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

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warehouse space and operations. Employees As of December 31, 2021, our custom carpentry
companies employed 145 full-time employees. The following table sets forth the number of employees by function. Department/Function Employees Management 5 Office Employees 17 Design 6 Front End/ Build 7 Finish 5 Load/ Deliver 3 Install 101 Specialty 1 TOTALS 145 None of the employees are represented by labor
unions, and we believe that our custom carpentry companies have excellent relationships with their employees. Regulation The facility in Boise, Idaho is subject to Idaho
Department of Environmental Quality in connection with air quality and regulations relating to pollution and the protection of the environment,
including those governing emissions to air, discharges to water, storage, treatment and disposal of waste, remediation of contaminated
sites and protection of worker health and safety. We believe that we are in substantial compliance
with all applicable requirements. However, our efforts to comply with environmental requirements do not remove the risk that we may be
held liable, or incur fines or penalties, and that the amount of liability, fines or penalties may be material, for, among other things,
releases of hazardous substances occurring on or emanating from current or formerly owned or operated properties or any associated offsite
disposal location, or for contamination discovered at any of our properties from activities conducted by previous occupants. Permits are required for certain of our operations,
and these permits are subject to revocation, modification and renewal by issuing authorities. Governmental authorities have the power
to enforce compliance with their regulations, and violations may result in the payment of fines or the entry of injunctions, or both. Changes in environmental laws and regulations
or the discovery of previously unknown contamination or other liabilities relating to our properties and operations could result in significant
environmental liabilities. In addition, we might incur significant capital and other costs to comply with increasingly stringent air emission
control laws and enforcement policies which would decrease our cash flow. 32 AUTOMOTIVE SUPPLIES BUSINESS Our automotive supplies business is operated by
Wolo. This business segment, which was acquired at the end of the first quarter of 2021, accounted for approximately 18.6% of our total
revenues for the year ended December 31, 2021. Overview Our automotive supplies business is headquartered
in Deer Park, New York and was founded in 1965. We design and sell horn and safety products (electric, air, truck, marine, motorcycle
and industrial equipment), and offer vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency
vehicles. Focused on the automotive and industrial after-market, we sell our products to big-box national retail chains, through specialty
and industrial distributors, as well as on- line/mail order retailers and OEMs. With a stellar reputation for innovative design, our current
product line consists of over 455 products, including 54 patented products, as well as over 90 exclusive trademarks. Products We design and sell over 455 products comprised
of branded vehicle horns, warning lights, sirens, back-up alarms and accessories. Horns We design and sell an innovative and extensive
selection of electromechanical, air and electronic-speaker horns. The horns are used in many industries such as: heavy duty truck, motorcycle,
marine, industrial and the automotive aftermarket. We also sell hand-held gas horns which can be used for sporting events, as well as
marine, construction sites and outdoor activities. Our top-selling product is the Bad Boy horn, which
has a one-piece design that requires no hoses. It installs in minutes by simply transferring the vehicle’s factory horn wires to
the compressor, and mounts with one bolt included in kit. The Bad Boy produces a powerful dual tone air horn sound that is two times louder
than the factory horn. It is compact in size to fit any car, truck, motorcycle and any 12-volt vehicle that wants a loud air horn sound.
A heavy-duty maintenance free compressor provides years of dependable service. In the past three years, we have brought a number
of new and innovative horn products to the markets to which we sell. Some highlights inclu ● Midnight
Express . A high-pressure truck train horn that is three trumpets, all metal and painted
semi-gloss black. Train horns are purchased by the vehicle owner that wants the ultra-powerful
sound of a train. ● Quadraphonic
Express . Four metal trumpets that are triple chrome plated, produce an ultra-powerful
train horn sound that will be heard and will dress-up the appearance of any vehicle. ● Nexgen
Express Train Horn . A totally new design by us, a state-of-the-art fully electronic
train horn, compact in size and produces more than 150-watts output. Engineered to fit into
the engine compartment of cars, SUVs and even compact vehicles with a simple two wire hook-up,
Nexgen offers two distinctive train horn sounds controlled by a wireless key fab. ● Mighty
Mo . An industrial equipment horn designed to withstand off-road and construction
site conditions, while being able to penetrate noisy environments and still be heard. Compressor and Tank Systems We also sell air compressor systems, consisting
of air storage tanks, compressors and everything needed to hookup a high-pressure air horn. Two years ago, we started offering complete
kits of train horns and choice of high-pressure air systems. Additionally, we offer replacement parts for all products, replacement parts
are a profitable sale. Electric Sirens and Speakers We have an array of emergency electronic sirens
with built-in public address systems used by emergency responders. Back-Up Alarms We offer a variety of back-up alarm systems from
basic beep-style horn sold in all aftermarket retailers, to hi-tech intelligent alarms that adjust audio output to be louder than surrounding
ambient noise. Our Model BA-697 has three super bright 1-watt LEDs that flash while the vehicle is in reverse and the auditable warning
sound is turned on. In addition, we have a selection of white noise “Psss Psss” sound alarms required in the state of California. 33 Warning Lights We offer a large selection of warning lights for
road assistance as well as emergency vehicles, construction, road safety and snow plowing vehicles. Warning lights come in a variety of
types, sizes and shapes such as rotating, strobe and state-of-the-art LED models ranging in sizes from 8 inches to fifty-seven 57 inches.
A recent addition to warning lights that has become an everyday bestseller for us is the new WATCHMAN®, which is a 24-inch magnet
light bar that can be converted to permanent mounting in minutes with no special tools. Because of the products’ popularity, we
