Item 1A - Risk Factors
+Added: Set forth below is a summary of certain material risks related to an investment in our securities, which should be considered carefully in evaluating such an investment.
+Added: Our business, financial condition, operating results and cash flows can be affected by a number of factors, whether currently known or unknown, including but not limited to those described below, any one or more of which could, directly or indirectly, cause the Company’s actual results of operations and financial condition to vary materially from past, or from anticipated future, results of operations and financial condition.
+Added: Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, results of operations, cash flows and common stock price.
+Added: Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations.
The following discussion of risk factors contains forward-looking statements.
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These effects, alone or taken together, could have a material adverse effect on our business, results of operations or financial condition.
−Removed: An extended period of global supply chain and economic disruption resulting from the COVID-19 pandemic and the government measures adopted in response thereto could exacerbate the foregoing effects.
+Added: An extended period of global supply chain and economic disruption resulting from the COVID-19 pandemic and the government measures adopted
+Added: in response thereto could exacerbate the foregoing effects.
In addition, the potential impacts of COVID-19 also could affect many of our risk factors included in Item 1A.
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In addition, many of our products use components with long order lead times and constrained supply.
−Removed: Any disruption in supply of these components could materially impact the ability of our 3rd party manufacturing partners to produce our products.
+Added: Any disruption in supply of these components could materially impact the ability of our third party manufacturing partners to produce our products.
Our manufacturers’ and suppliers’ ability to supply products to us is also subject to a number of risks, including the availability of raw materials or components, their financial instability, the destruction of their facilities, epidemics or work stoppages.
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In addition, the ongoing effectiveness of our supply chain is dependent on the timely performance of services by third parties shipping products and materials to and from our warehouse facilities and other locations.
−Removed: If we encounter problems with these shipments, our ability to meet retailer expectations, manage inventory, complete sales and achieve objectives for operating efficiencies could be materially adversely affected and we may be required to incur material additional costs for expedited shipping, including air freight.
+Added: If we encounter problems with these shipments, our ability to meet retailer expectations, manage inventory, complete sales and achieve objectives for operating efficiencies could be materially adversely affected and we may be required to incur materially higher costs for shipping, including air freight.
We have experienced some of these problems in the past and we cannot assure you that we will not experience similar problems in the future.
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We compete with other producers of gaming accessories, including the video game console manufacturers.
−Removed: Our competitors may undertake more extensive marketing campaigns, adopt more aggressive pricing policies, or develop more commercially successful products for the personal computer or video game platforms than we do.
+Added: Our competitors may undertake more extensive marketing campaigns, adopt more aggressive pricing policies, or develop more commercially successful products for the PC and video game platforms than we do.
In addition, competitors with large product lines and popular products, in particular the video game console manufacturers, typically have greater leverage with retailers, distributors and other customers, who may be willing to promote products with less consumer appeal in return for access to those competitors’ more popular products.
In the event that a competitor reduces prices, we could be forced to respond by lowering our prices to remain competitive.
−Removed: If we are forced to lower prices, we may be required to “price protect” products that remain unsold in our customers’ inventories at the time of the price reduction.
+Added: If we are forced to lower prices, we may be required to “price protect” products that remain unsold in our customers’ inventories at the time of the price
Price protection results in our issuing a credit to our customers in the amount of the price reduction for each unsold unit in that customer ’ s inventory.
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If we fail to protect or to enforce our intellectual property rights successfully, our competitive position could suffer, which could adversely affect our financial results.
−Removed: We are susceptible to counterfeiting of our products, which may harm our reputation for producing high-quality products and force us to
−Removed: incur expenses in enforcing our intellectual property rights.
+Added: We are susceptible to counterfeiting of our products, which may harm our reputation for producing high-quality products and force us to incur expenses in enforcing our intellectual property rights.
Such claims and lawsuits can be expensive to resolve, require substantial management time and resources, and may not provide a satisfactory or timely result, any of which may harm our results of operations.
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ability to commercialize our technologies or products, as well as harm our competitive business position and our business prospects.
