PRECISION OPTICS CORPORATION, INC.

Item 1A. Risk Factors.

For information regarding additional risk factors that could affect our results of operations, financial condition and liquidity, referother than set forth below, refer to the section entitled Risk Factors in Part I, Item 1A in our annual report on Form 10-K for the year ended June 30, 2024. There ha

Changes in U.S. Tariff Policy and Related Trade Actions Could Adversely Affect Our International Supply Chain, Costs, and Competitive been no Position

Our business is subject to risks associated with changes in U.S. tariff policy and related trade actions, which could material changes from the risk factors previously disclosed in our annual report on Form 10-K ly and adversely affect our operations, financial condition, and results of operations. We rely on a global supply chain for the procurement of specialized optical components and assemblies, many of which are sourced from overseas suppliers. The imposition of new tariffs, increases in existing tariffs, or other trade restrictions by the United States government on goods imported from certain countriesincluding, but not limited to, China and other key trading partnerscould increase our cost of goods sold and disrupt the availability of critical components necessary for our products.

In response to evolving U.S. trade policy, affected countries may implement retaliatory tariffs or other trade barriers on U.S. goods, which could further impact our ability to source materials at competitive prices or to sell our products in certain international markets. These developments may also result in increased volatility in global markets, supply chain disruptions, and reduced demand for the year ended June 30, 2024, as filed with our products due to higher prices or decreased competitiveness relative to foreign and domestic competitors not subject to similar tariffs.

While we seek to mitigate the impact of tariffs through supply chain diversification and price negotiations, such measures may not be successful or may result in increased costs, delays, or operational inefficiencies. Sustained or additional tariffs could require us to raise prices, which may reduce customer demand and adversely affect our revenues and market share. Furthe Securities and Exchange Commissionrmore, uncertainty regarding future U.S. trade policy and the potential for further changes in tariffs or trade agreements may make it more difficult for us to plan and conduct our business effectively.

Any significant increase in tariffs, expansion of trade restrictions, or prolonged uncertainty regarding U.S. trade policy could materially adversely affect our ability to source components, manage costs, and compete effectively in our markets, which could have a material adverse effect on our business, financial condition, and results of operations.