UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM SD

Specialized Disclosure Report

 

Hasbro, Inc.

(Exact name of registrant as specified in its charter)

 

 

 Deborah Thomas, Executive Vice President and Chief Financial Officer, (401) 431-8697

(Name and telephone number, including area code, of the person to contact in connection with this report)

 

 

 

 

Check the appropriate box to indicate the rule pursuant to which this form is being filed, and provide the period to which the information in this form applies:

 

[X]   Rule 13p-1 under the Securities Exchange Act (17 CFR 240.13p-1) for the reporting period from January 1 to December 31, 2017.

  

Introduction:

 

Hasbro, Inc. ("Hasbro," the "Company," "we," "us," or "our") (NASDAQ: HAS) is a global play and entertainment company committed to Creating the World's Best Play Experiences. From toys and games to television, movies, digital gaming and consumer products, Hasbro offers a variety of ways for consumers and audiences to experience its iconic brands, including BABY ALIVE, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH, and TRANSFORMERS, as well as premier partner brands. Through its entertainment labels, Allspark Pictures and Allspark Animation, the Company is building its brands globally through great storytelling and content for all screens.  Hasbro is committed to making the world a better place for children and their families through corporate social responsibility and philanthropy. Hasbro ranked No. 5 on the 2018 100 Best Corporate Citizens list by CR Magazine, and has been named one of the World’s Most Ethical Companies® by Ethisphere Institute for the past seven years.  We are headquartered in Pawtucket, Rhode Island and have approximately 5,400 employees worldwide, approximately 2,800 of whom are located in the United States.

At Hasbro, corporate social responsibility (“CSR”) is powered by our belief that every day is a chance to be better.  Our deep commitment to CSR reflects our desire to help build a safer, more sustainable world for future generations.  Part of this commitment is working with our vendors to ensure that they operate responsibly and adopt best practices.

Some of Hasbro's products include electronics and other components that contain tin, tungsten, tantalum and/or gold (referred to collectively hereafter as "conflict minerals" or "3TG").  Accordingly, we are subject to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the "Dodd-Frank Act" or the "Act") and Rule 13p-1 under the Securities and Exchange Act of 1934 (the "Conflict Minerals Rule").

Hasbro has a Conflict Minerals Policy which expresses our commitment to (i) sourcing components and materials from companies that share our values around human rights, ethics, and corporate social responsibility, (ii) utilizing due diligence practices to identify 3TG and their sources in our supply chain and (iii) requiring that any 3TG included in our products are sourced from smelters that have been audited by the Responsible Minerals Assurance Process (RMAP, formerly Conflict Free Sourcing Initiative) to determine that such 3TG are not being used to support armed conflict in the Democratic Republic of the Congo and the adjoining countries. To the extent that we identify non-compliance with the policy, such as through one of our contract manufacturers identifying potential use of a smelter that is not RMAP certified, we contact the contract manufacturers requiring them to: a) contact the identified smelter(s) and request that they participate in the conflict minerals audit program; and b) engage their suppliers to request that they also contact the identified smelter(s) with the same request. Hasbro's Conflict Minerals Policy can be found at the following internet address {http://csr.hasbro.com/en-us/csr/conflict-minerals-policy}.

Section 1 - Conflict Minerals Disclosures

Item 1.01 Conflict Minerals Disclosure and Report

 

Hasbro has determined that during the 2017 calendar year, we contracted to manufacture certain products containing 3TG necessary to the functionality or production of these products.

 

We conducted a Reasonable Country of Origin Inquiry ("RCOI") to assess whether the necessary 3TG in our products originated from the Covered Countries1. 

 

During 2017 all of our products were manufactured in third party vendor facilities (referred to hereafter as “contract manufacturers”). These contract manufacturers are primarily located in the People’s Republic of China, although we use contract manufacturers located in other countries in Asia, such as India and Vietnam.  Approximately 13% of our products are manufactured by a third-party contract manufacturer in the United States.

 

Under our RCOI methodology, Hasbro undertook an applicability assessment to identify the products containing 3TG and the relevant contract manufacturers of those products.  To identify the applicable contract manufacturers, Hasbro filtered out contract manufacturers supplying Hasbro with products identified not to contain 3TG after a thorough review of our products.  Following the applicability assessment, Hasbro sent surveys to all of its contract manufactures globally who were identified as producing products that could contain 3TG.

