American Vanguard Corporation

Item 1A. Risk Factors

The Company continually re-assesses the business risks, and as part of that process detailed a range of risk factors in the disclosures in American Vanguards Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on March 27, 2024. The following disclosure amends and supplements those risk factors and, except to the extent stated below, there are no material changes to the risk factors as so stated.

Public statements made by USEPA regarding their preliminary findings in connection with the registration review of the Companys products cDCPA could adversely affect product sales and/or commercial viability. Registrations for texpose the Companys products a to future subject to registration review by the USEPA from time to time. Iclaims for personal injury which, in the course of the review, the Company submits, and the USEPA reviews, data studies. At any stage in the course of urn, could adversely affect the review, USEPA may reach preliminaryCompanys findings that could impair the commercial viability of a product. For example, iancial performance. In connection with USEPAs review of the DCPA registration of DCPA products (herbicides used on high-value vegetables), based upon a single comparative thyroid assay study (which is comparatively rare and quite complex), based upon limited data points, tthe USEPA found an adverse effect upon neonate rodents. Consequently, in June 2024, the agency published preliminary findings, noting its concern that based upon current, permitted use patterns, the product could have an adverse effect upon human health and, in particular, pregnant women. At the same time. Accordingly, out of an abundance of caution, the agency invitCompany submitted the Company to examine mitigation measures to allay their concerns, which the Company is doing. On a significantly narrower label and voluntarily suspended sales of Dacthal pending review and potential approval of that label. Nevertheless, on August 6, 2024, the agency issued an emergency suspension of DCPA products, which prohibits their distribution, sale and use. There is no guarantee that On August 19, 2024, the DCPA registrations will not be cancelled. Regulatory activitiesCompany filed a notice of this nature, whether in connection with DCPA or other products of significvoluntary cance, could have a material adverse effect upllation the Companys financial performance. 

The Companys transformation initiatives may not geneof DCPA registrate the full benefit of targeted efficiencies. Duringion. In the final quartercourse of 2023 and the first two quarters of 2024, the Company has investethis chronology and in activities intended to transform both its digital platform (including business processes) and its business structures (ranging from organizational change spite of the Companys voluntary efforts to procurement) in the interest of achieving gremitigater efficiencies and improving operating leverage. While the Company continues to pursue these initiatives and is taking all available measur risk, EPA has published multiple press releases to ensure success, there is no guarantee that these measures will yield the targein which it has repeated results that the Company, working with its business consultants, has identified, or that the return on these initiatives will exceed the investment. 

The carrying value of certain assets on tly warned users of potential risk in using the Companys consolidated balance sheets may be subject to impairment depending upon market trends and oproduct. Due to EPAs public statements, ther factors. The  Company regularly reviews the carrying value of cerwas unable to obtain assets, including long-lived assets, inventory, fixed assets and intangibles. Depending upon the class of assets in question, the Company takes into account various factors including, among others, sales trends, market conditions, cash flows, profit margins and product liability insurance coverage for claims relating to DCPA for the like. Based upon this analysis, where circumstances warrant the Company may leave such carrying values unchanged or adjust them as appropriateperiod postdating the renewal date of September 15, 2024. There is no guarantee that these carrying values can be maintained indefinitely, and it is possible that one or more such assets could be subject to impairment, particularly when, as now, the Company is engaged in transformational activity that may engender decisions to shift its emphasis with respect agencys statements will not result in future claims and/or lawsuits arising from alleged exposure to products, markets or otDCPA. Further business considerations. Such impairment, such claims and/or lawsuits could have a material adverse effect upon the Companys financial reporting in future periodsperformance. 

Item 2. Purchases of Equity Securities by the Issuer

Pursuant to Amendments Number Six and Seven to the Third Amended Loan and Security Agreement, the Company is currently prevented from making stock repurchases, effective November 7, 2023.

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