Cautionary Statements Regarding Forward Looking Information
Certain statements contained in this Annual Report on Form 10-K, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely," and "probable," or the negative thereof or other variations thereon or comparable terminology, constitute "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and are subject to the safe harbors created thereby. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected as a result of many factors, including, but not limited to, the following:
Market Condition Risks
| • | fluctuations in the price of oil and natural gas and its impact on customer order volume for the Company's products; |
| • | the Company’s ability to purchase raw materials at favorable prices and to maintain beneficial relationships with its suppliers, which could result in a shortage of supply, or increased pricing; |
| • | decreases in government spending on projects using the Company’s products, and challenges to the Company’s customers’ liquidity and access to capital funds; |
Financial Risks
| • | the Company’s ability to maintain compliance with debt covenants, repay its debt and renew expiring credit facilities; |
| • | the Company's ability to maintain sustained levels of profitability or positive cash flows in the future; |
| • | the Company’s ability to effectively execute its strategic plan and achieve sustained profitability and positive cash flows; |
| • | the Company's ability to collect a long-term account receivable related to a project in the Middle East; |
| • | the Company's ability to interpret and adapt to changes in tax regulations and legislation; |
| • | the Company’s ability to use its net operating loss carryforwards; |
| • | the Company's inability to establish and maintain effective internal control over financial reporting; |
| • | changes in estimates which could result in a reduction or elimination of previously recorded revenues and profit in connection with "over time" revenue recognition; |
Business Condition Risks
| • | the timing of order receipt, execution, delivery and acceptance for the Company’s products; |
| • | the Company’s ability to successfully negotiate progress-billing arrangements for its large contracts; |
| • | aggressive pricing by existing competitors and the entrance of new competitors in the markets in which the Company operates; |
| • | the Company’s ability to manufacture products free of latent defects and to recover from suppliers who may provide defective materials to the Company; |
| • | reductions or cancellations of orders included in the Company’s backlog; |
| • | risks and uncertainties specific to the Company's international business operations; |
General Risks
| • | the Company’s ability to attract and retain senior management and key personnel; |
| • | the Company’s ability to achieve the expected benefits of its growth initiatives; and |
| • | the impact of cybersecurity threats on the Company’s information technology systems. |
