Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
Factors that could cause our actual results to
differ materially from those in this report include the risk factors described in our 2024 Annual Report on Form 10-K. As of the date
of this Quarterly Report on 10-Q, there have been no material changes to the risk factors disclosed in our 2024 Annual Report on Form
10-K except as described in the below risk factors.
Tariffs
by the United States, counter-tariffs by other countries and future changes in tariff policies could adversely affect our results of
operations.
The
U.S. has imposed, and could impose in the future, broad-ranging tariffs on imports from some of its largest trading partners. In retaliation,
many countries have imposed, and could impose in the future, counter-tariffs on U.S.-produced items. Tariffs have spurred, and could
continue to spur, additional retaliatory moves by affected countries, including by China and the European Union member states.
Tariffs present both positive and negative impacts across our business,
but, in the aggregate, based on limited information to date, which may change, we expect that they may produce a net positive impact in
light of our U.S. focused manufacturing strategy. However, we also face material risks with respect to tariff policies and the uncertainties
and potential changes in such policies. For example, if tariffs are modified or changed in the future or our preliminary information is
incorrect, our consolidated results of operations could be materially negatively impacted. In addition, for purposes of our operations,
we seek to acquire various materials, supplies and components imported into the U.S., including certain equipment utilized in metal-making,
magnet making, and magnet finishing and as a result, we have been adversely impacted by the imposition of trade restrictions on such goods.
We may also be adversely impacted if tariffs significantly hurt the economic outlook and negatively impact consumer demand and our ability
to raise capital in the future.
ITEM 2. UNREGISTERED SALES
OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
None.
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