Item 1A. Risk Factors.
Ownership of the Company’s securities involves
a number of risks and uncertainties. Potential investors should carefully consider the risks and uncertainties described below and the
other information in this Quarterly Report on Form 10-Q and our other public filings with the Securities and Exchange Commission before
deciding whether to invest in the Company’s securities. The Company’s business, financial condition or results of operations
could be materially adversely affected by any of these risks. The risks described below are not the only ones facing the Company. Additional
risks that are currently unknown to the Company or that the Company currently considers immaterial may also impair its business or adversely
affect its financial condition or results of operations.
We could be materially adversely affected by the ongoing COVID-19 pandemic
for which we are unable to predict the ultimate impact as the extent and duration of the COVID-19 pandemic is uncertain.
The ongoing COVID-19 pandemic has resulted in widespread
impacts on the global economy, and the unfavorable impacts we may experience include:
| · | Reductions or volatility in demand for one or more of our products which may be caused by the temporary inability of consumers to
purchase our products due to illness, business closures, or financial hardship; and shifts in demand away from one or more of our higher-priced
products to lower-priced products. If prolonged, such impacts can further increase the difficulty in planning our operations, which may
adversely impact our results, liquidity and financial condition. |
| · | Inability to meet our customers’ needs due to disruptions in our manufacturing operations. |
| · | Failure of third parties on which we rely, including our suppliers, contract manufacturers, and distributors, to meet their obligations
to the Company, or significant disruptions in their ability to do so, which may be caused by their own financial or operational difficulties,
which may adversely impact our operations, liquidity and financial condition. |
Despite our efforts to manage and remedy these impacts
to the Company, there is considerable uncertainty regarding the extent to which COVID-19 will spread and the extent and duration of measures
to try to contain the virus. The ultimate impact of the COVID-19 pandemic depends on factors beyond our knowledge or control. Additionally,
other new variants of COVID-19 could emerge in the future. The potential impact of possible future variants cannot be predicted at this
time, and we cannot predict with any certainty the degree to, or the time period over, which our liquidity, financial position, results
of operations and cash flows will be affected by this pandemic.
A deterioration in global economic conditions may have adverse impacts
on our business and financial condition in ways that we currently cannot predict and may limit our ability to raise additional funds.
If global economic conditions deteriorate, it may
have a negative impact on our business and our financial condition. We may face significant challenges if conditions in the financial
markets worsen. The impact of such future developments on our business, including as a result of the COVID-19 pandemic and Russia’s
military action against Ukraine, is highly uncertain and cannot be predicted. If the overall economy is negatively impacted for an extended
period, our results of operations, financial position and cash flows may be materially adversely affected. In addition, a severe prolonged
economic downturn could result in a variety of risks to the business, including weakening our ability to develop potential businesses
and a decreased ability to raise additional capital when needed on acceptable terms, if at all.
We may not maintain ongoing profitability.
To maintain ongoing profitability, we must accomplish
numerous objectives, including achieving continued growth in our business, providing ongoing support to registered developers whose applications
support the use of our data capture products, and developing successful new products. We cannot foresee with any certainty whether we
will be able to achieve these objectives in the future. Accordingly, we may not generate sufficient revenue or control our expenses enough
to maintain ongoing profitability. If we cannot maintain ongoing profitability, we will not be able to support our operations from positive
cash flows, and we would be required to use our existing cash to support operating losses. If we are unable to secure the necessary capital
to replace that cash, we may need to suspend some or all of our current operations.
We may require additional capital in the future, but that capital may
not be available on reasonable terms, if at all, or on terms that would not cause substantial dilution to investors’ stock holdings.
We may need to raise capital to fund our growth or
operating losses in future periods. Our forecasts are highly dependent on factors beyond our control, including market acceptance of our
products and delays in deployments by businesses of applications that use our data capture products. Even if we maintain profitable operating
levels, we may need to raise capital to provide sufficient working capital to fund our growth. If capital requirements vary materially
from those currently planned, we may require additional capital sooner than expected. There can be no assurance that such capital will
be available in sufficient amounts or on terms acceptable to us, if at all.
If application developers are not successful in their efforts to develop,
market and sell their applications into which our software and products are incorporated, we may not achieve our sales projections.
