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Changed Risks for LIMONEIRA CO (LMNR)

Our strategy to expand international production and marketing may not be successful and may subject us to risks associated with doing business in corrupt environments

If the real estate industry weakens or instability of the mortgage industry and commercial real estate financing exists, it could have an adverse effect on our real estate business

We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects

Global capital and credit market issues affect our liquidity, increase our borrowing costs and may affect the operations of our suppliers and customers

Our charter documents contain provisions that may delay, defer or prevent a change of control

Restrictive covenants in our debt instruments restrict or prohibit our ability to engage in or enter into a variety of transactions, which could adversely restrict our financial and operating flexibility and subject us to other risks

Item 1A Risk Factors

Concentrated ownership of our common stock creates a risk of sudden change in our share price

If we are unable to complete land development projects within forecasted time and budget expectations, if at all, our financial results may be negatively affected

If we are unable to obtain required land use entitlements at reasonable costs, or at all, our operating results would be adversely affected

Some of our debt is based on variable rates of interest, which could result in higher interest expenses in the event of an increase in the interest rates

Our strategy of marketing and selling our lemons directly to our food service, wholesale and retail customers may not continue to be successful

Higher interest rates and lack of available financing can have significant impacts on the real estate industry

Events or rumors relating to LIMONEIRA or our other trademarks and related brands could significantly impact our business

Currency exchange fluctuation may impact the results of our operations

Environmental and other regulation of our business, including potential climate change regulation, could adversely impact us by increasing our production cost or restricting our ability to import certain products into the United States

Government regulation could increase our costs of production and increase legal and regulatory expenses

The lack of sufficient water would severely impact our ability to produce crops or develop real estate

Increases in labor, personnel and benefits costs could adversely affect our operating results

A recession in the global economy, or a downturn in national or regional economic conditions, could adversely impact our real estate development business

The acquisition of other businesses could pose risks to our operating income

Our agricultural plantings are potentially subject to damage from disease and pests, which could impose losses on our business and the prevention of which could impose significant additional costs on us

Our developable land is concentrated entirely in California and Arizona

Inflation can have a significant adverse effect on our operations

We are subject to various land use regulations and require governmental approvals for our developments that could be denied

Changes in immigration laws could impact the ability of Limoneira to harvest its crops

System security risks, data protection breaches, cyber-attacks and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price

We are subject to the risk of product contamination and product liability claims

Third-party litigation could increase the time and cost of our real estate development efforts

We may be unable to generate sufficient cash flow to service our debt obligations

Adverse weather conditions, natural disasters, including earthquakes and wildfires, and other natural conditions, including the effects of climate change, could impose significant costs and losses on our business

The use of herbicides, pesticides and other potentially hazardous substances in our operations may lead to environmental damage and result in increased costs to us

A global economic downturn may have an adverse impact on participants in our industry, which cannot be fully predicted

We rely on contractual arrangements with third party advisors to assist us in carrying out our real estate development projects and are subject to risks associated with such arrangements

We depend on our infrastructure to have sufficient capacity to handle our annual lemon production needs

We may encounter risks associated with the real estate joint venture we entered into on November 10, 2015 with the Lewis Group of Companies including:

Despite our relatively high current indebtedness levels and the restrictive covenants set forth in agreements governing our indebtedness, we may still incur significant additional indebtedness, including secured indebtedness Incurring more indebtedness could increase the risks associated with our substantial indebtedness

We may encounter other risks that could impact our ability to develop our land

Increases in commodity or raw product costs, such as fuel and paper, could adversely affect our operating results

Our earnings are sensitive to fluctuations in market supply and prices and demand for our products

Our business is highly competitive and we cannot assure you that we will maintain our current market share

We could experience a reduction in revenues or reduced cash flows if we are unable to obtain reasonably priced financing to support our real estate development projects and land development activities

We depend on our relationship with Calavo and their ability to sell our avocados Any disruption in this relationship could harm our sales

We incur increased costs as a result of being a publicly traded company

We are subject to environmental regulations and opposition from environmental groups that could cause delays and increase the costs of our real estate development efforts or preclude such development entirely

We are involved in a cyclical industry and are affected by changes in general and local economic conditions