What changed in this filing

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Item 1A. Risk Factors

2021-08-06 compared with 2020-08-24 · 734 added, 1150 removed, 106 unchanged (95% of the section changed)

should carefully consider the risks described below and other information in this prospectus, including the financial statements

and related notes that appear at the end of this prospectus, before deciding to invest in our securities.

should carefully consider the risks described below and other information in this Annual Report on Form 10-K, including the financial

statements and related notes that appear at the end of this report, before deciding to invest in our securities.

These risks should be

considered in conjunction with any other information included herein, including in conjunction with forward-looking statements

If any of the following risks actually occur, they could materially adversely affect our business, financial condition,

operating results or prospects.

Additional risks and uncertainties that we do not presently know or that we currently deem immaterial

may also impair our business, financial condition, operating results and prospects.

In such case, the trading price of our common

stock could decline and you could lose all or part of your investment.

considered in conjunction with any other information included herein, including in conjunction with forward-looking statements made herein.

If any of the following risks actually occur, they could materially adversely affect our business, financial condition and operating

Additional risks and uncertainties that we do not presently know or that we currently deem immaterial may also impair our business,

financial condition and operating results.

The following discussion of risks is not all-inclusive but is designed to highlight what

we believe are the material factors to consider when evaluating our business and expectations.

These factors could cause our future results

to differ materially from our historical results and from expectations reflected in forward-looking statements.

Related to Our Business

business is sensitive to consumer spending and general economic conditions.

purchases of discretionary premium sporting good items, which include all of our products, may be adversely affected by the current

Coronavirus pandemic, as well as economic conditions such as employment levels, wage and salary levels, trends in consumer confidence

and spending, reductions in consumer net worth, interest rates, inflation, the availability of consumer credit and taxation policies

influence public spending confidence.

Recent dramatic downturns in the strength of global stock markets, currencies and key economies

have highlighted many if not all of these risks.

purchases in general may decline during recessions, periods of prolonged declines in the equity markets or housing markets and

periods when disposable income and perceptions of consumer wealth are lower, and these risks may be exacerbated for us due to

our focus on discretionary premium items.

A downturn in the global economy, or in a regional economy in which we have significant

sales, could have a material, adverse effect on consumer purchases of our products, our results of operations and our financial

position, and a downturn adversely affecting our affluent consumer base or travelers could have a disproportionate impact on our

continues to be a significant and growing volatility and uncertainty in the global economy due to the coronavirus or covid-19

(“Coronavirus”) pandemic affecting all business sectors and industries.

In addition, the on-going uncertainty in Europe

(including concerns that certain European countries may default in payments due on their national debt and concerns regarding

the future viability of the European Union and the possible effects of its unraveling) and any resulting disruption could adversely

impact our net sales in Europe and globally unless and until economic conditions in that region improve and the prospects of national

debt defaults in Europe decline.

Further or future downturns may adversely affect traffic at our on-line sales portals (which

currently includes our own website www.slingerbag.com) and could materially and adversely affect our results of operations, financial

position and growth strategy.

the current impasse in USA-China trade relations has resulted in import duties for all Slinger products into the USA being increased

from the previous standard of 5% to 30%.

Management has taken the view that at this time in the early years of Slinger growth,

gaining distribution and share outweighs the immediate margin consideration and has decided to take the added increase in import

tariffs as a margin loss.

rely on independent manufacturers and suppliers.

outsource the manufacture and assembly of all our products to companies located in China.

We do not control our independent manufacturers

and suppliers or their labor and other business practices.

Violations of labor, environmental or other laws by an independent

manufacturer or supplier, or divergence of an independent manufacturer’s or supplier’s labor or other practices from

those generally accepted as ethical or appropriate in the U.S., could disrupt the shipments of our products or draw negative publicity

for us, thereby diminishing the value of our brand, reducing demand for our products and adversely affecting our net income.

Additionally,

since we do not manufacture our products, we are subject to risks associated with inventory and product quality-control.

events, such as the outbreak of Coronavirus in China during the Chinese New Year holidays resulted in material delays in the production

of our products.

This resulted in a three-month delay in our production.

Further delays may be forthcoming should Coronavirus

spike for a second time in Asia or otherwise.

purchases of discretionary premium sporting good items, which include all of our products, may be adversely affected by the current COVID-19

(“Coronavirus”) pandemic, as well as economic conditions such as employment levels, wage and salary levels, trends in

consumer confidence and spending, reductions in consumer net worth, interest rates, inflation, the availability of consumer credit and

taxation policies influence on public spending confidence.

Recent dramatic downturns in the strength of global stock markets, currencies

and key economies have highlighted many if not all, of these risks.

purchases in general may decline during recessions, periods of prolonged declines in the equity markets or housing markets and periods

when disposable income and perceptions of consumer wealth are lower, and these risks may be exacerbated for us due to our focus on discretionary

premium sporting good items.

A downturn in the global economy, or in a regional economy in which we have significant sales, could

have a material, adverse effect on consumer purchases of our products, our results of operations and our financial position, and a downturn

adversely affecting our consumer base or travelers could have a disproportionate impact on our business.

continues to be a significant and growing volatility and uncertainty in the global economy due to the Coronavirus pandemic affecting

all business sectors and industries.

In addition, the on-going uncertainty in Europe (including concerns that certain European countries

may default in payments due on their national debt and concerns regarding the future viability of the European Union and the possible

effects of its unraveling) and any resulting disruption could adversely impact our net sales in Europe and globally unless and until

economic conditions in that region improve and the prospects of national debt defaults in Europe decline.

Further or future downturns

may adversely affect traffic at our on-line sales portals (which currently includes our own website www.slingerbag.com ) and could

materially and adversely affect our results of operations, financial position and growth strategy.

the current impasse in U.S.-China trade relations has resulted in import duties for all Slinger products into the U.S.

being increased from the previous standard of 5% to 30%.

Our management has taken the view that at this time in the early years

of Slinger’s growth, gaining distribution and share outweighs the immediate margin consideration and has decided to take

the added increase in import tariffs as a margin loss.

manufacturing takes place in China and, therefore, is susceptible to shutdowns and delays caused by Coronavirus and other diseases and

Additionally, we rely on independent manufacturers and suppliers.

at the date hereof, our sole manufacturing facilities are located in southern China.

Following the outbreak of the Coronavirus our manufacturing

facility was shut down for three months, which caused significant delays in manufacturing and delivery of our products.

However, there

may be further outbreaks of Coronavirus and other diseases and epidemics, which may cause further delays and shutdowns.

This, in turn,

will negatively affect our revenue and increase our expenses and costs.

do not control our independent manufacturers and suppliers or their labor and other business practices.

Violations of labor, environmental

or other laws by an independent manufacturer or supplier, or divergence of an independent manufacturer’s or supplier’s labor

or other practices from those generally accepted as ethical or appropriate in the U.S., could disrupt the shipments of our products or

draw negative publicity for us, thereby diminishing the value of our brand, reducing demand for our products and adversely affecting

our net income.

Additionally, since we do not manufacture our products, we are subject to risks associated with inventory and product

quality-control.

we have not historically entered into manufacturing contracts with our manufacturers;

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While we have business continuity

and contingency plans for alternative sourcing, we may be unable, in the event of a significant disruption in our sourcing, to

locate alternative manufacturers or suppliers of comparable quality at an acceptable price, or at all, which could result in product

shortages or decreases in product quality, and adversely affect our net sales, gross margin, net income, customer relationships

and our reputation.

and contingency plans for alternative sourcing, we may be unable, in the event of a significant disruption in our sourcing, to locate

alternative manufacturers or suppliers of comparable quality at an acceptable price, or at all, which could result in product shortages

or decreases in product quality, and adversely affect our net sales, gross margin, net income, customer relationships and our reputation.

depend on the strength of the Slinger®

expect to derive substantially all of our net sales from sales of Slinger branded products.

The reputation and integrity of the

Slinger brand are essential to the success of our business.

We believe that our consumers value the status and reputation of the

Slinger brand, and the superior quality, performance, functionality and durability that our brand represents.

Building, maintaining

and enhancing the status and reputation of the Slinger brand image are also important to expanding our consumer base.

Our continued

success and growth depend on our ability to protect and promote the Slinger brand, which, in turn, depends on factors such as

the quality, performance, functionality and durability of our products, our communication activities, including advertising and

public relations, and our management of the consumer experience, including direct interfaces through customer service and warranty

We may need to make substantial investments in these areas in order to maintain and enhance our brand, and such investments

may not be successful.

The reputation and integrity of the Slinger

brand are essential to the success of our business.

We believe that our consumers value the status and reputation of the Slinger brand,

and the superior quality, performance, functionality and durability that our brand represents.

Building, maintaining and enhancing the

status and reputation of the Slinger brand image is important to expanding our consumer base.

Our continued success and growth

depend on our ability to protect and promote the Slinger brand, which, in turn, depends on factors such as the quality, performance,

functionality and durability of our products, our communication activities, including advertising and public relations, and our management

of the consumer experience, including direct interfaces through customer service and warranty repairs.

We may decide to make substantial

investments in these areas in order to maintain and enhance our brand, and such investments may not be successful.

Additionally,

in order to expand our reach in the future, we may need to engage with third-party distributors.

To the extent those third-party

distributors fail to comply with our operating guidelines, we may not be successful in protecting our brand image.

Product defects,

product recalls, counterfeit products and ineffective marketing are among the potential threats to the strength of our brand,

and to protect our brand’s status, we may need to make substantial expenditures to mitigate the impact of such threats.

addition, if we fail to continue to innovate to ensure that our products are deemed to achieve superior levels of function, quality

and design, or to otherwise be sufficiently distinguishable from our competitors’

products, or if we fail to manage the

growth of our on-line sales in a way that protects the high-end nature of our brand, the value of the Slinger brand may be diluted,

and we may not be able to maintain our premium position and pricing or sales volumes, which could adversely affect our financial

performance and business.

