ImmuCell Receives $938,000 in Support under the Paycheck Protection Program - Seite 2

With this funding in place, the Company is moving ahead with plans to fill three open positions currently in its manufacturing and facilities departments, as soon as the best candidates are qualified and chosen. Subject to adequate funding, the Company may create and fill approximately twelve to fifteen new positions over the next two years or so, as it executes its anticipated growth plan.

“This is a very powerful economic stimulus from our federal government to support our employees and our Company in these extreme times,” commented Michael F. Brigham, President and CEO. “This program helps us look longer-term down the road and keep operating and paying our employees currently and proceeding with our planned expansion and product development initiatives, knowing that better times are ahead but just not knowing when that will be.”

The Company is very concerned about the medium-term impact that the COVID-19 pandemic is having on the dairy and beef industries and on its customers. Milk prices, which had reached new positive levels during 2019 and into the first quarter of 2020, have crashed recently. Milk is being dumped at farms due to decreased demand from restaurants, schools and consumers around the world. Like all industries, many dairy producers are encountering difficulties accessing the labor they need to run their operations due to the COVID-19 pandemic. The COVID-19 pandemic has negatively impacted all commodities including milk and beef prices to producers. The Company is uncertain about what impact this may have on its customers’ order patterns, if any, and for how long.

As disclosed in a subsequent event footnote and as a risk factor included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, the Company could experience product shortages, backlogs and production slowdowns due to difficulties accessing needed supplies and labor and other restrictions affecting its ability to consistently deliver its products to market.

The Company will continue to make the health and safety of all of its employees the top priority as it navigates this uncharted territory over the coming weeks and months, while respecting its role as a nonpublic-facing essential agriculture service in keeping with government directives and prudent practices being advocated by health care professionals. Presently, production is continuing but not at the rate experienced during the first quarter. This production slowdown is anticipated to have a negative effect on the Company’s revenues and operating results for the second quarter of 2020. However, at this point, the Company is unable to estimate the magnitude of that impact. It is possible that further slowdowns or interruptions could have consequences that the Company does not presently recognize, resulting in other COVID-19 related negative impacts on its business.