Cadre Holdings Inc

The Company has taken steps to contain the incident and to mitigate risks to the organization. At this time there is no indication of any ongoing unauthorized third-party access.

As a result of the incident and the containment and mitigation measures taken by the Company out of an abundance of caution, certain key information technology systems were affected, which has led to a general disruption of business operations for some business units. This information technology disruption has temporarily impacted the Company’s production and order fulfillment activities, leading to a potential revenue loss and/or delay in revenue recognition for the third quarter ending September 30, 2024. The Company has been working diligently with its outside experts and partners to resume normal operations. Additionally, the Company has incurred and will continue to incur incremental expenses to recover from and remediate the incident, most of which are expected to be covered by insurance. Consequently, the Company has determined that the cybersecurity incident will likely have a negative impact on its results of operations for the third quarter.

However, the Company believes that the cybersecurity incident has not significantly affected its overall financial condition or results of operations. Specifically, the Company believes that the incident (1) will not result in significant changes to its prior full-year 2024 financial guidance, (2) is unlikely to have a continuing material impact on the Company’s business operations and/or receipt of revenue, with the bulk of the impact being a deferral of revenue from the third quarter of 2024 to the fourth quarter of 2024 and subsequent periods, and (3) will not materially impact its relationships with customers and suppliers or its supply chain.