INNOVATIVE SOLUTIONS & SUPPORT INC

For information regarding the Company’s risk factors, refer to the “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended September 30, 2024, filed with the SEC on December 30, 2024 (the “Form 10-K”). Other than as set forth below, there have been no material changes in our risk factors as previously disclosed in Part I, Item 1A of the Form 10-K.

Tariffs imposed by the United States government could have a material adverse effect on our results of operations.

The U.S. government has placed tariffs on certain goods imported from China and other countries and may impose new tariffs on goods imported from China and other countries, including products that we import. In retaliation, China and other countries responded by imposing tariffs on a wide range of products imported from the U.S. and by adjusting the value of its currency. The U.S government has recently imposed or threatened to impose new tariffs on additional countries, including Mexico and Canada. Such tariffs could significantly increase the cost of the products that we source and may materially impact our cost of goods and business.

If renegotiations of existing tariffs are unsuccessful or additional tariffs or trade restrictions are implemented by the U.S. or other countries in connection with a global trade war, the resulting escalation of trade tensions could have a material adverse effect on world trade and the global economy. Even in the absence of further tariffs or trade restrictions, the related uncertainty and the market's fear of an economic slowdown could lead to a decrease in demand for our products and services, and we may experience lower net revenues than expected. Reduced revenues may result in reduced operating cash flows if we are not able to appropriately manage inventory levels or leverage expenses.