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

text stringlengths 0 1.95M
will depend largely on our ability to provide high quality products to our customers and a reliable, trustworthy, and profitable sales
channel to our suppliers, which we may not be able to do successfully. Customer
complaints or negative publicity about our sites, products, delivery times, customer data handling and security practices or customer
support, especially on blogs, social media websites and our sites, could rapidly and severely diminish consumer use of our sites and
consumer and supplier confidence in us and result in harm to our brands. 69 Our
efforts to expand our business into new brands, products, services, technologies, and geographic regions will subject us to additional
business, legal, financial, and competitive risks and may not be successful. Our
business success depends to some extent on our ability to expand our customer offerings by launching new brands, which may include new
eyewear designs, new eyewear accessories, or personal care products, and by expanding our existing offerings into new retail locations
and geographies. Launching new brands and products or expanding geographically requires significant upfront investments, including investments
in marketing, information technology, and additional personnel. We may not be able to generate satisfactory revenue from these efforts
to offset the costs of such expansions. Any lack of market acceptance of our efforts to launch new brands and services or to expand our
existing offerings could have a material adverse effect on our business, prospects, financial condition, and results of operations. Further,
as we continue to expand our fulfillment capability or add new businesses with different requirements, our logistics networks become
increasingly complex and operating them becomes more challenging. There can be no assurance that we will be able to operate our networks
effectively. We
have also entered and may continue to enter new markets in which we have limited or no experience, which may not be successful or appealing
to our customers. For instance, in 2020, we entered the personal care products industry by providing and selling surgical face masks
as well as N95 face masks to support the demand due to the COVID-19 pandemic. This, and other similar activities may present new and
difficult technological and logistical challenges, and resulting service disruptions, failures or other quality issues may cause customer
dissatisfaction and harm our reputation and brand. Further, our current and potential competitors in new market segments may have greater
brand recognition, financial resources, longer operating histories and larger customer bases than we do in these areas. As a result,
we may not be successful enough in these newer areas to recoup our investments in them. If this occurs, our business, financial condition
and operating results may be materially adversely affected. The
loss of any of our key customers could have a materially adverse effect on our results of operations. Historically,
a few long-term recurring customers have accounted for a majority of our revenues. For the year ended December 31, 2022, a majority of
our revenues were from sales to customers from our retail agreement with Target. There can be no assurance that we will maintain or improve
the relationships with those customers or retailers. Our major customers often change each period based on when a given order is placed.
If we cannot maintain long-term relationships with major customers, lose our contract to sell retail eyewear and eyewear accessories
at Target, or replace major customers from period to period with equivalent customers, the loss of such sales could have an adverse effect
on our business, financial condition and results of operations. If
we fail to acquire new customers or retain existing customers, or fail to do so in a cost-effective manner, we may not be able to achieve
profitability. Our
success depends on our ability to acquire and retain customers and maintain our relationships with retailers in a cost-effective manner.
If we fail to deliver a quality shopping experience, or if consumers do not perceive the products we offer to be of high value and quality,
we may not be able to acquire new customers. If we are unable to acquire new customers who purchase products in numbers sufficient to
grow our business, we may not be able to generate the scale necessary to drive beneficial network effects with our suppliers or efficiencies
in our logistics network, our net revenue may decrease, and our business, financial condition and operating results may be materially
adversely affected. If
our efforts to satisfy our existing customers are not successful, we may not be able to acquire new customers in sufficient numbers to
continue to grow our business, or we may be required to incur significantly higher marketing expenses in order to acquire new customers. We
are dependent upon relationships with manufacturers, including many located in Taiwan and China, which exposes us to complex regulatory regimes and logistical
challenges. All of our manufacturing is outsourced to contract manufacturers, including
many located in China and Taiwan, resulting in additional factors could interrupt our relationships or affect our ability to acquire the
necessary products on acceptable terms, includin ● political,
