering adopting similar laws.

For example, certain states have adopted restrictions on the sale of modern sporting rifles, and other states are considering adopting similar laws.

Some states mandate, or are considering mandating, certain design features based on perceived safety or other grounds.

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CERCLA and RCRA and related state laws subject us to the potential obligation to remove or mitigate the environmental effects of the disposal or release of certain pollutants at our manufacturing facilities and at third-party or formerly owned or leased sites at which contaminants generated by us may be located.

We have incurred and expect to continue to incur expenditures in order to comply with these requirements.

We have incurred and expect to continue to incur expenditures to comply with these requirements.

Further, we may become subject to governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges.

We may not have identified all existing contamination on our properties, and our operations may cause contamination in the future.

We have identified soil and groundwater contamination at our Springfield facility, which we continue to monitor and remediate, as appropriate.

Environmental matters of this nature are inherently fact-specific and may involve changing regulatory requirements, evolving site conditions, allocation disputes among potentially responsible parties, and uncertainty regarding the nature and extent of any required remedial measures.

Accordingly, our actual remediation costs, liabilities, or compliance obligations could exceed current expectations, and we could become subject to additional investigation, remediation, contribution claims, governmental orders, or other restrictions that materially and adversely affect our business, operating results, and financial condition.

Additionally, we may not have identified all existing contamination on our properties, and our operations may cause contamination in the future.

As a result, we could incur additional costs to clean up contamination that exceed the amount of our reserves, and our reserves may increase from time to time.

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• foreign exchange rate fluctuations;

• limitations on imports and exports – In 2024, new BIS rules took effect that, among other things, led to the revocation of certain of our previously valid licenses that authorized firearm exports to non-government end users in countries deemed “high risk” by the State Department and otherwise imposed significant changes on the licensing requirements for many firearms exports;

• limitations on imports and exports;

• imposition of restrictions on currency conversion or the transfer of funds;

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We are exposed to protectionist trade restrictions, including tariffs and potential trade laws.

The federal government has, at times, put in place tariffs and other trade restrictions with respect to other countries, including limiting trade and imposing tariffs on imports from foreign countries.

In addition, other countries have, at times, threatened or put in place tariffs of their own.

For example, in April 2025, the United States announced the imposition of worldwide reciprocal and other tariffs on its trading partners, and in response to the United States' actions, many of the United States' trading partners announced retaliatory tariffs.

We are currently subject to tariffs on certain of our products, and other of our products could become subject to tariffs in the future.

Protectionist trade restrictions, such as changes in tariff structures, export or import compliance laws, or other trade policies in the United States or foreign countries could reduce our ability to sell our products in foreign markets, negatively impact the ability of foreign customers to purchase our products, adversely affect our

ability to import products, components, and raw materials from foreign suppliers, and interfere with our supply chain.

We are subject to tariffs on certain of our products, and other of our products could become subject to tariffs in the future.

Tariffs that result in increased costs or adversely impact the availability of imported products, components, or raw materials used in the production of our products could materially and adversely impact our business, operating results, and financial condition.

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In addition, the imposition of tariffs on products that we export to international markets could make those products more expensive compared to those of our competitors if we pass the additional costs on to our customers, which may also adversely impact our business.

The imposition of significant tariffs on imports from certain countries by the United States has heightened uncertainty in the global trade environment.

For example, we have been negatively impacted by the imposition of higher tariffs as a result of recent changes in U.S.

tariff policies, and we may continue to be negatively impacted by these policies in the future, as well as by any retaliatory tariffs introduced by the United States’ trading partners.

In February 2026, the U.S.

Supreme Court issued a ruling limiting the authority of the United States to impose tariffs under the International Emergency Economic Powers Act, creating uncertainty regarding tariffs previously assessed under that statute.

The availability, timing, and amount of any tariff refunds remain uncertain and depend on further legal, regulatory, and administrative actions.

The tariff environment remains highly uncertain and subject to rapid change.

