In the financial review that follows, we discuss our results of operations,
financial condition and certain other information. This discussion should be
read in conjunction with our consolidated financial statements as of September
24, 2021, and related notes, as reported in Item 1 of this Quarterly Report.



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Some of the statements in this Quarterly Report on Form 10-Q are
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include the Company's description
of plans and objectives for future operations and assumptions behind those
plans. The words "anticipates," "believes," "intends," "estimates," and
"expects," or similar anticipatory expressions, usually identify forward-looking
statements. In addition, goals established by the Company should not be viewed
as guarantees or promises of future performance. There can be no assurance the
Company will be successful in achieving its goals.



In addition to the assumptions and information referred to specifically in the
forward-looking statements, other factors, including but not limited to those
factors discussed under Item 1A, Risk Factors, of the Company's Annual Report
filed on Form 10-K for June 30, 2021, as supplemented in this Quarterly Report,
could cause actual results to be materially different from what is expressed or
implied in any forward-looking statement.



Results of Operations



(In thousands)
                                                                   Quarter Ended
                                     September 24, 2021       % of Net       September 25, 2020       % of Net
Net sales                           $             47,761                    $             46,179
Cost of goods sold                                34,314                                  36,476
Gross profit                                      13,447           28.2 %                  9,703           21.0 %
Marketing, engineering and
administrative expenses                           13,091           27.4 %                 12,445           26.9 %
Restructuring of operations                           48            0.1 %                    405            0.9 %
Other operating income                            (2,939 )         -6.2 %                      -            0.0 %
Income (loss) from operations       $              3,247            6.8 %   $             (3,147 )         -6.8 %

Comparison of the First Quarter of Fiscal 2022 with the First Quarter of Fiscal 2021





Net sales for the first quarter increased 3.4%, or $1.6 million, to $47.6
million from $46.2 million in the same quarter a year ago. While the Company has
experienced improving conditions across most of its markets following the severe
impact of the COVID-19 pandemic in fiscal 2021, the North American oil and gas
market demand for new units remains depressed. The Company's ability to ship
product has been hampered by a variety of supply chain challenges. These include
supplier capacity constraints, extended supplier lead times and a global
shortage of shipping containers. Global shipments of industrial products
improved 13.1% from the prior year, while shipments of marine and propulsion
products improved slightly (1.8%) and off-highway transmission demand was
essentially flat with the prior year first quarter. The North American region
enjoyed the most significant sales improvement ($2.6 million or 18.2%) due to
generally improving market conditions and increased aftermarket demand in the
North American energy market. The European region saw a modest increase ($0.3
million or 1.8%), with project delays and supply chain challenges hampering
volume. Sales into the Asia Pacific region decreased slightly ($1.2 million or
9.1%) due to the lingering effects of COVID-19 in the region, partially offset
by a continued strong pleasure craft market in Australia. Currency translation
had a favorable impact on first quarter fiscal 2022 sales compared to the first
quarter of the prior year totaling $0.5 million primarily due to the
strengthening of the euro and Australian dollar against the U.S. dollar.



Sales at our manufacturing segment increased 8.1%, or $3.1 million, versus the
same quarter last year. The U.S. manufacturing operations experienced a 17.0%,
or $3.3 million, increase in sales versus the first fiscal quarter of 2021, with
recovering markets following the significant impact of the COVID-19 pandemic,
partially offset by the supply chain challenges noted above. The Company's
operation in the Netherlands was down $0.7 million (7.9%) compared to the first
fiscal quarter of 2021, with many boat construction projects being delayed due
to the COVID-19 crisis. The Company's Belgian operation saw an increase compared
to the prior year first quarter (4.3% or $0.2 million), with a positive
translation effect combining with improved European market conditions.
Similarly, the Company's Italian manufacturing operations, also benefiting from
some positive exchange impact and an improving European market, were up $0.1
million (1.0%) compared to the first quarter of fiscal 2021. The Company's Swiss
manufacturing operation, which supplies customized propellers for the global
mega yacht and patrol boat markets, was up $0.3 million (31.1%) compared to the
prior year first quarter.



