17.	SUSEQUENT EVENTS

Subsequent events were evaluated through

May 14, 2020,

which is the date of issuance of the audit report.

December 2019,

a novel strain of coronavirus was reported in Wuhan, China (“COVID-

19”

) and has since spread worldwide, including to the United States (the “U.S.”), posing public health risks that have reached pandemic proportions (the “COVID-

Pandemic”). The COVID-

Pandemic is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of COVID-

on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on our customers, employees and vendors all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-

may

impact our financial condition or results of operations is uncertain.

The COVID-

Pandemic did

not

have a significant impact on our results of operations and financial position or cash flow as of and for the fiscal year ended

March 1, 2020.

Subsequent to our fiscal year end the COVID-

Pandemic has had significant impact on various markets and industries including industries the Company sells into, most notably the commercial and business aircraft industries. As of the date of this filing, significant uncertainty exists concerning the magnitude of the impact and duration of the COVID-

Pandemic. Currently, Park’s manufacturing operations have been deemed essential by the Federal Government of the U.S. and by the State of Kansas, and we are actively working with federal, state and local government officials to ensure that we continue to satisfy their requirements for continuing our manufacturing operations.

The COVID-

Pandemic is having an unprecedented impact on the U.S. economy as federal, state and local governments react to this public health crisis by mandating restrictions on social activity. These impacts include, but are

not

limited to, the potential adverse effect of the COVID-

Pandemic on the economy, the Company’s vendors, employees, customers and OEMs, as well as end-users of the Company’s products, including the commercial and business aircraft industry. Continued impacts of the pandemic could materially adversely impact global economic conditions, the Company’s business, results of operations and cash flows, and

may

require actions in response, including but

not

limited to expense reductions, in an effort to mitigate such impacts. The extent of the impact of the COVID-

Pandemic on the Company’s business and financial results will depend largely on future developments, including the duration of the spread of the outbreak, the impact on capital and financial markets and the related impact on the financial circumstances of the Company’s customers and OEMs, as well as end-users of the Company’s products, including the commercial and business aircraft industry, all of which are highly uncertain and cannot be predicted. This situation is changing rapidly, and additional impacts

may

arise that the Company is

not

aware of currently. Although it is

not

possible to predict the extent or length of the impact, it is almost certain the Company’s sales to the commercial and business aircraft industries will be negatively impacted.

Even after the COVID-

Pandemic has subsided, the Company

may

continue to experience adverse impacts to its business as a result of any economic recession or depression that has occurred or

may

occur in the future or specific economic recovery in the industries the Company serves.

The continued operation of the Company’s Kansas facility is critically dependent on maintaining the wellbeing of the employees that staff the facility. The Company has provided all employees at its manufacturing facility with detailed health and safety literature on COVID-

19.

In addition, the Company’s procurement and safety teams have updated and developed new safety-oriented guidelines to support daily operations, and the Company is in the process of providing appropriate personal protection equipment to its employees. The Company has implemented work from home policies at its office in the State of New York. The COVID-

Pandemic will likely impact Park financially; however, the Company cannot presently predict the scope and severity with which the COVID-

Pandemic will impact its business, results of operations and cash flows.

The Company believes that our existing cash, cash equivalents and marketable securities, and cash flow from operations will be sufficient to fund necessary capital expenditures and operating cash requirements for at least the next

months from the date of the filing of this Form

-K Annual Report. The Company further believes that its balance sheet and financial position to be very strong, and the Company believes it is well positioned to weather the impact of the Pandemic on its business as a result.

March 27, 2020

the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and implements certain tax legislation, among which modifies the carryback period and limitation on utilization of net operating losses and temporarily increases the interest expense limitation pursuant to Section

163

(j). The Company will evaluate the impact of the CARES Act on its financial statements in subsequent periods.