42 unchanged sentences
If the Company is not able to hire and retain its executives and key personnel, or if the compensation costs required to attract and retain such individuals becomes more expensive, the Company may suffer adverse consequences to its business, operations, and financial condition.
−Removed: The Company is currently transitioning to a new Chief Executive Officer and will soon commence the process of onboarding a new Chief Executive Officer, which may result in some disruption to the Company.
−Removed: In August, 2024, the Company announced that Mr.
−Removed: intended to retire as the Company’s Chief Executive Officer and President effective upon the commencement of employment by his successor.
−Removed: On February 6, 2025, the Company announced that it has hired Mr.
−Removed: Armin Boehm as the Company’s new Chief Executive Officer and President effective as of April 1, 2025.
−Removed: This transition in executive management may result in some changes and/or disruptions to the Company’s ordinary course of operations.
−Removed: Additionally, the process of onboarding a new Chief Executive Officer requires substantial effort and time of the Company’s Board of Directors and of other Company executives, which may divert attention from other matters.
+Added: The Company is currently transitioning to a new Interim Chief Executive Officer which may result in some disruption to the Company.
+Added: On October 30, 2025, the Company announced the appointment of an Interim President and Chief Executive Officer and the immediate departure of its prior President and Chief Executive Officer.
+Added: Both changes were effective as of October 29, 2025.
+Added: This change in executive management may result in some changes and/or disruptions to the Company’s ordinary course of operations.
+Added: Additionally, the transition to a new Chief Executive Officer requires substantial effort and time of the Company’s Board of Directors and of other Company executives, which may divert attention from other matters.
+Added: The change in Chief Executive Officer may also give rise to questions, concerns and/or other risks among investors, customers, suppliers and/or employees.
The Company derives a substantial portion of its revenue from a few significant customers and loss of any of these customers could materially affect our results of operations and financial condition.
−Removed: The Company has two major customers, each of which accounted for more than ten percent of consolidated gross sales in the Company’s 2024 fiscal year.
+Added: The Company has two major customers, each of which accounted for more than ten percent, and together accounted for thirty percent, of consolidated gross sales in the Company’s 2025 fiscal year.
The Company also has several other large customers, none of which represent more than ten percent of consolidated gross sales, and historically has derived substantial revenues from these customers.
58 unchanged sentences
During the course of an investigation, the Company may not necessarily know the full effects of the incident or how to remediate it, and actions and decisions that are taken or made in an effort to mitigate risk may further increase the costs and other negative consequences of the incident.
+Added: The use of artificial intelligence poses risks that could adversely impact our business.
+Added: We are beginning to incorporate the use of artificial intelligence tools into our business processes and anticipate that we and our competitors may expand the use of these technologies.
+Added: We may have to expend significant time and resources to develop and implement artificial intelligence into our processes.
+Added: If our use of artificial intelligence yields results that are incomplete, inaccurate, biased, controversial, or otherwise deficient, we may face legal liability, reputational harm, or other adverse consequences.
+Added: We may also incur increased costs and face potential liability due to evolving legal and regulatory standards governing the use of artificial intelligence.
+Added: Additionally, we may face competitive disadvantages if we do not match our competitors development and use of artificial intelligence.
The Company ’ s business involves the potential for product recalls, warranty liability, product liability, and other claims against us, which could adversely affect our reputation, earnings and financial condition.
59 unchanged sentences
Our import operations are subject to complex custom laws, regulations, tax requirements, and trade regulations, such as tariffs set by governments through mutual agreements or bilateral actions.
−Removed: tariffs on goods imported into the U.S., particularly goods from China, result in increased costs of goods purchased by the Company, which in turn may result in lower profitability if we are unable to offset such increases through higher prices, and/or that we may suffer a decline in sales if our customers do not accept price increases.
−Removed: Tariffs imposed and/or publicly contemplated by the U.S.
−Removed: government in the first quarter of 2025, particularly as to China, Mexico and Canada, create significant uncertainty with respect to future tax and trade regulations and the potential competitive effects of such actions.
−Removed: The countries in which our products are manufactured or imported may from time to time impose additional quotas, duties, tariffs or other restrictions on our imports or adversely modify existing restrictions.
+Added: tariffs on goods imported into the U.S., particularly goods from China, have resulted in increased costs of goods purchased by the Company, which in turn may result in lower profitability if we are unable to offset such increases through higher prices, and/or that we may suffer a decline in sales if our customers do not accept price increases.
+Added: Additionally, the U.S.
+Added: government’s tariff policies, particularly as to China, Mexico and Canada, have fluctuated over the past year and created significant uncertainty with respect to future tax and trade regulations and the potential competitive effects of such actions.