In addition, uncertainty regarding the availability, timing, and amount of any refunds or other relief relating to previously paid duties may affect our cash flows and results in future periods.

We cannot predict the scope, timing, or ultimate impact of these developments on our business.

High levels of inflation have adversely affected us and may continue to adversely affect us.

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Legal and regulatory restrictions apply to the sale of certain of the products offered (such as magazines) through our e-commerce website.

As a result, we may be unable to sell or may choose not to sell certain products through our e-commerce website, and any changes in applicable federal or state laws or regulations may impact our ability to sell our products through our e-commerce website.

For example, in January 2026, a new law took effect that imposes restrictions on the sale of firearm accessories to California residents.

As a result of this or other laws and regulations, we may be unable to sell or may choose not to sell certain products through our e-commerce website, and any changes in applicable federal or state laws or regulations may impact our ability to sell our products through our e-commerce website.

Our efforts to increase our sales on our e-commerce website may not be successful.

We are subject to risks associated with the Relocation.

In connection with the Relocation, we continue to be subject to a number of risks, including those associated with meeting the spending, headcount, and wage commitments required to receive and/or retain certain governmental incentives associated with the Relocation and our ability to effectively implement and utilize productivity enhancements, including those related to automation.

In addition, we have experienced, and may continue to experience, increased employee turnover and challenges in recruiting employees and retaining existing employees.

This turnover may have resulted in, and may continue to result in, the loss of valuable historical knowledge concerning our business and its operations.

In particular, we may be unable to recruit employees with the requisite skills to work at our Maryville facility, and we may struggle to recruit and retain employees to work in our Springfield facility,

which has been significantly impacted by the Relocation.

In particular, the compliance period for the award we received from the State of Tennessee Department of Economic and Community Development is defined as January 1, 2027, January 1, 2028, and January 1, 2029.

If we fail to meet the performance requirements of the award, we may be required to repay all or a portion of the award amount.

Any one or more of these risks could cause us to fail to realize the expected benefits of the Relocation.

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We house our management, administrative, assembly (except for revolvers, certain metal pistols, and lever-action rifles, which continue to be manufactured and assembled in the Springfield facility), distribution, and plastic injection molding functions at our Maryville facility.

Our Maryville facility includes computer controlled and automated equipment, which is complex and may be subject to a number of risks related to security or computer viruses, the proper operation of software and hardware, electronic or power interruptions, and other system failures.

We also depend on our Houlton facilities, which are used primarily to machine our firearm parts and manufacture all of our handcuffs and restraints.

Our Maryville facility includes computer controlled and automated equipment, which is complex and may be subject to risks related to security or computer viruses, the proper operation of software and hardware, electronic or power interruptions, and other system failures.

We also depend on two facilities in Houlton, which are used primarily to machine our firearm parts and manufacture our handcuffs and restraints.

A disruption in the activities of these facilities could adversely affect our firearm manufacturing operations.

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We rely on our supply chain for our production, and any interruptions in these arrangements could disrupt our ability to fill our customers’ orders.

We utilize contract manufacturers for a portion of our production requirements, particularly during periods of very high customer demand, in order to increase our manufacturing capacity and reduce our capital expenditures for facilities that may not always operate at peak capacity.

We utilize contract manufacturers for a portion of our production requirements, particularly during periods of high customer demand, in order to increase our manufacturing capacity and reduce our capital expenditures for facilities that may not always operate at peak capacity.

Qualifying new contract manufacturers is time-consuming and may result in unforeseen disruptions in our operations.

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From time to time, we have been capacity constrained and have been unable to satisfy on a timely basis the demand for some of our products.

We believe that we have improved our manufacturing productivity by adding capacity, increasing daily production quantities, increasing operational availability of equipment, reducing machinery down time, extending machinery useful life, increasing manufacturing efficiency, and contracting with suppliers to obtain additional finished parts.

