Risk Factors Update Summary
- Dependence on key suppliers increased, with the top supplier accounting for 71% of accounts payable in 2023, up from 66% in 2022.
- Increased interest rates, inflation, and credit tightening impacted markets, with interest-bearing indebtedness decreasing from $9 million to $7 million.
- The company is exposed to currency exchange rate fluctuations, particularly with revenues, expenses, and assets denominated in foreign currencies.
- Concentration risk increased with the top 10 customers accounting for 76% of net sales in 2023, up from 72% in 2022.
- The exclusive distribution agreement with Huida ended in 2022, potentially impacting supplier relationship and sales in the future.
- Loss of key customers could significantly impact financial position, with The Home Depot representing 18% of net sales in 2023, down from 22% in 2022.
- Legal proceedings against Ayers Bath and Huida have been ongoing for over ten years, potentially impacting financial position and resources.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1864943&owner=exclude
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