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

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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 Most of our manufacturing is outsourced
to contract manufacturers in China and Taiwan. 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 contact manufacturers based in China and Taiwan. All materials are sourced by the contract manufacturers. The following table sets
forth the vendors and suppliers that accounted for more than 10% of our purchases for the year ended December 31, 2022: Supplier Product Total Purchases (2021) Total Purchases (2022) Percent of Purchases (2022) E-own Corporation Warning Lights & Horns $ 430,937 $ 418,780 28.6 % Zhejiang Jiejia Automobile Horns 162,491 304,228 20.8 % Changz Warning Lights - 271,611 18.5 % Ruian Jiani Auto Parts Horns 178,324 246,799 16.8 % 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. 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 have a diverse customer base, 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. In recent years, we have entered into the motorcycle
and industrial (fleet maintenance) aftermarkets, as well a product line of horns for the marine parts aftermarket. 35 Order Fulfillment Our efficient fulfillment process uses an intergraded
EDI system for receiving orders, advanced shipping notices and invoicing. The custom software is integral in reducing manual order entry,
as well the prevention of errors. Implementing an EDI system has allowed us to
improve our fulfillment threshold rate, as well as avoid fines from customers for order fulfillment errors and fill rate.
The following diagram illustrates our order fulfillment process. Research and Development For the development of new products, we have
implemented a streamlined R&D process. The average R&D process from initial design to sending a product sample for tooling is
approximately 6-12 months. ● Step
1: Identify and confirm a problem and/or need for a product ● Step
2: Draw up many possible solutions and discuss with sales manager and warehouse manager,
whose focus in on the market demand ● Step
3: Narrow down to the three best options and create handmade prototype to test which solution
works best. ● Step
4: Send sample prototype to patent attorney to determine ability to patent and send hand
sample to a draftsman for 3D drawing ● Step
5: The 3D drawing is approved, and a 3D print is made. The 3D print sample is tested, and
any necessary modifications are made ● Step
6: The 3D drawing and printed sample are sent to one of our suppliers to start the tooling
process Competition The sale of automotive aftermarket items is highly
competitive in many areas, including customer service, product availability, store location, brand recognition and price. We believe
that we have established our brand as an industry-leader in developing innovative products for the automobile aftermarket industry, especially
in horn design and technology (electric, air, truck, marine, motorcycle and industrial equipment). Current competitors in related industries
are FIAMM, Grote, Peterson Manufacturing Company, ECCO, Vixen Horns, HornBlasters and Klienn. 36 Competitive Advantages Based on management’s belief and experience
in the industry, we believe that the following competitive strengths enable us to compete effectively. ● Established
name and reputation . We believe that we have maintained our excellent reputation
in the industry for over 55 years through bringing exclusive products and designs to market
to meet current and future needs. ● Patents and trademarks . We have been granted 51 patents from the U.S., China, Taiwan and the EU. About half of our patents are utility patents, which protect a products’ methods of functionality. Utility patents are a difficult barrier for competitors to overcome, therefore these products have a higher profit margin. The other half of our patents are design patents. ● Long-term
supplier and customer relationships . We have established relationships with our vendors,
with many of these relationships spanning more than 15 years, and a majority of our sales
are made to repeat customers, with many of our customer relationships spanning more than
10 years. ● International
licensing agreements . We have a licensing agreement with a large wholesale supplier
of auto parts in the U.K. for our patented Bad Boy Horn. The U.K. supplier also has retail
chain stores and this agreement has been generating year-over-year sales growth for us. Growth Strategies Management sees the below as the key initiatives for our continued
growth strategy: ● Increase
sales through new products and online marketing . We are aggressively pursuing our
current market share and building sales by adding new products to existing accounts. Additionally,
we will continue to expand our online sales platforms which include Wolo-mfg.com, Wolo-USA.com,
Autozone.com, Amazon.com, BestAutoAccessories.com and Autoaccessoriesgarage.com, among others.
There also exists significant growth potential in the purchasing of available key URL’s
and implementing enhanced search engine optimization strategies. ● Expand
into traditional market and original equipment replacement horns. The automotive
aftermarket has multiple channels of distribution, and one in which we have limited distribution
is the traditional channel. This channel distributes products through wholesale warehouse
distributors such as Federated Auto Parts, Pronto Auto Parts, Bumper-To-Bumper and Auto Value.
Traditional distribution primarily services the DIFM (Do-It-For-Me) or professional installers.
Most of the products sold are direct original equipment replacement parts which are researched
based on year/make/model of the vehicle needing parts. We have limited distribution into
the traditional channel, primarily due to the fact that there are no original equipment replacement
horns in our product offerings. We believe that with minor product enhancements, we can offer
products to serve this channel and improve market share into the traditional channel. ● Expand
into growing international markets . Currently, we sell our products in the US, Canada,
Mexico, Europe and the Middle East. We believe that there is great growth opportunity in Mexico. Additionally, we
have identified Canada and the Netherlands as expansion markets specifically for our Motorcycle
Air Horn. ● Additional
focus on the municipal and public safety markets . We have identified a significant
demand for certified warning lights within the municipal and public safety markets. The certification
of existing products is immediately possible and very cost effective. ● Grow
presence within the marine marketplace . We see immediate growth opportunities existing