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Our distribution segment experienced a decrease in sales of $2.0 million (8.8%)
compared to the first quarter of fiscal 2021. The Company's Asian distribution
operations in Singapore, China and Japan were down 20.3% from the prior year on
softer demand for commercial marine and patrol craft products in the region
driven by the persistent impact of the COVID-19 pandemic in the region, along
with global supply chain challenges. The Company's North America distribution
operation saw a slight decrease of 0.7%, while the Company's European
distribution operation saw a decrease of $1.0 million (22.1%) primarily due to
supply chain challenges in the region. The Company's distribution operation in
Australia, which provides boat accessories, propulsion and marine transmission
systems for the pleasure craft market, saw continued growth (22.0% increase from
the prior year first fiscal quarter), on improving pleasure craft marine market
trends in the region.



Gross profit as a percentage of sales for the first quarter of fiscal 2022
improved to 28.2%, compared to 21.0% for the same period last year. The current
quarter result reflects the benefit of an Employee Retention Credit ("ERC", part
of various COVID-19 relief programs provided by the U.S. government) of $1.3
million recorded at the Company's domestic operation, along with the incremental
benefit of a NOW subsidy (COVID-19 relief program in the Netherlands) of $0.3
million and the favorable impact of a correction to the Company's warranty
reserve ($0.5 million). In addition, the quarter benefited from a favorable
product mix profile ($0.8 million) and the impact of improved volume ($0.4
million).



For the fiscal 2022 first quarter, marketing, engineering and administrative
("ME&A") expenses, as a percentage of sales, were 27.4%, compared to 26.9% for
the fiscal 2021 first quarter. ME&A expenses increased $0.6 million (5.2%)
versus the same period last fiscal year. The increase in ME&A spending for the
quarter was comprised of increases to domestic salaries and benefits ($0.5
million), the accrual for the global bonus program ($0.5 million) and a slight
currency translation impact ($0.1 million). These decreases were partially
offset by the favorable impact of the Employee Retention Credit ($0.5 million).



The Company incurred minor restructuring charges during the first quarter of
fiscal 2022, primarily associated with ongoing cost reduction actions at its
European operations and actions to adjust the cost structure at the Company's
domestic operation. The Company continues to focus on actively managing its cost
structure and reducing fixed costs in light of the ongoing market challenges.



The Company recorded other operating income of $2.9 million associated with the
gain on the sale of the Company's facility in Switzerland. The building was sold
for approximately $9.1 million.



Interest expense decreased to $0.5 million in the first quarter of fiscal 2022,
compared to $0.6 million for the first quarter of the prior fiscal year. This
decrease reflects a lower average borrowing level for the first quarter of
fiscal 2022.

Other expense of $0.4 million for the first fiscal quarter was primarily attributable to translation losses related to the Company's euro and Australian dollar denominated liabilities.





The fiscal 2022 first quarter effective tax rate was 16.2% compared to 19.1% in
the prior fiscal year first quarter. The current year rate was impacted by the
fact that the domestic entity recognized a full valuation allowance in the
fourth quarter of fiscal 2021, resulting in limited recognition of tax expense.

Financial Condition, Liquidity and Capital Resources

Comparison between September 24, 2021 and June 30, 2021

As of September 24, 2021, the Company had net working capital of $114.3 million, which represents an increase of $0.9 million, or 0.8%, from the net working capital of $113.4 million as of June 30, 2021.





Cash increased by $9.8 million to $22.1 million as of September 24, 2021, versus
$12.3 million as of June 30, 2021. As of September 24, 2021, the majority of the
cash is at the Company's overseas operations in Europe ($14.5 million) and
Asia-Pacific ($5.2 million). In accordance with the terms of the extended
forbearance agreement with BMO, as described below, the Company will be
repatriating approximately $7.0 million of the cash currently held in Europe
during fiscal 2022.



Trade receivables of $34.8 million were down $4.7 million, or approximately
11.8%, when compared to last fiscal year-end. The impact of foreign currency
translation was to decrease accounts receivable by $0.3 million versus June 30,
2021. As a percent of sales, trade receivables finished at 72.9% in the first
quarter of fiscal 2022 compared to 69.0% for the comparable period in fiscal
2021 and 59.6% for the fourth quarter of fiscal 2021.



