Sphere 3D Operations and Business Experienced Disruption

This is an abstract of a SEC filing published on March 7, 2020 by Sphere 3D Corp.:

The company’s operations and business have experienced disruption due to the unprecedented conditions surrounding the COVID-19 pandemic spreading throughout the United States, Canada and elsewhere. 

The spread of COVID-19 has caused a change in the availability of our support services and we have had to modify our business practices including employee work locations and cancellation of physical participation in meetings.

Due to these disruptions, management is currently unable to timely review and prepare the company’s financial statements for the 2019 fiscal year. The company will file its annual report by no later than May 14, 2020, which is 45 days after the original due date of its annual eeport.

In light of the current COVID-19 pandemic, the company will be including the following risk factor in its annual report:

The extent to which the coronavirus outbreak impacts our business, results of operations and financial condition will depend on future developments, which cannot be predicted.

The COVID-19 pandemic has caused us to modify our business practices (including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences), and we may take further actions as may be required by government authorities or that we determine are in the best interests of our employees, customers and business partners. There is no certainty that such measures will be sufficient to mitigate the risks posed by the virus or otherwise be satisfactory to government authorities.

The COVID-19 pandemic may have a material impact on our ability to get the parts we need to manufacture our products as our suppliers face disruptions in their business as a result of the coronavirus.  Some of our products have a large number of components and subassemblies produced by outside suppliers. We depend greatly on these suppliers for items that are essential to the manufacturing of our products. If our suppliers fail to meet our manufacturing needs, it would delay our production and our product shipments to customers and negatively affect our operations.

The extent to which COVID-19 impacts our business, results of operations and financial condition will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the coronavirus outbreak has subsided, we may continue to experience materially adverse impacts to our business as a result of its global economic impact, including any recession that has occurred or may occur in the future.