designed a larger 48” version of the Watchman, which has seen very good acceptance in the market. Another recent addition is Luminous, a high-performance,
low profile linear light bar designed with the latest state-of-the-art electronic circuitry that has low power consumption and will provide
years of reliable service. Luminous produces an intense beam of light which can be seen 360 degrees even in bright daylight. Available
in three lengths in color amber, blue, red, green and any combination of colors. Luminous is certified SAE J845 Class 1 and California
Title 13. Manufacturing Approximately 95% of our manufacturing is outsourced
to contract manufacturers in China and Taiwan. The additional 5% of in-house manufacturing consists of changes to fully assembled products,
as per custom orders. For example, converting the voltage of a horn for truck use, or the standard color of a particular warning light. We have implemented a strict quality control program
which is run by our warehouse/production manager. We believe that our high quality standards assure customers that they are getting the
best and most reliable products in the market. Our manufacturing operations are designed to allow low-cost production of a wide variety
of products while maintaining a high level of customer service and quality. We believe that our manufacturing facilities generally
have sufficient capacity to meet our current business requirements and our currently anticipated sales. Vendor/Supplier Relationships We have developed long term relationships with
our 22 contact manufacturers based in China and Taiwan. All materials are sourced by the contract manufacturers. Our top 10 vendors and
suppliers are listed in the table below. Supplier Product Total Purchases (2020) Total Purchases (2021) Percent of Purchases (2021) Zhongshan Yonglong Car Accessories Warning Lights & Horns $ 493,583 $ 331,322 13.0 % E-Own Corp Horns 405,821 430,937 16.9 % Wenzhou Jinzheng Warning Lights 283,063 224,975 8.8 % Changgzhou Jiajia Horns 253,843 429,459 16.9 % Jn Horns Horns 174,285 178,324 7.0 % Zhejiang Jiejia Warning Lights 142,346 162,491 6.4 % Changzhou Wushi Horns 130,439 372,582 14.6 % Wenzhou Hongda Warning Lights 127,950 29,712 1.2 % Yuyao Warning Lights 54,384 104,767 4.1 % Jian Tang Warning Lights 50,466 65,158 2.6 % We have established relationships with our vendors,
with many of these relationships spanning more than 15 years. We implement vendor agreements with all our major accounts and some mid-size
accounts. The typical length of a vendor agreement is 2-3 years, and in most cases automatically renew. We have also established volume discounts with
our suppliers which help to offset increased material, tariffs’ and increased labor costs domestically and overseas. With the unstable
world market, we have carefully started to engage secondary suppliers to make sure we have no interruptions in the supply chain and to
be sure we maintain a competitive price. We believe that our strong relationships with
suppliers yield high quality, competitive pricing and overall good service to our customers. Although we cannot be sure that our sources
of supply will be adequate in all circumstances, we believe that we can develop alternate sources in a timely and cost-effective manner
if our current sources become inadequate. Due to availability of numerous alternative suppliers, we do not believe that the loss of any
single supplier would have a material adverse effect on our consolidated financial condition or results of operations. See Item 1A “ Risk
Factors—Risks Related to Our Automotive Supply Business ” for a description of the risks related to our supplier relationships. 34 Sales and Marketing Our sales team consists of an in-house national
sales manager who coordinates with contracted sales representatives from thirteen regional sales companies in North America, Mexico, Puerto
Rico, the U.K., Europe, the Middle East and the industrial aftermarket. The sales representative’s agreement with us is limited
to automotive, internet-based companies and occasionally motorcycle aftermarket distributors. Sales representatives are responsible for the
solicitation and development of new accounts, as well as working with existing customers to develop promotions and incentives for our
products. We have had relationships with these regional sales companies for 13 to 15 years on-average. All major customers are serviced
frequently by their sales representatives. Our innovative retail product packaging design
is also a highly effective marketing tool in direct-to-consumer selling. Featuring quick response (QR) barcode technology, customers are
able to scan product packaging using their smart phone or mobile device to instantly see product information, watch demonstration videos,
or even hear horn demos. There is no need for special in-store displays or additional shelf space as all information is accessible directly
by scanning the product packaging. It is like having a virtual sales associate in-store. Packaging also features scan-back’s, an
instant rebate that is applied at the register upon checkout. Additional marketing programs include in-store
promotional programs for customers, e-commerce via our website, as well as email blasts and customer print catalogs. We mail print and/or
electronic CD catalogs to established accounts every 18 months with new product information inserted via supplemental sell-sheets. The
full product catalog was last updated in 2019 and a new 2021-2022 catalog will be finished and ready to be mailed in the first or second
quarter of 2022. There will also be a digital version of the catalog available for download. New product launches and updates are also
sent to customers via email blast periodically. We exhibit at key industry and customer tradeshows
and belongs to the National Marine Manufacturers Association and American Boat and Yacht Council. Customers We sell products to the automobile aftermarket,
national retailers, direct-to-consumer, mail order, web-based retailers, public safety equipment wholesalers, industrial wholesalers,
as well as the motorcycle and marine aftermarkets. We serve approximately 220 customers, including
Amazon, AutoZone, Advanced Auto Parts, CarQuest, Aries, das, Grainger, FleetFarm and J&P Cycles. Internationally, we sell products
in Canada, Mexico, Europe, and Amsterdam. Most of our online customers such as Amazon ship direct internationally. A majority of our sales
are made to repeat customers, with many of our customer relationships spanning more than 10 years. We believe that our customers appreciate
the ease of doing business with all orders placed electronically via electronic data interchange, or EDI. Sales agreements are in place with about 25% of
our customers, including all national and midsize accounts. Sales agreements specify new store allowances, terms of sale (discounts),