                                       19
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Inventories increased by $6.1 million, or 5.3%, versus June 30, 2021 to $121.1
million. The impact of foreign currency translation was to decrease inventories
by $0.8 million versus June 30, 2021. The remaining increase was seen primarily
at the Company's operations in North American ($2.4 million), the Netherlands
($0.5 million), Italy ($0.4), and Belgium ($0.3).These increases were primarily
driven by an imbalance in the supply chain, resulting in excess inventory
waiting for missing components to finish assembly, or waiting for customers to
accept shipment. The remaining increase is due to additional inventory in
transit, as the global supply chain has slowed significantly in recent quarters.
On a consolidated basis, as of September 24, 2021, the Company's backlog of
orders to be shipped over the next six months approximates $86.1 million,
compared to $70.3 million at June 30, 2021 and $69.4 million at September 25,
2020. As a percentage of six-month backlog, inventory has decreased from 163% at
June 30, 2021 to 141% at September 24, 2021.



Net property, plant and equipment decreased $1.1 million (2.5%) to $44.3 million
versus $45.5 million at June 30, 2021. The Company had capital spending of $0.8
million in the quarter, offset by a favorable exchange impact ($0.2 million) and
depreciation ($1.7 million). Capital spending occurring in the first quarter was
primarily related to maintenance capital. In total, the Company expects to
invest between $9 and $11 million in capital assets in fiscal 2022. The Company
continues to review its capital plans based on overall market conditions and
availability of capital, and may make changes to its capital plans accordingly.
The Company's capital program is focused on modernizing key core manufacturing,
assembly and testing processes and improving efficiencies at its facilities
around the world.



Accounts payable as of September 24, 2021 of $29.4 million was down $1.6
million, or 5.3%, from June 30, 2021. The impact of foreign currency translation
was to reduce accounts payable by $0.2 million versus June 30, 2021. The
remaining decrease is primarily related to the reduced purchasing activities in
light of reduced volume in the quarter.



Total borrowings and long-term debt as of September 24, 2021 decreased $0.2
million to $31.9 million versus $32.1 million at June 30, 2021. During the first
quarter, the Company reported positive free cash flow of $10.7 million (defined
as operating cash flow less acquisitions of fixed assets), which includes the
sale of the Swiss facility for $9.1 million. The Company ended the quarter with
total debt, net of cash, of $9.8 million, compared to $19.7 million at June 30,
2021, for a net improvement of $9.9 million.



Total equity increased $1.0 million, or 0.7%, to $131.6 million as of September
24, 2021. The net profit during the first quarter increased equity by $1.9
million, offset by an unfavorable foreign currency translation of $1.9 million.
The net change in common stock and treasury stock resulting from the accounting
for stock-based compensation increased equity by $0.2 million. The net remaining
increase in equity of $0.8 million primarily represents the amortization of net
actuarial loss and prior service cost on the Company's defined benefit pension
plans, along with the unrealized gain on cash flow hedges.



On June 29, 2018, the Company entered into a Credit Agreement (the "Credit
Agreement") with BMO Harris Bank N.A. ("BMO") that provided for the assignment
and assumption of the previously existing loans between the Company and Bank of
Montreal (the "2016 Credit Agreement") and subsequent amendments into a term
loan (the "Term Loan") and revolving credit loans (each a "Revolving Loan" and,
collectively, the "Revolving Loans," and, together with the Term Loan, the
"Loans"). Pursuant to the Credit Agreement, BMO agreed to make the Term Loan to
the Company in a principal amount not to exceed $35.0 million and the Company
may, from time to time prior to the maturity date, enter into Revolving Loans in
amounts not to exceed, in the aggregate, $50.0 million (the "Revolving Credit
Commitment"). The Credit Agreement also allows the Company to obtain Letters of
Credit from BMO, which if drawn upon by the beneficiary thereof and paid by BMO,
would become Revolving Loans. Under the Credit Agreement, the Company may not
pay cash dividends on its common stock in excess of $3.0 million in any fiscal
year.



On March 4, 2019, the Company entered into a second amendment (the "Second
Amendment") to the Credit Agreement. The Second Amendment reduced the principal
amount of the term loan commitment under the Credit Agreement from $35.0 million
to $20.0 million. In connection with the Second Amendment, the Company issued an
amended and restated term note in the amount of $20.0 million to the Bank, which
amended the original $35.0 million note provided under the Credit Agreement.