 

Utilizing the methodology above and based on the information provided by our business units and gathered from our sourcing and technology systems and records, we identified a total of 28 relevant contract manufacturers. All 28 of these contract manufacturers were surveyed using a third-party technology platform that employs the conflict minerals reporting template developed by the Responsible Minerals Initiative (RMI), an organization founded by members of the Responsible Business Alliance (RBA) and Global eSustainability Initiative (GeSI).

 

Many of Hasbro's contract manufacturers are not subject to the Dodd-Frank Act or initially were unfamiliar with the Act's reporting requirements.  Beginning in 2013 and continuing through 2017, Hasbro conducted training with all of our contract manufacturers identified as potentially using 3TG, to educate these manufacturers as to the requirements of the Act related to conflict minerals and to help them understand the importance of conducting due diligence on the sourcing of the 3TG used in Hasbro products. We developed, produced and distributed a training program that provided a summary of the law related to conflict minerals, our obligations under the Act and the Conflict Minerals Rule, and the role of our contract manufacturers in assisting us to comply with the requirements of the Act related to conflict minerals. Since most of our contract manufactures are based in China, as in previous years, Hasbro also conducted in-person training sessions with our China-based contract manufacturers. The training materials and presentations were provided in the local language and were enhanced to clarify due diligence and legal reporting requirements. Hasbro maintains an e-mail box and gives contact information for specified point people within Hasbro’s sourcing organization and in the third-party technology provider for contract manufacturers to contact about the Conflict Minerals Rule or to seek assistance in completing the conflict minerals reporting survey.

 

Hasbro sent surveys to the 28 contract manufacturers who were identified as potentially producing products for us containing 3TG in 2017.  The number of suppliers surveyed for 2017 decreased over the prior year because Hasbro implemented a thorough product/vendor screening process for 2017 which allowed us to identify vendors not using 3TG in their products for us and thereby reduced the number of vendors from whom 3TG information was needed.  Similar to previous years we surveyed all identified contract manufacturers identified in our applicability assessment at the product category level (our four product categories being Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands, each of which is described in Section 1of the attached Conflict Minerals Report).

 

Relevant contract manufacturers received a separate survey for each product category for which they supplied products or components to us. As such, an individual contract manufacturer could receive multiple surveys if they supplied products for more than one product category in 2017. Of the 28 contract manufacturers surveyed, 100% responded to the surveys.  We had a 100% response rate for 2016 as well. 

 

In our survey results, 7 of the 28 contract manufacturers indicated potential sourcing of 3TG from the Covered Countries. The other 21 contract manufacturers indicated in their survey responses that they were either not sourcing any 3TG from the Covered Countries or the products supplied to Hasbro did not contain 3TG.  Of the 7 contract manufacturers who identified potential sourcing of 3TG from the Covered Countries, each such contract manufacturer provided a list of smelters/refiners from which they were sourcing 3TG.  A complete list of smelters reported by our surveyed contract manufacturers is attached as an exhibit to our Conflict Minerals Report.

 

As is discussed in the attached Conflicts Minerals Report, we are currently unable to determine the specific mine location or the country of origin for all of the 3TG used in our products.  Therefore, at this point we cannot make a determination about the source of the 3TG in our products or components   Accordingly, we conducted due diligence on the source and chain of custody of the necessary conflict minerals contained in our products as described in the Conflict Minerals Report included as Exhibit 1.01.

 

Item 1.02 Exhibit

 

In accordance with Rule 13p-1 under the Securities Exchange Act of 1934 ('Rule 13p-1"), this Specialized Disclosure Form ("Form SD") and the associated Conflict Minerals Report are posted to a publicly available Internet site at the following internet address http://csr.hasbro.com/has17-conflict-minerals-report.php.

 

Section 2 - Exhibits

 

Exhibit 1.01 - Conflict Minerals Report as required by Items 1.01 and 1.02 of this Form.