−Removed: Our success also depends in part on our ability to obtain and enforce intellectual property protection of our technology, particularly our
+Added: Our success also depends in part on our ability to obtain and enforce intellectual property protection of our technology, particularly our patents.
There is no guarantee any patent be granted on any patent application that we have filed or may file.
−Removed: Claims allowed from existing or
−Removed: pending patents may not be of sufficient scope or strength to protect the economic value of our technologies.
−Removed: Further, any patent that we may
−Removed: obtain will expire at some point, and it is possible that it may be challenged, invalidated or circumvented even prior to expiration.
−Removed: We may initiate claims or litigation against third parties in the future for infringement of our proprietary rights or to determine the scope
−Removed: and validity of our proprietary rights or the proprietary rights of our competitors.
−Removed: These claims could result in costly litigation and divert the
−Removed: efforts of our technical and management personnel.
+Added: Claims allowed from existing or pending patents may not be of sufficient scope or strength to protect the economic value of our technologies.
+Added: Further, any patent that we may obtain will expire at some point, and it is possible that it may be challenged, invalidated or circumvented even prior to expiration.
+Added: We may initiate claims or litigation against third parties in the future for infringement of our proprietary rights or to determine the scope and validity of our proprietary rights or the proprietary rights of our competitors.
+Added: These claims could result in costly litigation and divert the efforts of our technical and management personnel.
As a result, our operating results could be adversely affected and our financial condition could be negatively impacted.
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Changes in laws or regulations or the manner of their interpretation or enforcement could adversely impact our financial performance and restrict our ability to operate our business or execute our strategies.
−Removed: New laws or regulations, or changes in existing laws or regulations or the manner of their interpretation or enforcement, may create uncertainty for public companies, increase our cost of doing business and restrict our ability to operate our business or execute our strategies.
−Removed: This could include, among other things, compliance costs and enforcement under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).
+Added: New laws or regulations, changes in existing laws or regulations or the manner of their interpretation or enforcement, may create uncertainty for public companies, increase our cost of doing business and restrict our ability to operate our business or execute our strategies.
+Added: This could include, among other things, compliance costs and enforcement under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
We continually evaluate and monitor developments with respect to new and proposed laws, regulations, standards and rules and cannot predict or estimate the amount of the additional costs we may incur or the timing of such costs.
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In addition, regulatory bodies in many of the jurisdictions in which we operate propose, enact and amend environmental laws and regulations on a regular basis.
−Removed: If we were to violate or become liable under these environmental laws, we could be required to incur additional costs to comply with such regulations and may incur fines and civil or criminal sanctions, third-party property damage or personal injury claims, or could be required to
−Removed: incur substantial investigation or remediation costs.
−Removed: Liability under environmental laws may be joint and several and without regard to comparative fault.
+Added: If we were to violate or become liable under these environmental laws, we could be required to incur additional costs to comply with such regulations and may incur fines and civil or criminal sanctions, third-party property damage or personal injury claims, or could be required to incur substantial investigation or remediation costs.
+Added: Liability under environmental laws may be joint and several and without regard to
+Added: comparative fault.
The ultimate costs under environmental laws and the timing of these costs are difficult to predict.
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On April 1, 2021, the Company’s Board of Directors approved an extension and expansion of this share repurchase program up to $25 million of its common shares, expiring April 9, 2023.
−Removed: The following table summarizes, by month, the repurchases made during the three months ended March 31, 2021, under the repurchase program and in connection with shares repurchased from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards.
+Added: The following table summarizes, by month, the repurchases made during the three months ended June 30, 2021, under the repurchase program and in connection with shares repurchased from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards.
Issuer Purchases of Equity Securities
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Purchased Under
−Removed: January 1-31, 2021
−Removed: February 1-28, 2021
−Removed: March 1-31, 2021
−Removed: For the first quarter of 2021, we repurchased approximately $0.2 million of common shares related to employee transactions.
+Added: April 1-30, 2021
+Added: May 1-31, 2021
+Added: June 1-30, 2021
+Added: For the second quarter of 2021, we repurchased approximately $0.2 million of common shares related to employee transactions.
These amounts represent common shares repurchased from employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, which is then remitted on behalf of the employee.
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.