We are dependent upon application developers to integrate
our scanning and software products into their applications designed for mobile workers using smartphones, tablets and mobile computers,
and to successfully market and sell those application products and solutions into the marketplace. We focus on serving the needs of application
developers as sales of our data capture products are application driven. However, these developers may take considerable time to complete
development of their applications, may experience delays in their development timelines, may develop competing applications, may be unsuccessful
in marketing and selling their application products and solutions to customers, or may experience delays in customer deployments and implementations,
which would adversely affect our ability to achieve our revenue projections.
Failure to maintain effective internal controls could have a material
adverse effect on our business, operating results and stock price.
We have evaluated and will continue to evaluate our
internal control procedures in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act, which requires an annual management
assessment of the design and effectiveness of our internal control over financial reporting. If we fail to maintain the adequacy of our
internal controls, as such standards are modified, supplemented or amended from time to time, we may not be able to ensure that we can
conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley
Act. Moreover, effective internal controls, particularly those related to revenue recognition and access to assets, are necessary for
us to produce reliable financial reports and are important to helping prevent financial fraud. If we cannot provide reliable financial
reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial
information, and the trading price of our stock could drop significantly.
Despite security protections, our business records and information could
be hacked by unauthorized personnel.
We protect our business records and information from
access by unauthorized personnel and are not aware of any instances where such data has been compromised. We maintain adequate segregation
of duties in safeguarding our assets and related records and monitor our systems to detect any attempts to bypass our controls and procedures
which we evaluate and update from time to time. We are aware that unauthorized efforts to access our business records and information
with sophisticated tools could bypass our controls and procedures and we remain alert to that possibility.
Our quarterly operating results may fluctuate in future periods, which
could cause our stock price to decline.
We expect to experience quarterly fluctuations in
operating results in the future. We generally ship orders as received, and as a result we may have little backlog. Quarterly revenues
and operating results therefore depend on the volume and timing of orders received during the quarter, which are difficult to forecast.
Historically, we have often recognized a substantial portion of our revenue in the last month of the quarter. This subjects us to the
risk that even modest delays in orders or in the manufacture of products relating to orders received, may adversely affect our quarterly
operating results. Our operating results may also fluctuate due to factors such as:
| · | the demand for our products; |
| · | the size and timing of customer orders; |
| · | unanticipated delays or problems in our introduction of new products and product
enhancements; |
| · | the introduction of new products and product enhancements by our competitors; |
| · | the timing of the introduction and deployments of new applications that work
with our products; |
| · | changes in the revenues attributable to royalties and engineering development
services; |
| · | timing of software enhancements; |
| · | changes in the level of operating expenses; |
| · | competitive conditions in the industry including competitive pressures resulting
in lower average selling prices; |
| · | timing of distributors’ shipments to their customers; |
| · | delays in supplies of key components used in the manufacturing of our products;
and |
| · | general economic conditions and conditions specific to our customers’
industries. |
Because we base our staffing and
other operating expenses on anticipated revenues, unanticipated declines or delays in the receipt of orders can cause significant variations
in operating results from quarter to quarter. As a result of any of the foregoing factors, or a combination, our results of operations
in any given quarter may be below the expectations of public market analysts or investors, in which case the market price of our common
stock would be adversely affected.
In order to maintain the availability of our bank lines of credit we
must remain in compliance with the covenants as specified under the terms of the credit agreements and the bank may exercise discretion
in making advances to us.
Our credit agreements with our bank requires us to
remain in compliance with the covenants specified under the terms of the agreement. The agreements also contain customary affirmative
and negative covenants, including covenants that limit or restrict our ability to, among other things, grant liens, make investments,
incur indebtedness, merge or consolidate, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock,
enter into transactions with affiliates and enter into restrictive agreements, in each case subject to customary exceptions for a credit
facility of this size and type. The agreements also contain customary events of default including, among others, payment defaults, breaches
of covenants, bankruptcy and insolvency events, cross defaults with certain material indebtedness, judgment defaults, and breaches of
representations and warranties. Upon an event of default, our bank may declare all or a portion of our outstanding obligations payable
to be immediately due and payable and exercise other rights and remedies provided for under the agreement. During the existence of an
event of default, interest on the obligations could be increased. The agreements may be terminated by us or by our bank at any time. Upon
such termination, our bank would no longer make advances under the credit agreement and outstanding advances would be repaid as receivables
are collected. All advances are at our bank’s discretion and our bank is not obligated to make advances.