We believe we have improved our manufacturing productivity by adding capacity, increasing daily production quantities, increasing operational availability of equipment, reducing machinery down time, extending machinery useful life, increasing manufacturing efficiency, and contracting with suppliers to obtain additional finished parts.

Future significant increases in demand for our products, if any, may require us to further expand our manufacturing capacity, particularly through the purchase of additional manufacturing equipment and the addition of manufacturing space, and we may not be able to increase our capacity in time to satisfy these increases.

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Most of the major suppliers for our products are U.S.-based and provide materials, components, and parts, such as raw steel, polymer components, and metal-injected-molded components.

We have become increasingly dependent on a small number of key vendors that supply components and parts for our firearms as a result of our decision to increase our manufacturing flexibility by using third parties that can supplement our internal capacity to better react to changes in market conditions.

We have become increasingly dependent on a small number of key vendors that supply components and parts for our firearms.

We also use numerous raw materials, including steel, wood, lead, brass, and plastics, that we purchase from third-party suppliers to produce and test our products.

The price of these raw materials may fluctuate substantially depending on a variety of factors, including demand, weather, supply conditions, transportation costs, energy prices, work stoppages, government regulation, environmental protection, and other unpredictable factors.

Any of these factors may be exacerbated by global climate change.

Inflationary pressures have resulted in increases in the cost of certain of the components, parts, raw materials, and other supplies necessary for the production of our products, and such increases may continue to impact us in the future.

Inflationary pressures have resulted in increases in the cost of certain of the components, parts, raw materials, and other supplies necessary to produce our products, and such increases may continue to impact us in the future.

In addition, uncertainties related to governmental fiscal policies, including increased duties, tariffs, or other trade restrictions, could result in an increase in the price of components, parts, raw materials, and other supplies we purchase from third-party suppliers.

In an inflationary environment, we may be unable to raise the price of our products sufficiently to keep up with the rate of inflation, which would reduce our profitability and cash flows.

Our inability to obtain sufficient quantities of components, parts, raw materials, and other supplies from independent sources necessary for the production of our products could result in reduced or delayed sales or lost orders, which could materially and adversely impact our operating results.

Our inability to obtain sufficient quantities of components, parts, raw materials, and other supplies from independent sources necessary to produce our products could result in reduced or delayed sales or lost orders, which could materially and adversely impact our operating results.

Many of the components, parts, raw materials, and other supplies used to produce our products are available only from a limited number of suppliers.

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Our future growth and profitability will depend in large part upon the effectiveness and efficiency of our advertising, marketing, public relations, and promotional programs.

These brand promotion activities may not be effective, and their efficacy will depend on a number of factors, including our ability to:

These brand promotion activities may not be effective, and their efficacy will depend on various factors, including our ability to:

• determine the appropriate creative message and media mix and markets for advertising, marketing, and promotional expenditures;

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Implementing new marketing and advertising strategies also could increase the risk of devoting significant capital and other resources to endeavors that do not prove to be cost effective.

We also may incur marketing and advertising expenses significantly in advance of the time we anticipate recognizing revenue associated with such expenses, and our marketing and advertising expenditures may not generate sufficient levels of brand awareness and conversion or result in increased net sales.

We also may incur marketing and advertising expenses in advance of the time we anticipate recognizing revenue associated with such expenses, and our marketing and advertising expenditures may not generate sufficient levels of brand awareness and conversion or result in increased net sales.

Even if our marketing and advertising expenses result in increased net sales, the increase might not offset our related expenditures.

unable to maintain our marketing and advertising channels on cost-effective terms or replace or supplement existing marketing and advertising channels with similarly or more effective channels, our marketing and advertising expenses could increase substantially, our customer base could be adversely affected, and our business, operating results, financial condition, and reputation could suffer.

If we are unable to maintain our marketing and advertising channels on cost-effective terms or replace or supplement existing marketing and advertising channels with similarly or more effective channels, our marketing and advertising expenses could increase substantially, our customer base could be adversely affected, and our business, operating results, financial condition, and reputation could suffer.

