CSP (CSPI) risk factors, FY2024 10-K

Other

1. 01We depend on a small number of customers for a significant portion of our revenue and the loss of any customer could significantly affect our business
2. 02We depend on key personnel and skilled employees and face competition in hiring and retaining qualified employees
3. 03Our success depends in part on our timely introduction of new products and technologies and our results can be impacted by the effectiveness of our significant investments in new products and technologies
4. 04To be successful, we must respond to the rapid changes in technology. If we are unable to do so on a timely basis our business could be materially adversely affected
5. 05Our international operation is subject to a number of risks
6. 06We face competition that could adversely affect our sales and profitability
7. 07Pandemics, epidemics or disease outbreaks, such as the novel coronavirus (“COVID-19”), may materially adversely affect our business, results of operations, cash flows and financial condition
8. 08During certain fiscal years, we may depend on contracts with the federal government, primarily with the Department of Defense ("DoD"), for a portion of our revenue, and our business could be seriously harmed if the government significantly decreased or ceased doing business with us
9. 09Our business could be adversely affected by changes in budgetary priorities of the federal government
10. 10and services. Historically, such delays have not had a material effect on our business; however, should funding of the federal government by CR be prolonged or extended, it could have significant consequences for our business and our industry
11. 11U.S. Federal government contracts contain numerous provisions that are unfavorable to us
12. 12We may be unsuccessful in protecting our intellectual property rights which could result in the loss of a competitive advantage
13. 13If we become subject to intellectual property infringement claims, we could incur significant expenses and could be prevented from selling specific products
14. 14We need to continue to expend resources on research and development ("R&D") efforts in our HPP segment, to meet the needs of our customers. If we are unable to do so, our products could become less attractive to customers and our business could be materially adversely affected
15. 15Our need for continued or increased investment in research and development may increase expenses and reduce our profitability
16. 16Our results of operations are subject to fluctuation from period to period and may not be an accurate indication of future performance
17. 17If we experience a disaster or other business continuity problem, we may not be able to recover successfully, which could cause material financial loss, loss of human capital, regulatory actions, reputational harm, or legal liability
18. 18If we suffer any data breaches involving the designs, schematics, or source code for our products or other sensitive information, our business and financial results could be adversely affected
19. 19Systems failures may disrupt our business and have an adverse effect on our results of operations
20. 20Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the ongoing conflict between Russia and Ukraine
21. 21Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the ongoing conflict between Israel and Hamas
22. 22Changes in regulations could materially adversely affect us

Risks Related to Ownership of Our Common Stock

1. 23Failure to remediate and then maintain our internal control over our financial reporting could cause our financial reports to be inaccurate
2. 24Failure to maintain our accounting systems and controls could impair our ability to comply with the financial reporting and internal controls requirements for publicly traded companies
3. 25of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected
4. 26Our stock price may continue to be volatile