^{______________________________________________}

¹ The Democratic Republic of Congo and its adjoining countries (Angola, Burundi, Republic of the Congo, Central African Republic, Rwanda, South Sudan, Republic of Tanzania, Uganda, and Zambia).

 

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Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the duly authorized undersigned.

 

 

 

Hasbro, Inc.

 

(Registrant)

 

 

By: /s/ Deborah Thomas                                                                               May 29, 2018

Deborah Thomas                                                                                                          (Date)

Executive Vice President and Chief Financial Officer

(Signature and Title)                                                                                                                 

 

Exhibit 1.01 - Conflict Minerals Report (CMR)

 

Conflict Minerals Report of Hasbro, Inc.

 

 

Section 1: Introduction

 

This is the Conflict Minerals Report of Hasbro, Inc. (herein referred to as "Hasbro," the Company, "we," " us," or "our ") for calendar year 2017 prepared in accordance with Rule 13p-1 under the Securities Exchange Act of 1934 (“Rule 13p-1"). Numerous terms in this report are defined in Rule 13p-1 and Form SD and the reader is invited to refer to those sources for complete definitions of these terms.

Hasbro marketed products based on owned, controlled and licensed intellectual properties within our brand architecture under the following four product categories during 2017, each of which product categories may include products containing 3TG: (1) Franchise Brands; (2) Partner Brands; (3) Hasbro Gaming; and (4) Emerging Brands:

 

Franchise Brands:  Franchise Brands are Hasbro’s most significant owned or controlled properties which we believe can deliver significant revenues and growth over the long-term. In 2017 our seven Franchise Brands were LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS. As reported, net revenues from Franchise Brands grew 10% in 2017, and 2% in 2016. In 2017, 2016 and 2015, Franchise Brands were 49%, 46% and 52% of total net revenues, respectively. Beginning in 2018, Emerging Brand BABY ALIVE will replace LITTLEST PET SHOP in the Franchise Brands line-up based on the historical strength of the BABY ALIVE brand and the Company’s belief in the sustainability of the brand’s success.  We are moving LITTLEST PET SHOP to the Emerging Brands category to allow us to take a more entrepreneurial approach to that brand and better allow us to re-invent that brand.

 

Partner Brands  Partner Brands include those licensed brands for which Hasbro develops toy and game products. Significant Partner Brands include MARVEL, including SPIDER-MAN and THE AVENGERS, STAR WARS, DISNEY PRINCESS and DISNEY FROZEN, DISNEY’S DESCENDANTS, BEYBLADE, DREAMWORKS’ TROLLS, SESAME STREET and YO-KAI WATCH. Partner brands MARVEL, STAR WARS, DISNEY’S DESCENDANTS, DISNEY PRINCESS and DISNEY FROZEN are all owned by The Walt Disney Company (“Disney”).

 

In 2017, Hasbro sold product lines supported by the following theatrical releases from our partners: Marvel’s GUARDIANS OF THE GALAXY VOL. 2 in May, SPIDER-MAN: HOMECOMING in July, THOR: RAGNAROK in November and STAR WARS: THE LAST JEDI in December.

 

Hasbro Gaming: Hasbro continues to revolutionize game play through our strong portfolio of Gaming Brands, digital integration, the mining of social media trends to garner consumer insights and capitalize on popular gaming themes, and the rapid introduction of innovative new gaming brands and play experiences. Hasbro Gaming includes brands such as DUNGEONS & DRAGONS, JENGA, THE GAME OF LIFE, OPERATION, PIE FACE, SCRABBLE, TRIVIAL PURSUIT and TWISTER, social games including FANTASTIC GYMNASTICS, SPEAK OUT and TOILET TROUBLE, and many other well-known game brands. To successfully execute our gaming strategy, we focus on brands which may capitalize on existing trends, are continually evolving our approach to gaming using consumer insights and seek to offer gaming experiences relevant to consumer demand for face to face, trading card and digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing games.

 

Emerging Brands: Emerging Brands are those owned or controlled Hasbro brands which have not achieved Franchise Brand status, but many of which the Company believes have the potential to do so over time with investment and further development. Through 2017, these included brands such as BABY ALIVE, FURBY, FURREAL FRIENDS, HANAZUKI, PLAYSKOOL and PLAYSKOOL HEROES. Beginning in 2018, the BABY ALIVE brand is moving to Franchise Brands and LITTLEST PET SHOP will be included in Emerging Brands. The Emerging Brands portfolio also includes new brands being developed by the Company, as well as other brands not captured in our other three categories.

