What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-05 compared with 2024-03-06 · 84 added, 93 removed, 353 unchanged (33% of the section changed)

At Cricut, our mission is to help people lead creative lives.

Our creativity platform enables our engaged and loyal community of over 8.9 million users, as of December 31, 2023, to turn ideas into “I Did It’s” — DIY goods from custom greeting cards, and apparel to on-demand gifts and large-scale decor.

Our creativity platform enables our engaged and loyal community of nearly 5.9 million Active Users, as of December 31, 2024, to turn ideas into DIY goods from custom greeting cards and apparel to on-demand gifts and large-scale decor.

We designed and built our ecosystem of connected cutting machines, accessories, and materials for scalability and seamless integration, allowing us to both introduce new products as well as continuously update the functionality and features of existing physical and digital products.

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We extend the inspiring and intuitive nature of our platform to our hardware with connected machines that are both beautiful and easy to use.

Our portfolio of connected machines cuts, writes, scores, and creates decorative effects for a wide range of use cases on an array of materials including paper, vinyl, wood, and leather.

Our portfolio of connected machines cuts, writes, scores, and creates decorative effects for a wide range of use cases on an array of materials including paper, adhesive vinyl, iron-on vinyl, wood, and leather.

These machines are available at a variety of price points:

• Cricut Joy family for personalization, organization, and customization, $149.00-$199.00 MSRP

• Cricut Explore family for cutting, writing and scoring, $249.00 - $319.00 MSRP

• Cricut Maker family for cutting, writing, scoring and adding decorative effects to a wider range of materials, $399.00 - $429.00 MSRP

• Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds, $999.00 MRSP

• Cricut Joy family $149.00-$199.00 MSRP

• Cricut Explore family $249.00 - $319.00 MSRP

• Cricut Maker family $399.00 - $429.00 MSRP

• Cricut Venture $999.00 MRSP

Cricut often becomes a huge part of users’ creative lives, serving as the foundation for their journey of creativity.

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Our users demonstrate continued engagement with our platform over time, which results in purchases of subscriptions, accessories, and materials long after they first purchase a connected machine.

As of December 31, 2023, 44% of our users cut on their connected machine in the last 90 days and 66% created in the last 365 days.

In Cricut Design Space, users find inspiration, purchase or upload content like fonts and images, and design a project from scratch or customize a vast array of ready-to-make projects.

Users can take advantage of a select number of free images, fonts, and projects, design within the app, or upload pre-made designs.

In addition, we offer a wider selection of images, fonts, and projects for purchase à la carte, including licensed content such as well-known characters, designs, and other trademarks from a variety of partner brands.

A standard and premium version of our subscription service, Cricut Access, enables use of special design features and expanded app capabilities as well as a growing library of more than 750 thousand images, thousands of ready-to-make projects, and hundreds of fonts.

Cricut Access also includes other member benefits, such as discounts and priority support.

As of December 31, 2024, nearly 5.9 million of our users cut on their connected machines in the last 365 days and 3.8 million cut on their connected machines in the last 90 days.

In Cricut Design Space, our users find inspiring content for their projects and easy-to-use software tools and instructions to customize or design from scratch their project idea.

Users can take advantage of images, fonts and ready-to-make projects available within our platform, or they can upload their own.

We offer a select number of free images, fonts, and projects.

In addition, we offer a wider selection of images, fonts, and projects through our subscription service, Cricut Access, or for purchase à la carte.

The content available directly within Cricut Design Space is optimized for our cutting machines, and includes designs published by curated contributing artists from around the world, as well as from licensed content such as well-known characters and other trademarks from a variety of partner brands.

The standard and premium version of our subscription service, Cricut Access, enables access to a growing library of more than one million images, thousands of ready-to-make projects, and hundreds of fonts, and the use of special design features and expanded app capabilities.

Cricut Access also includes other member benefits, such as discounts on cricut.com and priority member care support.

The premium version includes all of the benefits of the basic Cricut Access subscription, as well as additional discounts and preferred shipping services.

As of December 31, 2023, we had nearly 2.8 million paid subscribers, representing approximately 31% of our total users.

As of December 31, 2024, we had nearly 3.0 million paid subscribers.

The broad range of accessories and materials in the Cricut ecosystem also help bring designs to life, from heat presses and handheld crafting tools to materials like paper and vinyl.

