CSP (CSPI) risk factors, FY2025 10-K

CSP's FY2025 10-K, filed Dec 16, 2025, lists 23 risk factors in 2 groups. Against the prior year's 26: 2 new, 5 dropped, 5 substantially reworded.

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Risk factors listed
232 groups
New this year
2vs 26 last year
Dropped
5since the prior 10-K
Substantially reworded
5of those kept
Section length
5k wordsItem 1A

What the changes say

  • The company added exposure to global tariff risks and expanded disclosures regarding internal controls and financial reporting effectiveness.
  • Federal government contract and budget risks were removed.
  • Material weaknesses in internal controls were resolved compared to the prior year.

What changed since the prior 10-K

New

  • New

    Significant political, trade, regulatory developments, and other circumstances beyond our control, could have a material adverse effect on our financial condition or results of operations

    New U.S. tariffs announced in 2025 on imports from countries like China, India, and Japan, plus potential retaliatory measures, could adversely impact operations.

  • NewRisks Related to Ownership of Our Common Stock

    reporting and disclosure controls and procedures. Effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent financial fraud

    As a smaller reporting company, performing required internal control evaluations demands substantial professional fees, internal costs, and management effort without guaranteeing absolute error prevention.

Dropped

  • Dropped

    During 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

  • Dropped

    Our business could be adversely affected by changes in budgetary priorities of the federal government

  • Dropped

    and 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

  • Dropped

    U.S. Federal government contracts contain numerous provisions that are unfavorable to us

  • DroppedRisks Related to Ownership of Our Common Stock

    of 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

Reworded

  • 81% rewrittenRisks Related to Ownership of Our Common Stock

    Failure 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

    Updated to refine descriptions of public company reporting obligations and Sarbanes-Oxley compliance requirements for smaller reporting companies.

  • 47% rewrittenRisks Related to Ownership of Our Common Stock

    Failure to remediate and then maintain our internal control over our financial reporting could cause our financial reports to be inaccurate

    Updated to state that management concluded internal controls were effective as of September 30, 2025, unlike the ineffective conclusion reported for fiscal 2024.

  • 38% rewritten

    Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the conflict between Israel and Hamas

    Added specific language regarding peace process violations and the potential for renewed military conflict and escalation in the Israel-Hamas war.

    Was: Our 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

  • 26% rewritten

    We 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

    Updated financial year references from 2024 and 2023 to 2025 and 2024 while maintaining that no customer accounted for 10% or more of revenue.

  • 21% rewritten

    If 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

    Minor stylistic or editorial adjustments made to business continuity risk descriptions without changing the core threat.

All 23 risk factors

Headings as the filing states them, in filing order.

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 business26% rewritten
  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 may materially adversely affect our business, results of operations, cash flows and financial condition
  8. 08We may be unsuccessful in protecting our intellectual property rights which could result in the loss of a competitive advantage
  9. 09If we become subject to intellectual property infringement claims, we could incur significant expenses and could be prevented from selling specific products
  10. 10We 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
  11. 11Our need for continued or increased investment in research and development may increase expenses and reduce our profitability
  12. 12Our results of operations are subject to fluctuation from period to period and may not be an accurate indication of future performance
  13. 13If 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 liability21% rewritten
  14. 14If 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
  15. 15Systems failures may disrupt our business and have an adverse effect on our results of operations
  16. 16Our 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
  17. 17Our business, financial condition and results of operations could be adversely affected by disruptions in the global economy caused by the conflict between Israel and Hamas38% rewritten
  18. 18Significant political, trade, regulatory developments, and other circumstances beyond our control, could have a material adverse effect on our financial condition or results of operationsNew

Legal and Regulatory Risks

  1. 19Changes in regulations could materially adversely affect us

Risks Related to Ownership of Our Common Stock

  1. 20Failure to remediate and then maintain our internal control over our financial reporting could cause our financial reports to be inaccurate47% rewritten
  2. 21Failure to maintain our accounting systems and controls could impair our ability to comply with the financial reporting and internal controls requirements for publicly traded companies81% rewritten
  3. 22reporting and disclosure controls and procedures. Effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent financial fraudNew
  4. 23Our stock price may continue to be volatile

Other CSP 10-Ks

  • FY2024 10-K risk factors
    26 risks

    The company relies heavily on key personnel, ongoing R&D investments for ARIA and HPP, and federal government contracts.

    Filed Dec 20, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.