 

Section 2: Due diligence framework

 

Hasbro designed its due diligence measures to conform, in all material respects, with the internationally recognized due diligence framework as set forth in the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (OECD, 2016) ("OECD Framework") and related supplements for gold and for tin, tantalum and tungsten.

 

Section 3: Due diligence measures undertaken

 

Hasbro's due diligence efforts for 2017 included the following steps:

 

Establish company management systems:   As part of our continuing improvement process, we:

 

•  Engaged a third party to complete a comprehensive review of our products and conflict minerals program.  Among the improvements we implemented were (i) enhanced product/supplier screening methods, (ii) an updated conflict minerals policy and (iii) improved smelter/refiner verification and country of origin identification/plausibility assessments.

 

•   Updated our 2013 conflict minerals policy statement with respect to sourcing of minerals from the Democratic Republic of Congo ("DRC") and its adjoining countries (collectively the “Covered Countries”) and published this statement online at the following internet address {http://csr.hasbro.com/en-us/csr/conflict-minerals-policy}. This policy was updated in 2017 to require that any 3TG included in our products be sourced from smelters that are identified as conflict free through the Conflict Free Sourcing Initiative/Responsible Minerals Assurance Process. To the extent that we identified non-compliance with the policy, such as through one of our contract manufacturers identifying potential use of a smelter that is not certified, we contact the contract manufacturer requiring them to: a) contact the identified smelter(s) and request that they participate in the conflict minerals audit program; and b) engage their suppliers to request that they also contact the identified smelter(s) with the same request.  

             

•  Continued operating under our internal governance structure created in 2013 that since then has been overseen by members of our senior management team, and includes a cross functional conflict minerals steering committee and working group comprised of representatives from the Global Government and Regulatory Affairs, Corporate Social Responsibility, Global Sourcing, Legal, Finance and Internal Audit functions of Hasbro.

             

•  Continued to engage with contract manufacturers that Hasbro believed were most likely to supply products containing 3TG, informing them at the start of the RCOI that Hasbro is subject to Section 1502 of the Dodd-Frank Act, and that their cooperation in responding to the survey and in complying with Hasbro’s Conflict Minerals Policy is expected.

             

•  Conducted supply chain surveys using a third-party platform based on the RBA/GeSI conflict minerals questionnaire. Surveys were sent to the 28 contract manufacturers identified during our applicability assessment and RCOI as potentially producing items containing 3TG  for our products.  Similar to last year, we employed separate surveys for each of the Company’s four product categories: Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands, for all relevant contract manufacturers, such that all applicable contract manufacturers could receive up to four individual surveys if they were providing products in each of the Company’s four product categories.

             

•  Provided surveyed contract manufacturers with training presentations that included an overview of the conflict minerals rules under the Dodd-Frank Act, as well as trainings on how to complete the survey.

             

•  Continued to maintain our grievance mechanism in 2017 to enable the reporting of grievances via the Hasbro Conflict Minerals email box.

 

•  Continued to retain conflict minerals program documentation for 5 years.

 

Identify and assess risks in the supply chain

                 

•  Contract manufacturers surveyed were asked to identify smelters and refiners that process conflict minerals contained in our products, including country of origin of the 3TG, based on the RBA/GeSI conflict minerals questionnaire.

                 

•  Every survey was entered into our third-party technology platform and then reviewed by the technology platform, a third-party consultant and, where deemed necessary, Hasbro personnel.

                 

•  Non-responsive contract manufacturers and survey responses that we believed to be incomplete or inconsistent were identified for additional follow-up during the RCOI. Reasons for follow-up with contract manufacturers included, but were not limited to, that the contract manufacturer did not provide technical product content information consistent with Hasbro’s product knowledge, a complete or accurate smelter list or did not receive complete 3TG sourcing information from all of its relevant suppliers or inconsistencies were identified in the answers contract manufacturers provided within the survey.