These products work seamlessly and easily with our connected machines, which helps build brand loyalty among our userbase.

These products work seamlessly and easily with our connected machines, which helps build brand loyalty among our user base.

Creating projects drives repeat purchases of accessories and materials for years after a user first buys a connected machine, demonstrating a growing customer lifetime value through ongoing engagement with our platform.

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Every project is an opportunity to start a conversation and we often see our users inspire, teach, and create together.

Users are passionate about sharing Cricut tips, tricks, and

personal stories and this engagement carries over into social media and into everyday life.

Globally, there are more than 6.9 million Cricut followers and hundreds of independently run Cricut groups across social media.

Users are passionate about sharing Cricut tips, tricks, and personal stories and this engagement carries over into social media and into everyday life.

Globally, there are millions of Cricut followers and hundreds of independently run Cricut groups across social media.

Users often self-organize, host independent events, and meet up in person across the globe.

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This design of our product ecosystem and marketing helped scale our community of users significantly over time.

The revenue generated from the sales of our connected machines, subscriptions, accessories, and materials comes from a robust mix of brick-and-mortar and online retail, including direct-to-consumer on cricut.com, and partners like Amazon, Best Buy, Costco, Hobby Lobby, HSN, Jo-Ann, Michaels, Target, and Walmart.

We are a profitable business.

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This presents us with a large untapped market opportunity in addition to our current user base.

We quantify our market opportunity in terms of target audience profile, which includes active Makers with relevant behavioral attributes who we address with our current products and price points, and our SAM and TAM, which includes potential creatives who we believe we can reach over the long term with products that address new use cases, greater accessibility, and a broader set of price points.

We quantify our market opportunity in terms of target audience profile, which includes active creatives with relevant behavioral attributes who we address with our current products and price points, and our Serviceable Addressable Market (“SAM”) and Total Addressable Market (“TAM”), which includes potential creatives who we believe we can reach over the long term with products that address new use cases, greater accessibility, and a broader set of price points.

We commissioned a study from YouGov America in September 2020 across multiple countries.

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We assess our SAM and TAM in the United States and Canada and internationally.

Today, a small portion of our revenue is generated from countries outside the United States and Canada.

Today, a portion of our revenue is generated from countries outside the United States and Canada.

We currently classify four of these countries, Australia, France, Germany and the United Kingdom, as our primary international target markets and include them in our international SAM and TAM.

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Accordingly, we estimate our total SAM is over 129 million individuals.

As of December 31, 2023, we had over 8.9 million users, implying approximately 7% penetration of our SAM in all markets.

As of December 31, 2024, we had nearly 5.9 million Active Users.

We estimate that there are over 163 million potential creatives in the United States and Canada and over 109 million potential creatives in our primary international target markets.

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According to in-house research conducted in 2024:

• 38% of new users bought their Cricut machine specifically to make a broad range of projects

• 33% of new users make projects to sell

• 38% of new users bought their Cricut machine specifically to make a variety of things

• 55% of users bought their machine to make personalized gifts

• 27% of users make projects to sell

• 84% of users say crafting with Cricut inspires feelings of accomplishment

• 87% of users made projects for other people rather than themselves

• 56% of users bought their machine to make personalized gifts

A user’s journey evolves after their first purchase.

New users typically intend to create a broad range of products but may start with one or two intended uses and grow with Cricut over time.

New users typically intend to create a variety of things but may start with one intended use and grow with Cricut over time.

For example, a user may buy a connected machine and begin by making cards but later branch out to T-shirts, wall decals, and more.

As we launch new software and products, and as our community continues to grow and share on our platform and elsewhere online, can continually refresh this relationship and expand the versatility of our platform.

As we launch new software and products, and as our community continues to grow and share on our platform and elsewhere online, users can continually refresh this relationship and expand the versatility of our platform.

Our large and loyal community of users engage with Cricut and each other both in Design Space and through social media.

Users often share projects they created, inspiring other users to create.

Design Space provides users with the ability to share direct links to projects and designs, so that others may view and create their own items from the same design.

Users take advantage of these capabilities to show off their creations through social media platforms, video platforms, and their own websites and shops.

Design Space provides users

with the ability to share direct links to projects and designs, so that others may view and create their own items from the same design.