In addition, we believe that maintaining and enhancing our brand image in new markets where we have

limited brand recognition is important to expanding our consumer base.

If we are unable to maintain or enhance our brand in new

markets, then our growth strategy could be adversely affected.

cost of raw materials, labor or freight could lead to an increase in our cost of sales and cause our results of operations to

costs for raw materials (due to limited availability or otherwise), labor or freight could make our sourcing processes more costly

and negatively affect our gross margin and profitability.

To the extent those third-party distributors

fail to comply with our operating guidelines, we may not be successful in protecting our brand image.

Product defects, product recalls,

counterfeit products and ineffective marketing are among the potential threats to the strength of our brand and to protect our brand’s

status we may need to make substantial expenditures to mitigate the impact of such threats.

if we fail to continue to innovate to ensure that our products are

deemed to achieve superior levels of function, quality and design, or to otherwise be sufficiently distinguishable from our competitors’

products, or if we fail to manage the growth of our on-line sales in a way that protects the high-end nature of our brand, the value

of the Slinger brand may be diluted, and we may not be able to maintain our premium position and pricing or sales volumes, which could

adversely affect our financial performance and business.

We believe that maintaining and enhancing our brand image in new markets

where we have limited brand recognition is important to expanding our consumer base.

If we are unable to maintain or enhance our brand

in new markets, then our growth strategy could be adversely affected.

cost of raw materials, labor or freight could lead to an increase in our cost of sales and cause our results of operations to suffer .

costs for raw materials, labor or freight could make our sourcing processes more costly and negatively affect our gross margin and profitability.

Labor costs at our independent manufacturers’

sites have been

increasing and it is unlikely that these increases will abate.

Wage and price inflation in our source countries could cause unanticipated

price increases which may be significant.

Such price increases by our independent manufacturers could be rapid in the absence

of manufacturing contracts.

Energy costs have fluctuated dramatically in the past and may fluctuate in the future.

Rising energy

costs may increase our costs of transporting our products for distribution, our utility costs in our offices and owned stores

sites have been increasing and it is unlikely that these increases will abate.

and price inflation in our source countries could cause unanticipated price increases, which may be significant.

Such price increases

by our independent manufacturers could be rapid in the absence of manufacturing contracts.

Energy costs have fluctuated dramatically

in the past and may fluctuate in the future.

Rising energy costs may increase our costs of transporting our products for distribution

and the costs of products that we source from independent suppliers.

Further, many of our products are made of materials, such

as high impact plastics, plastic-injected molded parts, and lightweight high tensile strength metals, that are either petroleum-based

or require energy to construct and transport.

Costs for transportation of such materials have been increasing as the price of

petroleum increases.

Our independent suppliers and manufacturers may attempt to pass these cost increases on to us, and our relationships

with them may be harmed or lost if we refuse to pay such increases, which could lead to product shortages.

If we pay such increases,

we may not be able to offset them through increases in our pricing and other means, which could adversely affect our ability to

maintain our targeted gross margins.

Further, many of our products are made of materials, such as high

impact plastics, plastic-injected molded parts, and lightweight high tensile strength metals, that are either petroleum-based or require

energy to construct and transport.

Costs for transportation of such materials have been increasing as the price of petroleum increases.

Our independent suppliers and manufacturers may attempt to pass these cost increases on to us, and our relationships with them may be

harmed or lost if we refuse to pay such increases, which could lead to product shortages.

If we pay such increases, we may not be able

to offset them through increases in our pricing and other means, which could adversely affect our ability to maintain our targeted gross

If we attempt to pass the increases on to consumers, our sales may be adversely affected.

to adequately protect our intellectual property and curb the sale of counterfeit merchandise could injure the brand and negatively

affect sales.

trademarks, copyrights, patents, designs and other intellectual property rights are important to our success and our competitive

to adequately protect our intellectual property and curb the sale of counterfeit merchandise could injure our brand and negatively

affect our sales.

trademarks, copyrights, patents, designs and other intellectual property rights are important to our success and our competitive position.

We devote significant resources to the registration and protection of our trademarks and patents.

In spite of our efforts,

counterfeiting and design copies still occur.

If we are unsuccessful in challenging the usurpation of these rights by third parties,

this could adversely affect our future sales, financial condition, and results of operations.

Our efforts to enforce our intellectual

property rights can potentially be met with defenses and counterclaims attacking the validity and enforceability of our intellectual

property rights.

Unplanned increases in legal fees and other costs associated with protecting our intellectual property rights

could result in higher operating expenses.

Additionally, legal regimes outside the United States, particularly those in Asia,

including China, may not always protect intellectual property rights to the same degree as U.S.

laws, or the time required to

enforce our intellectual property rights under these legal regimes may be lengthy and delay recovery.

may become subject to claims for remuneration or royalties for assigned service invention rights by our employees, which could

result in litigation and adversely affect our business.

significant portion of our intellectual property has been developed by our employees, or outside consultants in the course

of their employment or retention with us.

Under the Israeli Patent Law, 5727-1967, or the Patent Law, inventions conceived

by an employee during the scope of his or her employment with a company are regarded as “service inventions.”

Israeli Compensation and Royalties Committee, or the Committee, a body constituted under the Patent Law, has previously held,

in certain cases, that employees may be entitled to remuneration for service inventions that they develop during their service

for a company despite their explicit waiver of such right.

Therefore, although we enter into agreements with all of our employees

pursuant to which they waive their right to special remuneration for service inventions created in the scope of their employment

or engagement and agree that any such inventions are owned exclusively by us, we may face claims by employees demanding remuneration

beyond their regular salary and benefits.

In spite of our efforts, counterfeiting

and design copies may still occur.

If we are unsuccessful in challenging the usurpation of these rights by third parties, this

could adversely affect our future sales, financial condition and results of operations.

Our efforts to enforce our intellectual property

rights can potentially be met with defenses and counterclaims attacking the validity and enforceability of our intellectual property

Unplanned increases in legal fees and other costs associated with protecting our intellectual property rights could result in

higher operating expenses.

Additionally, legal regimes outside the U.S., particularly those in Asia, including China, may not

always protect intellectual property rights to the same degree as U.S.

laws, or the time required to enforce our intellectual property

rights under these legal regimes may be lengthy and delay our recovery.

may become subject to claims for remuneration or royalties for assigned service invention rights by our employees, which could result

in litigation and adversely affect our business.

significant portion of our intellectual property has been developed by our employees, or outside consultants in the course of their employment

or retention with us.

Under the Israeli Patent Law, 5727-1967, or the Patent Law, inventions conceived by an employee during the scope

of his or her employment with a company are regarded as “service inventions.”

The Israeli Compensation and Royalties Committee,

or the Committee, a body constituted under the Patent Law, has previously held, in certain cases, that employees may be entitled to remuneration

for service inventions that they develop during their service for a company despite their explicit waiver of such right.

Therefore, although

we enter into agreements with all of our employees pursuant to which they waive their right to special remuneration for service inventions

created in the scope of their employment or engagement and agree that any such inventions are owned exclusively by us, we may face claims

by employees demanding remuneration beyond their regular salary and benefits.

face risks associated with operating in international markets.

operate in a global marketplace.

In addition, international sales growth is a key element of our growth strategy.

We are subject

to risks associated with our international operations, including:

currency exchange rates;

operate in a global marketplace and international sales growth is a key element of our growth strategy.

We are subject to risks

associated with our international operations, including, but not limited to:

currency exchange rates, including GBP;

or governmental instability in foreign markets in which we operate or in those countries from which we source our merchandise;

or legal uncertainty (including with respect to enforcement of intellectual property rights) in countries with less developed

legal systems in which we operate;

changes in trade relations between the United States (which we see as our principal market) and China (where our manufacturing

changes in laws, regulatory requirements, taxes or trade laws;

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of war, terrorist attacks, outbreaks of contagious disease and other events over which we have no control;

in foreign or domestic legal and regulatory requirements resulting in the imposition of new or more onerous trade restrictions,

tariffs, duties, taxes, embargoes, exchange or other government controls.

in foreign or domestic legal and regulatory requirements resulting in the imposition of new or more onerous trade restrictions, tariffs,

duties, taxes, embargoes, exchange or other government controls.

of these risks could have an adverse impact on our results of operations, financial position or growth strategy.

some of our international operations are conducted in parts of the world that experience corruption to some degree.

have policies and procedures in place that are designed to promote legal and regulatory compliance (including with respect to

Foreign Corrupt Practices Act and the United Kingdom Bribery Act 2010), our employees and wholesalers could take actions

that violate applicable anti-corruption laws or regulations.

Violations of these laws, or allegations of such violations, could

have an adverse impact on our reputation, our results of operations or our financial position.

future revenue may be derived from abroad, including outside of the United States.

As a result, our business and share price may

be affected by fluctuations in foreign exchange rates with these other currencies, which may also have a significant impact on

our reported results of operations and cash flows from period to period.

Currently, we do not have any exchange rate hedging arrangements

exchange movements may also negatively affect the relative purchasing power of foreign tourists and result in declines in travel

volumes or their willingness to purchase discretionary premium goods, such as our products, while traveling, which would adversely

affect our net sales.

Furthermore, some of

our international operations are conducted in parts of the world that experience corruption to some degree.

Although we have policies

and procedures in place that are designed to promote legal and regulatory compliance (including with respect to the U.S.

Foreign Corrupt

Practices Act and the United Kingdom Bribery Act 2010), our employees and wholesalers could take actions that violate applicable anti-corruption

laws or regulations.

