1. The costs of the raw materials that we use in our manufacturing process are subject to volatility due to
factors beyond our control. Increases or fluctuations in raw material prices may have a material adverse
effect on our business, financial condition, results of operations and cash flows.
2. We are heavily dependent on the performance of the CRGO products and transformer product component.
Any adverse changes in the conditions affecting the CRGO products and transformer products market can
adversely impact our business, financial condition, results of operations, cash flows and prospects.
3. Any disruption, breakdown or shutdown of our manufacturing facilities or our original equipment
manufacturer suppliers may have a material adverse effect on our business, financial condition, results of
operations and cash flows.
4. We do not have any direct hedging policy in place for mitigating raw material price fluctuations, particularly
for CRGO and CRNO coils, which may adversely impact our business, financial condition, results of
operations, and cash flows.
5. Our dependence on limited customers and any change in customer composition may adversely impact our
business, financial condition, results of operations, and cash flows.
6. We depend significantly on contract labor and an inability to access contract labor at reasonable costs at
our project sites may adversely affect our business.
7. We are subject to raw material price volatility, foreign exchange fluctuations which could adversely impact
our business, results of operations, cash flows and financial condition.
8. We do not have definitive agreements for supply of products or raw material with our customers or suppliers.
Failure to successfully leverage our supplier/customer relationships and network could adversely affect us.
9. Failure to protect and enforce our intellectual property rights, including trademarks and brand identity,
could adversely impact our business, financial condition, and competitive position.
10. We depend on third parties for the supply of our raw materials and delivery of products and such third
parties could fail to meet their obligations, which may have a material adverse effect on our business, results
of operations, financial condition and cash flows.