Users take advantage of these capabilities to show off their creations on our platform, through social media platforms, video platforms, and their own websites and shops.

Many users have even taken passion for Cricut to the next level, creating their own tutorials, inspirational posts, and other influential content to share with others.

adds a larger, broader audience to Cricut’s own social audience of more than 6.9 million followers.

This adds a larger, broader audience to Cricut’s own social audience consisting of millions of followers.

The social conversation that this audience generates includes millions of posts tagging Cricut and related hashtags, billions of video views, and many third-party, independently run Cricut-related groups across social platforms.

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Connected Machines

Our connected machine portfolio currently includes the Cricut Joy family, the Cricut Explore family, and the Cricut Maker family, and Cricut Venture.

Our connected machine portfolio currently includes the Cricut Joy family, the Cricut Explore family, the Cricut Maker family, and Cricut Venture.

These machines cut, write, score, and create decorative effects using a wide variety of tools and materials including paper, vinyl, leather, and more.

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Much of the à la carte content (with exceptions for some partner content) is also included in Cricut Access, our subscription offering.

Available as a monthly or annual subscription, Cricut Access subscribers enjoy a greater and ever-growing selection of more than 750 thousand images, hundreds of fonts, and thousands of ready-to-make projects in our design library, as well as other members-only special features, like Monogram Maker.

Available as a monthly or annual subscription, Cricut Access subscribers enjoy a greater and ever-growing selection of more than one million images, hundreds of fonts, and thousands of ready-to-make projects in our design library, as well as other members-only special features, like Background Remover.

Subscribers also receive discounts to cricut.com and priority support.

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Cricut Access Premium, which includes all the benefits of Cricut Access, includes additional discounts and preferred shipping for an annual cost of $119.88.

As of December 31, 2023, we had nearly 2.8 million Cricut Access subscribers, representing approximately 31% of our total users.

As of December 31, 2024, we had nearly 3.0 million Cricut Access subscribers.

Cricut Extensions, Accessories, and Materials

We sell a broad range of extensions, accessories, and materials designed to work seamlessly with our connected machines.

The Cricut heat press line, including the Cricut EasyPress family, Cricut Mug Press, Cricut Hat Press, and Cricut Autopress, offers carefully calibrated companions for heat transfer vinyl projects such as personalized apparel or sublimated goods.

This line of heat presses replaces traditional irons and heat transfer tools

with products that deliver consistent, even, and precise control.

Our line of lighting products, which includes Cricut Bright in table and floor lamp options, and the popular Cricut BrightPad and BrightPad Go, illuminate surfaces and surroundings for easier crafting and creating.

Cricut materials give users peace of mind with a brand they trust for durability, selection, and compliance.

We sell a wide range of project materials including vinyl, iron-on vinyl, deluxe paper, and Infusible Ink (cuttable sublimation ink).

We sell a wide range of project materials including adhesive vinyl, iron-on vinyl, deluxe paper, and Infusible Ink (cuttable sublimation ink).

Machine and hand tools also support multiple forms of creativity, from fine point blades for vinyl and cardstock, to rotary blades for fabric, to knife blades for leather and softwood.

Handheld tools from scissors, to weeding tools, to glue, complete the Cricut ecosystem for a full-brand offering made for the discerning consumer.

We offer over 3,000 total SKUs within our Cricut extensions, accessories, and materials, ranging in price from a $0.99 a la carte image in Design Space to the $999.00 for Cricut Autopress.

Handheld tools from scissors, to weeding tools, to rulers, complete the Cricut ecosystem for a full-brand offering made for the discerning consumer.

We offer thousands of SKUs within our Cricut extensions, accessories, and materials, ranging in price from $1.99 to $999.00.

How We Go to Market

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With 87% of our users creating products for their friends and family, word-of-mouth marketing continues to be one of the most efficient and effective ways we attract new users.

In 2023, over 38% of new users first heard about Cricut through friends and family.

In 2024, 39% of new users first heard about Cricut through friends and family.

We also use digital and social media marketing to attract users.

We sell our connected machines, accessories, and materials globally through our brick-and-mortar and online retail partners, as well as through our website at cricut.com.

Our partners include major retailers such as Amazon, Best Buy, Costco, Hobby Lobby, HSN, Jo-Ann, Michaels, Target, and Walmart, along with many others.

