Ultralife (ULBI) risk factors, FY2024 10-K

Other

1. 01Changes in economic conditions, including inflation, tariffs, interest rates, and supply-chain disruptions have affected and may continue to affect our business, revenues and earnings adversely
2. 02A significant portion of our revenue is derived from certain key customers
3. 03Reductions or delays in U.S. and foreign military spending could have a material adverse effect on our business, financial condition and results of operations
4. 04Our efforts to develop new products or new commercial applications for our products could be prolonged, not be profitable, not be accepted by our customers or could otherwise fail to achieve market share
5. 05Our supply of raw materials and components could be disrupted or delayed due to business conditions, new or additional tariffs, global conflicts, weather, any lingering impact of COVID-19 or other factors not under our control, or the cost of those raw materials and components may materially increase
6. 06Our growth and expansion strategy could strain or overwhelm our resources
7. 07Breaches in security, whether cyber or physical, and related disruptions and/or our inability to prevent or respond to such breaches, has previously, and in the future could diminish our ability to generate revenues or contain costs, compromise our assets, and negatively impact our business in other ways
8. 08Our ability to recruit and retain experienced, competent management is critical to the success of the business, and the loss of top management and key personnel could significantly harm our business, and the ability to implement our succession plan
9. 09Our operations in China are subject to unique risks and uncertainties, including political changes, tariffs and trade restrictions
10. 10Fluctuations in the demand, supply and price of oil and gas and the resulting volatility in the level of downhole drilling could have a material adverse effect on our business, financial condition and results of operations
11. 11A decline in demand for products using our batteries or communications systems could reduce demand for our products and/or our products could become obsolete resulting in lower revenues and profitability
12. 12the financial and other resources of the customer
13. 13We are subject to certain safety risks, including the risk of fire or explosion, inherent in the manufacture, use and transportation of Lithium batteries. These risks also create the potential for claims against the Company, which can have a negative impact on our financial results
14. 14Our quarterly and annual results and the price of our common stock have and could in the future continue to fluctuate significantly
15. 15The Company’s Credit Agreement, among other things, provides for a 5-year, $55,000 senior secured term loan (the “Term Loan Facility”) and a $30,000 senior secured revolving credit facility (the “Revolving Credit Facility”, and together with the Term Loan Facility, the “Credit Facilities”)
16. 16Our customers’ purchases may not meet the volume expectations in our supply agreements
17. 17We may incur significant costs or liabilities to satisfy obligations under the terms of the warranties we supply and the contractual terms under which we sell our products and services
18. 18Any inability to comply with changes to the regulations for the shipment of our products could limit our ability to transport our products to customers in a cost-effective manner and reduce our operating income and margins
19. 19Our entrance into new markets could lead to additional exposure to financial risk or increased liability, and our failure to successfully enter into those markets could lead to negative customer perception or loss of business from existing customers
20. 20Negative publicity concerning Lithium-ion batteries may adversely impact the industries or markets we operate in
21. 21We are subject to foreign currency fluctuations
22. 22Our ability to use our net operating loss and tax credit carryforwards in the future may be limited, which could increase our tax liabilities and reduce our cash flow and net income
23. 23Any impairment of goodwill and/or other indefinite-lived intangible assets could adversely impact our results of operations
24. 24We may incur significant costs because of known and unknown environmental factors
25. 25The U.S. and foreign governments can audit our contracts with their respective defense and government agencies and, under certain circumstances, can adjust the economic terms, delivery schedule or other terms of those contracts
26. 26Compliance with government regulations regarding the use of "conflict minerals" may result in increased costs and risks to the Company