Prior to entering into the Second Amendment, the outstanding principal amount of
the term loan (the "Term Loan") under the Credit Agreement was $10.8 million. On
the date of the Second Amendment, the Bank made an additional advance on the
Term Loan to the Company in the amount of $9.2 million. The Second Amendment
also extended the maturity date of the Term Loan from January 2, 2020 to March
4, 2026, and added a requirement that the Company make principal installments of
$0.5 million per quarter starting with the quarter ending June 30, 2019.



The Second Amendment also reduced the applicable margin for purposes of
determining the interest rate applicable to the Term Loan. Previously, the
applicable margin was 3.00%, which was added to the Monthly Reset LIBOR Rate or
the Adjusted LIBOR, as applicable. Under the Second Amendment, the applicable
margin was between 1.375% and 2.375%, depending on the Company's total funded
debt to EBITDA ratio.



                                       20

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The Second Amendment also adjusted certain financial covenants made by the
Company under the Credit Agreement. Specifically, the Company covenanted (i) not
to allow its total funded debt to EBITDA ratio to be greater than 3.00 to 1.00
(the cap had previously been 3.50 to 1.00 for quarters ending on or before
September 30, 2019 and 3.25 to 1.00 for quarters ending on or about December 31,
2019 through September 30, 2020), and (ii) that its tangible net worth will not
be less than $100.0 million plus 50% of net income for each fiscal year ending
on and after June 30, 2019 for which net income is a positive number (the $100.0
million figure had previously been $70.0 million).



On January 28, 2020, the Company entered into a third amendment (the "Third
Amendment") to the Credit Agreement. The Third Amendment restated the financial
covenant provisions related to the maximum allowable ratio of total funded debt
to EBITDA from 3.00 to 1.00 to 4.00 to 1.00 for the quarter ended December 27,
2019, 5.00 to 1.00 for the quarter ending March 27, 2020, 4.00 to 1.00 for the
quarter ending June 30, 2020, 3.50 to 1.00 for the quarter ending September 25,
2020 and 3.00 to 1.00 for quarters ending on or after December 25, 2020. For
purposes of determining EBITDA, the Third Amendment added back extraordinary
expenses (not to exceed $3.9 million) related to the previously reported
isolated product performance issue on one of the Company's oil and gas
transmission models at certain installations. Under the Third Amendment, the
applicable margin for revolving loans, letters of credit, and term loans was
between 1.25% and 3.375%, depending on the Company's total funded debt to EBITDA
ratio.



On July 22, 2020, the Company entered into a fifth amendment (the "Fifth
Amendment") to the Credit Agreement that amends the Credit Agreement dated as of
June 29, 2018, as amended between the Company and BMO. The Fifth Amendment
reduced BMO's Revolving Credit Commitment from $50.0 million to $45.0 million.
The Fifth Amendment also gives the Company the option to make interest-only
payments on the Term Loan for quarterly payments occurring on September 30, 2020
and December 31, 2020, and limits the Company's Capital Expenditures for the
fiscal year ending June 30, 2021 to $10.0 million.

The Fifth Amendment provides the Company with relief from its Total Funded Debt to EBITDA ratio financial covenant under the Credit Agreement through (and including) the earlier of June 30, 2021 or a date selected by the Company. During the financial covenant relief period:

? The "Applicable Margin" to be applied to Revolving Loans, the Term Loan, and

the Commitment/Facility Fee will be increased to 3.25%, 3.875%, and 0.20%,


    respectively.

? The Company may not make certain restricted payments (specifically, cash

dividends, distributions, purchases, redemptions or other acquisitions of or

with respect to shares of its common stock or other common equity interests).

? The Company must maintain liquidity (as defined in the Fifth Amendment) of at


    least $15.0 million.

? The Company must maintain minimum EBITDA of at least (1) $1.0 million for the

fiscal quarter ending June 30, 2020 and the two fiscal quarters ending on or

about September 30, 2020; (2) $2.5 million for the three fiscal quarters

ending on or about December 31, 2020; (3) $6.0 million for the four fiscal

quarters ending on or about March 31, 2021; and (4) $10.0 million for the four


    fiscal quarters ending June 30, 2021.




For purposes of the minimum EBITDA covenant and the Total Funded Debt to EBITDA
ratio, the Fifth Amendment clarified that EBITDA shall exclude any gain that is
realized on the forgiveness of the Small Business Administration Paycheck
Protection Program loan that the Company previously received.