Our partners include major retailers such as Amazon, Best Buy, Costco, Hobby Lobby, HSN, Michaels, Target, and Walmart, along with many others.

We also sell our products, including subscriptions to Cricut Access, on cricut.com.

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Finally, users can share their finished projects with the platform community, inspiring others and starting the process over again.

As of December 31, 2023, 44% of our users created on their connected machines in the last 90 days.

We Build Beautiful, Inspiring and Easy-to-Use Products.

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We Designed our Platform to Constantly Evolve so We Can Find New Ways to Delight Users.

We constantly innovate and offer new products and functionality to provide users with new capabilities for their existing connected machines.

New products are integrated seamlessly into existing connected machines with updates to our software, infrastructure, and content.

We constantly innovate and offer new features and improvements to existing ones to provide users with new capabilities for their existing connected machines.

New features are integrated seamlessly into existing connected machines with updates to our software, infrastructure, and content.

We continuously improve our software to address the unique needs our users have when crafting.

For example, in 2023, we launched Multi-Warp and Create Sticker, two ways of making the design and cutting process more efficient for our users.

In addition, we expanded the Contributing Artists Program, which launched in 2022, to more than 700 artists with over 580,000 contributed images in this short time.

For example, in 2024, we made significant improvements to our search algorithms, fonts experience, Print-then-Cut capabilities, and overall Software reliability.

We also introduced a new way to guide users on Canvas for the most popular project types our users make, and introduced an AI chatbot assistant.

In addition, we expanded the Contributing Artists Program, which launched in 2022, to well over 1 million images and expanded it to include easy-to-make projects.

We Have a Strong and Loyal Community of Users.

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Each project becomes an opportunity to create a conversation – our users share, inspire and teach each other.

Our community of over 8.9 million users as of December 31, 2023, creates a reinforcing network effect.

As the number of our users grow, so does the number of projects made and shared physically or digitally.

Our community of nearly 5.9 million Active Users as of December 31, 2024, creates a reinforcing network effect.

The number of projects made and shared physically or digitally continues

to grow over time.

This engagement generates even more shared projects and word-of-mouth that in turn helps to grow our community.

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Reach More Users.

As of December 31, 2023, we had over 8.9 million users, representing approximately 7% of the 129 million addressable active creatives in our SAM.

As of December 31, 2024, we had nearly 5.9 million Active Users, representing approximately 5% of the 129 million addressable active creatives in our SAM.

We have a significant opportunity to bring more users to our platform by enhancing our brand and product awareness in both the United States and Canada and in the other geographies where we currently sell our products.

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We believe there is a significant opportunity for Cricut to grow internationally.

We began our international expansion by launching in Australia, Canada, France, Germany and the United Kingdom, and subsequently launched in Latin America, Western Europe, and more recently most of Asia (including India, Japan, and South Korea).

We began our international expansion by launching in Australia, Canada, France, Germany and the United Kingdom, and subsequently launched in Latin America, Western Europe, META (Middle East, Turkey, and Africa), and more recently most of Asia (including India, Japan, and South Korea).

We have also localized our design app in each of the most commonly spoken languages in the countries we have entered.

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Servo motors in our connected machines operate with feedback control to ensure ultra-precise cutting and drawing paths are generated each time a user clicks “Make It.” The uniform heat plate technology in our EasyPress family of products allows our users to more evenly adhere iron-on vinyl and films onto T-shirts, totes, or tags.

The ability to control the amount of machine pressure used by Cricut Maker was an industry first in such a compact form factor, and it allows our users to not only cut thicker materials like matboard, leather and basswood but also to deboss heavy chipboard or engrave metal.

While assorted machine tools are required to create these decorative effects, our connected machines also have the capability to automatically detect

whether the proper tool is installed to safeguard proper operation and help our users achieve their desired effect.

ability to control the amount of machine pressure used by Cricut Maker was an industry first in such a compact form factor, and it allows our users to not only cut thicker materials like matboard, leather and basswood but also to deboss heavy chipboard or engrave metal.

While assorted machine tools are required to create these decorative effects, our connected machines also have the capability to automatically detect whether the proper tool is installed to safeguard proper operation and help our users achieve their desired effect.

• Cloud-Based Architecture Which Allows for Simplicity, Scalability and Security.

