Olympic is the 3rd weapons maker that has told the state of New York to find a different supplier for their law enforcement weapons. As for losing money - maybe some day but right now all the manufacturers are backlogged and unable to keep up with the demand so I doubt they will miss on customer when they can sell to so many others.
Yes, they did have contracts with New York - they cancelled them while telling the civilian customers that they would gladly hold their orders and ship their guns at a later date to a new state if they needed time to move.