                 

•  Smelters identified by contract manufacturers surveyed by Hasbro were compared against lists maintained by the technology platform provider, the current smelter/refiner lists on the Conflict Free Sourcing Initiative/Responsible Minerals Assurance Process and our external consultant.  This was done to confirm the validity of smelters/refiners and the plausibility of the countries of origin.

 

Design and implement a strategy to respond to identified risks

 

•  Executive members of the steering committee met three times during the 2017 conflict minerals due diligence period to review the results of the applicability assessment, survey review and associated risks. 

 

•  Contract manufacturers that did not respond to Hasbro's initial survey request were sent escalation letters directing that they provide the information requested.  In cases where additional follow-up was needed, emails were sent by the technology platform, by our third-party consultant and by Hasbro management.  Phone calls were also made when necessary by key Hasbro staff/business unit representatives.

 

•  Contract manufacturers who provided survey responses identifying smelters not on the RMAP’s active or compliant smelter lists or who did not provide country of origin information were sent corrective action letters that note that Hasbro requires them to source 3TG from RMAP-compliant smelters. In the corrective action letters, Hasbro requested that contract manufacturers that source from non-RMAP-compliant smelters conduct their own supply chain due diligence to clarify whether 3TG from unaudited smelters/refiners are contained in the products supplied to Hasbro.

 

•  In a change from previous years, Hasbro updated our process for identifying and reviewing countries of origin.  For 2017, Hasbro conducted our own research into countries of origin and the plausibility of the identified countries as sources of 3TG.  We believe this improved the quality of our country of origin disclosures.

 

Carry out independent third-party audit of smelter/refiner due diligence practices

 

Hasbro is a downstream consumer of 3TG and is many steps removed from smelters and refiners who provide minerals and ores. Hasbro does not purchase raw minerals or ores, and does not directly purchase 3TG from any of the Covered Countries. Therefore, Hasbro does not perform or direct audits of smelters and refiners within the supply chain.  Rather, as a member of the RMAP we rely on and support the audits carried out by that organization.

 

Report annually on supply chain due diligence

 

This report and the associated Form SD are available online at the following internet address http://csr.hasbro.com/has17-conflict-minerals-report.php.

 

Section 4: Determination

 

Based on the due diligence described above for 2017, Hasbro was not able to determine if the 3TG used by our contract manufacturers for Hasbro products did or did not originate in the Covered Countries or are from recycled or scrap sources.  

 

As a downstream consumer of 3TG, Hasbro must rely on its contract manufacturers to gather information about smelters and refiners in the supply chain. Hasbro has received responses from 100% of the contract manufacturers it surveyed (the survey included all 28 contract manufacturers identified as potentially incorporating 3TG into products supplied to Hasbro).  The relevant contract manufacturers declared a total of 247 unique smelter/refiner names as the source of 3TG in Hasbro products.  Of the 247 declared smelters/refiners, 243 (98%) have been designated as conflict free under the RMAP.  The remaining 4 (2%) smelters/refiners are not currently RMAP compliant or actively pursuing such designation.  Our vendors indicated they are pursuing alternative sources for these smelters and are encouraging them to obtain an audit.  The source of 3TG from those smelters/refiners is undetermined at this time and we are not able to determine currently whether 3TG from any of those smelters/refiners were used in our products.  Set forth in Annex 1 is a list of the unique smelter/refiner names disclosed to us by contract manufacturers broken down by metal. Based on the information provided by Hasbro’s contract manufacturers, from the RMAP and other sources, Hasbro believes that the countries of origin of the 3TG contained in some of our products might include Covered Countries, as well as recycled and scrap sources, but we are not able to make that determination at this time for all products or sources.  The aggregated list of Countries of Origin reported to us by our contract manufacturers is set forth in Annex 2.

 

The Hasbro sourcing model is designed to provide Hasbro flexibility to move production of products among contract manufacturers based on contract manufacturer capacities and product demand.  Consequently, there may be instances where the same Hasbro branded product is manufactured by multiple contract manufacturers, which increases the complexity in linking a product with specific smelters. With the level of information Hasbro has received from its contract manufacturers and its current technology infrastructure, Hasbro has made progress from 2016 in its ability to connect specific smelters or refiners to our contract manufacturers for Hasbro product categories.