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Later, with the release of Cricut Maker, we further innovated by introducing our Adaptive Tool System, which deepens and enhances our connected machine movements by adding additional control from the drive housing itself.

Through the interlocking of gears with the machine carriage, our Adaptive Tool System (currently available only on Cricut Maker) can additionally lift and turn the blade during operation.

Through the interlocking of gears with the machine carriage, our Adaptive Tool System (currently available only on Cricut Maker family) can additionally lift and turn the blade during operation.

This third juncture point allows Cricut Maker to intelligently control the direction of the blade and cut pressure to match the material, enabling experiences like machine cutting fabric with a rotary blade or using our knife blade to machine cut thicker materials like matboard and basswood.

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By partnering with professional illustrators, project designers, and subject matter experts, both internally and externally, we create tailor-made content offerings that beautifully complement our platform.

Whether through the creation, acquisition or licensing of varied creative assets, our content teams then use a proprietary process to convert these images and projects into content specifically optimized to integrate with our connected machines and Cricut-branded accessories and materials seamlessly.

Whether through the creation, acquisition or licensing of varied creative assets, our content teams then use a proprietary process to convert these images and

projects into content specifically optimized to integrate with our connected machines and Cricut-branded accessories and materials seamlessly.

The output of this content lifecycle results in authentic, on-trend and high-quality images and projects we offer our users for à la carte purchase or as a part of our Cricut Access subscriptions.

As we diversify our content categories and further expand internationally, we will continue to

develop localized and meaningful content shaped to meet the language, needs and preferences of our growing global user base.

As we diversify our content categories and further expand internationally, we will continue to develop localized and meaningful content shaped to meet the language, needs and preferences of our growing global user base.

As our user base expands, demand for content is higher than ever.

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Collaborating with our hardware engineering and machine teams, our materials team launched a colorful array of newly designed pre-scored and pre-cut cardstock greeting cards, complete with decorative inserts and envelopes.

Utilizing a patent-pending card mat to hold these cards in place during operation, Cricut machines can cut and draw professional-looking handmade cards for any occasion while easily pulling from hundreds of ready-to-make greeting card projects in Design Space.

Utilizing a patented card mat to hold these cards in place during operation, Cricut machines can cut and draw professional-looking handmade cards for any occasion while easily pulling from hundreds of ready-to-make greeting card projects in Design Space.

This type of unified integration by and between our hardware, software, content and accessories and materials provides an outcome to our users with a value much greater than the sum of its individual parts.

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Our mission is to help people lead creative lives.

Our employees strive to support this mission by providing an innovative creativity platform that includes software, machines, materials, and tools to our users.

Our employees strive to support this mission by providing an innovative creativity platform that includes software, machines, materials, and tools for our users.

Much of our team are makers and crafters themselves and are engaged with our end-users.

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While support is primarily provided in the form of product donations, it also includes employees’ time in providing crafted projects.

The health and wellness of our employees and members remains a priority.

We continue to monitor and abide by local safety guidelines applicable to each Cricut facility.

The majority of Cricut employees operate on a hybrid model, working in-office 3+ days per week and working virtually the remainder of the week.

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These channel partners often have their own brands of products that we compete against, particularly in accessories and materials.

We also compete with well-established content providers, from free resources that enable users to access content that is compatible with our platform, to more specific content marketplaces, like Creative Fabrica and Etsy, where customers can purchase digital files to upload to our platform.

We also compete with well-established content providers, from free resources that enable users to access content that is compatible with our platform, to more specific content marketplaces, like Canva, Creative Fabrica, and Etsy, where customers can purchase digital files to upload to our platform.

We believe that our brand, technology, software, and content set us apart.

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The principal competitive factors that companies in our industry need to consider include but are not limited to total cost of product, manufacturing efficiency and supply chain management, product vision, product innovation, digital content (original and licensed), product quality and safety, pricing, user engagement, strength of sales and marketing efforts, technological advances and brand awareness and reputation.

We believe we compete favorably across these factors, and we have developed a business model that is difficult to replicate.

We believe we compete favorably across these factors.

For additional information, see the section titled “Risk Factors—Risks Related to Our Industry and Business.”

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Although we rely in part upon these legal and contractual protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements to our platform are larger contributors to our success in the market.

