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ITEM 1A. RISK FACTORS
In addition to the disclosure below, we incorporate by reference the risk factors disclosed in our 2025 10-K. See also "Liquidity and Capital Resources" above.
RisingContinued threats of international tariffs may have an adverse impact on our business.
We rely on suppliers for purchasing the raw materials used in the manufacture and production of our goods. In fiscal year 2025 and the sixnine months ending DecemberMarch 31, 20256, approximately 20% and 162%, respectively, of our materials were sourced from foreign suppliers, including 13% and 10% in fiscal year 2025 and the sixnine months ended DecemberMarch 31, 2025, respectively, from China. The Trump Administration has imposed steep tariffs on the import of goods from several countries from which we purchase raw materials and finished goods. This increase in tariffs could adversely affect our business and our results of operations. The imposition of additional tariffs fluctuates dramatically, creating uncertainty in global markets. These On February 20, 2026, the US Supreme Court ruled that major tariffs apply directlimposed by to a small porhe Trump Administration of our materials. As a result, we may be forced to implement price increases to adjust to the higher costs of production and sale of our products in the future, which carries were unlawful. The Company is evaluating applying for refunds through the risk of reduced demCustomers and for such products, thus lowering sales and resulting revenue. Additionally,Border Protection portal. However, if future tariffs or any additional costs or restrictions are imposed on imported materials that may lead to an increase in our prices may result in a loss of customers anwhich could harm our business.