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SUBSEQUENT EVENTS

Leases

January 23, 2020,

we executed an amendment to the lease for our facility in Fremont, California, which extended the term of the lease for a period of

months commencing on

November 1, 2020

and expiring on

November 30, 2025.

Beginning on

November 1, 2020,

the scheduled base rent payments under the lease will be as follows:

Period	Monthly Base Rent
11/1/2020 – 11/30/2020	$	0.00
12/1/2020 – 10/31/2021	$	21,257.10
11/1/2021 – 10/31/2022	$	21,894.81
11/1/2022 – 10/31/2023	$	22,551.66
11/1/2023 – 10/31/2024	$	23,228.21
11/1/2024 – 10/31/2025	$	23,925.05
11/1/2025 – 11/30/2025	$	24,642.80

At the effective date of this modification, we will record an increase in our ROU assets and operating lease liabilities of approximately

$1,176.

COVID-

Pandemic

In early

January 2020,

a human infection originating in China was traced to a novel strain of coronavirus. The virus has subsequently spread to other parts of the world, including the U.S. and Europe, and has caused unprecedented disruptions in the global economy as efforts to contain the spread of the virus have intensified. On

March 11, 2020,

the World Health Organization officially declared this coronavirus outbreak (also referred to as COVID-

) a pandemic. Our business has been and will continue to be adversely affected by the coronavirus pandemic. Since

March 17, 2020,

a number of states, including all of the states in which we have manufacturing facilities, have instituted ‘shelter-in place’ orders as well as guidance in response to the pandemic and the need to contain it. We are carefully reviewing all rules, regulations, and orders and responding accordingly. On

March 17, 2020,

we temporarily shut down our EMS manufacturing facility in Fremont, California. As of the date of this filing, all of our other manufacturing facilities remain open. If the current pace of the coronavirus pandemic cannot be slowed and the spread of the virus is

not

contained, our business operations could be further delayed or interrupted. We expect that government and health authorities

may

announce new or extend existing restrictions, which could require us to make further adjustments to our operations in order to comply with any such restrictions. These adjustments to our operations could include additional facility closures. We

may

also experience limitations in employee resources. Global supply chains and the timely availability of products have been and will continue to be materially disrupted by quarantines, factory slowdowns or shutdowns, border closings and travel restrictions resulting from the coronavirus pandemic. The adverse effects of the coronavirus pandemic on our business could be material in future periods.

The duration of any business disruption and related financial impact cannot be reasonably estimated at this time but

may

materially affect our ability to operate our business and result in additional costs. The extent to which the coronavirus pandemic

may

impact our operating results, financial condition, and cash flows will depend on future developments, which are highly uncertain and cannot be predicted as of the time of this filing, including new information that

may

emerge concerning the severity of the coronavirus and steps taken to contain the coronavirus or treat its impact, among others.