Deferred tax assets comprise a significant portion of our assets and
are dependent upon future tax profitability to realize the benefits.
We have recorded deferred tax assets on our balance
sheet because we believe that it is more likely than not that we will generate sufficient tax profitability in the future to realize the
tax savings that our deferred tax assets represent. If we do not achieve and maintain sufficient profitability, the tax savings represented
by our deferred tax assets may never be realized and we would need to recognize a loss for those deferred tax assets.
We may be unable to manufacture our products because we are dependent
on a limited number of qualified suppliers for our components.
Several of our component parts are produced by one
or a limited number of suppliers. Shortages or delays could occur in these essential components due to an interruption of supply or increased
demand in the industry. Suppliers may choose to restrict credit terms or require advance payment causing delays in the procurement of
essential materials. If we are unable to procure certain component parts, we could be required to reduce our operations while we seek
alternative sources for these components, which could have a material adverse effect on our financial results. To the extent that we acquire
extra inventory stocks to protect against possible shortages, we would be exposed to additional risks associated with holding inventory,
such as obsolescence, excess quantities, or loss.
If we fail to develop and introduce new products rapidly and successfully,
we will not be able to compete effectively, and our ability to generate sufficient revenues will be negatively affected.
The market for our products is prone to rapidly changing
technology, evolving industry standards and short product life cycles. If we are unsuccessful at developing and introducing new products
and services on a timely basis that include the latest technologies, conform to the newest standards, and that are appealing to end users,
we will not be able to compete effectively, and our ability to generate significant revenues will be seriously harmed.
The development of new products and services can be
very difficult and requires high levels of innovation. The development process is also lengthy and costly. Short product life cycles for
smartphones and tablets expose our products to the risk of obsolescence and require frequent new product upgrades and introductions. We
will be unable to introduce new products and services into the market on a timely basis and compete successfully if we fail to:
| · | invest significant resources in research and development, sales and marketing,
and customer support; |
| · | identify emerging trends, demands and standards in the field of mobile computing
products; |
| · | enhance our products by adding additional features; |
| · | maintain superior or competitive performance in our products; and |
| · | anticipate our end users’ needs and technological trends accurately. |
We cannot be sure that we will have sufficient resources
to make adequate investments in research and development or that we will be able to identify trends or make the technological advances
necessary to be competitive.
We may not be able to collect receivables from customers who experience
financial difficulties.
Our accounts receivables are derived primarily from
distributors. We perform ongoing credit evaluations of our customers’ financial conditions but generally require no collateral from
our customers. Reserves are maintained for potential credit losses, and such losses have historically been within such reserves. However,
many of our customers may be thinly capitalized and may be prone to failure in adverse market conditions. Although our collection history
has been good, from time to time a customer may not pay us because of financial difficulty, bankruptcy or liquidation. If global financial
conditions have an impact on our customers’ ability to pay us in a timely manner, and consequently, we may experience increased
difficulty in collecting our accounts receivable, and we may have to increase our reserves in anticipation of increased uncollectible
accounts.
We could face increased competition in the future, which would adversely
affect our financial performance.
The market in which we operate is very competitive.
Our future financial performance is contingent on a number of unpredictable factors, including that:
| · | some of our competitors have greater financial, marketing, and technical resources
than we do; |
| · | we periodically face intense price competition, particularly when our competitors
have excess inventories and discount their prices to clear their inventories; and |
| · | certain manufacturers of tablets and mobile phones offer products with built-in
functions, such as Bluetooth wireless technology or barcode scanning, that compete with our products. |
Increased competition could result in price reductions,
fewer customer orders, reduced margins, and loss of market share. Our failure to compete successfully against current or future competitors
could harm our business, operating results and financial condition.
If we do not correctly anticipate demand for our products, our operating
results will suffer.
The demand for our products depends on many factors
and is difficult to forecast as we introduce and support more products, and as competition in the markets for our products intensifies.