Violations of these laws, or allegations of such violations, could have an adverse impact on our reputation, our

results of operations or our financial position.

exchange movements may also negatively affect the relative purchasing power of foreign tourists and result in declines in travel volumes

or their willingness to purchase discretionary premium goods, such as our products, while traveling, which would adversely affect our

We do not currently use the derivative markets to hedge foreign currency fluctuations.

results of operations are subject to seasonal and quarterly fluctuations, which could adversely affect the market price of our

common stock.

quarterly results of operations may fluctuate significantly as a result of a variety of factors, including:

results of operations are subject to seasonal and quarterly fluctuations, which could adversely affect the market price of our common

quarterly results of operations may fluctuate significantly as a result of a variety of factors, including, but not limited to:

in the number of our points of distribution;

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timing of new product introductions.

growth of our business depends on the successful execution of our growth strategy, including our efforts to expand internationally

by growing our e-commerce business.

current growth strategy depends on our ability to continue to expand geographically in a number of international regions including

Asia, Europe and North America, China, Japan, South Korea, Middle East, India, South Africa and Australia.

These arrangements

are contingent upon our ability to continually introduce our products to new markets.

The implementation of higher tariffs, quotas

or other restrictive trade policies in any international regions in which we seek to operate could adversely affect our ability

to commence new, international operations, which could have an adverse impact on our growth strategy.

Further, consumer demand

behavior, as well as tastes and purchasing trends, may differ in various countries and, as a result, sales of our products may

not be, or may take time to become, successful, and gross margins on those net sales may not be in line with what we currently

Our ability to execute our international growth strategy, especially where we are not yet established, depends on

our ability to appreciate regional market demographics, and we may not be able to do so.

If our international expansion plans

are unsuccessful, our growth strategy and our financial results could be materially adversely affected.

growth of our business depends on the successful execution of our growth strategy, including our efforts to expand internationally by

growing our e-commerce business.

current growth strategy depends on our ability to continue to expand geographically in a number of international regions including Asia,

Europe, North America, China, Japan, South Korea, Middle East, India, South Africa and Australia.

This growth strategy is

contingent upon our ability to continually introduce our products to new markets.

The implementation of higher tariffs, quotas or other

restrictive trade policies in any international regions in which we seek to operate could adversely affect our ability to commence new

international operations, which could have an adverse impact on our growth strategy.

Further, consumer demand behavior, as well as tastes

and purchasing trends, may differ in various countries and, as a result, sales of our products may not be, or may take time to become,

successful, and gross margins on those net sales may not be in line with what we currently experience.

Our ability to execute our international

growth strategy, especially where we are not yet established, depends on our ability to understand regional market demographics,

and we may not be able to do so.

If we are unable to expand our business internationally, our growth strategy and our financial

results could be materially adversely affected.

we are unable to respond effectively to changes in market trends and consumer preferences, our market share, net sales and profitability

could be adversely affected.

success of our business depends on our ability to identify the key product and market trends and bring products to market in a

timely manner that satisfy the current preferences of a broad range of consumers (either by enhancing existing products or by

developing new product offerings).

Consumer preferences differ across and within different parts of the world, and shift over

time in response to changing aesthetics and economic circumstances.

We believe that our success in developing products that are

innovative and that meet our consumers’

functional needs is an important factor in our image as a premium brand, and in

our ability to charge premium prices.

We may not be able to anticipate or respond to changes in consumer preferences, and, even

if we do anticipate and respond to such changes, we may not be able to bring to market in a timely manner enhanced or new products

that meet these changing preferences.

If we fail to anticipate or respond to changes in consumer preferences or fail to bring

products to market in a timely manner that satisfy new preferences, our market share and our net sales and profitability could

be adversely affected.

success of our business depends on our ability to identify the key product and market trends and bring products to market in a timely

manner that satisfy the current preferences of a broad range of consumers (either by enhancing existing products or by developing new

product offerings).

Consumer preferences differ across and within different parts of the world, and shift over time in response to changing

aesthetics and economic circumstances.

We believe that our success in developing products that are innovative and that meet our consumers’

functional needs is an important factor in our image as a premium brand, and in our ability to charge premium prices.

We may not be able

to anticipate or respond to changes in consumer preferences, and, even if we do anticipate and respond to such changes, we may not be

able to bring to market in a timely manner enhanced or new products that meet these changing preferences.

If we fail to anticipate or

respond to changes in consumer preferences or fail to bring products to market in a timely manner that satisfy new preferences, our market

share and our net sales and profitability could be adversely affected.

may be unable to appeal to new consumers while maintaining the loyalty of our core consumers.

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age increases and levels of travel and purchasing frequency decrease.

Initiatives and strategies intended to position our brand

to appeal to new and younger consumers may not appeal to our core consumers and may diminish the appeal of our brand to our core

consumers, resulting in reduced core consumer loyalty.

If we are unable to successfully appeal to new and younger consumers while

maintaining our brand’s premium image with our core consumers, then our net sales and our brand image may be adversely affected.

Initiatives and strategies intended to position our brand to appeal

to new and younger consumers may not appeal to our core consumers and may diminish the appeal of our brand to our core consumers, resulting

in reduced core consumer loyalty.

If we are unable to successfully appeal to new and younger consumers while maintaining our brand’s

premium image with our core consumers, then our net sales and our brand image may be adversely affected.

in our tax obligations and effective tax rate may have a negative effect on our operating results.

may be subject to income taxes in multiple jurisdiction We record tax expense based on our estimates of future payments, which

include reserves for uncertain tax provisions in multiple tax jurisdictions.

At any one time, many tax years may be subject to

audit by various taxing jurisdictions.

The results of these audits and negotiations with taxing authorities may affect the ultimate

settlement of these issues.

As a result, we expect that throughout the year there could be ongoing variability in our quarterly

tax rates as events occur and exposures are evaluated.

Further, our effective tax rate in a given financial period may be materially

impacted by changes in mix and level of earnings or by changes to existing accounting rules or regulations.

In addition, tax legislation

enacted in the future could negatively impact our current or future tax structure and effective tax rates.

business could suffer if we are unable to maintain our websites or manage our inventory effectively.

employ a distribution strategy that is heavily dependent upon our websites and third-party distributor e-commerce websites.

effectiveness of our e-commerce strategy depends on our ability to manage our inventory and our distribution processes effectively

so as to ensure that our products are available in sufficient quantities and thereby prevent lost sales.

If we are not able to

maintain our e-commerce channels, or if we are not able to effectively manage our inventory, we could experience a decline in

net sales, as well as excess inventories for some products and missed opportunities for other products.

In addition, the failure

to deliver our products to customers in accordance with our delivery schedules could damage our relationship with these customers

and lead to negative feedback being posted on e-commerce sites.

Consequently, our net sales, profitability and the implementation

of our growth strategy could be adversely affected.

plan to use cash provided by operating activities to fund our expanding business and execute our growth strategy and may require

additional capital, which may not be available to us.

may be subject to income taxes in multiple jurisdictions.

We record tax expense based on our estimates of future payments, which include

reserves for uncertain tax provisions in multiple tax jurisdictions.

At any one time, many tax years may be subject to audit by various

taxing jurisdictions.

The results of these audits and negotiations with taxing authorities may affect the ultimate settlement of these

As a result, we expect that throughout the year there could be ongoing variability in our quarterly tax rates as events occur

and exposures are evaluated.

Further, our effective tax rate in a given financial period may be materially impacted by changes in mix

and level of earnings or by changes to existing accounting rules or regulations.

In addition, tax legislation enacted in the future could

negatively impact our current or future tax structure and effective tax rates.

business could suffer if we are unable to maintain our website or manage our inventory effectively.

employ a distribution strategy that is heavily dependent upon our website and third-party distributors’

e-commerce websites.

effectiveness of our e-commerce strategy depends on our ability to manage our inventory and our distribution processes effectively so

as to ensure that our products are available in sufficient quantities and thereby prevent lost sales.

If we are not able to maintain

our e-commerce channels, or if we are not able to effectively manage our inventory, we could experience a decline in net sales, as well

as excess inventories for some products and missed opportunities for other products.

In addition, the failure to deliver our products

to customers in accordance with our delivery schedules could damage our relationship with these customers and lead to negative feedback

being posted on e-commerce sites.

Consequently, our net sales, profitability and the implementation of our growth strategy could be adversely

plan to use cash provided by operating activities to fund our expanding business and execute our growth strategy and may require additional

capital, which may not be available to us.

expect our business to rely on net cash provided by our future operating activities as our primary source of liquidity.

our business and execute our growth strategy as planned, we will need to generate significant amounts of cash from operations

in order to purchase inventory, pay personnel, invest in research and development, and pay for the increased costs associated

with operating as a public company.

If our business does not generate cash flow from operating activities sufficient to fund these

activities, and if sufficient funds are not otherwise available to us, we will need to seek additional capital, through debt or

equity financings, to fund our growth.

Conditions in the credit markets (such as availability of finance and fluctuations in interest

rates) may make it difficult for us to obtain such financing on attractive terms or even at all.

Additional debt financing that

we may undertake, may be expensive and might impose on us covenants that restrict our operations and strategic initiatives, including

limitations on our ability to incur liens or additional debt, pay dividends, repurchase our capital stock, make investments and

engage in merger, consolidation and asset sale transactions.

Equity financings may be on terms that are dilutive or potentially

dilutive to our stockholders, and the prices at which new investors would be willing to purchase our equity securities may be

lower than the price per share of our common stock in this offering.

The holders of new securities may also have rights, preferences

or privileges that are senior to those of existing holders of common stock.

If new sources of financing are required, but are

unattractive, insufficient or unavailable, then we will be required to modify our growth and operating plans based on available

funding, if any, which would inhibit our growth and could harm our business.

To support our

business and execute our growth strategy as planned, we will need to generate significant amounts of cash from operations in order to

purchase inventory, pay personnel, invest in research and development, and pay for the increased costs associated with operating as a

public company.

If our business does not generate cash flow from operating activities sufficient to fund these activities, and if sufficient

funds are not otherwise available to us, we will need to seek additional capital, through debt or equity financings, to fund our growth.

Conditions in the credit markets (such as availability of finance and fluctuations in interest rates) may make it difficult for us to

obtain such financing on attractive terms or even at all.

