Kewaunee Scientific (KEQU) risk factors, FY2025 10-K

Other

1. 01If we lose a large customer, our sales and profits would decline
2. 02We rely on the talents and efforts of key management and our Associates. If we are unable to retain or motivate key personnel, hire qualified personnel, or maintain and continue to adapt our corporate culture, we may not be able to grow or operate effectively
3. 03Our business and reputation are impacted by information technology system failures and network disruptions
4. 04Future cybersecurity incidents could expose us to liability and damage our reputation and our business
5. 05We cannot guarantee that our share repurchase program will enhance long-term stockholder value, or that it will successfully mitigate the dilutive effect of employee equity awards
6. 06We may not be able to realize the benefits anticipated as a result of the Nu Aire acquisition
7. 07Internal controls over financial reporting may not be effective at preventing or detecting material misstatements
8. 08We have recorded goodwill and other intangible assets in connection with the Nu Aire business acquisition. Goodwill and other acquired intangible assets could become impaired and adversely affect our future operating results
9. 09As of April 30, 2025, our Condensed Consolidated Balance Sheet reflected goodwill of $12.5 million and other intangible assets, net of $17.8 million

Risks Related to Operations

1. 10Sales to customers outside the United States or with international operations expose us to risks inherent in international sales
2. 11We face a variety of competition in all of the markets in which we participate. Competitive pricing, including price competition or the introduction of new products, could have material adverse effects on our revenues and profit margins
3. 12An increase in the price of raw materials could negatively affect our sales and profits
4. 13Events outside our control may affect our operating results
5. 14Changes in the U.S. political or regulatory environment could affect the availability of government funding, which could negatively impact our business
6. 15We face numerous manufacturing and supply chain risks. In addition, our reliance upon sole or limited sources of supply for certain materials, components, and services could cause production interruptions, delays and inefficiencies
7. 16Disruptions in the financial markets have historically created, and may continue to create, uncertainty in economic conditions that may adversely affect our customers and our business
8. 17Our future growth may depend on our ability to penetrate new international markets
9. 18The effects of geopolitical instability may adversely affect us and heighten significant risks and uncertainties for our business, with the ultimate impact dependent on future developments, which are highly uncertain and unpredictable

Legal and Regulatory Compliance Risks

1. 19Our global operations are subject to the laws and regulations of numerous domestic and foreign jurisdictions. Failure to comply with such rules may have a material adverse impact on our business and results of operations
2. 20Changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business and results of operations
3. 21Expectations related to environmental, social, and governance ("ESG") considerations could expose us to potential liabilities, increased costs, and reputational harm

General Risks

1. 22Our stock price is likely to be volatile and could drop
2. 23Our stockholders may experience future dilution as a result of future issuances of our shares of common stock
3. 24We currently, and may in the future, have assets held at financial institutions that may exceed the insurance coverage offered by the Federal Deposit Insurance Corporation ("FDIC"), the loss of which would have a severe negative effect on our operations and liquidity
4. 25The impact of investor concerns on U.S. or international financial systems could impact our ability to obtain favorable financing terms in the future
5. 26The impact of future pandemics could adversely affect our business, results of operations, financial condition, and liquidity
6. 27We may pursue strategic acquisitions from time to time, in which case we would be subject to the general risks associated with acquisitions