If demand is lower than forecasted levels, we could have excess production resulting in higher inventories of finished products and components,
which could lead to write-downs or write-offs of some or all of the excess inventories, and reductions in our cash balances. Lower than
forecasted demand could also result in excess manufacturing capacity at our third-party manufacturers and in our failure to meet minimum
purchase commitments, each of which may lower our operating results.
If demand increases beyond forecasted levels, we would
have to rapidly increase production at our third-party manufacturers. We depend on suppliers to provide additional volumes of components,
and suppliers might not be able to increase production rapidly enough to meet unexpected demand. Even if we were able to procure enough
components, our third-party manufacturers might not be able to produce enough of our devices to meet our customer demand. In addition,
rapid increases in production levels to meet unanticipated demand could result in higher costs for manufacturing and supply of components
and other expenses. These higher costs could lower our profit margins. Further, if production is increased rapidly, manufacturing yields
could decline, which may also lower operating results.
We rely primarily on distributors to distribute our products, and our
sales would suffer if any of these distributors stops distributing our products effectively.
Because we distribute and fulfill resellers’
orders for our products primarily through distributors, we are subject to risks associated with channel distribution, such as risks related
to their inventory levels and support for our products. Our distribution channels may build up inventories in anticipation of growth in
their sales. If such growth in their sales does not occur as anticipated, the inventory build-up could contribute to higher levels of
product returns. The lack of sales by any one significant participant in our distribution channels could result in excess inventories
and adversely affect our operating results and working capital liquidity. During the three months ended March 31, 2022 and 2021, Ingram
Micro® and BlueStar together represented approximately 47% and 54%, respectively, of our worldwide sales. We expect that a significant
portion of our sales will continue to depend on sales to a limited number of distributors.
Our agreements with distributors are generally nonexclusive
and may be terminated on short notice by them without cause. Our distributors are not within our control, are not obligated to purchase
products from us, and may offer competitive lines of products simultaneously. Sales growth is contingent in part on our ability to enter
into additional distribution relationships and expand our sales channels. We cannot predict whether we will be successful in establishing
new distribution relationships, expanding our sales channels or maintaining our existing relationships. A failure to enter into new distribution
relationships, to expand our sales channels, or to maintain our existing relationships could adversely impact our ability to grow our
sales.
We allow our distribution channels to return a portion
of their inventory to us for full credit against other purchases. In addition, in the event we reduce our prices, we credit our distributors
for the difference between the purchase price of products remaining in their inventory and our reduced price for such products. Actual
returns and price protection may adversely affect future operating results and working capital liquidity by reducing our accounts receivable
and increasing our inventory balances, particularly since we seek to continually introduce new and enhanced products and are likely to
face increasing price competition.
We depend on alliances and other business relationships with third parties,
and a disruption in these relationships would hinder our ability to develop and sell our products.
We depend on strategic alliances and business relationships
with leading participants in various segments of the mobile applications market to help us develop and market our products. Our strategic
partners may revoke their commitment to our products or services at any time in the future or may develop their own competitive products
or services. Accordingly, our strategic relationships may not result in sustained business alliances, successful product or service offerings,
or the generation of significant revenues. Failure of one or more of such alliances could result in delay or termination of product development
projects, failure to win new customers, or loss of confidence by current or potential customers.
We have devoted significant research and development
resources to design products to work with a number of operating systems used in mobile devices including Apple® (iOS), Google™
(Android™) and Microsoft® (Windows®). Such design activities have diverted financial and personnel resources from other
development projects. These design activities are not undertaken pursuant to any agreement under which Apple, Google or Microsoft is obligated
to collaborate or to support the products produced from such collaboration. Consequently, these organizations may terminate their collaborations
with us for a variety of reasons, including our failure to meet agreed-upon standards or for reasons beyond our control, such as changing
market conditions, increased competition, discontinued product lines, and product obsolescence.
Our intellectual property and proprietary rights may be insufficient
to protect our competitive position.
Our business depends on our ability to protect our
intellectual property. We rely primarily on patent, copyright, trademark, trade secret laws, and other restrictions on disclosure to protect
our proprietary technologies. We cannot be sure that these measures will provide meaningful protection for our proprietary technologies
and processes. We cannot be sure that any patent issued to us will be sufficient to protect our technology. The failure of any patents
to provide protection to our technology would make it easier for our competitors to offer similar products. In connection with our participation
in the development of various industry standards, we may be required to license certain of our patents to other parties, including our
competitors that develop products based upon the adopted standards.