As of December 31, 2023, we had 61 issued patents in the United States, which are expected to expire at various times between May 4, 2024, and March 23, 2042, as well as 125 issued patents in non-U.S.

jurisdictions, which are expected to expire at various times between July 8, 2024, and December 19, 2048.

As of December 31, 2024, we had 78 issued patents in the United States, which are expected to expire at various times between January 4, 2025, and June 16, 2043, as well as 207 issued patents in non-U.S.

jurisdictions, which are expected to expire at various times between January 16, 2025, and December 19, 2048.

We also had 46 pending patent applications in the United States and 121 pending patent applications in non-U.S.

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We also have common law rights in some unregistered trademarks that were established over years of use.

As of December 31, 2023, we have a total of 17 registered trademarks in the United States and 75 registered trademarks in non-U.S.

As of December 31, 2024, we had a total of 18 registered trademarks in the

United States and 86 registered trademarks in non-U.S.

jurisdictions.

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Despite our efforts to protect our intellectual property rights, they may not be respected in the future or may be invalidated, circumvented, or challenged.

In addition, as we continue to expand internationally, the

laws of certain foreign countries may not protect our intellectual property rights to the same extent as laws in the United States.

In addition, as we continue to expand internationally, the laws of certain foreign countries may not protect our intellectual property rights to the same extent as laws in the United States.

We expect that infringement of our intellectual property may increase as the number of products and competitors in our market increases, and effective protection of intellectual property rights is expensive and difficult.

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Manufacturing, Supply Chain and Fulfillment

We currently outsource the manufacturing of our products to third-party contract manufacturers located primarily in Malaysia and China.

We currently outsource the manufacturing of our connected machines, accessories and materials to third-party contract manufacturers located primarily in Malaysia, China, Thailand and South Korea.

We believe outsourcing our manufacturing function promotes more flexibility and scalability in our operations.

We primarily use two contract manufacturers, with operations in Malaysia and China, to produce our connected machines, which are built based on our quality and performance standards and specifications.

Our contracts with our two primary contract manufacturers do not obligate them to supply our connected machines in any specific quantity or at any specific price and allow us to enter purchase orders with such manufacturers.

We use three contract manufacturers, with operations in Malaysia, to produce our connected machines, which are built based on our quality and performance standards and specifications.

Our contracts with our three contract manufacturers do not obligate them to supply our connected machines in any specific quantity or at any specific price and allow us to enter purchase orders with such manufacturers.

Our contract manufacturers procure from approved third-party suppliers a majority of the components (measured by spend) that are used in the production of our products.

We also secure long-lead-time component supply directly from suppliers on a purchase order basis.

Our contract manufacturers then procure these components from our suppliers within the lead times provided by our finished goods purchase orders based on component allocations that we control.

During times of supply shortage, we have in the past and may again in the future, secure long-lead-time component supply directly from suppliers on a purchase order basis.

Our contract manufacturers procure these components from us within the lead times provided by our finished goods purchase orders based on component allocations that we control.

We also hold long lead-time electronic component inventories in contracted warehouses in Asia as a mitigation measure against shortages.

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These components have unique performance profiles, and, as a result, it is not commercially practical to support multiple sources for these components for our products.

To streamline e-commerce logistics, inventory management, warehousing and fulfillment, we engage a small number of third-party logistics partners, including last mile warehousing and delivery partners, located in the United States, China, Europe, and Australia to receive and distribute our products.

To streamline logistics, inventory management, warehousing and fulfillment, we engage a small number of third-party logistics partners, including last mile warehousing and delivery partners, located in the United States, China, Europe, and Australia to receive and distribute our products.

Our third-party logistics partners complete a substantial percentage of our deliveries to brick-and-mortar and online retail partners, distributors, and online sales channels.

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Direct shipments to users are then typically ground shipped for U.S.

users and air- or ocean-freighted for our international users.

Most brick-and-mortar and online retail partners and distributors generally use their own freight carriers for shipments from our third-party logistics partner facilities.

users and ground- or ocean-freighted for our international users.

As we grow and scale, we continue to evaluate and assess the need for existing and new manufacturers, suppliers, and partners.

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In 2023, 62%, and in 2024, 65% of our revenue was generated through online channels, respectively.

