What Cadre Holdings, Inc. told the SEC could break it.

Exporting Cadre's defense articles (body armor, ballistic products, tactical gear) is subject to U.S. import-export controls — ITAR, EAR and the Arms Export Control Act — requiring State/Commerce Department licenses; failure to obtain authorizations could materially reduce revenues, a notable exposure given substantial international (e.g., ~66% of TYR) sales.

“The export of certain of our products from the U.S. is subject to various U.S. regulations, including laws and regulations relating to import-export controls, technology transfers, the International Traffic in Arms Regulations (“ITAR”), and the Export Administration Regulations (“EAR”). More specifically, to export some of our products in accordance with ITAR or EAR, we must obtain export authorizations or licenses from the U.S. government, primarily the DoS for ITAR and the U.S. Department of Commerce for EAR.”

Cadre relies on suppliers of specialty raw materials and components used to manufacture its ballistic-resistant garments; while it maintains multiple sources for each input (no supplier exceeds 10% of purchases), substitutable alternatives are only available 'in some cases', leaving certain ballistic inputs exposed to supply changes.

“We have multiple sources for each input in order to limit our dependency on any single vendor. No supplier makes up more than 10% of total purchases. We are reliant on certain suppliers that provide us with the raw materials and components that we utilize in manufacturing our ballistic resistant garments.”