We also generally enter into confidentiality agreements
with our employees, distributors, and strategic partners, and generally control access to our documentation and other proprietary information.
Despite these precautions, it may be possible for a third-party to copy or otherwise obtain and use our products, services, or technology
without authorization, develop similar technology independently, or design around our patents.
Additionally, effective copyright, trademark, and
trade secret protection may be unavailable or limited in certain foreign countries.
We may become subject to claims of intellectual property rights infringement,
which could result in substantial liability.
In the course of operating our business, we may receive
claims of intellectual property infringement or otherwise become aware of potentially relevant patents or other intellectual property
rights held by other parties. Many of our competitors have large intellectual property portfolios, including patents that may cover technologies
that are relevant to our business. In addition, many smaller companies, universities, and individuals have obtained or applied for patents
in areas of technology that may relate to our business. The industry is moving towards aggressive assertion, licensing, and litigation
of patents and other intellectual property rights.
If we are unable to obtain and maintain licenses on
favorable terms for intellectual property rights required for the manufacture, sale, and use of our products, particularly those products
which must comply with industry standard protocols and specifications to be commercially viable, our results of operations or financial
condition could be adversely impacted.
In addition to disputes relating to the validity or
alleged infringement of other parties’ rights, we may become involved in disputes relating to our assertion of our own intellectual
property rights. Whether we are defending the assertion of intellectual property rights against us or asserting our intellectual property
rights against others, intellectual property litigation can be complex, costly, protracted, and highly disruptive to business operations
by diverting the attention and energies of management and key technical personnel. Plaintiffs in intellectual property cases often seek
injunctive relief, and the measures of damages in intellectual property litigation are complex and often subjective or uncertain. Thus,
any adverse determinations in this type of litigation could subject us to significant liabilities and costs.
New industry standards may require us to redesign our products, which
could substantially increase our operating expenses.
Standards for the form and functionality of our products
are established by standards committees. These independent committees establish standards, which evolve and change over time, for different
categories of our products. We must continue to identify and ensure compliance with evolving industry standards so that our products are
interoperable and we remain competitive. Unanticipated changes in industry standards could render our products incompatible with products
developed by major hardware manufacturers and software developers. Should any major changes, even if anticipated, occur, we would be required
to invest significant time and resources to redesign our products to ensure compliance with relevant standards. If our products are not
in compliance with prevailing industry standards for a significant period of time, we would miss opportunities to sell our products for
use with new hardware components from mobile computer manufacturers and OEMs, thus affecting our business.
Undetected flaws and defects in our products may disrupt product sales
and result in expensive and time-consuming remedial action.
Our hardware and software products may contain undetected
flaws, which may not be discovered until customers have used the products. From time to time, we may temporarily suspend or delay shipments
or divert development resources from other projects to correct a particular product deficiency. Efforts to identify and correct errors
and make design changes may be expensive and time consuming. Failure to discover product deficiencies in the future could delay product
introductions or shipments, require us to recall previously shipped products to make design modifications, or cause unfavorable publicity,
any of which could adversely affect our business and operating results.
The loss of one or more of our senior personnel could harm our existing
business.
A number of our officers and senior managers have
been employed for more than twenty years by us, including our President, Chief Financial Officer, Vice President of Operations and Vice
President of Engineering/Chief Technical Officer. Our future success will depend upon the continued service of key officers and senior
managers. Competition for officers and senior managers is intense, and there can be no assurance that we will be able to retain our existing
senior personnel. The loss of one or more of our officers or key senior managers could adversely affect our ability to compete.
The expensing of options and restricted stocks will continue to reduce
our operating results such that we may find it necessary to change our business practices to attract and retain employees.
We have been using stock options and restricted stocks
as a key component of our employee compensation packages. We believe that stock options and restricted stocks provide an incentive to
our employees to maximize long-term stockholder value and, through the use of vesting, encourage valued employees to remain with us. The
expensing of employee stock options and restricted stocks adversely affects our net income and earnings per share, will continue to adversely
affect future quarters, and will make profitability harder to achieve. In addition, we may decide in response to the effects of expensing
stock option and restricted stock on our operating results to reduce the number of stock options or restricted stocks granted to employees
or to grant to fewer employees. This could adversely affect our ability to retain existing employees or attract qualified candidates,
and also could increase the cash compensation we would have to pay to them.