Additional debt financing that we may undertake, may be expensive and might

impose on us covenants that restrict our operations and strategic initiatives, including limitations on our ability to incur liens or

additional debt, pay dividends, repurchase our capital stock, make investments and engage in merger, consolidation and asset sale transactions.

Equity financings may be on terms that are dilutive or potentially dilutive to our shareholders, and the prices at which new investors

would be willing to purchase our equity securities may be lower than the price per share of our common stock.

The holders of new securities

may also have rights, preferences or privileges that are senior to those of existing holders of common stock.

If new sources of financing

are required, but are unattractive, insufficient or unavailable, then we will be required to modify our growth and operating plans based

on available funding, if any, which would inhibit our growth and could harm our business.

extended supply chain requires long lead times and relies heavily on manufacturers in Asia.

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us to carry extra inventory to avoid out-of-stock scenarios.

In the event of a decline in demand for our products, due to general

economic conditions or other factors, we may be forced to liquidate this extra inventory at low margins or at a loss.

as a result of these long lead times, design decisions are required to be made several months or as early as a year and a half

before the goods are delivered.

In the event of a decline in demand for our products, due to general economic

conditions or other factors, we may be forced to liquidate this extra inventory at lower margins or at a loss.

In addition, as

a result of these long lead times, design decisions are required to be made several months or as early as a year and a half before the

goods are delivered.

Consumers’

tastes can change between the time a product is designed and the time it takes

to get to market.

If the designs are not popular with consumers, it could also result in the need to liquidate the inventories

at low margins or at a loss, which would adversely affect our results of operations.

depend on existing members of management and key employees to implement key elements in our strategy for growth, and the failure

to retain them or to attract appropriately qualified new personnel could affect our ability to implement our growth strategy successfully.

successful implementation of our growth strategy depends in part on our ability to retain our experienced management team and

key employees and on our ability to attract appropriately qualified new personnel.

For instance, our chief executive officer has

extensive experience running branded sporting goods as well as retail-oriented businesses.

The loss of any key member of our management

team or other key employees could hinder or delay our ability to implement our growth strategy effectively.

Further, if we are

unable to attract appropriately qualified new personnel as we expand over the next few years, we may not be successful in implementing

our growth strategy.

In either instance, our profitability and financial performance could be adversely affected.

See “Management”

for more detail on our executive officers.

tastes can change between the time a product is designed and the time it takes to get to market.

If the designs are not popular with consumers, it could also result in the need to liquidate the inventories at lower margins

or at a loss, which would adversely affect our results of operations.

depend on existing members of management and key employees to implement key elements in our strategy for growth, and the failure to retain

them or to attract appropriately qualified new personnel could affect our ability to implement our growth strategy successfully.

successful implementation of our growth strategy depends in part on our ability to retain our experienced management team and key employees

and on our ability to attract appropriately qualified new personnel.

For instance, our chief executive officer has extensive experience

running branded sporting goods as well as retail-oriented businesses.

The loss of any key member of our management team or other key

employees could hinder or delay our ability to implement our growth strategy effectively.

Further, if we are unable to attract appropriately

qualified new personnel as we expand over the next few years, we may not be successful in implementing our growth strategy.

instance, our profitability and financial performance could be adversely affected.

applicable employment laws, we may not be able to enforce covenants not to compete.

generally enter into non-competition agreements as part of our employment agreements with our employees.

These agreements generally

prohibit our employees, if they cease working for us, from competing directly with us or working for our competitors or clients

for a limited period.

We may be unable to enforce these agreements under the laws of the jurisdictions in which our employees

work and it may be difficult for us to restrict our competitors from benefitting from the expertise our former employees or consultants

developed while working for us.

example, some labor courts have required employers seeking to enforce non-compete undertakings of a former employee to demonstrate

that the competitive activities of the former employee will harm one of a limited number of material interests of the employer

which have been recognized by the courts as justification for the enforcement of non-compete undertakings, such as the protection

of a company’s trade secrets or other intellectual property.

do not employ traditional advertising channels, and if we fail to adequately market our brand through product introductions and

other means of promotion, our business could be adversely affected.

marketing strategy depends on our ability to promote our brand’s message by using online advertising and social media to

promote new product introductions in a cost-effective manner and possibly from time to time the use of newspapers and magazines.

We do not employ traditional advertising channels such as billboards, television and radio.

If our marketing efforts are not successful

at attracting new consumers and increasing purchasing frequency by our existing consumers, there may be no cost-effective marketing

channels available to us for the promotion of our brand.

If we increase our spending on advertising, or initiate spending on traditional

advertising, our expenses will rise, and our advertising efforts may not be successful.

In addition, if we are unable to successfully

and cost-effectively employ advertising channels to promote our brand to new consumers and new markets, our growth strategy may

be adversely affected.

to protect confidential information of our consumers and our network against security breaches or failure to comply with privacy

and security laws and regulations could damage our reputation, brand and business.

significant challenge to e-commerce and communications, including the operation of our website, is the secure transmission of

confidential information over public networks.

Our failure to prevent security breaches could damage our reputation and brand

and substantially harm our business and results of operations.

These agreements generally prohibit

our employees, if they cease working for us, from competing directly with us or working for our competitors or clients for a limited

We may be unable to enforce these agreements under the laws of the jurisdictions in which our employees work and it may be difficult

for us to restrict our competitors from benefitting from the expertise our former employees or consultants developed while working for

example, some labor courts have required employers seeking to enforce non-compete undertakings of a former employee to demonstrate that

the competitive activities of the former employee will harm one of a limited number of material interests of the employer, which

have been recognized by the courts as justification for the enforcement of non-compete undertakings, such as the protection of a company’s

trade secrets or other intellectual property.

do not employ traditional advertising channels, and if we fail to adequately market our brand through product introductions and other

means of promotion, our business could be adversely affected.

marketing strategy depends on our ability to promote our brand’s message by using online advertising and social media to promote

new product introductions in a cost-effective manner and possibly from time to time the use of newspapers and magazines.

We do not employ

traditional advertising channels such as billboards, television and radio.

If our marketing efforts are not successful at attracting

new consumers and increasing purchasing frequency by our existing consumers, there may be no cost-effective marketing channels available

to us for the promotion of our brand.

If we increase our spending on advertising, or initiate spending on traditional advertising, our

expenses will rise, and our advertising efforts may not be successful.

In addition, if we are unable to successfully and cost-effectively

employ advertising channels to promote our brand to new consumers and new markets, our growth strategy may be adversely affected.

to protect confidential information of our consumers and our network against security breaches or failure to comply with privacy and

security laws and regulations could damage our reputation, brand and business.

significant challenge to e-commerce and communications, including the operation of our website, is the secure transmission of confidential

information over public networks.

Our failure to prevent security breaches could damage our reputation and brand and substantially harm

our business and results of operations.

On our website, a majority of the sales are billed to our consumers’

credit card accounts directly, orders are shipped to a consumer’s address, and consumers log on using their email address.

In such transactions, maintaining complete security for the transmission of confidential information on our website, such as consumers’

credit card numbers and expiration dates, personal information and billing addresses, is essential to maintaining consumer confidence.

In addition, we hold certain private information about our consumers, such as their names, addresses, phone numbers and browsing

and purchasing records.

We rely on encryption and authentication technology licensed from third parties to effect the secure transmission

of confidential information, including credit card numbers.

Advances in computer capabilities, new discoveries in the field of

cryptography or other developments may result in a compromise or breach of the technology used by us to protect consumer transaction

In addition, any party who is able to illicitly obtain a user’s password could potentially access the user’s

transaction data or personal information.

We may not be able to prevent third parties, such as hackers or criminal organizations,

from stealing information provided by our consumers to us through our website.

In addition, our third-party merchants and delivery

service providers may violate their confidentiality obligations and disclose information about our consumers.

Any compromise of

our security or material violation of a non-disclosure obligation could damage our reputation and brand and expose us to a risk

of loss or litigation and possible liability, which would substantially harm our business and results of operations.

anyone who is able to circumvent our security measures could misappropriate proprietary information or cause interruptions in

our operations.

credit card accounts

directly, orders are shipped to a consumer’s address, and consumers log on using their email address.

In such transactions, maintaining

complete security for the transmission of confidential information on our website, such as consumers’

credit card numbers and expiration

dates, personal information and billing addresses, is essential to maintaining consumer confidence.

In addition, we hold certain private

information about our consumers, such as their names, addresses, phone numbers and browsing and purchasing records.

We rely on encryption

and authentication technology licensed from third parties to effect the secure transmission of confidential information, including credit

card numbers.

Advances in computer capabilities, new discoveries in the field of cryptography or other developments may result in a compromise

or breach of the technology used by us to protect consumer transaction data.

In addition, any party who is able to illicitly obtain a

user’s password could potentially access the user’s transaction data or personal information.

We may not be able to prevent

third parties, such as hackers or criminal organizations, from stealing information provided by our consumers to us through our website.

In addition, our third-party merchants and delivery service providers may violate their confidentiality obligations and disclose information

about our consumers.

Any compromise of our security or material violation of a non-disclosure obligation could damage our reputation

and brand and expose us to a risk of loss or litigation and possible liability, which could substantially harm our business and

results of operations.

In addition, anyone who is able to circumvent our security measures could misappropriate proprietary information

or cause interruptions in our operations.

as long as we are an “emerging growth company,”

we will not be required to comply with certain reporting requirements

that apply to other publicly reporting companies.

We cannot predict whether the reduced disclosure requirements applicable to

emerging growth companies will make our ordinary shares less attractive to investors.

we will not be required to comply with certain reporting requirements that

apply to other publicly reporting companies.

We cannot predict whether the reduced disclosure requirements applicable to emerging growth

companies will make our common shares less attractive to investors.

are an “emerging growth company,”

as defined in the JOBS Act.