warehouse space and operations. Employees As of December 31, 2021, our custom carpentry

companies employed 145 full-time employees. The following table sets forth the number of employees by function. Department/Function Employees Management 5 Office Employees 17 Design 6 Front End/ Build 7 Finish 5 Load/ Deliver 3 Install 101 Specialty 1 TOTALS 145 None of the employees are represented by labor

unions, and we believe that our custom carpentry companies have excellent relationships with their employees. Regulation The facility in Boise, Idaho is subject to Idaho

Department of Environmental Quality in connection with air quality and regulations relating to pollution and the protection of the environment,

including those governing emissions to air, discharges to water, storage, treatment and disposal of waste, remediation of contaminated

sites and protection of worker health and safety. We believe that we are in substantial compliance

with all applicable requirements. However, our efforts to comply with environmental requirements do not remove the risk that we may be

held liable, or incur fines or penalties, and that the amount of liability, fines or penalties may be material, for, among other things,

releases of hazardous substances occurring on or emanating from current or formerly owned or operated properties or any associated offsite

disposal location, or for contamination discovered at any of our properties from activities conducted by previous occupants. Permits are required for certain of our operations,

and these permits are subject to revocation, modification and renewal by issuing authorities. Governmental authorities have the power

to enforce compliance with their regulations, and violations may result in the payment of fines or the entry of injunctions, or both. Changes in environmental laws and regulations

or the discovery of previously unknown contamination or other liabilities relating to our properties and operations could result in significant

environmental liabilities. In addition, we might incur significant capital and other costs to comply with increasingly stringent air emission

control laws and enforcement policies which would decrease our cash flow. 32 AUTOMOTIVE SUPPLIES BUSINESS Our automotive supplies business is operated by

