Note 3 - Impact of Global Supply Chain Instability and Inflation

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Impact of Coronavirus (COVID-19) [Text Block]

3. Impact of Global Supply Chain Instability and Inflation

The continued supply chain instability, primarily caused by military conflicts in the Middle East, has impacted vessels’ access to the Red Sea and Suez Canal. The Company is working closely with its suppliers regarding lead times and continues to closely monitor this situation. Although the Company has not experienced any delays in receiving raw materials or a substantial increase in shipping costs, the Company is aware that the situation is fluid and could impact the Company at any time. If that occurs, we may experience longer lead times and increased shipping costs for some of the Company’s raw materials, which may impact the Company’s future gross margins. The Company is also continuing to monitor any potential supply chain disruptions caused by the severe weather events that have impacted the southern United States.

As a result of the global supply chain instability and higher interest rates, there continues to be uncertainty regarding the potential impact on the Company’s operations and financial results and we are unable to provide an accurate estimate or projection as to what the future impact will be.