If we are unable to attract and retain highly skilled sales and marketing
and product development personnel, our ability to develop and market new products and product enhancements will be adversely affected.
We believe our ability to achieve increased revenues
and to develop successful new products and product enhancements will depend in part upon our ability to attract and retain highly skilled
sales and marketing and product development personnel. Our products involve a number of new and evolving technologies, and we frequently
need to apply these technologies to the unique requirements of mobile products. Our personnel must be familiar with both the technologies
we support and the unique requirements of the products to which our products connect. Competition for such personnel is intense, and we
may not be able to attract and retain such key personnel. In addition, our ability to hire and retain such key personnel will depend upon
our ability to raise capital or achieve increased revenue levels to fund the costs associated with such key personnel. Failure to attract
and retain such key personnel will adversely affect our ability to develop and market new products and product enhancements.
Our operating results could be harmed by economic, political, regulatory
and other risks associated with export sales.
Our operating results are subject to the risks inherent
in export sales, including:
| · | unexpected changes in regulatory requirements, import and export restrictions
and tariffs; |
| · | difficulties in managing foreign operations; |
| · | the burdens of complying with a variety of foreign laws; |
| · | greater difficulty or delay in accounts receivable collection; |
| · | potentially adverse tax consequences; and |
| · | political and economic instability (such as Russia’s military action
against Ukraine). |
Our export sales are primarily denominated in Euros
for our sales to European distributors and in British pounds for our sales to UK distributors. Accordingly, an increase in the value of
the United States dollar relative to Euro or British pound could make our products more expensive and therefore potentially less competitive
in European markets. Declines in the value of the Euro or pound relative to the United States dollar may result in foreign currency losses
relating to collection of receivables denominated if left unhedged.
Our facilities or operations could be adversely affected by events outside
our control, such as natural disasters or health epidemics.
Our corporate headquarters is located in a seismically
active region in Northern California. If major disasters such as earthquakes occur, or our information system or communications network
breaks down or operates improperly, our headquarters and production facilities may be seriously damaged, or we may have to stop or delay
production and shipment of our products. In addition, we may be affected by health epidemic or pandemics, such as the current COVID-19
pandemic, , or geopolitical instability, such as Russia’s military action against Ukraine. We may incur expenses or delays relating
to such events outside of our control, which could have a material adverse impact on our business, operating results and financial condition.
The sale of a substantial number of shares of our common stock could
cause the market price of our common stock to decline.
Sales of a substantial number of shares of our common
stock in the public market could adversely affect the market price for our common stock. The market price of our common stock could also
decline if one or more of our significant stockholders decided for any reason to sell substantial amounts of our common stock in the public
market.
As of May 9, 2022, we had 7,200,451 shares of common
stock outstanding. Substantially all of these shares are freely tradable in the public market, either without restriction or subject,
in some cases, only to S-3 prospectus delivery requirements and, in other cases, only to manner of sale, volume, and notice requirements
of Rule 144 under the Securities Act.
As of May 9 2022, we had 1,333,672 shares of common
stock subject to outstanding options under our stock option plans, 844,503 shares of restricted stock outstanding, and 216,530 shares
of common stock available for future issuance under the plans. We have registered the shares of common stock subject to outstanding options
and restricted stock and reserved for issuance under our stock option plans. Accordingly, the shares of common stock underlying vested
options and unvested restricted stock will be eligible for resale in the public market as soon as the options are exercised or the restricted
stock vests, as applicable.
Volatility in the trading price of our common stock could negatively
impact the price of our common stock.
During the period from January 1, 2021 through the
date of the report, our common stock price fluctuated between a high of $35.00 and a low of $0.76. We have experienced low trading volumes
in our stock, and thus relatively small purchases and sales can have a significant effect on our stock price. The trading price of our
common stock could be subject to wide fluctuations in response to many factors, some of which are beyond our control, including general
economic conditions and the outlook of securities analysts and investors on our industry. In addition, the stock markets in general, and
the markets for high technology stocks in particular, have experienced high volatility that has often been unrelated to the operating
performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock.