arcee-ai/sec-data-full · Datasets at Hugging Face

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customer calls from 8:00 am to 5:30 pm PST, Monday through Friday and Saturday from 9:00 am to 5:00 pm. 26 Logistics The large majority of our inventory consists of
customers’ completed orders, most of which are selected from models on display in our extensive showroom. We do, however, maintain
a supply of common and in-demand appliances for walk-in customers who are looking to make same-day purchases. We take ownership of inventory when it is delivered
to our warehouse. At this point, warehouse staff unloads the product, determines the delivery location and arranges for delivery of the
product. Customers may arrange for a delivery service or their third-party installers and contractors to pick-up their appliances at our
warehouse or have it scheduled for drop-off or installation. We will coordinate third-party delivery or recommend factory trained third-party
installation services when necessary. We also offer installation services. Another important service is haul-away of a customer’s
used appliances. This service is included with drop-off or installation. We contract with a local third-party recycling firm to ensure
that used appliances receive optimum recycling and appropriate disposal. Our return and exchange policy is designed to
be as worry-free and customer friendly as possible. A customer may cancel or exchange an item that is on order or is not subject to a
vendor mandated restocking fee. We may pass any supplier assessed restocking fee on to the customer in the event a special ordered appliance
is returned or exchanged without defect. Competition We compete with big box retailers, independent
appliance retailers, hybrid retail and direct-to-consumer companies and web only companies. As a hybrid retail and direct-to-consumer
company, we have the ability to successfully rival the offerings of each competitor, utilizing impressions from both online and traditional
marketing, our consultative selling practice and customer service expertise, and a curated assortment of premier brands to attract and
retain new customers. The U.S. appliance market in general is highly
fragmented with thousands of local and regional retailers competing for share. Our primary competitors in the appliance market include
big box retailers, such as Home Depot, Lowe’s and Costco; specialty retailers, such as TeeVax, Ferguson and Premier Bath and Kitchen;
and online marketplaces, such as Amazon. The shifting landscape to online sales in the
segment is providing a significant market share capture and positioning opportunity for companies. We are rapidly evolving our business
processes to capitalize on this market shift. While premium brands continue to place restrictions on the pure ecommerce distribution models,
we are adapting the concierge selling available on our showroom floor for the web customer at home. The COVID-19 pandemic has accelerated
this shift and is rewarding the entrepreneurial innovation necessary for this transition. This ongoing adaptation and continual process
improvement will allow us to continue to enjoy a preferred reseller status with the premium brands that differentiate our offerings. Competitive Strengths Based
on management’s belief and experience in the industry, we believe that the following competitive strengths enable us to compete
effectively. ● Name
and reputation . We believe that we enjoy a long-standing (more than 70 years) reputation
with vendors and customers for our focus on offering a full line of appliances, including
premium brands unavailable from the competition, with consultative selling, competitive pricing
and superior customer service. ● Highly
experienced management and personnel . We believe that our personnel are its most
important asset. We have an experienced management team with decades of industry knowledge
and a team of experienced, knowledgeable and skilled field personnel. ● Diverse
product and service offerings . We offer a full line of top brands from U.S. and international
manufacturers. We currently offer approximately 5,700 appliance SKU’s. We also offer
delivery, installation and repair and maintenance services provided by our highly knowledgeable
personnel. 27 ● Inventory
discipline . Resellers in the appliance industry are experiencing unprecedented supply
chain issues with backorder on many appliance categories. Increasingly, the most success
in appliance sales is found for those with available inventory on hand. We react quickly
to the expression of customer demand by confirming availability for products and placing
orders to reserve potential stock needs. Our curated assortment allows us to react to micro-trends
and adjust assortment and buying decisions quickly. On the showroom floor, our experienced
team has quickly pivoted to first sell what is available and then over-communicate with the
customer when an item is on backorder. As a result, we are maintaining a low cancelation
rate. Customer service processes and resources to allow more efficient ongoing customer communication
and coordination will allow us to earn loyalty within our market by exceeding the service
levels customers receive from other specialty retailers. ● Extended
repair, delivery, and loaner services . Approximately 60%-70% of our sales are “duress”
sales to replace broken or antiquated equipment. It is not uncommon for service to provide
a gateway sales. A customer looking to replace their appliance still wants a quality product
and they need it quickly. This is where the value of our full-service approach wins customer
loyalty. ● Online
sales expertise . We believe that our ability to transact online, big ticket, home
delivery sales give us strategic positioning and capability to sell more products to our
current customer base, as well as to add new big ticket product categories. ● Membership
in BrandSource . As discussed in more detail above, we believe that our membership
in BrandSouce provides us with a number of competitive advantages. Growth
Strategies We will strive to grow our business by pursuing
the following growth strategi ● Digital
strategy . We plan to implement best-in-class solutions from parallel industries focused
on a click-to-brick digital strategy. This includes enhancing our web presence and digital
advertising while providing tools to facilitate consultation, guided customer support and
service. We also plan to enhance the full-cycle customer relationship including loyalty,
incentives for referral, and long-tail satisfaction surveys. We also plan to enhance our
geographic reach through installation partnerships. ● Increase
local marketing spend . We plan to increase our local marketing spending. Outreach
messaging will increase the emphasis on us as a trusted community resource and other local
first values. We plan to build incrementally on ad spending where a return is measurable.
This involves first optimizing local market internet search and digital advertising campaigns,
while at the same time innovating a COVID-19 appropriate approach to what was traditionally
outside sales by more regularly engaging builders, designers, and contractors and encouraging
regular digital meeting place. We plan to provide local leadership by being efficient and
providing secure online tools to enable project management and data exchange. ● Store
growth . We are actively looking for underserved and growing communities on the west
coast that echo the attributes that serve our success in the current Sonoma County location. Intellectual Property We do not own any registered intellectual property
for our retail and appliances business. The agreements with our suppliers generally provide us with a limited, non-exclusive license to
use the supplier’s trademarks, service marks and trade names for the sole purpose of promoting and selling their products. To protect intellectual property, we rely on a
combination of laws and regulations, as well as contractual restrictions. We rely on the protection of laws regarding unregistered copyrights
for certain content we create. We also rely on trade secret laws to protect our proprietary technology and other intellectual property.
To further protect our intellectual property, we enter into confidentiality agreements with our executive officers and directors. 28 Employees As of December 31, 2021, we employed 21 full-time
employees. The following table sets forth the number of employees by function. Department/Function Employees Accounting/Finance 1 Sales and Marketing 8 Customer Service 6 Warehouse and Delivery 4 Administrative 2 TOTALS 21 None of our employees are represented by labor
unions, and we believe that we have an excellent relationship with our employees. Regulation Our business is subject a variety of laws and
regulations applicable to companies that are conducting business on the Internet. Jurisdictions vary as to how, or whether, existing laws
governing areas such as personal privacy and data security, consumer protection or sales and other taxes, among other areas, apply to
the Internet and e-commerce, and these laws are continually evolving. For example, certain applicable privacy laws and regulations require
us to provide customers with our policies on sharing information with third parties, and advance notice of any changes to these policies.
Related laws may govern the manner in which we transfer sensitive information or impose obligations on us in the event of a security breach
or inadvertent disclosure of such information. Additionally, tax regulations in jurisdictions where we do not currently collect state
or local taxes may subject us to the obligation to collect and remit such taxes, or to additional taxes, or to requirements intended to
assist jurisdictions with their tax collection efforts. New legislation or regulation, the application of laws from jurisdictions whose
laws do not currently apply to our business, or the application of existing laws and regulations to the Internet and e-commerce generally
could result in significant additional taxes on our business. Further, we could be subject to fines or other payments for any past failures
to comply with these requirements. The continued growth and demand for e-commerce is likely to result in more laws and regulations that
impose additional compliance burdens on companies doing business on the Internet. CUSTOM CARPENTRY BUSINESS Our custom carpentry business is operated
through our subsidiaries Kyle’s, High Mountain and Innovative Cabinets. Kyle’s was acquired in the third quarter of 2020 and
High Mountain and Innovative Cabinets were acquired in the fourth quarter of 2021. This business segment accounted for approximately 39.8%
and 12.8% of our total revenues for the years ended December 31, 2021 and 2020, respectively. Overview We specialize in all aspects of finished carpentry
products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in
closets, and fireplace mantles, among others. We also install windows and kitchen countertops. We primarily service large homebuilders