The Fifth Amendment also changed the definition of "LIBOR" (used in calculating
interest on Eurodollar Loans), "Monthly Reset LIBOR Rate" (used in calculating
interest on LIBOR Loans), and "LIBOR Quoted Rate" (used in the definition of
"Base Rate," which is used in calculating interest on Letters of Credit that are
drawn upon and not timely reimbursed).



The Company also entered into a Deposit Account Control Agreement with the Bank,
reflecting the Bank's security interest in deposit accounts the Company
maintains with the Bank. Under the Fifth Amendment, the Bank may not provide a
notice of exclusive control of a deposit account (thereby obtaining exclusive
control of the account) prior to the occurrence or existence of a Default or an
Event of Default under the Credit Agreement or otherwise upon the occurrence or
existence of an event or condition that would, but for the passage of time or
the giving of notice, constitute a Default or an Event of Default under the
Credit Agreement.



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On January 27, 2021, the Company entered into a Forbearance Agreement and Amendment No. 6 to the Credit Agreement (the "Forbearance Agreement") that further amended the Credit Agreement.





The Company entered into the Forbearance Agreement because the Company was not
in compliance with its financial covenant to maintain a minimum EBITDA of at
least $2.5 million for the three fiscal quarters ended as of December 25, 2020.
In the Forbearance Agreement, the Bank agreed to forbear from exercising its
rights and remedies against the Company under the Credit Agreement with respect
to the Company's noncompliance with the minimum EBITDA covenant during the
period (the "Forbearance Period") commencing January 27, 2021 and ending on the
earlier of (i) September 30, 2021, and (ii) the date on which a default under
the Forbearance Agreement or Credit Agreement occurs. During the Forbearance
Period, the Bank may continue to honor requests of the Company for draws on the
revolving note provided by the Bank under the Credit Agreement, except that the
revolving credit commitment is reduced from $45.0 million to $42.5 million
during the Forbearance Period.



The Forbearance Agreement also added to the Company's financial reporting
requirements under the Credit Agreement by requiring the Company to provide the
Bank with monthly forecasts of the Company's financial statements, and monthly
reports on the Company's six-month backlog.



On September 30, 2021, the Company entered into a First Amended and Restated
Forbearance Agreement and Amendment No. 7 to Credit Agreement (the "Amended and
Restated Forbearance Agreement") that further amends the Credit Agreement.



The Amended and Restated Forbearance Agreement extends the Forbearance Period
through February 28, 2022, or if earlier, through the date on which a default
under the Amended and Restated Forbearance Agreement or Credit Agreement occurs.
During the extended Forbearance Period, the Bank will continue to forbear from
exercising its rights and remedies against the Company under the Credit
Agreement with respect to the Company's noncompliance with its minimum EBITDA
covenant. The Amended and Restated Forbearance Agreement also makes certain
adjustments to the Credit Agreement, including:

? Permitting the Company to sell its manufacturing facility in Novazzano,

Switzerland for a gross sales price of approximately $10,000,000, resulting in

net cash proceeds of approximately $8,700,000 (the "Rolla Disposition").

? Requiring the Company to promptly repatriate approximately $7,000,000 of the

net cash proceeds from the Rolla Disposition (the "Rolla Repatriation"), and


    to apply $1,000,000 of such net cash proceeds to the Term Loan and the
    remainder to the Revolving Loans under the Credit Agreement.

? Upon completion of the Rolla Repatriation: (1) reducing the portion of the

Borrowing Base that is based on eligible inventory from the lesser of

$35,000,000 or 50% of the value of eligible inventory to the lesser of

$30,000,000 or 50% of the value of eligible inventory; and (2) reducing the

Revolving Credit Commitment from a maximum of $42,500,000 to a maximum of

$40,000,000.




When the Forbearance Period ends, the Bank's forbearance under the Forbearance
Agreement will cease, and the Company is subject to a maximum Total Funded Debt
to EBITDA ratio financial covenant of 3.00 to 1.00. Further, upon an event of
default and upon notice from the Bank, the Company's obligations under the Loan
Documents would be accelerated and become due at the default rate, and the Bank
may exercise its rights and remedies under the Credit Agreement for any
occurrence and continuation of default under the Credit Agreement.



For the quarter ended September 24, 2021, as a result of the Forbearance
Agreement, the Company was not required to meet the minimum EBITDA financial
covenant. The Company expects to be in compliance with the terms of the Credit
Agreement following the Forbearance Period, and therefore continues to classify
its debt as long term.