Our sales and channels team located in the United States support both the onboarding of new brick-and-mortar and online retail partners as well as account management of existing brick-and-mortar and online retail partners.

We also have an international sales and marketing force in the United Kingdom, Australia, across Western Europe, South Africa, Middle East, Singapore, Mexico, and Brazil, to drive sales and whose reach

spans into many jurisdictions across the globe.

Our sales and channels team located in the United States support both the onboarding of

new brick-and-mortar and online retail partners as well as account management of existing brick-and-mortar and online retail partners.

We continue to grow our revenues within our international markets and in 2023 20%, and in 2024 22% of our overall revenue came from our international business.

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• Specialized Craft Retailers.

We sell to specialized arts and crafts supply retailers with large regional or national presence, such as Hobby Lobby, Hobbycraft, Jo-Ann, and Michaels.

We sell to specialized arts and crafts supply retailers with large regional or national presence, such as Hobby Lobby, Hobbycraft, Michaels, and Cultura.

• National Retailers.

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We sell to a network of smaller, independent retailers in targeted locations or in specialty markets.

Each of Jo-Ann, Michaels, and Walmart represented 10% or more of our consolidated revenue in the year ended December 31, 2021.

As of December 31, 2023 and December 31, 2024 we did not have any customers that represented 10% or more of our consolidated revenue.

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Similarly, other jurisdictions are instituting privacy and data protection and information security laws, rules, and regulations, which could increase our risk and compliance costs.

The California Consumer Privacy Act of 2018, or CCPA, and its implementing regulations also affords consumers expanded privacy protections and may add additional requirements on businesses.

The potential effects of the CCPA and its regulations are far-reaching and may require us to modify our data processing practices and policies and to incur substantial costs and expenses in an effort to comply.

For example, the CCPA gives California residents expanded rights to access and deletion of their personal information, to opt out of certain personal information sharing and to receive detailed information about how their personal information is collected and used.

The CCPA also provides for civil penalties for violations, as well as a private right of action for certain data breaches that may increase data breach litigation.

Additionally, in November 2020, California passed the California Privacy Rights Act, or CPRA, which amended and significantly modified the CCPA, potentially resulting in further uncertainty and requiring us to incur additional costs and expenses in efforts to comply.

Similar legislative developments in other states have been enacted or proposed.

For example, Virginia, Colorado, Utah, and Connecticut have each passed laws similar to but different from the CCPA and CPRA that have taken effect in 2023;

Florida, Montana, Oregon/ and Texas have enacted similar laws that go into effect in 2024;

Tennessee, Delaware, and Iowa have enacted similar laws that go into effect in 2025;

and Indiana has enacted a similar law that will go into effect in 2026.

The United Kingdom has also adopted a version of the GDPR (combining the GDPR and the Data Protection Act 2018), each of which potentially authorizes similar fines and other potentially divergent enforcement actions.

Furthermore, there will be increasing scope for divergence in application, interpretation and enforcement of data protection law between the United Kingdom and the EU.

We continue to monitor and review the impact of any resulting changes to EU or United Kingdom law that could affect our operations, which could also increase our risk and compliance costs.

The California Consumer Privacy Act, or CCPA,became effective in January 2020 and was subsequently amended by the California Privacy Rights Act.

CCPA gives California residents various rights with regard to their personal information, including to access and delete their personal information, to opt out of certain sales and sharing of personal information, and to receive detailed information about how their personal information is collected and used.

The CCPA also provides for civil penalties for violations, as well as a private right of action for certain data breaches that result in the loss of personal information.

Similar legislative developments in numerous other states also have been enacted or proposed.

Federal privacy legislation also has been proposed.

These developments create the potential for a patchwork of overlapping but different laws.

These developments create the potential for a patchwork of overlapping but different laws, and increase our risk and compliance costs.

Further, some countries also are considering or have passed legislation requiring local storage and processing of data, or similar requirements, which could increase the cost and complexity of operating our products and services and other aspects of our business.

Additionally, we are subject to laws, rules, and regulations regarding cross-border transfers of personal data, including laws relating to the transfer of personal data outside the European Economic Area, or EEA, and the United Kingdom (after Brexit).

We rely on transfer mechanisms permitted under these laws, including the standard contract clauses, which have been subject to regulatory and judicial scrutiny.

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business