Risk Factors Update Summary
- The exclusive distribution agreement with Huida ended in 2022, impacting supplier relationship and sales.
- Recently, higher interest rates, inflation, and credit tightening affected markets, potentially impacting financials.
- The company faces regulatory risks in China due to data security laws and potential penalties.
- Debt decreased from approximately $9 million to $7 million, affecting financial flexibility.
- Key customer and supplier concentration risks persist, with 71% and 86% of accounts payable balance.
- The company is involved in legal proceedings to recover damages, which could be costly.
- Customer concentration increased, with The Home Depot representing 18% of net sales in 2023.
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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