Risks and Uncertainties

9 Months Ended

Sep. 30, 2020

Risks and Uncertainties [Abstract]

Risks and Uncertainties

Note M: Risks and Uncertainties

The Company is considered an essential service and has remained operational during the COVID-19 pandemic.  As of the middle of March 2020, the Company closed its corporate office in St. Paul, and all of the Company’s employees began working from home and did not experience any significant interruptions during this transition.  The corporate office remains closed, and the Company is working on a plan to reopen its corporate office during 2021, provided that appropriate safeguards are in place and the Company’s plan is in line with state and federal guidelines.

The Company has worked with key suppliers to ensure there is an adequate supply of components and capacity to manufacture and deliver products.  On April 13, 2020, Econolite informed the Company that Econolite had agreed to temporarily close its manufacturing facility in Tecate, Mexico, under guidance from the local government due to COVID-19. Based on information obtained by the Company, Econolite made alternative arrangements to manufacture Autoscope and related products that had been manufactured at its Mexican facility. In late June 2020, we were informed by Econolite that its Mexican facility has been reopened and Econolite has resumed the manufacture of Autoscope and related products.

COVID-19 has affected and could adversely impact the Company’s operations and our sales to customers. Our product revenue in our international market segments was adversely impacted by COVID-19 due to their early and aggressive reaction to COVID-19, resulting in lockdowns of many regions. The recent surge of COVID-19 in the United States and Europe may result in more lockdowns and increase the uncertainty and negative effects caused by COVID-19 on the Company.  If the Company or any of our third-party suppliers encounter any further disruptions to our or their respective operations or facilities, or if our customers were to partially or fully close for an extended period of time due to COVID-19 or governments’ reactions to it, then we or they may be prevented or delayed from effectively operating our or their business, respectively, and the manufacture, supply, and sale of our services and our sales, financial condition, financial results and stock price could be adversely affected.