For as long as we continue to be an emerging growth

company, we may choose to take advantage of certain exemptions from reporting requirements applicable to other publicly reporting

companies that are not emerging growth companies.

For as long as we continue to be an emerging growth company,

we may choose to take advantage of certain exemptions from reporting requirements applicable to other publicly reporting companies that

are not emerging growth companies.

These include:

(i) not being required to comply with the auditor attestation

requirements for the assessment of our internal controls over financial reporting provided by Section 404 of the Sarbanes-Oxley

Act of 2002, or Sarbanes-Oxley Act, (ii) not being required to comply with any requirements adopted by the PCAOB requiring mandatory

audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional

information about the audit and the financial statements of the issuer, (iii) not being required to comply with any new audit

rules adopted by the PCAOB after April 5, 2012 unless the SEC determines otherwise, (iv) not being required to provide certain

disclosure regarding executive compensation required of larger publicly reporting companies, and (v) not being required to hold

a non-binding advisory vote on executive compensation or seek shareholder approval of any golden parachute payments not previously

We could be an emerging growth company for up to five years from the end of our current fiscal year, although, if the

market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of any June 30 before the end of that

five-year period, we would cease to be an emerging growth company as of the following December 31.

We cannot predict if investors

will find our ordinary shares less attractive if we choose to rely on these exemptions.

If some investors find our ordinary shares

less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our ordinary

shares and our share price may be more volatile.

Further, as a result of these scaled regulatory requirements, our disclosure

may be more limited than that of other publicly reporting companies and you may not have the same protections afforded to shareholders

of such companies.

rate fluctuations between the U.S.

dollar, the Euro and other foreign currencies, and inflation, may negatively affect our earnings

and we may not be able to hedge our currency exchange risks successfully.

dollar is our functional and reporting currency.

However, a significant portion of our operating expenses, including personnel

and facilities related expenses, are incurred in other currencies, including GBP.

As a result, we are exposed to the risks that

the GBP may appreciate relative to the U.S.

dollar, or, if the GBP instead devalues relative to the U.S.

dollar, that the inflation

rate in the United Kingdom may exceed such rate of devaluation of the GBP, or that the timing of such devaluation may lag behind

inflation in the United Kingdom.

In any such event, the dollar cost of our operations in the United Kingdom would increase and

our dollar-denominated results of operations would be adversely affected.

Moreover, substantially all of our purchases from our

foreign suppliers are denominated in U.S.

A precipitous or prolonged decline in the value of the U.S.

dollar could cause

our foreign suppliers to seek price increases on the goods they supply us, which would adversely affect our gross margins if market

conditions prevent us from passing those costs on to consumers.

We cannot predict any future trends in the rate of inflation in

the United Kingdom or the rate of devaluation (if any) of the GBP against any other currency.

Related to our Operations in China

manufacturing takes place in China and, therefore, is susceptible to shutdowns and delays caused by coronavirus and other diseases

and epidemics

at the date hereof, our sole manufacturing facilities are located in southern China.

Following the outbreak of the coronavirus

our manufacturing facility shut down for three months, which caused significant delays in manufacturing and delivery of our products.

However, there may be further outbreaks of coronavirus and other diseases and epidemics, which may cause further delays and shutdowns.

This, in turn, will negatively affect our revenue and increase our expenses and costs.

Related to Our Operations in Israel

product development company and chief marketing officer are located in Israel and, therefore, our business, financial condition

and results of operation may be adversely affected by political, economic and military instability in Israel.

plan to operate Slinger business in Israel under Slinger Bag Israel Ltd.

We have also engaged an Israeli product development company

to assist in the development of our current and future products and our chief marketing officer resides in Israel.

political, economic and military conditions in Israel directly affect our business.

(i) not being required to comply with the auditor attestation requirements for the

assessment of our internal controls over financial reporting provided by Section 404 of the Sarbanes-Oxley Act of 2002, or the

Sarbanes-Oxley Act, (ii) not being required to comply with any requirements adopted by the PCAOB requiring mandatory audit firm rotation

or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit

and the financial statements of the issuer, (iii) not being required to comply with any new audit rules adopted by the PCAOB after April

5, 2012 unless the SEC determines otherwise, (iv) not being required to provide certain disclosure regarding executive compensation required

of larger publicly reporting companies, and (v) not being required to hold a non-binding advisory vote on executive compensation or seek

shareholder approval of any golden parachute payments not previously approved.

We could be an emerging growth company for up to five

years from the end of our current fiscal year, although, if the market value of our common shares that is held by non-affiliates

exceeds $700 million as of any October 31 before the end of that five-year period, we would cease to be an emerging growth company

as of the following April 30.

We cannot predict if investors will find our common shares less attractive if we choose to

rely on these exemptions.

If some investors find our common shares less attractive as a result of any choices to reduce future

disclosure, there may be a less active trading market for our shares and our share price may be more volatile.

Further, as a result of

these scaled regulatory requirements, our disclosure may be more limited than that of other publicly reporting companies and you may

not have the same protections afforded to shareholders of such companies.

product development company and chief marketing officer are located in Israel and, therefore, our business, financial condition and results

of operation may be adversely affected by political, economic and military instability in Israel.

operate our Slinger business in Israel under Slinger Bag Ltd.

We have also engaged an Israeli product development company to assist in

the development of our current and future products and our chief marketing officer resides in Israel.

Accordingly, political, economic

and military conditions in Israel directly affect our business.

economic and military conditions in Israel may directly affect our business.

Since the establishment of the State of Israel in 1948,

1948, a number of armed conflicts have taken place between Israel and its neighboring countries, Hamas (an Islamist militia and

political group that controls the Gaza Strip) and Hezbollah (an Islamist militia and political group based in Lebanon).

several countries, principally in the Middle East, restrict doing business with Israel, and additional countries may impose restrictions

on doing business with Israel and Israeli companies whether as a result of hostilities in the region or otherwise.

Any hostilities

involving Israel, terrorist activities, political instability or violence in the region or the interruption or curtailment of

trade or transport between Israel and its trading partners could adversely affect our operations and results of operations and

adversely affect the market price of our ordinary shares.

commercial insurance does not cover losses that may occur as a result of an event associated with the security situation in the

Although the Israeli government is currently committed to covering the reinstatement value of direct damages that

are caused by terrorist attacks or acts of war, there can be no assurance that this government coverage will be maintained, or

if maintained, will be sufficient to compensate us fully for damages incurred.

Any losses or damages incurred by us could have

a material adverse effect on our business, financial condition and results of operations.

a number of armed conflicts have taken place between Israel and its neighboring countries, Hamas and Hezbollah.

In addition, several

countries, principally in the Middle East, restrict doing business with Israel, and additional countries may impose restrictions on doing

business with Israel and Israeli companies whether as a result of hostilities in the region or otherwise.

Any hostilities involving Israel,

terrorist activities, political instability or violence in the region or the interruption or curtailment of trade or transport between

Israel and its trading partners could adversely affect our operations and results of operations and adversely affect the market price

of our shares.

commercial insurance does not cover losses that may occur as a result of an event associated with the security situation in the Middle

Although the Israeli government is currently committed to covering the reinstatement value of direct damages that are caused by

terrorist attacks or acts of war, there can be no assurance that this government coverage will be maintained, or if maintained, will

be sufficient to compensate us fully for damages incurred.

Any losses or damages incurred by us could have a material adverse effect

on our business, financial condition and results of operations.

our operations could be disrupted by the obligations of our employees to perform military service.

Our chief marketing officer

is subject to the obligation to perform reserve military duty.

In response to increased tension and hostilities in the region,

there have been, at times, call-ups of military reservists, and it is possible that there will be additional call-ups in the future.

Our operations could be disrupted by the absence of these employees due to military service.

Such disruption could harm our business

and operating results.

Our chief marketing officer is subject

to the obligation to perform reserve military duty.

In response to increased tension and hostilities in the region, there have been,

at times, call-ups of military reservists, and it is possible that there will be additional call-ups in the future.

Our operations could

be disrupted by the absence of these employees due to military service.

Such disruption could harm our business and operating results.

uprisings in various countries in the Middle East and North Africa are affecting the political stability of those countries.

instability may lead to deterioration in the political and trade relationships that exist between the State of Israel and these

Furthermore, several countries, principally in the Middle East, restrict doing business with Israel and companies with

an Israeli presence, and additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities

in the region continue or intensify.

Such restrictions may seriously limit our ability to sell our products to customers in those

Parties with whom we may do business could decline to travel to Israel during periods of heightened unrest or tension.

In addition, the political and security situation in Israel may result in parties with whom we may have agreements involving performance

in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions

in such agreements.

In addition, any hostilities involving Israel could have a material adverse effect on our facilities including

our corporate office or on the facilities of our local suppliers, in which event all or a portion of our inventory may be damaged,

and our ability to deliver products to customers could be materially adversely affected.

Any hostilities involving Israel or the

interruption or curtailment of trade between Israel and its present trading partners, or significant downturns in the economic

or financial condition of Israel, could adversely affect our operations and product development, cause our revenues to decrease

and adversely affect our share price following this offering.

Moreover, individuals in certain geographical regions may refrain

from doing business with Israel and Israeli companies as a result of their objection to Israeli foreign or domestic policies.

Related to Ownership of Our Ordinary Shares

Such instability

may lead to deterioration in the political and trade relationships that exist between the State of Israel and these countries.

several countries, principally in the Middle East, restrict doing business with Israel and companies with an Israeli presence, and additional

countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in the region continue or intensify.

Such restrictions may seriously limit our ability to sell our products to customers in those countries.

Related to Ownership of Our Shares

is currently limited liquidity of shares of our common stock.

of our common stock do not trade on a regular basis.

Failure to develop or maintain a trading market could negatively affect its

value and make it difficult or impossible for you to sell your shares.

Even if a market for common stock does develop, the market

price of common stock may be highly volatile.

