Ultralife (ULBI) risk factors, FY2025 10-K

Other

1. 01Changes in economic conditions, including inflation, government trade policies, tariffs, interest rates, and supply-chain disruptions have affected and may continue to affect our business, revenues and earnings adversely46% rewritten
2. 02A significant portion of our revenue is derived from certain key customers27% rewritten
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 operations21% rewritten
4. 04Our efforts to develop new products or new commercial applications for our products and the subsequent transition to high-volume production 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, sourcing requirements or other factors not under our control, or the cost of those raw materials and components may materially increase25% rewritten
6. 06Our growth and expansion strategy could strain or overwhelm our resources29% rewritten
7. 07Our 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
8. 08Breaches in security, whether cyber or physical, and related disruptions and/or our inability to prevent or respond to such breaches, have 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
9. 09Fluctuations 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
10. 10Our operations in China are subject to unique risks and uncertainties, including political changes, tariffs and trade restrictions
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 significantly22% rewritten
15. 15Our customers ’ purchases may not meet the volume expectations in our supply agreements75% rewritten
16. 16The 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”)51% rewritten
17. 17Any 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
18. 18Our 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
19. 19As a result of litigation or claims, currently known or unknown, we could experience negative optics in the market, disruptive demand on our management and staff ’ s time, and increased costsNew
20. 20We 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
21. 21Negative publicity concerning Lithium-ion batteries may adversely impact the industries or markets in which we operate74% rewritten
22. 22We are subject to foreign currency fluctuations
23. 23Our 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 income81% rewritten
24. 24A finding that our proprietary and intellectual property rights are not enforceable or invalid could allow our competitors and others to produce competing products based on our proprietary and intellectual property or limit our ability to manufacture and market our products, without significant, costly alterationsNew
25. 25Compliance with government regulations regarding the use of " conflict minerals " may result in increased costs and risks to the Company
26. 26Any impairment of goodwill and/or other indefinite-lived intangible assets could adversely impact our results of operations76% rewritten
27. 27We may incur significant costs because of known and unknown environmental factors
28. 28The 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 contracts61% rewritten