What the changes say
- Legal and regulatory exposure remains prominent, with privacy and cybersecurity issues added to the legal-proceedings examples.
- Workforce demographics shifted: average tenure fell from 14 to 11 years, while median age rose from 51 to 53.
- Pandemic language became less specific, removing the COVID-19 example while retaining workforce and facility-disinfection risks.
- Other operational-disruption and stock-volatility risks were substantially unchanged.
What changed since the prior 10-K
Reworded
- 65% rewrittenRisks Related to Legal, Regulatory and Compliance Matters
Our failure to comply with laws, regulations and/or terms we are subject to could adversely affect our business
The consequence list changes “disbarments” to “debarments”; the FAR/DFARS compliance threat remains otherwise unchanged.
- 64% rewrittenRisks Related to Legal, Regulatory and Compliance Matters
We are subject to various investigations, claims, disputes, enforcement actions, litigation, and other legal proceedings that could ultimately be resolved against us
Adds privacy and security issues, including cyber issues, to the broad range of potential legal proceedings.
- 48% rewrittenRisks Related to Business Operations and Our Industry
Our business could be adversely impacted by various external disruptions
No substantive change; the same disasters, facility-access interruptions, hands-on manufacturing, and lengthy testing risks remain.
- 38% rewrittenRisks Related to Our Common Stock
Our stock price may continue to be volatile
Clarifies that stock volatility has occurred and may continue, and may involve wide fluctuations beyond operating performance.
- 21% rewrittenRisks Related to Business Operations and Our Industry
We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows
Removes the specific COVID-19 example and narrows the heading, while retaining communicable-disease absenteeism and disinfection risks.
- 20% rewrittenRisks Related to Business Operations and Our Industry
The success of our business and financial performance is dependent on our ability to identify, attract, train and retain a highly skilled workforce
Updates workforce demographics: average tenure declines from approximately 14 to 11 years, while median age rises from approximately 51 to 53.
All 14 risk factors
Headings as the filing states them, in filing order.
Risks Related to Business Operations and Our Industry
- 01We depend heavily on a small number of larger customers for a substantial portion of our business. The loss of one or more of our largest customers or programs could have a material adverse effect on our business, financial position, results of operations and/or cash flows
- 02We use estimates when accounting for contracts. Changes in estimated contract revenues and/or changes in costs can affect our profitability and our overall financial position
- 03We face substantial competition in our industry, and if we fail to win future business or experience undue pricing pressures as a result of such competition, our business, financial position, results of operations and/or cash flows could be adversely affected
- 04Our products, which are often incorporated into larger systems, are technologically complex and require state-of-the-art technology and manufacturing expertise. Any defect in the design, materials or workmanship with respect to our product could result in system failure
- 05The success of our business and financial performance is dependent on our ability to identify, attract, train and retain a highly skilled workforce20% rewritten
- 06Adverse changes in global economic or geopolitical conditions may adversely affect business operations and financial condition
- 07We face various risks related to health epidemics, pandemics and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations and/or cash flows21% rewritten
- 08Our business could be adversely impacted by various external disruptions48% rewritten
Risks Related to Legal, Regulatory and Compliance Matters
- 09Our failure to comply with laws, regulations and/or terms we are subject to could adversely affect our business65% rewritten
- 10We are subject to various investigations, claims, disputes, enforcement actions, litigation, and other legal proceedings that could ultimately be resolved against us64% rewritten
Risks Related to Information Technology and Intellectual Property
- 11Our business could be adversely impacted by significant cybersecurity attacks
- 12Claims by third parties that our products infringe their intellectual property could result in costly disputes and/or require us to develop alternate designs
Risks Related to Our Common Stock
- 13Our stock price may continue to be volatile38% rewritten
- 14If significant existing stockholders sell large numbers of shares of our common stock, our common stock price could decline
Other Frequency Electronics 10-Ks
- FY2025 10-K risk factors14 risks
Customer concentration is high, with Northrop Grumman exceeding 10% of fiscal 2025 consolidated revenues. The aging workforce carries a median age of 51 and 14-year tenure. Complex manufacturing and government contracting dominate the risk profile.
Filed Jul 18, 2025
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.