What Changed
Risk factors · Aug 2, 2024 → Jul 18, 20258 added · 13 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
- During fiscal year 2025, only Northrop Grumman accounted for more than 10% of the Company’s consolidated revenues; however, the Company has other large customers that it relies on for significant portions of its consolidated revenues.
- The Company has identified a material weakness in its internal control over financial reporting for the fiscal year ended April 30, 2024.
- While we would expect to compete and be well positioned as the incumbent on existing programs, we may not be successful and, even if we are successful, the replacement programs may be funded at lower levels, which could adversely affect our business, financial position, results of operations and/or cash flows.
- We may identify additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls, which may result in material misstatements of our financial statements or cause us to fail to meet our reporting obligations.
- As of April 30, 2025, the Company’s management believes the identified material weakness have been remediated.
- This could result in adverse consequences to our financial position, results of operations and/or cash flows.
- Risks Related to Our Common Stock Our stock price may continue to be volatile.
- We use estimates when accounting for contracts.
No longer disclosed
- We determined that we did not maintain adequate controls over to the review of the calculation of the loss provision, which the Company concluded constituted a material weakness in the Company’s internal control over financial reporting as of April 30, 2024.
- The Company believes by April 30, 2025, the Company’s next annual reporting date, is sufficient time to remediate the material weakness fully or, if not fully remediated, to complete testing of the remediated controls.
- During fiscal year 2024, Lockheed Martin, Northrop Grumman, Office of Naval Research and BAE Systems each accounted for more than 10% of the Company’s consolidated revenues.
- For fiscal 2024 and fiscal 2023, approximately 98% and 95% of the Company’s sales, respectively, were made under contracts to the U.S.
- Although our shares of common stock are listed on the Nasdaq Global Market, we have historically experienced a relatively low trading volume of approximately 18,000 shares per trading day.
- Although the Company ’ s failure to establish and maintain effective internal control over financial reporting has not resulted in a material misstatement of the Company ’ s prior annual or interim consolidated financial statements, such failure could result in material misstatements in future consolidated financial statements.
- Additionally, the Company ’ s failure to establish and maintain effective internal control over financial reporting could result in the Company ’ s failure to meet its reporting and financial obligations, which in turn could have a negative impact on its financial condition.
- Due to the relatively low trading volume of our shares of common stock, the sale of a large number of shares of our outstanding common stock may significantly depress the price of our common stock. 15 Table of Contents
- This could result in adverse consequences to our financial position, results of operations and/or cash flows. 14 Table of Contents Risks Related to Our Common Stock Our stock price may continue to be volatile.