NOTE

12.

Impact of COVID-

Coronavirus

As a result of the current economic slowdown due to the COVID-

pandemic, there has been a noticeable delay in the receipt of customer orders. While we remain in contact with our customers and their requirements have

not

changed, the operations of certain of our customers have been slowed or shut down entirely. Our suppliers thus far have been able to timely deliver components and parts necessary for the manufacture and production of the Company’s products to fulfill orders, although we cannot be sure this trend will continue. To date, while the Company did close its facilities due to health and safety concerns, it has been able to maintain its operations via remote working and believes it will be in a strong position to respond to our customers’ needs as restrictions ease and operations return to normal. Nonetheless, it is uncertain how long our and our customers’ operations will be impacted, and those of our suppliers, and our ability to respond to customer requirements and supplier issues will become more challenging during a period of sustained disruption. Any period of sustained disruption would have a material adverse effect on the Company’s financial condition and results of operations.