{"url_path":"/sec/oesx/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A Quantitative and Qualitative Disclosure About Market Risk","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-04","source_url":"https://www.sec.gov/Archives/edgar/data/1409375/0001193125-26-257468-index.html","accession_number":"0001193125-26-257468","cik":"0001409375","ticker":"OESX","issuer_name":"ORION ENERGY SYSTEMS, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1409375/0001193125-26-257468-index.html","primary_entity_key":"0001409375","primary_entity_name":"ORION ENERGY SYSTEMS, INC."},"word_count":293,"has_tables":true,"body_markdown":"Item 7A. Quantitative and Qualitative Disclosure About Market Risk\n\nMarket risk is the risk of loss related to changes in market prices, including interest rates, foreign exchange rates and commodity pricing that may adversely impact our consolidated financial position, results of operations or cash flows.\n\nInflation. We have experienced increases in various input costs including labor, components and transportation in the past year. In response, we have implemented multiple price increases, and we have substantially mitigated the inflationary pressures, such that our results from operations have not been materially affected by inflation. We are monitoring input costs and cannot currently predict the future impact to our operations by inflation.\n\nForeign Exchange Risk. We face minimal exposure to adverse movements in foreign currency exchange rates. Our foreign currency losses for all reporting periods have been nominal.\n\nInterest Rate Risk. We do not believe that we are subject to any material risks arising from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices or other market changes that affect market risk sensitive instruments. It is our policy not to enter into interest rate derivative financial instruments. As a result, we do not currently have any significant interest rate exposure.\n\nAs of March 31, 2026, we had $6.0 million of outstanding debt with floating interest rates.\n\nCommodity Price Risk. We are exposed to certain commodity price risks associated with our purchases of raw materials, most significantly our aluminum purchases. During fiscal 2026, we have experienced commodity price increases; however, as of the date of this report, we are not able to predict the future impact of this risk. A hypothetical additional 20% increase in aluminum prices would have had a negative impact of $0.9 million on our net loss in fiscal 2026.\n\n41"}