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 Most of our manufacturing is outsourced

to contract manufacturers in China and Taiwan. 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 contact manufacturers based in China and Taiwan. All materials are sourced by the contract manufacturers. The following table sets

forth the vendors and suppliers that accounted for more than 10% of our purchases for the year ended December 31, 2022: Supplier Product Total Purchases (2021) Total Purchases (2022) Percent of Purchases (2022) E-own Corporation Warning Lights & Horns $ 430,937 $ 418,780 28.6 % Zhejiang Jiejia Automobile Horns 162,491 304,228 20.8 % Changz Warning Lights - 271,611 18.5 % Ruian Jiani Auto Parts Horns 178,324 246,799 16.8 % 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. 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 have a diverse customer base, 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. In recent years, we have entered into the motorcycle

and industrial (fleet maintenance) aftermarkets, as well a product line of horns for the marine parts aftermarket. 35 Order Fulfillment Our efficient fulfillment process uses an intergraded

EDI system for receiving orders, advanced shipping notices and invoicing. The custom software is integral in reducing manual order entry,

as well the prevention of errors. Implementing an EDI system has allowed us to

improve our fulfillment threshold rate, as well as avoid fines from customers for order fulfillment errors and fill rate.

The following diagram illustrates our order fulfillment process. Research and Development For the development of new products, we have

implemented a streamlined R&D process. The average R&D process from initial design to sending a product sample for tooling is

approximately 6-12 months. ● Step

1: Identify and confirm a problem and/or need for a product ● Step

2: Draw up many possible solutions and discuss with sales manager and warehouse manager,

whose focus in on the market demand ● Step

3: Narrow down to the three best options and create handmade prototype to test which solution

works best. ● Step

4: Send sample prototype to patent attorney to determine ability to patent and send hand

sample to a draftsman for 3D drawing ● Step

5: The 3D drawing is approved, and a 3D print is made. The 3D print sample is tested, and

any necessary modifications are made ● Step

6: The 3D drawing and printed sample are sent to one of our suppliers to start the tooling

process Competition The sale of automotive aftermarket items is highly

competitive in many areas, including customer service, product availability, store location, brand recognition and price. We believe

that we have established our brand as an industry-leader in developing innovative products for the automobile aftermarket industry, especially

in horn design and technology (electric, air, truck, marine, motorcycle and industrial equipment). Current competitors in related industries

are FIAMM, Grote, Peterson Manufacturing Company, ECCO, Vixen Horns, HornBlasters and Klienn. 36 Competitive Advantages Based on management’s belief and experience

in the industry, we believe that the following competitive strengths enable us to compete effectively. ● Established

name and reputation . We believe that we have maintained our excellent reputation

in the industry for over 55 years through bringing exclusive products and designs to market

to meet current and future needs. ● Patents and trademarks . We have been granted 51 patents from the U.S., China, Taiwan and the EU. About half of our patents are utility patents, which protect a products’ methods of functionality. Utility patents are a difficult barrier for competitors to overcome, therefore these products have a higher profit margin. The other half of our patents are design patents. ● Long-term

supplier and customer relationships . We have established relationships with our vendors,

with many of these relationships spanning more than 15 years, and a majority of our sales

are made to repeat customers, with many of our customer relationships spanning more than

10 years. ● International

licensing agreements . We have a licensing agreement with a large wholesale supplier

of auto parts in the U.K. for our patented Bad Boy Horn. The U.K. supplier also has retail

chain stores and this agreement has been generating year-over-year sales growth for us. Growth Strategies Management sees the below as the key initiatives for our continued

growth strategy: ● Increase

sales through new products and online marketing . We are aggressively pursuing our

current market share and building sales by adding new products to existing accounts. Additionally,

we will continue to expand our online sales platforms which include Wolo-mfg.com, Wolo-USA.com,

Autozone.com, Amazon.com, BestAutoAccessories.com and Autoaccessoriesgarage.com, among others.

There also exists significant growth potential in the purchasing of available key URL’s

and implementing enhanced search engine optimization strategies. ● Expand

into traditional market and original equipment replacement horns. The automotive

aftermarket has multiple channels of distribution, and one in which we have limited distribution

is the traditional channel. This channel distributes products through wholesale warehouse

distributors such as Federated Auto Parts, Pronto Auto Parts, Bumper-To-Bumper and Auto Value.

Traditional distribution primarily services the DIFM (Do-It-For-Me) or professional installers.

Most of the products sold are direct original equipment replacement parts which are researched

based on year/make/model of the vehicle needing parts. We have limited distribution into

the traditional channel, primarily due to the fact that there are no original equipment replacement

horns in our product offerings. We believe that with minor product enhancements, we can offer

products to serve this channel and improve market share into the traditional channel. ● Expand

into growing international markets . Currently, we sell our products in the US, Canada,

Mexico, Europe and the Middle East. We believe that there is great growth opportunity in Mexico. Additionally, we

have identified Canada and the Netherlands as expansion markets specifically for our Motorcycle

Air Horn. ● Additional

focus on the municipal and public safety markets . We have identified a significant

demand for certified warning lights within the municipal and public safety markets. The certification

of existing products is immediately possible and very cost effective. ● Grow

presence within the marine marketplace . We see immediate growth opportunities existing