Risk factors

Non-performing loans increased significantly to $117.6 million at year-end 2025, up from $87.0 million in 2024. Notes totaling $173.3 million mature between December 2026 and September 2027. A new $50 million revolving credit facility was established with Needham Bank.

Shimmick disclosed material weaknesses in financial reporting controls, established a $7.8 million ATM stock offering program, and noted controlled company exemptions under Nasdaq standards.

New risks cover indirect-tax liabilities, uninsured disruptions, third-party ingredients, and competitors using similar or superior technology.

Technology risk now explicitly spans AI, generative AI, machine learning, cloud, social media and programmatic advertising.

Savara updated debt obligations with a new Hercules Capital loan facility and expanded data privacy and healthcare compliance disclosures.

The company removed a risk concerning customer collectability and credit defaults. Updates highlight weather risks for BOGS products, fluid tariff regulations following a Supreme Court ruling, and broader causes of system interruptions.

AI and agentic shopping tools now feature in Walmart’s competitive and omnichannel risks.

Petco updated its financing structure, adding $600.0 million in Senior Secured Notes and amending its Term Loan.

Founder John Simard retired as CEO in December 2025, shifting to a consulting role.

Adicet restructured its workforce and added $2.3 million in severance costs while updating its clinical pipelines and regulatory timelines. The company faces new constraints regarding foreign data acceptance, AI data breaches, and China data transmission measures. Drug pricing legislative pressure increased under the Inflation Reduction Act and new tax laws like OBBBA.

ACNB dropped several merger-related risks concerning Traditions after completing the integration. The bank added specific concerns regarding trade policies, tariffs, and market liquidity conditions. Commercial loan concentration decreased slightly from 71% to 68%.

New risks add privacy regulation, tariffs, geopolitics, climate rules, international compliance, and inventory-demand concerns.