Helios Technologies (HLIO) risk factors, FY2024 10-K

Risks Relating to Our Business: Global Regulatory and Economic Conditions

1. 01General global economic trends and industry trends may affect our sales
2. 02Our business could be harmed by adverse global and regional economic and political conditions, including inflation, changes in the cost or availability of energy, transportation and other necessary supplies and services, as well as the impact of tariffs
3. 03Failure to comply with laws, regulations and policies, including the U.S. Foreign Corrupt Practices Act and U.K. Anti-Bribery Act or other applicable anti-corruption legislation, could result in fines, criminal penalties and an adverse effect on our business
4. 04Our business is subject to a variety of governmental regulations that may restrict our business and may result in costs and penalties
5. 05Our operations expose us to risks of non-compliance with numerous countries’ import and export laws and regulations

Risks Relating to Our Business: Environmental, Health & Safety

1. 06We 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
2. 07Our operations are subject to environmental, health and safety laws and regulations, and we may face significant costs or liabilities associated with environmental, health and safety matters
3. 08Climate change and increased focus by governmental and non-governmental organizations and customers on sustainability issues, including those related to climate change, may adversely affect our business and financial results

Risks Relating to Our Business: Growth Strategy

1. 09We are subject to various risks relating to our growth strategy
2. 10We may fail to successfully acquire or integrate companies that provide complementary products or technologies
3. 11We are subject to intense competition

Risks Relating to Our Business: Operations

1. 12A disruption in our supply chain or other factors impacting the distribution of our products could adversely affect our business
2. 13If we are unable to continue our technological innovation and successful introduction of new commercial products in an efficient, cost-effective manner, our business will be adversely affected
3. 14We are subject to fluctuations in the prices of parts and raw materials and are dependent on our suppliers of these parts
4. 15Unforeseen or recurring operational problems at any of our facilities, or other catastrophic loss of one of our key manufacturing facilities, may cause significant lost production and adversely affect our results of operations
5. 16The transformation of our business from a holding company into an integrated operating company to improve productivity and advance product development efforts through our Centers of Excellence may not be successful in growing or enhancing our business on the timelines we suspect, or at all

Risks Relating to Our Business: Financial

1. 17We may need additional capital in the future, and it may not be available on acceptable terms, or at all
2. 18Our existing indebtedness could adversely affect our business and growth prospects
3. 19If our long-lived assets, goodwill or other intangible assets become impaired, we may be required to record significant non-cash charges to our earnings
4. 20Fluctuations in exchange rates may affect our operating results and impact our financial condition
5. 21Changes in tax rates, laws or regulations and the resolution of tax disputes could adversely impact our financial results

Risks Relating to Our Business: Intellectual Property

1. 22The inability to protect our intellectual property could reduce or eliminate any competitive advantage and reduce our sales and profitability, and the cost of protecting our intellectual property may be significant
2. 23If we are alleged to have infringed upon the intellectual property rights owned by others, our business and results of operations could be materially adversely affected
3. 24If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed
4. 25Our use of open source software may expose us to additional risks

Risks Relating to Our Business: Other

1. 26We are dependent upon key individuals and skilled personnel
2. 27We are subject to risks relating to international sales
3. 28Increased cybersecurity threats and more sophisticated and targeted computer crime and cybersecurity incidents could pose a risk to our data, systems, networks, products, solutions and services
4. 29Due to the nature of our business and products, we may be liable for damages based on product liability and other tort and warranty claims
5. 30We are subject to a variety of claims, investigations and litigation that could adversely affect our results of operations and harm our reputation
6. 31Expectations relating to environmental, social and governance considerations expose the Company to potential liabilities, increased costs, reputational harm and other adverse effects on the Company's business

Risks Relating to Our Common Stock

1. 32Future sales of our common stock in the public market or the issuance of securities senior to our common stock could adversely affect the trading price of our common stock and our ability to raise funds in new stock offerings
2. 33We may not pay dividends on our common stock