social and economic instability and the risk of war or other international incidents in Asia
or abroad; ● fluctuations
in foreign currency exchange rates that may increase our cost of products; ● imposition
of duties, taxes, tariffs or other charges on imports; ● difficulties
in complying with import and export laws, regulatory requirements and restrictions; ● natural
disasters and public health emergencies, such as the recent COVID-19 pandemic; ● import
shipping delays resulting from foreign or domestic labor shortages, slow-downs, or stoppage;
and 70 ● the
failure of local laws to provide a sufficient degree of protection against infringement of
our intellectual property; ● imposition
of new legislation relating to import quotas or other restrictions that may limit the quantity
of our products that may be imported into the U.S. from countries or regions where we do
business; ● financial
or political instability in any of the countries in which our products are manufactured; ● potential
recalls or cancellations of orders for any products that do not meet our quality standards; ● disruption
of imports by labor disputes or strikes and local business practices; ● political
or military conflict involving the U.S. or any country in which our suppliers are located,
which could cause a delay in the transportation of our products, an increase in transportation
costs and additional risk to products being damaged and delivered on time; ● heightened
terrorism security concerns, which could subject imported goods to additional, more frequent
or more thorough inspections, leading to delays in deliveries or impoundment of goods for
extended periods; ● inability
of our non-U.S. suppliers to obtain adequate credit or access liquidity to finance their
operations; and ● our
ability to enforce any agreements with our foreign suppliers. If
we were unable to import products from China and Taiwan or were unable to import products from China and Taiwan in a cost-effective manner,
we could suffer irreparable harm to our business and be required to significantly curtail our operations, file for bankruptcy or cease
operations. From
time to time, we may also have to resort to administrative and court proceedings to enforce our legal rights with foreign suppliers.
However, it may be more difficult to evaluate the level of legal protection we enjoy in Taiwan and China and the corresponding outcome
of any administrative or court proceedings than in comparison to our suppliers in the United States. Possible
new tariffs that might be imposed by the United States government could have a material adverse effect on our results of operations. Changes
in U.S. and foreign governments’ trade policies have resulted in, and may continue to result in, tariffs on imports into and exports
from the U.S., among other restrictions. Throughout 2018 and 2019, the U.S. imposed tariffs on imports from several countries, including
China. If further tariffs are imposed on imports of our products, or retaliatory trade measures are taken by China or other countries
in response to existing or future tariffs, we could be forced to raise prices on all of our imported products or make changes to our
operations, any of which could materially harm our revenue or operating results. Any additional future tariffs or quotas imposed on our
products or related materials may impact our sales, gross margin and profitability if we are unable to pass increased prices onto our
customers. We
are highly dependent upon key suppliers and an interruption in such relationships or our ability to obtain products from such suppliers
could adversely affect our business and the results of operations. In
2022 and 2021, we purchased a substantial portion of finished goods from four third-party vendors which comprised 87% and 92% of our
purchases, respectively. Our ability to acquire products from our suppliers in amounts and on terms acceptable to us is dependent upon
a number of factors that could affect our suppliers and which are beyond our control. For example, financial or operational difficulties
that some of our suppliers may face could result in an increase in the cost of the products we purchase from them. We also do not have
any exclusive contracts with our suppliers. If we do not maintain our relationships with our existing suppliers or develop relationships
with new suppliers on acceptable commercial terms, we may not be able to continue to offer a broad selection of merchandise at competitive
prices and, as a result, we could lose customers and our sales could decline. We
also have limited control over the products that our suppliers purchase or keep in stock. Our suppliers may not accurately forecast the
products that will be in high demand, or they may allocate popular products to other resellers, resulting in the unavailability of certain
products for delivery to our customers. Any inability to offer a broad array of products at competitive prices and any failure to deliver
those products to our customers in a timely and accurate manner may damage our reputation and brand and could cause us to lose customers
and our sales could decline. 71 Furthermore,
as part of our routine business, suppliers extend credit to us in connection with our purchase of their products. In the future, our
suppliers may limit the amount of credit they are willing to extend to us in connection with our purchase of their products. If this