 

Section 5: Independent audit

 

Hasbro has determined that for 2017 an independent private sector audit is not required.

 

Section 6: Continuous improvement efforts to mitigate risk

 

Hasbro took the following steps to improve our program overall, improve the number and quality of responses in the 2017 compliance period and mitigate risk that 3TG used in Hasbro products may finance or benefit armed groups in the Covered Countries:

 

•  Issued a response request letter from Hasbro’s Executive Vice President, Chief Global Operations Officer to all contract manufacturers for the 2017 reporting year survey.

•  Achieved a 100% response rate from all applicable contract manufacturers.

•  Updated our conflict minerals policy to require that any 3TG included in our products be sourced from smelters that are identified as conflict free through the Conflict Free Sourcing Initiative/Responsible Minerals Assurance Process.

•  Continued to use contract terms and conditions for new contracts requiring contract manufacturers to respond to inquiries regarding 3TG in a timely manner, such as through incorporation of conflict minerals requirements into Hasbro’s Vendor Manual, which is incorporated into Hasbro’s Master Agreements with contract manufacturers.

 

•  Increased our ability to link specific contract manufacturers to particular smelters and product categories through surveying all applicable contract manufacturers at the product-level in 2017, which we believe resulted in improvements in identifying smelters/refiners applicable to Hasbro and is a reason for the increase in the number of smelters/refiners reported over last year.

•  Rather than relying on contract manufacturers to provide country of origin information, we undertook our own efforts to identify countries of origin using our third-party technology provider.  Our external consultant conducted a further plausibility review to ensure that the identified countries have known 3TG ore mining operations or proven mineral reserves.

•  Continued to work with contract manufacturers to help them understand the importance of this initiative to Hasbro and to encourage their participation in the conflict minerals survey through trainings for relevant contract manufacturers. Since most of our contract manufacturers are based in the People’s Republic of China, Hasbro conducted in-person training sessions with our Chinese contract manufacturers.   We believe this resulted in improvements in identifying smelters/refiners applicable to Hasbro and is a reason for the increase in the number of smelters/refiners reported over last year.

•  Through our membership in RMAP, communicated to them about smelters/refiners identified that have not undergone the RMAP audit process.  

 

In the next compliance period, Hasbro intends to take the following steps to further improve the number and quality of contract manufacturer responses and to mitigate the risk that 3TG used in Hasbro products may finance or benefit armed groups in the Covered Countries:

 

•  Continue to use contract terms and conditions for new contracts requiring contract manufacturers to respond to inquiries regarding conflict minerals in a timely manner.

                 

•  Continue engaging with contract manufacturers, with the objective of maintaining a 100% response rate from all applicable contract manufacturers and obtaining complete lists and the ability to link specific contract manufacturers to particular smelters and to particular product categories.

                 

•  Continue to work with contract manufacturers to identify to the extent possible the source of 3TG used in Hasbro's products.

                 

•  Build capabilities with active and new contract manufacturers by helping them understand the importance of this initiative to Hasbro and to encourage their participation through contract manufacturer trainings.

 

•  Continue to require that any 3TG included in our products be sourced from smelters that are identified as conflict free through the Conflict Free Sourcing Initiative/Responsible Minerals Assurance Process.

 

•  Continue working with our contract manufacturers to better understand how individual sources of 3TG may apply to our individual product categories.

•  As a result of becoming a full RBA (formerly EICC) member in October 2016, Hasbro will continue to utilize an annual RBA Validated Audit Process (VAP) or Customer Managed Audit (CMA) audit for 100% of our contract manufacturers, which includes verifying that a manufacturer has a documented, effective and communicated conflict minerals policy and management program.

 

Certain statements in this Conflict Minerals Report contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include expectations concerning the Company's future actions to engage contract manufacturers, to identify to the extent possible the source of 3TG minerals in its products and to take other actions regarding its product sourcing. The Company's actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties including, but not limited to, decisions to make changes in the Company’s continual improvement efforts and delays or difficulties in engaging contract manufacturers and identifying the source of 3TG contained in the Company’s products.