In addition to the uncertainties relating to future operating performance and the

profitability of operations, factors such as variations in interim financial results or various, as yet unpredictable, factors,

many of which are beyond our control, may have a negative effect on the market price of our common stock.

Failure to develop or maintain a trading market could negatively affect its value

and make it difficult or impossible for you to sell your shares.

Even if a market for common stock does develop, the market price of

common stock may be highly volatile.

In addition to the uncertainties relating to future operating performance and the profitability

of operations, factors such as variations in interim financial results or various, as yet unpredictable, factors, many of which are beyond

our control, may have a negative effect on the market price of our common stock.

The liquidity of the shares of our common stock may

also be affected adversely by a reverse stock split given the reduced number of shares that will be outstanding following a reverse stock

split, especially if the market price of our common stock does not increase as a result of the reverse stock split.

stock price may be volatile, or may decline regardless of our operating performance, and you could lose all or part of your investment

should consider an investment in our ordinary shares to be risky, and you should invest in our ordinary shares only if you can

withstand a significant loss and wide fluctuation in the market value of your investment.

The market price of our ordinary shares

could be subject to significant fluctuations after this offering in response to the factors described in this “Risk Factors”

section and other factors, many of which are beyond our control.

should consider an investment in our common shares to be risky, and you should invest in our common shares only if you

can withstand a significant loss and wide fluctuation in the market value of your investment.

The market price of our common shares

could be subject to significant fluctuations in response to the factors described in this section and other factors, many of which are

beyond our control.

Among the factors that could affect our stock price are:

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conditions, particularly during holiday shopping periods;

in expectations as to our future financial performance, including financial estimates by securities analysts and investors,

or differences between our actual results and those expected by investors and securities analysts;

in expectations as to our future financial performance, including financial estimates by securities analysts and investors, or differences

between our actual results and those expected by investors and securities analysts;

in the market valuations of companies perceived by investors to be comparable to us;

public’s response to our or our competitors’

filings with the Securities and Exchange Commission, or the SEC,

or announcements regarding new products or services, enhancements, significant contracts, acquisitions, strategic investments,

litigation, restructurings or other significant matters;

filings with the SEC or announcements regarding new products or services,

enhancements, significant contracts, acquisitions, strategic investments, litigation, restructurings or other significant matters;

about our business in the press or the investment community;

sales of our ordinary shares;

sales of our shares;

by our competitors;

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passage of legislation or other regulatory developments affecting us or our industry.

addition, the securities markets have experienced significant price and volume fluctuations that have affected and continue to

affect market price of equity securities of many companies.

These fluctuations have often been unrelated or disproportionate to

the operating performance of particular companies.

These broad market fluctuations, as well as general economic, systemic, political

and market conditions, such as recessions, loss of investor confidence, interest rate changes, or international currency fluctuations,

may negatively affect the market price of our ordinary shares.

any of the foregoing occurs, it could cause our stock price to fall and may expose us to securities class action litigation that,

even if unsuccessful, could be costly to defend and a distraction to management.

equity research analysts do not publish research or reports about our business or if they issue unfavorable commentary or downgrade

our common stock, the price of our ordinary shares could decline.

trading market for our ordinary shares will be influenced by the research and reports that equity research analysts publish about

addition, the securities markets have experienced significant price and volume fluctuations that have affected and continue to affect

market price of equity securities of many companies.

These fluctuations have often been unrelated or disproportionate to the operating

performance of particular companies.

These broad market fluctuations, as well as general economic, systemic, political and market conditions,

such as recessions, loss of investor confidence, interest rate changes, or international currency fluctuations, may negatively affect

the market price of our shares.

any of the foregoing occurs, it could cause our stock price to fall and may expose us to securities class action litigation that, even

if unsuccessful, could be costly to defend and a distraction to management.

trading market for our common shares will be influenced by the research and reports that equity research analysts publish about

us and our business.

The price of our ordinary shares could decline if one or more securities analysts downgrade our ordinary

shares or if those analysts issue a sell recommendation or other unfavorable commentary or cease publishing reports about us or

our business.

If one or more of the analysts who elect to cover us downgrade our ordinary shares, our share price could decline

If one or more of these analysts cease coverage of us, we could lose visibility in the market, which in turn could cause

our ordinary share price and trading volume to decline.

The price of our common shares could decline if one or more securities analysts downgrade our common

shares or if those analysts issue a sell recommendation or other unfavorable commentary or cease publishing reports about us or our business.

If one or more of the analysts who elect to cover us downgrade our common shares, our share price could decline rapidly.

or more of these analysts cease coverage of us, we could lose visibility in the market, which in turn could cause our common share

price and trading volume to decline.

do not intend to pay dividends on our common shares.

intend to retain all of our earnings, if any, for the foreseeable future to finance the operation and expansion of our business

and do not anticipate paying cash dividends.

Any future determination to pay dividends will be at the discretion of our board

of directors, subject to compliance with applicable law and any contractual provisions, and will depend on, among other factors,

our results of operations, financial condition, capital requirements and other factors that our board of directors deems relevant.

As a result, you should expect to receive a return on your investment in our ordinary shares only if the market price of the ordinary

shares increases, which may never occur.

will incur dilution as a result of any offering of our securities.

the extent that we sell any securities to third-parties, you will experience immediate dilution, the extent of which depends on

the number of securities to be sold.

See “Dilution”

for a more detailed description regarding dilution.

intend to retain all of our earnings, if any, for the foreseeable future to finance the operation and expansion of our business and do

not anticipate paying cash dividends.

Any future determination to pay dividends will be at the discretion of our board of directors,

subject to compliance with applicable law and any contractual provisions, and will depend on, among other factors, our results of operations,

financial condition, capital requirements and other factors that our board of directors deems relevant.

As a result, you should expect

to receive a return on your investment in our common shares only if the market price of the common shares increases, which

may never occur.

sales, or the perception of future sales, of our common stock may depress the price of our common stock.

have 26,209,714 outstanding common shares.

Of these shares, 5,596,560 shares are in the public float or are eligible for re-sale

under Rule 144 under the Securities Act (“Rule 144”).

All remaining common shares outstanding are “restricted

securities”

of July 31, 2021, we have 29,979,573 outstanding common shares.

Of these shares, 6,562,001 shares are in the public float or are eligible for re-sale under Rule 144.

All remaining common

shares outstanding are “restricted securities”

within the meaning of Rule 144.

Additional sales of our common shares in the public market after the date hereof,

or the perception that these sales could occur, could cause the market price of our common shares to decline.

Additional sales of our common shares in the

public market after the date hereof, or the perception that these sales could occur, could cause the market price of our common shares

relating to our business

products face intense competition.

is a consumer products company and the relative popularity of tennis and various sports and fitness activities and changing design

trends affect the demand for our products.

The athletic equipment industry is highly competitive both in the United States and

We compete internationally with a significant number of athletic and sports equipment companies and large companies

having diversified lines of athletic and sport equipment.

We also compete with other companies for the production capacity of

independent manufacturers that produce our products.

Our online digital e-commerce operations will compete with brand wholesalers

or specialist retailers.

is a consumer products company and the relative popularity of tennis and various sports and fitness activities and changing design trends

affect the demand for our products.

The athletic equipment industry is highly competitive both in the U.S.

and worldwide.

internationally with a significant number of athletic and sports equipment companies and large companies having diversified lines of

athletic and sports equipment.

We also compete with other companies for the production capacity of independent manufacturers that

produce our products.

Our online digital e-commerce operations compete with brand wholesalers or specialist retailers.

offerings, technologies, marketing expenditures (including expenditures for advertising and endorsements), pricing, costs of production,

customer service, digital commerce platforms and social media presence are areas of intense competition.

This, in addition to

rapid changes in technology and consumer preferences in the markets for athletic and sports equipment, constitute significant

risk factors in our operations.

In addition, the competitive nature of retail including shifts in the ways in which consumers

are shopping, and the rising trend of digital commerce, constitutes a risk factor implicating our online and wholesale operations.

If we do not adequately and timely anticipate and respond to our competitors, our costs may increase or the consumer demand for

our products may decline significantly.

to create and maintain our reputation and brand image could negatively impact our business.

success depends on our ability to create, maintain and enhance our brand image and reputation.

Creating, maintaining, promoting

and growing our brands will depend on our design and marketing efforts, including advertising and consumer campaigns, product

innovation and product quality.

Our commitment to product innovation and quality and our continuing investment in design (including

materials) and marketing may not have the desired impact on our brand image and reputation.

In addition, our success in creating,

maintaining, extending and expanding our brand image depends on our ability to adapt to a rapidly changing media environment,

including our increasing reliance on social media and digital dissemination of advertising campaigns.

We could be adversely impacted

if we fail to achieve any of these objectives.

Our brand value also depends on our ability to create and maintain a positive consumer

perception of our corporate integrity and brand culture.

Negative claims or publicity involving us, our products, consumer data,

or any of our key employees, endorsers, sponsors or suppliers could seriously damage our reputation and brand image, regardless

of whether such claims are accurate.

For example, while we require our suppliers of our products to operate their business in

compliance with applicable laws and regulations, we do not control their practices.

Negative publicity relating to a violation

or an alleged violation of policies or laws by such suppliers could damage our brand image.

Social media, which accelerates and

potentially amplifies the scope of negative publicity, can increase the challenges of responding to negative claims.

Adverse publicity

about regulatory or legal action against us, or by us, could also damage our reputation and brand image, undermine consumer confidence

in us and reduce long-term demand for our products, even if the regulatory or legal action is unfounded or not material to our

If the reputation or image of any of our brands is tarnished or if we receive negative publicity, then our sales,

financial condition and results of operations could be materially and adversely affected.

we are unable to anticipate consumer preferences and develop new products, we may not be able to maintain or increase our revenues

success depends on our ability to identify, originate and define product trends as well as to anticipate, gauge and react to changing

consumer demands in a timely manner.