+Added: The countries in which our products are manufactured or imported have imposed and may again in the future impose additional quotas, duties, tariffs or other restrictions on our imports or adversely modify existing restrictions.
It is unclear what the U.S.
−Removed: administration or foreign governments specifically will or will not do with respect to tariffs, tax policies, or other international trade agreements, regulations and policies.
+Added: administration or foreign governments specifically will or will not do with respect to tariffs, tax policies, or other international trade agreements, regulations and policies in the long term.
A trade war, other governmental action related to tariffs or international trade agreements, changes in U.S.
3 unchanged sentences
The Company also has a wholly-owned Chinese subsidiary that facilitates the Company’s sourcing operations in China.
−Removed: As a result, the Company’s business is subject to risks associated with doing business in China including, but not limited to, political and social conditions, conflicts between Chin and the U.S., existing and future laws, regulations and policies, state ownership of and/or control or influence over certain companies and industries, protection of intellectual property rights and uncertainties associated with enforcing contractual obligations and laws.
+Added: As a result, the Company’s business is subject to risks associated with doing business in China including, but not limited to, political and social conditions, conflicts between China and the U.S., existing and future laws, regulations and policies, state ownership of and/or control or influence over certain companies and industries, protection of intellectual property rights and uncertainties associated with enforcing contractual obligations and laws.
In addition, there are U.S.
8 unchanged sentences
LEGAL, TAX, ACCOUNTING AND REGULATORY RISKS
−Removed: The Company identified material weaknesses in its internal control over financial reporting as of December 31, 2023.
−Removed: Failure to remediate the material weakness remaining as of December 31, 2024, could result in material misstatements in the Company ’ s financial statements and could materially and adversely affect the Company ’ s ability to provide timely and accurate financial information about the Company, which could harm the Company ’ s reputation and share price.
−Removed: Pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, as amended, the Company’s management is required to report on, and the Company’s independent registered public accounting firm is required to attest to, the effectiveness of the Company’s internal control over financial reporting.
−Removed: The rules governing the standards that must be met for management to assess the Company’s internal control over financial reporting are complex and require significant documentation, testing and possible remediation.
−Removed: Annually, the Company’s management performs activities that include reviewing, documenting and testing the Company’s internal control over financial reporting.
−Removed: In addition, if the Company fails to maintain the adequacy of its internal control over financial reporting, the Company’s management will not be able to conclude on an ongoing basis that the Company maintains effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002.
−Removed: In connection with the preparation of the financial statements for the year ended December 31, 2023, management, with the assistance of its independent registered public accounting firm, identified deficiencies in the Company’s internal control over financial reporting.
−Removed: Management then concluded, with the oversight of the Company’s Audit Committee, that such deficiencies represent material weakness in the Company’s internal control over financial reporting even though these material weaknesses did not result in any material errors or any restatement of the Company’s previously reported financial results.
−Removed: For further discussion of these material weaknesses, see “Item 9A, Controls and Procedures.” A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis.
−Removed: Management cannot be certain that other deficiencies or material weaknesses will not arise or be identified or that the Company will be able to correct and maintain adequate controls over financial processes and reporting in the future.
−Removed: Management and the Company’s Audit Committee are committed to achieving and maintaining a strong internal control environment.
−Removed: The Company believes it has successfully remediated all but one of the previously identified material weaknesses.
−Removed: The Company is continuing its remediation efforts as to the remaining material weakness and believes that such actions will be successful, although there can be no assurances in this regard.
−Removed: In addition, in the future, the Company may be unable to identify and remediate additional control deficiencies, including material weaknesses.
−Removed: If not successfully remediated, the Company’s failure to establish and maintain effective disclosure controls and procedures and internal control over financial reporting could result in material misstatements in, or restatements of, the Company’s financial statements, could cause the Company to fail to meet its reporting obligations and/or could cause investors to lose confidence in the Company’s reported financial information, which could adversely affect the trading price of the Company’s common stock and harm the Company’s reputation.
−Removed: In addition, such failures could result in violations of applicable securities laws, an inability to meet NASDAQ listing requirements, a default in covenants under the Company’s credit facilities, and/or exposure to lawsuits, investigations or other legal proceedings.
The Company is subject to risks associated with laws and regulations related to health, safety, climate change and environmental, social and governance matters.
31 unchanged sentences
We cannot predict economic downturns or how robust the economy may be nor whether such downturns or growth will be sustained.
−Removed: If economic recovery is slow to occur, or if the economy experiences a prolonged period of decelerating or negative growth, the Company’s results of operations may be negatively impacted.
+Added: If economic growth is slow to occur, or if the economy experiences a prolonged period of decelerating or negative growth, the Company’s results of operations may be negatively impacted.
In general, the Company’s sales depend on discretionary spending by consumers.
56 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.