customer calls from 8:00 am to 5:30 pm PST, Monday through Friday and Saturday from 9:00 am to 5:00 pm. 26 Logistics The large majority of our inventory consists of

customers’ completed orders, most of which are selected from models on display in our extensive showroom. We do, however, maintain

a supply of common and in-demand appliances for walk-in customers who are looking to make same-day purchases. We take ownership of inventory when it is delivered

to our warehouse. At this point, warehouse staff unloads the product, determines the delivery location and arranges for delivery of the

product. Customers may arrange for a delivery service or their third-party installers and contractors to pick-up their appliances at our

warehouse or have it scheduled for drop-off or installation. We will coordinate third-party delivery or recommend factory trained third-party

installation services when necessary. We also offer installation services. Another important service is haul-away of a customer’s

used appliances. This service is included with drop-off or installation. We contract with a local third-party recycling firm to ensure

that used appliances receive optimum recycling and appropriate disposal. Our return and exchange policy is designed to

be as worry-free and customer friendly as possible. A customer may cancel or exchange an item that is on order or is not subject to a

vendor mandated restocking fee. We may pass any supplier assessed restocking fee on to the customer in the event a special ordered appliance

is returned or exchanged without defect. Competition We compete with big box retailers, independent

appliance retailers, hybrid retail and direct-to-consumer companies and web only companies. As a hybrid retail and direct-to-consumer

company, we have the ability to successfully rival the offerings of each competitor, utilizing impressions from both online and traditional

marketing, our consultative selling practice and customer service expertise, and a curated assortment of premier brands to attract and

retain new customers. The U.S. appliance market in general is highly

fragmented with thousands of local and regional retailers competing for share. Our primary competitors in the appliance market include

big box retailers, such as Home Depot, Lowe’s and Costco; specialty retailers, such as TeeVax, Ferguson and Premier Bath and Kitchen;

and online marketplaces, such as Amazon. The shifting landscape to online sales in the

segment is providing a significant market share capture and positioning opportunity for companies. We are rapidly evolving our business

processes to capitalize on this market shift. While premium brands continue to place restrictions on the pure ecommerce distribution models,

we are adapting the concierge selling available on our showroom floor for the web customer at home. The COVID-19 pandemic has accelerated

this shift and is rewarding the entrepreneurial innovation necessary for this transition. This ongoing adaptation and continual process

improvement will allow us to continue to enjoy a preferred reseller status with the premium brands that differentiate our offerings. Competitive Strengths Based

on management’s belief and experience in the industry, we believe that the following competitive strengths enable us to compete

effectively. ● Name

and reputation . We believe that we enjoy a long-standing (more than 70 years) reputation

with vendors and customers for our focus on offering a full line of appliances, including

premium brands unavailable from the competition, with consultative selling, competitive pricing

and superior customer service. ● Highly

experienced management and personnel . We believe that our personnel are its most

important asset. We have an experienced management team with decades of industry knowledge

and a team of experienced, knowledgeable and skilled field personnel. ● Diverse

product and service offerings . We offer a full line of top brands from U.S. and international

manufacturers. We currently offer approximately 5,700 appliance SKU’s. We also offer

delivery, installation and repair and maintenance services provided by our highly knowledgeable

personnel. 27 ● Inventory

discipline . Resellers in the appliance industry are experiencing unprecedented supply

chain issues with backorder on many appliance categories. Increasingly, the most success

in appliance sales is found for those with available inventory on hand. We react quickly

to the expression of customer demand by confirming availability for products and placing

orders to reserve potential stock needs. Our curated assortment allows us to react to micro-trends

and adjust assortment and buying decisions quickly. On the showroom floor, our experienced

team has quickly pivoted to first sell what is available and then over-communicate with the

customer when an item is on backorder. As a result, we are maintaining a low cancelation

rate. Customer service processes and resources to allow more efficient ongoing customer communication

and coordination will allow us to earn loyalty within our market by exceeding the service

levels customers receive from other specialty retailers. ● Extended

repair, delivery, and loaner services . Approximately 60%-70% of our sales are “duress”

sales to replace broken or antiquated equipment. It is not uncommon for service to provide

a gateway sales. A customer looking to replace their appliance still wants a quality product

and they need it quickly. This is where the value of our full-service approach wins customer