However, lead times for many of our products may make it more difficult for us to respond

rapidly to new or changing product trends or consumer preferences.

All of our products are subject to changing consumer preferences

that cannot be predicted with certainty.

Our new products may not receive consumer acceptance as consumer preferences could shift

rapidly to different types of performance products or away from these types of products altogether, and our future success depends

in part on our ability to anticipate and respond to these changes.

If we fail to anticipate accurately and respond to trends and

shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products and categories, and

influencing sports and fitness preferences through extensive marketing, we could experience lower sales, excess inventories or

lower profit margins, any of which could have an adverse effect on our results of operations and financial condition.

we market our products globally through a diverse spectrum of advertising and promotional programs and campaigns, including social

media, mobile applications and online advertising.

If we do not successfully market our products or if advertising and promotional

costs increase, these factors could have an adverse effect on our business, financial condition and results of operations.

This, in addition to rapid changes

in technology and consumer preferences in the markets for athletic and sports equipment, constitute significant risk factors in our operations.

In addition, the competitive nature of retail including shifts in the ways in which consumers are shopping, and the rising trend of digital

commerce, constitutes a risk factor implicating our online and wholesale operations.

If we do not adequately and timely anticipate and

respond to our competitors, our costs may increase or the consumer demand for our products may decline significantly.

rely on technical innovation and high-quality products to compete in the market for our products.

and development plays a key role in technical innovation.

We rely upon specialists in the fields of engineering, industrial design,

sustainability and related fields, as well as other experts to develop and test cutting-edge performance products.

While we strive

to produce products that help to enhance player performance, if we fail to introduce technical innovation in our products, consumer

demand for our products could decline, and if we experience problems with the quality of our products, we may incur substantial

expense to remedy the problems.

We rely upon specialists in the fields of engineering, industrial design, sustainability

and related fields, as well as other experts to develop and test cutting-edge performance products.

While we strive to produce products

that help to enhance player performance, if we fail to introduce technical innovation in our products, consumer demand for our products

could decline, and if we experience problems with the quality of our products, we may incur substantial expense to remedy the problems.

to continue to obtain or maintain high-quality endorsers of our products could harm our business.

establish relationships with professional athletes, as well as other public figures such as teaching pros and influencers, to

develop, evaluate and promote our products, as well as establish product authenticity with consumers.

However, as competition

in our industry has increased, the costs associated with establishing and retaining such sponsorships and other relationships

have increased.

If we are unable to maintain our current associations with professional athletes, or other public figures, or

to do so at a reasonable cost, we could lose the high visibility or on-field authenticity associated with our products, and we

may be required to modify and substantially increase our marketing investments.

As a result, our brands, net revenues, expenses

and profitability could be harmed.

Furthermore, if certain endorsers were to stop using our products contrary to their endorsement

agreements, our business could be adversely affected.

In addition, actions taken by athletes or other endorsers, associated with

our products that harm the reputations of those athletes or endorsers, could also seriously harm our brand image with consumers

and, as a result, could have an adverse effect on our sales and financial condition.

In addition, poor performance by our endorsers,

a failure to continue to correctly identify future athletes, public figures or sports organizations, to use and endorse our products

or a failure to enter into cost-effective endorsement arrangements with prominent athletes, public figures, and sports organizations

could adversely affect our brand, sales and profitability.

economic factors beyond our control, and changes in the global economic environment, including fluctuations in inflation and currency

exchange rates, could result in lower revenues, higher costs and decreased margins and earnings.

products are manufactured and sold outside of the United States and we conduct purchase and sale transactions in various currencies,

which increases our exposure to the volatility of global economic conditions, including fluctuations in inflation and foreign

currency exchange rates.

Additionally, there has been, and may continue to be, volatility in currency exchange rates as a result

of the United Kingdom’s impending exit from the European Union, commonly referred to as “Brexit”

or new or proposed

policy changes that impact the U.S.

Dollar value relative to other international currencies.

Our international revenues and

expenses generally are derived from sales and operations in foreign currencies, and these revenues and expenses could be affected

by currency fluctuations, specifically amounts recorded in foreign currencies and translated into U.S.

Dollars for consolidated

financial reporting, as weakening of foreign currencies relative to the U.S.

Dollar adversely affects the U.S.

Dollar value of

the Company’s foreign currency-denominated sales and earnings.

Currency exchange rate fluctuations could also disrupt the

business of the independent manufacturers that produce our products by making their purchases of raw materials more expensive

and more difficult to finance.

Foreign currency fluctuations have adversely affected and could continue to have an adverse effect

on our results of operations and financial condition.

We may hedge certain foreign currency exposures to lessen and delay, but

not to completely eliminate, the effects of foreign currency fluctuations on our financial results.

Since the hedging activities

are designed to lessen volatility, they not only reduce the negative impact of a stronger U.S.

Dollar or other trading currency,

but they also reduce the positive impact of a weaker U.S.

Dollar or other trading currency.

Our future financial results could

be significantly affected by the value of the U.S.

Dollar in relation to the foreign currencies in which we conduct business.

The degree to which our financial results are affected for any given time period will depend in part upon our hedging activities.

economic conditions could have a material adverse effect on our business, operating results and financial condition.

uncertain state of the global economy continues to impact businesses around the world, most acutely in emerging markets and developing

If global economic and financial market conditions do not improve or deteriorate, the following factors could have

a material adverse effect on our business, operating results and financial condition:

Slower consumer spending may result in reduced demand for our products, reduced orders from retailers for our products, order

cancellations, lower revenues, higher discounts, increased inventories and lower gross margins.

In the future, we may be unable to access financing in the credit and capital markets at reasonable rates in the event we find

it desirable to do so.

We conduct transactions in various currencies, which increases our exposure to fluctuations in foreign currency exchange rates

relative to the U.S.

Continued volatility in the markets and exchange rates for foreign currencies and contracts in foreign

currencies, including in response to certain policies advocated or implemented by the U.S.

presidential administration, could

have a significant impact on our reported operating results and financial condition.

Continued volatility in the availability and prices for commodities and raw materials we use in our products and in our supply

chain (such as cotton or petroleum derivatives) could have a material adverse effect on our costs, gross margins and profitability.

If wholesalers or retailers of our products experience declining revenues or experience difficulty obtaining financing in the

capital and credit markets to purchase our products, this could result in reduced orders for our products, order cancellations,

late retailer payments, extended payment terms, higher accounts receivable, reduced cash flows, greater expense associated with

collection efforts and increased bad debt expense.

If wholesalers or retailers of our products experience severe financial difficulty, some may become insolvent and cease business

operations, which could negatively impact the sale of our products to consumers.

If contract manufacturers of our products or other participants in our supply chain experience difficulty obtaining financing

in the capital and credit markets to purchase raw materials or to finance capital equipment and other general working capital

needs, it may result in delays or non-delivery of shipments of our products.

establish relationships with professional athletes, as well as other public figures such as teaching pros and influencers, to develop,

evaluate and promote our products, as well as establish product authenticity with consumers.

However, as competition in our industry

has increased, the costs associated with establishing and retaining such sponsorships and other relationships have increased.

unable to maintain our current associations with professional athletes, or other public figures, or to do so at a reasonable cost, we

could lose the high visibility or on-field authenticity associated with our products, and we may be required to modify and substantially

increase our marketing investments.

As a result, our brands, net revenues, expenses and profitability could be harmed.

Furthermore, if

certain endorsers were to stop using our products contrary to their endorsement agreements, our business could be adversely affected.

In addition, actions taken by athletes or other endorsers, associated with our products that harm the reputations of those athletes or

endorsers, could also seriously harm our brand image with consumers and, as a result, could have an adverse effect on our sales and financial

In addition, poor performance by our endorsers, a failure to continue to correctly identify future athletes, public figures

or sports organizations, to use and endorse our products or a failure to enter into cost-effective endorsement arrangements with prominent

athletes, public figures, and sports organizations could adversely affect our brand, sales and profitability.

business may be affected by seasonality, which could result in fluctuations in our operating results.

expect to experience moderate fluctuations in aggregate sales volume during the year.

We expect revenues in the first and fourth

fiscal quarters to exceeded those in the second and third fiscal quarters.

However, the mix of product sales may vary considerably

from time to time as a result of changes in seasonal and geographic demand for tennis and other sports equipment and in connection

with the timing of significant sporting events, such as any Grand Slam tennis tournament and, over time, other sports competition.

In addition, our customers may cancel orders, change delivery schedules or change the mix of products ordered with minimal notice.

As a result, we may not be able to accurately predict our quarterly sales.

Accordingly, our results of operations are likely to

fluctuate significantly from period to period.

This seasonality, along with other factors that are beyond our control, including

general economic conditions, changes in consumer preferences, weather conditions, availability of import quotas, transportation

disruptions and currency exchange rate fluctuations, could adversely affect our business and cause our results of operations to

Our operating margins are also sensitive to a number of additional factors that are beyond our control, including manufacturing

and transportation costs, shifts in product sales mix and geographic sales trends, all of which we expect to continue.

of operations in any period should not be considered indicative of the results to be expected for any future period.

We expect revenues in the first and fourth fiscal

quarters to exceed those in the second and third fiscal quarters.

However, the mix of product sales may vary considerably from time to

time as a result of changes in seasonal and geographic demand for tennis and other sports equipment and in connection with the timing

of significant sporting events, such as any Grand Slam tennis tournament and, over time, other sports competitions.

In addition, our

customers may cancel orders, change delivery schedules or change the mix of products ordered with minimal notice.

As a result, we may

not be able to accurately predict our quarterly sales.

Accordingly, our results of operations are likely to fluctuate significantly from

period to period.

This seasonality, along with other factors that are beyond our control, including general economic conditions, changes

in consumer preferences, weather conditions, availability of import quotas, transportation disruptions and currency exchange rate fluctuations,

could adversely affect our business and cause our results of operations to fluctuate.