Wolo. This business segment, which was acquired at the end of the first quarter of 2021, accounted for approximately 18.6% of our total

revenues for the year ended December 31, 2021. Overview Our automotive supplies business is headquartered

in Deer Park, New York and was founded in 1965. We design and sell horn and safety products (electric, air, truck, marine, motorcycle

and industrial equipment), and offer vehicle emergency and safety warning lights for cars, trucks, industrial equipment and emergency

vehicles. Focused on the automotive and industrial after-market, we sell our products to big-box national retail chains, through specialty

and industrial distributors, as well as on- line/mail order retailers and OEMs. With a stellar reputation for innovative design, our current

product line consists of over 455 products, including 54 patented products, as well as over 90 exclusive trademarks. Products We design and sell over 455 products comprised

of branded vehicle horns, warning lights, sirens, back-up alarms and accessories. Horns We design and sell an innovative and extensive

selection of electromechanical, air and electronic-speaker horns. The horns are used in many industries such as: heavy duty truck, motorcycle,

marine, industrial and the automotive aftermarket. We also sell hand-held gas horns which can be used for sporting events, as well as

marine, construction sites and outdoor activities. Our top-selling product is the Bad Boy horn, which

has a one-piece design that requires no hoses. It installs in minutes by simply transferring the vehicle’s factory horn wires to

the compressor, and mounts with one bolt included in kit. The Bad Boy produces a powerful dual tone air horn sound that is two times louder

than the factory horn. It is compact in size to fit any car, truck, motorcycle and any 12-volt vehicle that wants a loud air horn sound.

A heavy-duty maintenance free compressor provides years of dependable service. In the past three years, we have brought a number

of new and innovative horn products to the markets to which we sell. Some highlights inclu ● Midnight

Express . A high-pressure truck train horn that is three trumpets, all metal and painted

semi-gloss black. Train horns are purchased by the vehicle owner that wants the ultra-powerful

sound of a train. ● Quadraphonic

Express . Four metal trumpets that are triple chrome plated, produce an ultra-powerful

train horn sound that will be heard and will dress-up the appearance of any vehicle. ● Nexgen

Express Train Horn . A totally new design by us, a state-of-the-art fully electronic

train horn, compact in size and produces more than 150-watts output. Engineered to fit into

the engine compartment of cars, SUVs and even compact vehicles with a simple two wire hook-up,

Nexgen offers two distinctive train horn sounds controlled by a wireless key fab. ● Mighty

Mo . An industrial equipment horn designed to withstand off-road and construction

site conditions, while being able to penetrate noisy environments and still be heard. Compressor and Tank Systems We also sell air compressor systems, consisting

of air storage tanks, compressors and everything needed to hookup a high-pressure air horn. Two years ago, we started offering complete

kits of train horns and choice of high-pressure air systems. Additionally, we offer replacement parts for all products, replacement parts

are a profitable sale. Electric Sirens and Speakers We have an array of emergency electronic sirens

with built-in public address systems used by emergency responders. Back-Up Alarms We offer a variety of back-up alarm systems from

basic beep-style horn sold in all aftermarket retailers, to hi-tech intelligent alarms that adjust audio output to be louder than surrounding

ambient noise. Our Model BA-697 has three super bright 1-watt LEDs that flash while the vehicle is in reverse and the auditable warning

sound is turned on. In addition, we have a selection of white noise “Psss Psss” sound alarms required in the state of California. 33 Warning Lights We offer a large selection of warning lights for

road assistance as well as emergency vehicles, construction, road safety and snow plowing vehicles. Warning lights come in a variety of

types, sizes and shapes such as rotating, strobe and state-of-the-art LED models ranging in sizes from 8 inches to fifty-seven 57 inches.

A recent addition to warning lights that has become an everyday bestseller for us is the new WATCHMAN®, which is a 24-inch magnet

light bar that can be converted to permanent mounting in minutes with no special tools. Because of the products’ popularity, we

designed a larger 48” version of the Watchman, which has seen very good acceptance in the market. Another recent addition is Luminous, a high-performance,

low profile linear light bar designed with the latest state-of-the-art electronic circuitry that has low power consumption and will provide

years of reliable service. Luminous produces an intense beam of light which can be seen 360 degrees even in bright daylight. Available

in three lengths in color amber, blue, red, green and any combination of colors. Luminous is certified SAE J845 Class 1 and California

Title 13. Manufacturing Approximately 95% of our manufacturing is outsourced

to contract manufacturers in China and Taiwan. The additional 5% of in-house manufacturing consists of changes to fully assembled products,

as per custom orders. For example, converting the voltage of a horn for truck use, or the standard color of a particular warning light. We have implemented a strict quality control program

which is run by our warehouse/production manager. We believe that our high quality standards assure customers that they are getting the

best and most reliable products in the market. Our manufacturing operations are designed to allow low-cost production of a wide variety

of products while maintaining a high level of customer service and quality. We believe that our manufacturing facilities generally

have sufficient capacity to meet our current business requirements and our currently anticipated sales. Vendor/Supplier Relationships We have developed long term relationships with

