Risk Factors Update Summary

• Current geopolitical conditions, including conflicts in Ukraine and Israel, could severely disrupt supply chains, leading to increased costs and operational delays.
• The Company derived 36% of its revenue from a limited number of customers in fiscal year 2024. This concentration risk could significantly impact financial stability.
• The Company’s competitors may have greater resources, potentially leading to price reductions and loss of market share.
• Changes in U.S. trade policies may impose retaliatory tariffs, adversely affecting the Company’s sales to international markets.
• The Company’s revenue and operating results may vary significantly from quarter to quarter, affecting stock price. Historical performance should not be relied upon for future predictions.
• The Company may incur significant costs and risks in integrating Honeywell product lines, impacting operational efficiency and financial performance.
• The Company’s ability to execute its growth strategy depends on retaining CEO Shahram Askarpour, amid intense competition for skilled personnel.
• The Company plans to derive increasing revenues from international sales, particularly in Europe and Asia, exposing it to various geopolitical risks.
• As of September 30, 2024, 35% of the Company’s backlog is expected to be filled beyond the end of the 2025 fiscal year, indicating potential revenue challenges ahead.
• The estimated liability for the self-funded portion of the insurance program is determined actuarially, which could lead to unpredictable costs.