Natural Alternatives International (NAII) risk factors, FY2024 10-K

Risks Related to the Company’s Industry and Business

1. 01A significant or prolonged economic downturn, could have, a material adverse effect on our results of operations
2. 02Risks related to global economic instability, including global supply chain issues, inflation and fuel and energy costs may affect the Company's business
3. 03Our industry is highly competitive, and we may be unable to continue to compete effectively. Increased competition could adversely affect our financial condition
4. 04Our business is subject to the effects of adverse publicity, which could negatively affect our sales and revenues

Risks Related to Operations, Manufacturing, and Technology

1. 05If we are unable to attract and retain qualified management personnel, and key manufacturing personnel, our business may suffer
2. 06Our manufacturing and third party fulfillment activities are subject to certain risks
3. 07currency transfer and other restrictions and regulations that may limit our ability to sell certain products or repatriate profits to the U.S
4. 08The failure of our suppliers to supply quality materials in sufficient quantities, at a favorable price, and in a timely fashion could adversely affect the results of our operations

Risks Related to Customer Concentration

1. 09Because we derive a significant portion of our revenues from a limited number of customers, our revenues would be adversely affected by the loss of a major customer or a significant change in their business, personnel or the timing or amount of their sales to their customers and their orders from us
2. 10Our future growth and stability depends, in part, on our ability to diversify our sales. Our efforts to establish new sales from both existing customers and new customers could require significant initial investments, which may or may not result in higher overall sales and improved financial results

Risks Related to Regulations

1. 11Our products and manufacturing activities are subject to extensive government regulation, which could limit or prevent the sale of our products in some markets and could increase our costs
2. 12Possible new tariffs on imported goods from China and elsewhere could adversely affect our business operations

Risks Related to Litigation

1. 13We could be exposed to product liability claims or other litigation, which may be costly and could materially adversely affect our operations
2. 14We may continue to incur significant costs in the course of creating and defending our intellectual property. We may be unable to protect our intellectual property rights or may inadvertently infringe on the intellectual property rights of others

Risks Related to Insider Ownership and Corporate Structure

1. 15If certain provisions of our Certificate of Incorporation, Bylaws and Delaware law are triggered, the market for our shares may decrease
2. 16Collectively, our officers and directors own a significant amount of our common stock, giving them influence over corporate transactions and other matters and potentially limiting the influence of other stockholders on important policy and management issues

Risks Related to Future Acquisitions

1. 17We may pursue acquisitions of other companies that, if not successful, could adversely affect our business, financial condition and results of operations
2. 18potential impairment charges, which may be significant, against goodwill and purchased intangible assets acquired in an acquisition due to changes in conditions and circumstances that occur after the acquisition, many of which may be outside of our control
3. 19We expect our operating results will vary. Fluctuations in our operating results may adversely affect the share price of our common stock
4. 20Our stock price could fluctuate significantly
5. 21our and our customers’ and suppliers’ products and other public announcements
6. 22We may not be able to raise additional capital or obtain additional financing if needed