Consumers are increasingly using online platforms to learn about firearms.

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Poor product quality or performance could adversely impact the value of our brand and materially and adversely impact our business, operating results, and financial condition.

In particular, we have experienced manufacturing and design issues with respect to certain of our firearms and have initiated product recalls and safety alerts in the past and may experience similar issues in the future, which may result in the initiation of product recalls and safety alerts in the future.

We have experienced manufacturing and design issues with respect to certain of our firearms and have initiated product recalls and safety alerts in the past and may experience similar issues in the future that may result in the initiation of product recalls and safety alerts in the future.

Based on the volume of products we have shipped into the market, any future recalls, safety alerts, or product liability claims could result in us incurring significant warranty, support, and repair costs.

Such incidents could harm our reputation, damage the value of our brands, and cause us to lose business, all of which could materially and adversely affect our business, operating results, and financial condition.

We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products.

We face intense competition.

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Nearly all of our competitors are privately held, which may give them certain competitive advantages.

For example, these competitors may be less focused on maintaining high levels of profitability, which may give them more flexibility to compete aggressively on price, particularly during periods of high inflation.

For example, these competitors may be less focused on maintaining high levels of profitability, which may give them more flexibility to compete aggressively on price.

We may be unsuccessful in making and integrating mergers, acquisitions, and investments, and completing divestitures.

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Should more customers than we anticipate experience liquidity issues, or if payment is not received on a timely basis, we may have difficulty collecting amounts owed to us by such customers and our business, operating results, and financial condition could be materially and adversely impacted.

For fiscal 2026, sales to two of our customers represented 24.7% of our total net sales, and as of April 30, 2026, these two customers accounted for 30.2% of our total accounts receivable.

No other customer represented more than 10% of our fiscal 2026 net sales or accounted for more than 10% of our accounts receivable as of April 30, 2026.

For fiscal 2025, sales to one of our customers represented 14.6% of our total net sales, and, as of April 30, 2025, this customer accounted for 36.1% of our total accounts receivable.

For fiscal 2024, sales to three of our customers exceeded 10.0% of our net sales, totaling 34.8%.

As of April 30, 2024, two of our customers each accounted for more than 10% of our accounts receivable, for a total of 47.9%.

Liability insurance coverage is expensive and may be difficult to obtain at commercially reasonable rates, or at all.

Our insurance policies are subject to periodic review by our insurers and may not be renewed at all or on similar or favorable terms.

Because we manufacture and sell firearms, a number of insurance carriers have decided in the past, and may decide in the future, not to insure us.

For example, in the past, certain insurance carriers have chosen either to cancel our insurance coverage or not to submit proposals to insure us in areas such as auto, general liability, and products liability insurance, among others.

Because we manufacture and sell firearms, certain insurance carriers have decided in the past, and may decide in the future, not to insure us.

In the past, insurance carriers have chosen either to cancel our insurance coverage or not to submit proposals to insure us in areas such as auto, general liability, and products liability insurance.

In addition, if we or other firearm manufacturers sustain significant losses or make significant insurance claims, our ability to obtain future insurance coverage at commercially reasonable rates could be materially and adversely affected.

For example, our ability to obtain liability insurance on commercially reasonable terms has been adversely impacted by the $73 million settlement that was announced in 2022 between insurance carriers representing Remington Outdoor Company and plaintiffs in the Soto v.

Bushmaster Firearms

International, LLC case.

Remington Outdoor Company and plaintiffs in the Soto v.

Bushmaster Firearms International, LLC case.

Our liability insurance costs were $8.4 million, $7.8 million, and $8.4 million in fiscal 2026, 2025, and 2024, respectively.

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House of Representatives Committee on Oversight and Reform issued us a subpoena requesting certain business records as part of an investigation into certain firearm manufacturers, including us.

More recently, in 2024 certain state attorneys general announced the formation of a multistate coalition that purports to target the firearm industry.

