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Risks

• We have incurred indebtedness under the CARES Act which may be subject to audit, may not be forgivable and may eventually have to be repaid. Any repayment of such indebtedness may limit the funds available to us and may restrict our flexibility in operating our business or otherwise adversely affect our results of operations.
• We face quality control and other production issues that could materially and adversely impact our sales and financial results and the acceptance of our products.
• Some of our laser systems are complex in design and may contain defects that are not detected until deployed by our customers, which could increase our costs and reduce our revenues.
• We rely on our direct and independent sales forces and international distributors to sell our products and if we lose our sales force or distributor relationships, it could harm our business.
• Growth in our sales and marketing organization may create operational challenges without immediately offsetting benefits.
• We depend on international sales for a significant portion of our operating results.
• If we fail to develop and successfully introduce new products and applications or fail to improve our existing products, our business prospects and operating results may suffer.
• We are exposed to risks associated with worldwide economic slowdowns and related uncertainties.
• Our operating results may fluctuate from quarter to quarter and year to year.
• We rely on continued market acceptance of our existing products and any decline in sales of our existing products would adversely affect our business and results of operations.
• We face strong competition in our markets and expect the level of competition to grow in the foreseeable future.
• Our ability to raise capital in the future may be limited, and future sales and issuances of securities could negatively affect our stock price and dilute the ownership interest of our existing investors.
• Our operating results may be adversely affected by uncertainty regarding healthcare reform measures and changes in third-party coverage and reimbursement policies.
• If we fail to comply with healthcare laws, we could face substantial penalties and financial exposure, and our business, operations and financial condition could be adversely affected.
• We depend on collaborative relationships to develop, introduce and market new products, product enhancements and new applications.
• If we cannot increase our sales volumes, reduce our costs or introduce higher margin products to offset potential reductions in the average unit price of our products, our operating results may suffer.
• If we fail to manage growth effectively, our business could be disrupted which could harm our operating results.
• We rely on patents and proprietary rights to protect our intellectual property and business.
• If we lose key personnel or fail to integrate replacement personnel successfully, our ability to manage our business could be impaired.
• Efforts to acquire additional companies or product lines may divert our managerial resources away from our business operations, and if we complete additional acquisitions, we may incur or assume additional liabilities or experience integration problems.
• If we fail to accurately forecast demand for our product and component requirements for the manufacture of our product, we could incur additional costs or experience manufacturing delays and may experience lost sales or significant inventory carrying costs.
• We depend on sole source or limited source suppliers.
• If our facilities were to experience catastrophic loss, our operations would be seriously harmed.
• If we experience a significant disruption in our information technology systems or breaches of data security, our business could be adversely affected.
• If we fail to maintain our relationships with health care providers, customers may not buy our products and our revenue and profitability may decline. At the same time, relationships with these individuals and entities are the subject of heightened scrutiny and may present the potential for healthcare compliance risks.
• We are subject to government regulations which may cause us to delay or withdraw the introduction of new products or new applications for our products.
• Any clinical trials necessary that we may undertake for regulatory approval or marketing reasons will be an expensive, lengthy, costly, and uncertain process, and could result in delays in new product introductions or even an inability to release a product.
• If we fail to comply with the FDA’s quality system regulation and laser performance standards, our manufacturing operations could be halted, and our business would suffer.
• If we modify one of our FDA cleared devices, we may need to submit a new 510(k), or potentially a PMA, and if clearance or approval is not obtained, it would prevent us from selling our modified products or cause us to redesign our products.
• Our products may be misused, which could harm our reputation and our business.
• Inability of customers to obtain credit or material increases in interest rates may harm our sales.
• Our products could be subject to recalls even after receiving FDA approval or clearance. A recall would harm our reputation and adversely affect our operating results.
• If product liability claims are successfully asserted against us, we may incur substantial liabilities that may adversely affect our business or results of operations.
• Changes in U.S. tax laws could have a material adverse effect on our business, cash flow, results of operations or financial conditions.
• We are subject to federal, state and foreign laws governing our business practices which, if violated, could result in substantial penalties. Additionally, challenges to or investigation into our practices could cause adverse publicity and be costly to respond to and thus could harm our business.
• Divestitures of some of our businesses or product lines may materially and adversely affect our financial condition, results of operations or cash flows and require us to raise additional capital to replace revenue from those business units or product lines.
• If we fail to comply with environmental requirements, our business, financial condition, operating results and reputation could be adversely affected.
• Our stock price has been and may continue to be volatile and an investment in our common stock could suffer a decline in value.
• Because we do not intend to pay dividends, stockholders will benefit from an investment in our common stock only if it appreciates in value.
• If securities or industry analysts do not continue to publish research or publish incorrect or unfavorable research about our business, our stock price and trading volume could decline.
• Ownership of our common stock is concentrated among a few investors, which may affect the ability of a third party to acquire control of us. Substantial sales by such investors could cause our stock price to decline.
• As a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting. We may not complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be determined to be effective, which may adversely affect investor confidence in our company and, as a result, the value of our common stock.
• Our charter documents, anti-takeover provisions of Delaware law, and contractual provisions could delay or prevent an acquisition or sale of our company.