Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 43

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 43
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ness, depends on our future performance, which is subject to economic, financial, competitive, regulatory, and other factors, some of which are beyond our control.  Our business may not generate cash flow from operations in the future sufficient to satisfy our obligations or to make necessary capital expenditures.  If we are unable to generate such cash flow, we may be required to adopt one or more alternatives, such as reducing or delaying investments or capital expenditures, selling assets, or refinancing or obtaining additional equity capital on terms that may be onerous or highly dilutive.  Our ability to refinance any indebtedness will depend on the capital markets and our financial condition at such time.  We may not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in a default on the Second Amended Credit Agreement.

Our Second Amended Credit Agreement contains restrictions that could limit our flexibility in operating our business.

              Our Second Amended Credit Agreement contains various covenants that could limit our ability to engage in specified types of transactions under certain conditions.  These covenants could limit our ability to, among other things:- pay dividends on, repurchase, or make distributions in respect of our capital stock or make other restricted payments;- incur additional indebtedness or issue certain preferred shares;- make certain investments;- sell certain assets;- create liens;

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- consolidate, merge, sell, or otherwise dispose of all or substantially all of our assets; and- enter into certain transactions with our affiliates.              A breach of any of these covenants could result in a default under the Second Amended Credit Agreement.  In the event of a default, the lenders could elect to declare all amounts then outstanding to be immediately due and payable.  If our lenders accelerate the repayment of borrowings, we may not be able to repay our debt obligations.  If we were unable to repay amounts due to the lenders under our credit facility, those lenders could proceed against the collateral granted to them to secure that indebtedness.

Legal and Regulatory Risks

We are subject to the export control regulations of the U.S. Department of State and the Department of Commerce. A violation of these export control regulations could have a material adverse effect on our business or our results of operations, cash flows, or financial position.

              The nature of our international business subjects us to the export control regulations of the U.S. Department of State and the Department of Commerce.  Any changes regarding such regulations or U.S. trade policy more generally, including