loyalty. ● Online

sales expertise . We believe that our ability to transact online, big ticket, home

delivery sales give us strategic positioning and capability to sell more products to our

current customer base, as well as to add new big ticket product categories. ● Membership

in BrandSource . As discussed in more detail above, we believe that our membership

in BrandSouce provides us with a number of competitive advantages. Growth

Strategies We will strive to grow our business by pursuing

the following growth strategi ● Digital

strategy . We plan to implement best-in-class solutions from parallel industries focused

on a click-to-brick digital strategy. This includes enhancing our web presence and digital

advertising while providing tools to facilitate consultation, guided customer support and

service. We also plan to enhance the full-cycle customer relationship including loyalty,

incentives for referral, and long-tail satisfaction surveys. We also plan to enhance our

geographic reach through installation partnerships. ● Increase

local marketing spend . We plan to increase our local marketing spending. Outreach

messaging will increase the emphasis on us as a trusted community resource and other local

first values. We plan to build incrementally on ad spending where a return is measurable.

This involves first optimizing local market internet search and digital advertising campaigns,

while at the same time innovating a COVID-19 appropriate approach to what was traditionally

outside sales by more regularly engaging builders, designers, and contractors and encouraging

regular digital meeting place. We plan to provide local leadership by being efficient and

providing secure online tools to enable project management and data exchange. ● Store

growth . We are actively looking for underserved and growing communities on the west

coast that echo the attributes that serve our success in the current Sonoma County location. Intellectual Property We do not own any registered intellectual property

for our retail and appliances business. The agreements with our suppliers generally provide us with a limited, non-exclusive license to

use the supplier’s trademarks, service marks and trade names for the sole purpose of promoting and selling their products. To protect intellectual property, we rely on a

combination of laws and regulations, as well as contractual restrictions. We rely on the protection of laws regarding unregistered copyrights

for certain content we create. We also rely on trade secret laws to protect our proprietary technology and other intellectual property.

To further protect our intellectual property, we enter into confidentiality agreements with our executive officers and directors. 28 Employees As of December 31, 2021, we employed 21 full-time

employees. The following table sets forth the number of employees by function. Department/Function Employees Accounting/Finance 1 Sales and Marketing 8 Customer Service 6 Warehouse and Delivery 4 Administrative 2 TOTALS 21 None of our employees are represented by labor

unions, and we believe that we have an excellent relationship with our employees. Regulation Our business is subject a variety of laws and

regulations applicable to companies that are conducting business on the Internet. Jurisdictions vary as to how, or whether, existing laws

governing areas such as personal privacy and data security, consumer protection or sales and other taxes, among other areas, apply to

the Internet and e-commerce, and these laws are continually evolving. For example, certain applicable privacy laws and regulations require

us to provide customers with our policies on sharing information with third parties, and advance notice of any changes to these policies.

Related laws may govern the manner in which we transfer sensitive information or impose obligations on us in the event of a security breach

or inadvertent disclosure of such information. Additionally, tax regulations in jurisdictions where we do not currently collect state

or local taxes may subject us to the obligation to collect and remit such taxes, or to additional taxes, or to requirements intended to

assist jurisdictions with their tax collection efforts. New legislation or regulation, the application of laws from jurisdictions whose

laws do not currently apply to our business, or the application of existing laws and regulations to the Internet and e-commerce generally

could result in significant additional taxes on our business. Further, we could be subject to fines or other payments for any past failures

to comply with these requirements. The continued growth and demand for e-commerce is likely to result in more laws and regulations that

impose additional compliance burdens on companies doing business on the Internet. CUSTOM CARPENTRY BUSINESS Our custom carpentry business is operated

through our subsidiaries Kyle’s, High Mountain and Innovative Cabinets. Kyle’s was acquired in the third quarter of 2020 and

High Mountain and Innovative Cabinets were acquired in the fourth quarter of 2021. This business segment accounted for approximately 39.8%

and 12.8% of our total revenues for the years ended December 31, 2021 and 2020, respectively. Overview We specialize in all aspects of finished carpentry

products and services, including doors, door frames, base boards, crown molding, cabinetry, bathroom sinks and cabinets, bookcases, built-in

closets, and fireplace mantles, among others. We also install windows and kitchen countertops. We primarily service large homebuilders