Forward-Looking Information
This report contains forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause its actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through the use of words such as “may,” “will,” “can,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “seek,” “estimate,” “continue,” “plan,” “project,” “predict,” “could,” “intend,” “target,” “potential,” and other similar words and expressions of the future. These forward-looking statements may not be realized due to a variety of factors, including, without limitation:
| • | the Company’s ability to generate sufficient revenue to achieve and maintain profitability; |
| • | the Company’s ability to obtain new customers and retain key existing customers, including the Company’s ability to maintain purchase volumes of the Company’s products by its key customers; |
| • | the Company’s ability to obtain new licensees and distribution relationships and maintain relationships with its existing licensees and distributors; |
| • | the Company’s ability to resist price increases from its suppliers or pass through such increases to its customers; |
| • | changes in consumer spending for retail products, such as the Company’s products, and in consumer practices, including sales over the Internet; |
| • | the Company’s ability to maintain effective internal controls or compliance by its personnel with such internal controls; |
| • | the Company’s ability to successfully manage its operating cash flows to fund its operations; |
| • | the Company’s ability to anticipate market trends, enhance existing products or achieve market acceptance of new products; |
| • | the Company’s ability to accurately forecast consumer demand and adequately manage inventory; |
| • | the Company’s dependence on a limited number of suppliers for its components and raw materials; |
| • | the Company’s dependence on third party manufacturers to manufacture and deliver its products; |
| • | increases in shipping costs for the Company’s products or other service issues with the Company’s third-party shippers; |
| • | the Company’s dependence on a third party logistics provider for the storage and distribution of its products in the United States; |
| • | the ability of third party sales representatives to adequately promote, market and sell the Company’s products; |
| • | the Company’s ability to maintain, protect and enhance its intellectual property; |
| • | the effects of competition; |
| • | the Company’s ability to distribute its products in a timely fashion, including as a result of labor disputes and public health threats and social unrest; |
| • | evolving cybersecurity threats to the Company’s information technology systems or those of its customers or suppliers; |
| • | changes in foreign laws and regulations and changes in the political and economic conditions in the foreign countries in which the Company operates; |
| • | changes in accounting policies, rules and practices; |
| • | changes in tax rules and regulations or interpretations; |
| • | changes in U.S. and foreign trade regulations and tariffs, including potential increases of tariffs on goods imported into the U.S., and uncertainty regarding the same; |
| • | limited access to financing or increased cost of financing; |
| • | the effects of currency fluctuations between the U.S. dollar and Chinese renminbi relative to the dollar and increases in costs of production in China; and |
| • | the other factors listed under “Risk Factors” in this Annual Report on Form 10-K and other filings with the SEC. |
All forward-looking statements are expressly qualified in their entirety by this cautionary notice. The reader is cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this annual report or the date of the document incorporated by reference into this annual report. The Company has no obligation, and expressly disclaims any obligation, to update, revise or correct any of the forward-looking statements, whether as a result of new information, future events or otherwise. The Company has expressed its expectations, beliefs and projections in good faith and the Company believes they have a reasonable basis. However, the Company cannot assure the reader that its expectations, beliefs or projections will result or be achieved or accomplished.