our 22 contact manufacturers based in China and Taiwan. All materials are sourced by the contract manufacturers. Our top 10 vendors and

suppliers are listed in the table below. Supplier Product Total Purchases (2020) Total Purchases (2021) Percent of Purchases (2021) Zhongshan Yonglong Car Accessories Warning Lights & Horns $ 493,583 $ 331,322 13.0 % E-Own Corp Horns 405,821 430,937 16.9 % Wenzhou Jinzheng Warning Lights 283,063 224,975 8.8 % Changgzhou Jiajia Horns 253,843 429,459 16.9 % Jn Horns Horns 174,285 178,324 7.0 % Zhejiang Jiejia Warning Lights 142,346 162,491 6.4 % Changzhou Wushi Horns 130,439 372,582 14.6 % Wenzhou Hongda Warning Lights 127,950 29,712 1.2 % Yuyao Warning Lights 54,384 104,767 4.1 % Jian Tang Warning Lights 50,466 65,158 2.6 % We have established relationships with our vendors,

with many of these relationships spanning more than 15 years. We implement vendor agreements with all our major accounts and some mid-size

accounts. The typical length of a vendor agreement is 2-3 years, and in most cases automatically renew. We have also established volume discounts with

our suppliers which help to offset increased material, tariffs’ and increased labor costs domestically and overseas. With the unstable

world market, we have carefully started to engage secondary suppliers to make sure we have no interruptions in the supply chain and to

be sure we maintain a competitive price. We believe that our strong relationships with

suppliers yield high quality, competitive pricing and overall good service to our customers. Although we cannot be sure that our sources

of supply will be adequate in all circumstances, we believe that we can develop alternate sources in a timely and cost-effective manner

if our current sources become inadequate. Due to availability of numerous alternative suppliers, we do not believe that the loss of any

single supplier would have a material adverse effect on our consolidated financial condition or results of operations. See Item 1A “ Risk

Factors—Risks Related to Our Automotive Supply Business ” for a description of the risks related to our supplier relationships. 34 Sales and Marketing Our sales team consists of an in-house national

sales manager who coordinates with contracted sales representatives from thirteen regional sales companies in North America, Mexico, Puerto

Rico, the U.K., Europe, the Middle East and the industrial aftermarket. The sales representative’s agreement with us is limited

to automotive, internet-based companies and occasionally motorcycle aftermarket distributors. Sales representatives are responsible for the

solicitation and development of new accounts, as well as working with existing customers to develop promotions and incentives for our

products. We have had relationships with these regional sales companies for 13 to 15 years on-average. All major customers are serviced

frequently by their sales representatives. Our innovative retail product packaging design

is also a highly effective marketing tool in direct-to-consumer selling. Featuring quick response (QR) barcode technology, customers are

able to scan product packaging using their smart phone or mobile device to instantly see product information, watch demonstration videos,

or even hear horn demos. There is no need for special in-store displays or additional shelf space as all information is accessible directly

by scanning the product packaging. It is like having a virtual sales associate in-store. Packaging also features scan-back’s, an

instant rebate that is applied at the register upon checkout. Additional marketing programs include in-store

promotional programs for customers, e-commerce via our website, as well as email blasts and customer print catalogs. We mail print and/or

electronic CD catalogs to established accounts every 18 months with new product information inserted via supplemental sell-sheets. The

full product catalog was last updated in 2019 and a new 2021-2022 catalog will be finished and ready to be mailed in the first or second

quarter of 2022. There will also be a digital version of the catalog available for download. New product launches and updates are also

sent to customers via email blast periodically. We exhibit at key industry and customer tradeshows

and belongs to the National Marine Manufacturers Association and American Boat and Yacht Council. Customers We sell products to the automobile aftermarket,

national retailers, direct-to-consumer, mail order, web-based retailers, public safety equipment wholesalers, industrial wholesalers,

as well as the motorcycle and marine aftermarkets. We serve approximately 220 customers, including

Amazon, AutoZone, Advanced Auto Parts, CarQuest, Aries, das, Grainger, FleetFarm and J&P Cycles. Internationally, we sell products

in Canada, Mexico, Europe, and Amsterdam. Most of our online customers such as Amazon ship direct internationally. A majority of our sales

are made to repeat customers, with many of our customer relationships spanning more than 10 years. We believe that our customers appreciate

the ease of doing business with all orders placed electronically via electronic data interchange, or EDI. Sales agreements are in place with about 25% of

our customers, including all national and midsize accounts. Sales agreements specify new store allowances, terms of sale (discounts),