Responding to inquiries and investigations, including through litigation, is time consuming and costly, may disrupt our ongoing business and distract management from operating our business, and may expose us to litigation, including claims raised by private plaintiffs.

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Under certain circumstances, the Consumer Products Safety Commission or comparable foreign agencies could require us to repurchase or recall one or more of our products.

Additionally, other laws and agencies regulate certain consumer products sold by us, and more restrictive laws and regulations may be adopted in the future.

Additionally, other laws and agencies regulate certain consumer products sold by us, and more restrictive laws and

regulations may be adopted in the future.

Any repurchase or recall of our products could be costly and damage our reputation.

If we were required to remove, or we voluntarily remove, our products from the market, our reputation could be tarnished, and we might have large quantities of finished products that we could not sell.

We also face exposure to product liability claims in the event that one of our products is alleged to have resulted in property damage, bodily injury, or other adverse effects.

We also face exposure to product liability claims if one of our products is alleged to have resulted in property damage, bodily injury, or other adverse effects.

In addition to the risk of substantial monetary judgments, fines, or penalties that may result from any governmental investigations, product liability claims, or regulatory actions, such events could result in negative publicity that could harm our reputation, adversely impact the value of our brands, and result in an increase in the cost of producing our products.

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The scope of any intellectual property to which we have or may obtain rights may not prevent others from developing and selling competing products.

In addition, our intellectual property may be held invalid upon challenge, or others may claim rights in, or ownership of, our intellectual property.

In addition, our intellectual property may be held invalid upon challenge, or others may claim rights in, or

ownership of, our intellectual property.

Moreover, we may become subject to litigation with parties that claim, among other things, that we infringed their patents or other intellectual property rights.

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Our issued patents may be challenged, invalidated, or circumvented, and claims of our patents may not be of sufficient scope or strength, or issued in the proper geographic regions, to provide meaningful protection or any commercial advantage.

We have registered certain of our trademarks and trade dress in the United States and other countries.

We have also recorded certain of our registered trademarks with customs officials in the United States and other countries.

We have registered certain of our trademarks and trade dress in the United States and other countries and have recorded certain of our registered trademarks with customs officials.

We may be unable to enforce existing, or obtain new, registrations of trademarks in key markets.

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As a result, it may be necessary in the future to seek or renew licenses relating to various aspects of our products, processes, and services.

We may be unable to obtain or renew such licenses in the future on reasonable terms or at all.

We may be unable to obtain or renew such licenses on reasonable terms or at all.

In the past, we did not consistently require our employees and consultants to enter into confidentiality agreements, employment agreements, or proprietary information and invention agreements.

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Unauthorized parties may attempt to copy or otherwise use aspects of our intellectual property and products that we regard as proprietary.

Our means of protecting our proprietary rights in the United States or abroad may prove inadequate, and competitors may be able to independently develop similar intellectual property.

If our intellectual property protection is insufficient to protect our intellectual property rights, we could face increased competition in the markets for our products.

Should any of our competitors file patent applications or obtain patents that claim inventions also claimed by us, we may choose to participate in a United States Patent and Trademark Office Patent Trial and Appeal Board proceeding to determine the patentability or validity of these patents because our business would be harmed if we fail to enforce and protect our intellectual property rights.

Even if the outcome is favorable, this proceeding could be costly and disrupt our business.

We have filed lawsuits, and may file additional lawsuits in the future, to enforce our intellectual property rights, protect our trade secrets, or determine the validity and scope of the proprietary rights of others.

This litigation, whether successful or unsuccessful, could be costly and divert valuable resources, which could materially and adversely impact our business, financial condition, and results of operations.

We may incur substantial expense and devote significant resources to prosecute others for their unauthorized use of our intellectual property rights or to defend against claims that we infringe the intellectual property rights of others.

Any such litigation, whether successful or unsuccessful, could be costly and divert valuable resources, which could materially and adversely impact our business, financial condition, and results of operations.

