Covid-19 Company Update

. Food Physics is actively engaged with our key supplier (ELEA) in Quackenbrueck, Germany to monitor the continuing development of concerns with the Coronavirus outbreak throughout the world. We are proactively monitoring the situation and adjusting stocking levels, transportation methods and risk mitigation for our personnel to ensure uninterrupted support for all of our customers. Key Personnel and Communication:Food Physics’ General Manger (Carl Krueger) bears responsibility to coordinate with ELEA Leadership as well as key Food Physics resources including the Technical Service Manager, Parts and Service Administrator and Logistics Coordinator to actively monitor the situation and anticipate and address any concerns as they are identified. Additionally, steps are being taken proactively to mitigate risk to our customers in the following areas:New PEF Machines:Our exclusive supplier of new machines (ELEA) has coordinated ordering of components for system build as well as spare parts to support needs on a 12-month forecast. Additionally, alternative suppliers are in in place for all parts used in the machines including electrical components such as semiconductors and other mechanical parts. Core modules such as power supplies and pulse modulators are pre-built as a standard practice and systems of all sizes are currently available as pre-built subunits. Spare Parts:ELEA maintains necessary parts stocking levels to support all needs for between 6 to 12 months. Additionally, ELEA’s key supplier (DIL) as well as Food Physics maintains an appropriate stock of spare parts to support customers over long periods of time as all current inventories of spare parts can be accessed in chase of shortages. Further, parts are stored in different locations to allow access in the event of any shutdowns resulting from virus outbreaks. Inventory carrying levels are being reviewed to identify any at-risk items such that adequate quantities on-hand can be adjusted as necessary. Facilities and Travel Policies:As has ELEA, we have adopted recommended hygiene practices in our facilities and all employees have been trained. Adequate supplies are on-hand to support those practices. Employees have been instructed to remain at home in the event of the onset of symptoms. All employees have remote access to necessary business IT systems to enable effective engagement if off-site. Travel has been restricted to necessity only and options are exercised to utilize auto transportation rather than air wherever practical. Transport of Parts and Machines:Food Physics utilizes multiple shipping companies for domestic and global transportation. Where we’ve seen capacity shrink, we do anticipate longer transportation times for many shipments. In order to reduce potential impacts, forward planning, evaluation of alternative freight companies and utilization of internal resources for some transport (as practical) will be engaged. General:We clearly understand the concerns of our customers and will strive to ride-out this episode with as much pro-active action as possible. Close and consistent communication regarding individual situations as well as general updates relative to Food Physics’ and ELEA’s state of affairs will be provided if circumstances change.