CompX(CIX)2025-03-05 21:36Business Segments - The company operates two business segments: Security Products and Marine Components, with a significant North American market share in cabinet lock security products[13]. - The Security Products segment includes specialized products tailored to customer specifications, contributing to a substantial portion of sales[17]. - The company focuses on high-end market segments, competing on product design, quality, durability, and service[30]. Sales and Customers - In 2024, the United States Postal Service accounted for 21% of total sales, with the top ten customers representing approximately 47% of total sales[29]. Raw Material Costs - Raw material costs accounted for approximately 46% of total cost of sales in 2024, with primary materials including zinc, brass, aluminum, and stainless steel[21]. - The company experienced moderate increases in raw material costs, particularly brass, starting in the latter half of the third quarter of 2024[22]. - The company does not have long-term supply agreements for raw material requirements due to low risk of unavailability and high price volatility[135]. - The company occasionally enters into short-term commodity-related raw material supply arrangements to mitigate future cost increases[135]. - The company does not engage in commodity raw material hedging programs[135]. Workforce and Labor Relations - The company has a well-trained workforce of 510 employees as of December 31, 2024, with good labor relations[38]. Environmental Sustainability - The company emphasizes environmental sustainability and has received awards for compliance excellence in its operations[33]. Intellectual Property - The company holds patents with remaining terms ranging from 1 to 16 years, which are considered important for its business activities[23]. Financial Management - The outstanding principal amount of the note receivable from affiliate is 1.0 million[134]. - The company has established share ownership guidelines for non-management directors to align their financial interests with those of stockholders[32]. Reporting and Compliance - The fiscal year ends on the Sunday closest to December 31, with the years ending December 31, 2022, 2023, and 2024 consisting of 52 weeks[40]. - Annual reports containing audited financial statements are provided to stockholders[40]. - The company files annual, quarterly, and current reports with the SEC[40]. - Information on the company's website is not part of the Annual Report[41]. - The SEC maintains a website that contains reports and information regarding issuers that file electronically[41].