Risk Factors Update Summary

• Both the specialty gardening and hydroponic growing equipment and storage solutions industry are highly competitive. Companies with much greater financial resources may introduce new competitive products, impacting revenues and profits.
• Increased competition may lead to reduced prices and hinder net sales, working capital, or profitability. Underestimating or overestimating demand could negatively impact financials.
• Failure to conclude that internal control over financial reporting is effective could lead to material weaknesses, loss of investor confidence, and restricted access to capital markets.
• A significant interruption in the operation of suppliers' facilities could impact product capacity, customer service, and financial position, potentially harming customer relationships, revenues, and profits.
• Disruptions in availability or prices of materials sourced by suppliers could adversely affect operational results, with potential impacts on costs and managing the cost structure.
• Failure to implement and maintain effective internal control over financial reporting could result in errors in financial statements, restatements, and failure to meet reporting obligations, impacting investor confidence and stock value.
• Ongoing and future armed conflicts could create or exacerbate risks to the business, financial condition, and results of operations, impacting profitability and operations.