will depend largely on our ability to provide high quality products to our customers and a reliable, trustworthy, and profitable sales

channel to our suppliers, which we may not be able to do successfully. Customer

complaints or negative publicity about our sites, products, delivery times, customer data handling and security practices or customer

support, especially on blogs, social media websites and our sites, could rapidly and severely diminish consumer use of our sites and

consumer and supplier confidence in us and result in harm to our brands. 69 Our

efforts to expand our business into new brands, products, services, technologies, and geographic regions will subject us to additional

business, legal, financial, and competitive risks and may not be successful. Our

business success depends to some extent on our ability to expand our customer offerings by launching new brands, which may include new

eyewear designs, new eyewear accessories, or personal care products, and by expanding our existing offerings into new retail locations

and geographies. Launching new brands and products or expanding geographically requires significant upfront investments, including investments

in marketing, information technology, and additional personnel. We may not be able to generate satisfactory revenue from these efforts

to offset the costs of such expansions. Any lack of market acceptance of our efforts to launch new brands and services or to expand our

existing offerings could have a material adverse effect on our business, prospects, financial condition, and results of operations. Further,

as we continue to expand our fulfillment capability or add new businesses with different requirements, our logistics networks become

increasingly complex and operating them becomes more challenging. There can be no assurance that we will be able to operate our networks

effectively. We

have also entered and may continue to enter new markets in which we have limited or no experience, which may not be successful or appealing

to our customers. For instance, in 2020, we entered the personal care products industry by providing and selling surgical face masks

as well as N95 face masks to support the demand due to the COVID-19 pandemic. This, and other similar activities may present new and

difficult technological and logistical challenges, and resulting service disruptions, failures or other quality issues may cause customer

dissatisfaction and harm our reputation and brand. Further, our current and potential competitors in new market segments may have greater

brand recognition, financial resources, longer operating histories and larger customer bases than we do in these areas. As a result,

we may not be successful enough in these newer areas to recoup our investments in them. If this occurs, our business, financial condition

and operating results may be materially adversely affected. The

loss of any of our key customers could have a materially adverse effect on our results of operations. Historically,

a few long-term recurring customers have accounted for a majority of our revenues. For the year ended December 31, 2022, a majority of

our revenues were from sales to customers from our retail agreement with Target. There can be no assurance that we will maintain or improve

the relationships with those customers or retailers. Our major customers often change each period based on when a given order is placed.

If we cannot maintain long-term relationships with major customers, lose our contract to sell retail eyewear and eyewear accessories

at Target, or replace major customers from period to period with equivalent customers, the loss of such sales could have an adverse effect

on our business, financial condition and results of operations. If

we fail to acquire new customers or retain existing customers, or fail to do so in a cost-effective manner, we may not be able to achieve

profitability. Our

success depends on our ability to acquire and retain customers and maintain our relationships with retailers in a cost-effective manner.

If we fail to deliver a quality shopping experience, or if consumers do not perceive the products we offer to be of high value and quality,

we may not be able to acquire new customers. If we are unable to acquire new customers who purchase products in numbers sufficient to

grow our business, we may not be able to generate the scale necessary to drive beneficial network effects with our suppliers or efficiencies

in our logistics network, our net revenue may decrease, and our business, financial condition and operating results may be materially

adversely affected. If

our efforts to satisfy our existing customers are not successful, we may not be able to acquire new customers in sufficient numbers to

continue to grow our business, or we may be required to incur significantly higher marketing expenses in order to acquire new customers. We

are dependent upon relationships with manufacturers, including many located in Taiwan and China, which exposes us to complex regulatory regimes and logistical

challenges. All of our manufacturing is outsourced to contract manufacturers, including

many located in China and Taiwan, resulting in additional factors could interrupt our relationships or affect our ability to acquire the

necessary products on acceptable terms, includin ● political,

social and economic instability and the risk of war or other international incidents in Asia

or abroad; ● fluctuations

in foreign currency exchange rates that may increase our cost of products; ● imposition