Interruptions in the proper functioning of our information systems or other issues with our ERP systems could disrupt our operations.

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We continue to implement various modules and additional usages of SAP, including in connection with the Relocation.

Any new implementations or usages of SAP, including those related to the Relocation, could result in a significant disruption to our business, and any disruption could materially and adversely impact our business, operating results, and financial condition.

Any new implementations or usages of SAP could result in a significant disruption to our business, and any disruption could materially and adversely impact our business, operating results, and financial condition.

In addition, utilizing SAP has required and will continue to require significant resources and refinement to fully realize the expected benefits of the system.

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• adverse publicity surrounding our products, the safety of our products, or the use of our products;

• changes in amount and or timing of our operating expenses;

• changes in the amount or timing of our operating expenses;

• changes in laws and regulations that may affect the marketability of our products.

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The performance of our common stock could adversely affect our ability to raise equity in the public markets and adversely affect the growth of our business.

We are subject to risks related to corporate social responsibility.

Our environmental, social, and governance, or ESG disclosures (or lack thereof), in addition to ESG disclosure criteria established by third parties, may impact our reputation.

For example, public perception, including among our stakeholders, may depend, in part, on the policies and procedures we adopt and the disclosures we make, whether or not we meet third party ESG disclosure requirements (including those related to human rights) that the ESG investment community deems relevant, and whether we are perceived to fail to act responsibly in the areas on which we report.

The subjective nature and wide variety of methods and processes used by stakeholders, including investors, to assess companies on ESG criteria could result in a negative perception about our ESG-related policies and practices or a misrepresentation of those policies and practices.

If our stakeholders feel that we are failing to achieve progress with respect to ESG factors, or if we fail to meet ESG disclosure criteria set by third parties, our ability to attract and retain employees;

the willingness of third parties to do business with us;

investors’ willingness or ability to purchase or hold our securities;

or our ability to access capital, could be impacted, any of which could materially and adversely impact our business, operating results, and financial condition.

Actions of stockholder activists could cause us to incur substantial costs and divert management’s attention and our resources.

We have been, and may be in the future, subject to informal private or public inquiries and formal proxy proposals by stockholder activists urging us to take certain corporate actions.

For example, in recent years, certain stockholder activists submitted proposals requesting that our Board of Directors engage a third party to conduct a human rights impact assessment.

Responding to inquiries or proposals can be costly, time-consuming, and disruptive to our operations and could divert the attention of our resources, including those of our management team and other employees.

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(iii) harm or disrupt our business and financial relationships;

(iv) result in consumer boycotts of our

and (iv) cause the trading price of our common stock to experience periods of decline, volatility, or stagnation.

Stockholder activists have pressured and may continue to pressure us to adopt actions that are not in the best interests of our company or our stockholders, inconsistent with the legal operation of our business, or contrary to the beliefs of our core consumers, and our reputation could be damaged if our core consumers believe that we have adopted the gun control agenda of certain activists.

(iv) result in consumer boycotts of our products;

and (v) cause the trading price of our common stock to experience periods of decline, volatility, or stagnation.

Stockholder activists have pressured and may continue to pressure us to adopt actions that are not in the best interests of our company or our stockholders, inconsistent with the legal operation of our business, or contrary to the beliefs of our core consumers, and our reputation could be damaged if our core consumers believe we have adopted the gun control agenda of certain activists.

In February 2025, certain stockholder activists filed a stockholder derivative suit against our directors and certain of our officers.

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The market for both hourly workers and professional workers has been particularly challenging in recent years, and we have incurred higher labor costs as a result.

Despite our focused efforts to attract and retain employees, our attrition rates in recent years have exceeded our historical rates, resulting in higher operating costs at certain of our facilities in the form of higher wages and higher levels of overtime pay.

The Relocation was a significant contributing factor to these higher rates of attrition, as certain employees, particularly those based in our Springfield facility and former Deep River facility, left our employment to work for employers that would allow them to continue working near their homes or to work remotely.