The Company remains in compliance with its liquidity and other covenants, and has agreed to provide additional financial reports to BMO.





Borrowings under the Credit Agreement are secured by substantially all of the
Company's personal property, including accounts receivable, inventory, machinery
and equipment, and intellectual property. The Company has also pledged 100% of
its equity interests in certain domestic subsidiaries and 65% of its equity
interests in certain foreign subsidiaries. The Company also entered into a
Collateral Assignment of Rights under Purchase Agreement for its acquisition of
Veth Propulsion. To effect these security interests, the Company entered into
various amendment and assignment agreements that consent to the assignment of
certain agreements previously entered into between the Company and the Bank of
Montreal in connection with the 2016 Credit Agreement. The Company also amended
and assigned to BMO a Negative Pledge Agreement that it has previously entered
into with Bank of Montreal, pursuant to which it agreed not to sell, lease or
otherwise encumber real estate that it owns except as permitted by the Credit
Agreement and the Negative Pledge Agreement.



                                       22
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Upon the occurrence of an Event of Default, BMO may take the following actions
upon written notice to the Company: (1) terminate its remaining obligations
under the Credit Agreement; (2) declare all amounts outstanding under the Credit
Agreement to be immediately due and payable; and (3) demand the Company to
immediately Cash Collateralize L/C Obligations in an amount equal to 105% of the
aggregate L/C Obligations or a greater amount if BMO determines a greater amount
is necessary. If such Event of Default is due to the Company's bankruptcy, BMO
may take the three actions listed above without notice to the Company.



There are no material off-balance-sheet arrangements, and the Company continues
to have sufficient liquidity for near-term needs. The Company had approximately
$26.9 million of available borrowings under the Credit Agreement as of September
24, 2021. The Company expects to continue to generate enough cash from
operations, and have sufficient capacity under its credit facilities to meet its
operating and investing needs. As of September 24, 2021, the Company also had
cash of $22.1 million, primarily at its overseas operations. These funds, with
some restrictions and tax implications, are available for repatriation as deemed
necessary by the Company. In accordance with the terms of the extended
forbearance agreement with our bank, as described above, the Company will be
repatriating approximately $7.0 million of the cash currently held in Europe
during fiscal 2022. In fiscal 2022, the Company expects to contribute $0.7
million to its defined benefit pension plans, the minimum contribution required.



Net working capital increased $0.9 million, or 0.8%, during the first quarter of
fiscal 2022, and the current ratio remained flat at 2.4 for both September 24,
2021 and June 30, 2021. The increase in net working capital was primarily driven
by an increase in cash and inventory, partially offset by reductions in trade
receivables and assets held for sale.



The Company expects capital expenditures to be approximately $9 million - $11
million in fiscal 2022. These anticipated expenditures reflect the Company's
plans to invest in modern equipment and facilities, its global sourcing program
and new products.

Management believes that available cash, the BMO credit facility, and potential access to debt markets will be adequate to fund the Company's capital requirements for the foreseeable future.





The Company has approximately $0.8 million of unrecognized tax benefits,
including related interest and penalties, as of September 24, 2021, which, if
recognized, would favorably impact the effective tax rate. See Note H, Income
Taxes, of the Condensed Consolidated Financial Statements for disclosures
surrounding uncertain income tax positions.



The Company maintains defined benefit pension plans for some of its operations
in the United States and Europe. The Company has established the Benefits
Committee (a non-Board management committee) to oversee the operations and
administration of the defined benefit plans. The Company estimates that fiscal
2022 contributions to all defined benefit plans will total $0.7 million. As of
September 24, 2021, $0.2 million in contributions have been made.



New Accounting Releases

See Note A, Basis of Presentation, to the condensed consolidated financial statements for a discussion of recently issued accounting standards.





Critical Accounting Policies



The preparation of this Quarterly Report requires management's judgment to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the dates of the
financial statements, and the reported amounts of revenues and expenses during
the reporting period. There can be no assurance that actual results will not
differ from those estimates.

The Company's critical accounting policies are described in Item 7 of the Company's Annual Report filed on Form 10-K for June 30, 2021. There have been no significant changes to those accounting policies subsequent to June 30, 2021.





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