of duties, taxes, tariffs or other charges on imports; ● difficulties

in complying with import and export laws, regulatory requirements and restrictions; ● natural

disasters and public health emergencies, such as the recent COVID-19 pandemic; ● import

shipping delays resulting from foreign or domestic labor shortages, slow-downs, or stoppage;

and 70 ● the

failure of local laws to provide a sufficient degree of protection against infringement of

our intellectual property; ● imposition

of new legislation relating to import quotas or other restrictions that may limit the quantity

of our products that may be imported into the U.S. from countries or regions where we do

business; ● financial

or political instability in any of the countries in which our products are manufactured; ● potential

recalls or cancellations of orders for any products that do not meet our quality standards; ● disruption

of imports by labor disputes or strikes and local business practices; ● political

or military conflict involving the U.S. or any country in which our suppliers are located,

which could cause a delay in the transportation of our products, an increase in transportation

costs and additional risk to products being damaged and delivered on time; ● heightened

terrorism security concerns, which could subject imported goods to additional, more frequent

or more thorough inspections, leading to delays in deliveries or impoundment of goods for

extended periods; ● inability

of our non-U.S. suppliers to obtain adequate credit or access liquidity to finance their

operations; and ● our

ability to enforce any agreements with our foreign suppliers. If

we were unable to import products from China and Taiwan or were unable to import products from China and Taiwan in a cost-effective manner,

we could suffer irreparable harm to our business and be required to significantly curtail our operations, file for bankruptcy or cease

operations. From

time to time, we may also have to resort to administrative and court proceedings to enforce our legal rights with foreign suppliers.

However, it may be more difficult to evaluate the level of legal protection we enjoy in Taiwan and China and the corresponding outcome

of any administrative or court proceedings than in comparison to our suppliers in the United States. Possible

new tariffs that might be imposed by the United States government could have a material adverse effect on our results of operations. Changes

in U.S. and foreign governments’ trade policies have resulted in, and may continue to result in, tariffs on imports into and exports

from the U.S., among other restrictions. Throughout 2018 and 2019, the U.S. imposed tariffs on imports from several countries, including

China. If further tariffs are imposed on imports of our products, or retaliatory trade measures are taken by China or other countries

in response to existing or future tariffs, we could be forced to raise prices on all of our imported products or make changes to our

operations, any of which could materially harm our revenue or operating results. Any additional future tariffs or quotas imposed on our

products or related materials may impact our sales, gross margin and profitability if we are unable to pass increased prices onto our

customers. We

are highly dependent upon key suppliers and an interruption in such relationships or our ability to obtain products from such suppliers

could adversely affect our business and the results of operations. In

2022 and 2021, we purchased a substantial portion of finished goods from four third-party vendors which comprised 87% and 92% of our

purchases, respectively. Our ability to acquire products from our suppliers in amounts and on terms acceptable to us is dependent upon

a number of factors that could affect our suppliers and which are beyond our control. For example, financial or operational difficulties

that some of our suppliers may face could result in an increase in the cost of the products we purchase from them. We also do not have

any exclusive contracts with our suppliers. If we do not maintain our relationships with our existing suppliers or develop relationships

with new suppliers on acceptable commercial terms, we may not be able to continue to offer a broad selection of merchandise at competitive

prices and, as a result, we could lose customers and our sales could decline. We

also have limited control over the products that our suppliers purchase or keep in stock. Our suppliers may not accurately forecast the

products that will be in high demand, or they may allocate popular products to other resellers, resulting in the unavailability of certain

products for delivery to our customers. Any inability to offer a broad array of products at competitive prices and any failure to deliver

those products to our customers in a timely and accurate manner may damage our reputation and brand and could cause us to lose customers

and our sales could decline. 71 Furthermore,

as part of our routine business, suppliers extend credit to us in connection with our purchase of their products. In the future, our

suppliers may limit the amount of credit they are willing to extend to us in connection with our purchase of their products. If this