In addition to challenges associated with a competitive labor market, we may also struggle to identify qualified candidates who are comfortable or enthusiastic to work for a firearm business.

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Certain provisions of Nevada law and our articles of incorporation and bylaws make it more difficult for a third party to acquire us and make a takeover more difficult to complete, even if such a transaction were in our stockholders’ interest or might result in a premium over the trading price for the shares held by our stockholders.

We have identified a material weakness in our internal control over financial reporting that may, if not remediated, result in material misstatements in our financial statements.

We are responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act.

As disclosed in Item 9A, “Controls and Procedures,” we identified a material weakness in our internal control over financial reporting related to the accrual of certain legal expenses.

A material weakness is defined as a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

As a result of the material weakness, we concluded that our internal control over financial reporting and related disclosure controls and procedures were not effective as of April 30, 2025 based on criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission.

We evaluated the errors resulting from the material weakness and determined that the related impact was not material to results of operations, financial position, or cash flows for any historical annual or interim period.

We are actively engaged in implementing a remediation plan designed to address this material weakness;

however, we cannot guarantee that these steps have been sufficient or that we will not have a material weakness in the future.

If our remedial measures are insufficient to address the material weakness, or if additional material weaknesses in our internal control are discovered or occur in the future, our financial statements may contain material misstatements and we could be required to restate our financial statements.

Our use of artificial intelligence, or AI, may adversely impact our business.

Our use of AI technology may adversely impact our business (i) by potentially posing risks to our confidential or proprietary information;

(ii) by potentially giving rise to legal actions or reputational damage;

(iii) if employees misuse AI;

or (iv) if we fail to timely and appropriately adopt AI to remain competitive.

Our workforce may use AI technology, such as generative AI, which may result in the exposure of our confidential or proprietary information to unauthorized third parties, the misuse of our intellectual property, and claims against us alleging violation of third-party intellectual property rights.

Our use of AI technology may also result in inaccurate results and biases that could cause mistakes in our decision-making or other business activities.

Further, our training and enforcement of procedures governing the use of AI may not be adequate to safeguard against the unauthorized use of AI technology.

We have identified material weaknesses in our internal control over financial reporting in the past and may identify material weaknesses in our internal control over financial reporting in the future that could result in material misstatements in our financial statements.

In fiscal 2025, we identified a material weakness in our control over financial reporting that was remediated in fiscal 2026, and in fiscal 2020 we identified a material weakness in our control over financial reporting that was remediated in fiscal 2021.

A material weakness is defined as a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements might not be prevented or detected on a timely basis.

If our remedial measures related to the material weaknesses that we identified in recent fiscal years are insufficient to address the material weaknesses we identified in recent years, or if additional material weaknesses in our internal control are discovered or occur in the future, our financial statements may contain material misstatements and we could be required to restate our financial statements.

Unresolved Staff Comments

12 unchanged sentences

The Audit Committee is responsible for overseeing risks from cybersecurity threats, in accordance with its charter.

The Audit Committee holds quarterly meetings and receives periodic reports from our Vice President – Information Technology (Chief Information Officer) concerning our si gnificant cybersecurity threats and risks, and the processes we have implemented to address them.

The Audit Committee holds quarterly meetings and receives periodic reports from our Vice President – Information Technology, who serves as our Chief Information Officer, concerning our si gnificant cybersecurity threats and risks, and the processes we have implemented to address them.

Management plays an important role in assessing and managing our material risks from cybersecurity threats.

17 unchanged sentences

Legal Proceedings

Information regarding our legal proceedings is discussed in Note 14 to our consolidated financial statements, which is incorporated herein by reference.

Information regarding our material legal proceedings, including certain environmental matters, is discussed in Note 14 to our consolidated financial statements, which is incorporated herein by reference.

Mine Safety Disclosures

1 unchanged sentence

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