Our operating margins are also sensitive to a number

of additional factors that are beyond our control, including manufacturing and transportation costs, shifts in product sales mix and

geographic sales trends, all of which we expect to continue.

Results of operations in any period should not be considered indicative

of the results to be expected for any future period.

may be adversely affected by the financial health of our customers.

extend credit to our tennis wholesale and tennis specialist retail customers based on an assessment of a customer’s financial

condition, generally without requiring collateral.

To assist in the scheduling of production and the shipping of our products,

we offer our distributor partners the opportunity to place orders three months ahead of delivery under our direct ship ordering

These advance orders may be canceled under certain conditions, and the risk of cancellation may increase when dealing

with financially unstable distribution partners struggling with economic uncertainty.

In the past, some sport customers have experienced

financial difficulties up to and including bankruptcies.

Such future events would have an adverse effect on our sales, our ability

to collect on receivables and our financial condition.

When the retail economy weakens or as consumer behavior shifts, retailers

may be more cautious with orders.

A slowing or changing economy in our key markets could adversely affect the financial health

of our customers, which in turn could have an adverse effect on our results of operations and financial condition.

product sales are dependent in part on high quality merchandising and an appealing retail environment to attract consumers, which

requires continuing investments by retailers.

Retailers that experience financial difficulties may fail to make such investments

or delay them, resulting in lower sales and orders for our products.

to accurately forecast consumer demand could lead to excess inventories or inventory shortages, which could result in decreased

operating margins, reduced cash flows and harm to our business.

meet anticipated demand for our products, we purchase products from manufacturers outside of our direct ship ordering program

and in advance of customer orders, which we hold in inventory and resell to customers.

There is a risk we may be unable to sell

excess products ordered from manufacturers.

Inventory levels in excess of customer demand may result in inventory write-downs,

and the sale of excess inventory at discounted prices could significantly impair our brand image and have an adverse effect on

our operating results, financial condition and cash flows.

Conversely, if we underestimate consumer demand for our products or

if our manufacturers fail to supply products we require at the time we need them, we may experience inventory shortages.

shortages might delay shipments to customers, negatively impact retailer, distributor and consumer relationships and diminish

brand loyalty.

The difficulty in forecasting demand also makes it difficult to estimate our future results of operations, financial

condition and cash flows from period to period.

A failure to accurately predict the level of demand for our products could adversely

affect our net revenues and net income, and we are unlikely to forecast such effects with any certainty in advance.

extend credit to our tennis wholesale and tennis specialist retail customers based on an assessment of a customer’s financial condition,

generally without requiring collateral.

To assist in the scheduling of production and the shipping of our products, we offer our distributor

partners the opportunity to place orders three months ahead of delivery under our direct ship ordering program.

These advance orders

may be canceled under certain conditions, and the risk of cancellation may increase when dealing with financially unstable distribution

partners struggling with economic uncertainty.

In the past, some sports customers have experienced financial difficulties up to and including

bankruptcies.

Such future events would have an adverse effect on our sales, our ability to collect on receivables and our financial condition.

When the retail economy weakens or as consumer behavior shifts, retailers may be more cautious with orders.

A slowing or changing economy

in our key markets could adversely affect the financial health of our customers, which in turn could have an adverse effect on our results

of operations and financial condition.

In addition, product sales are dependent in part on high quality merchandising and an appealing

retail environment to attract consumers, which requires continuing investments by retailers.

Retailers that experience financial difficulties

may fail to make such investments or delay them, resulting in lower sales and orders for our products.

to accurately forecast consumer demand could lead to excess inventories or inventory shortages, which could result in decreased operating

margins, reduced cash flows and harm to our business.

meet anticipated demand for our products, we purchase products from manufacturers outside of our direct ship ordering program and in

advance of customer orders, which we hold in inventory and resell to customers.

There is a risk we may be unable to sell excess products

ordered from manufacturers.

Inventory levels in excess of customer demand may result in inventory write-downs, and the sale of excess

inventory at discounted prices could significantly impair our brand image and have an adverse effect on our operating results, financial

condition and cash flows.

Conversely, if we underestimate consumer demand for our products or if our manufacturers fail to supply products

we require at the time we need them, we may experience inventory shortages.

Inventory shortages might delay shipments to customers, negatively

impact retailer, distributor and consumer relationships and diminish brand loyalty.

The difficulty in forecasting demand also makes it

difficult to estimate our future results of operations, financial condition and cash flows from period to period.

A failure to accurately

predict the level of demand for our products could adversely affect our net revenues and net income, and we are unlikely to forecast

such effects with any certainty in advance.

Consolidation

of retailers or concentration of retail market share among a few retailers may increase and concentrate our credit risk and impair

our ability to sell products.

of retailers or concentration of retail market share among a few retailers may increase and concentrate our credit risk and impair our

ability to sell products.

sports equipment retail markets in some countries are dominated by a few large athletic equipment retailers with many stores.

These retailers have in the past increased their market share by expanding through acquisitions and construction of additional

These situations concentrate our credit risk with a relatively small number of retailers, and, if any of these retailers

were to experience a shortage of liquidity or consumer behavior shifts away from traditional retail, it would increase the risk

that their outstanding payables to us may not be paid.

In addition, increasing market share concentration among one or a few retailers

in a particular country or region increases the risk that if any one of them substantially reduces their purchases of our products,

we may be unable to find a sufficient number of other retail outlets for our products to sustain the same level of sales and revenues.

online operations have required and will continue to require a substantial investment and commitment of resources and are subject

to numerous risks and uncertainties.

factors unique to e-commerce operations, some of which are beyond the Company’s control, pose risks and uncertainties.

include, but are not limited to credit card fraud or data mismanagement.

the technology-based systems that give our consumers the ability to shop with us online do not function effectively, our operating

results, as well as our ability to grow our digital commerce business globally, could be materially adversely affected.

These retailers

have in the past increased their market share by expanding through acquisitions and construction of additional stores.

These situations

concentrate our credit risk with a relatively small number of retailers, and, if any of these retailers were to experience a shortage

of liquidity or consumer behavior shifts away from traditional retail, it would increase the risk that their outstanding payables to

us may not be paid.

In addition, increasing market share concentration among one or a few retailers in a particular country or region

increases the risk that if any one of them substantially reduces their purchases of our products, we may be unable to find a sufficient

number of other retail outlets for our products to sustain the same level of sales and revenues.

the technology-based systems that give our consumers the ability to shop with us online do not function effectively, our operating results,

as well as our ability to grow our digital commerce business globally, could be materially adversely affected.

of our consumers shop with us through our digital platforms.

3 unchanged sentences

mobile applications to interact with our consumers and as a means to enhance their shopping experience.

Any failure on our part

to provide attractive, effective, reliable, user-friendly digital commerce platforms that offer a wide assortment of merchandise

with rapid delivery options and that continually meet the changing expectations of online shoppers could place us at a competitive

disadvantage, result in the loss of digital commerce and other sales, harm our reputation with consumers, have a material adverse

impact on the growth of our digital commerce business globally and could have a material adverse impact on our business and results

of operations.

Risks specific to our digital commerce business also include diversion of sales from our and our retailers’

brick and mortar stores, difficulty in recreating the in-store experience through direct channels and liability for online content.

Our failure to successfully respond to these risks might adversely affect sales in our digital commerce business, as well as damage

our reputation and brands.

to adequately protect or enforce our intellectual property rights could adversely affect our business.

may encounter counterfeit reproductions of our products or products that otherwise infringe our intellectual property rights.

If we are unsuccessful in enforcing our intellectual property rights, continued sales of these products could adversely affect

our sales and our brand and could result in a shift of consumer preference away from our products.

actions we take to establish and protect our intellectual property rights may not be adequate to prevent imitation of our products

We also may be unable to prevent others from seeking to block sales of our products as violations of proprietary rights.

may be subject to liability if third parties successfully claim we infringe on their intellectual property rights.

Defending infringement

claims could be expensive and time-consuming and might result in our entering into costly license agreements.

We also may be subject

to significant damages or injunctions against development, use, importation and/or sale of certain products.

take various actions to prevent the unauthorized use and/or disclosure of our confidential information and intellectual property

These actions include contractual measures such as entering into non-disclosure and non-compete agreements and agreements

relating to our collaborations with third parties.

Our controls and efforts to prevent unauthorized use and/or disclosure of confidential

information and intellectual property rights might not always be effective.

For example, confidential information related to business

strategy, new technologies, mergers and acquisitions, unpublished financial results or personal data could be prematurely, inadvertently,

or improperly used and/or disclosed, resulting in a loss of reputation, a decline in our stock price and/or a negative impact

on our market position, and could lead to damages, fines, penalties or injunctions.

addition, the laws of certain countries may not protect or allow enforcement of intellectual property rights to the same extent

as the laws of the United States.

We may face significant expenses and liability in connection with the protection of our intellectual

property rights, including outside the United States, and if we are unable to successfully protect our rights or resolve intellectual

property conflicts with others, our business or financial condition may be adversely affected.

Any failure on our part to provide

attractive, effective, reliable, user-friendly digital commerce platforms that offer a wide assortment of merchandise with rapid delivery

options and that continually meet the changing expectations of online shoppers could place us at a competitive disadvantage, result in

the loss of digital commerce and other sales, harm our reputation with consumers, have a material adverse impact on the growth of our

digital commerce business globally and could have a material adverse impact on our business and results of operations.

Risks specific

to our digital commerce business also include liability for online content.

Our failure to successfully respond to these risks might

adversely affect sales in our digital commerce business, as well as damage our reputation and brands.

factors unique to e-commerce operations, some of which are beyond our control, pose risks and uncertainties.

Risks include, but are not

limited to credit card fraud or data mismanagement.

are subject to data security and privacy risks that could negatively affect our results, operations or reputation.

addition to our own sensitive and proprietary business information, we handle transactional and personal information about our

customers and users of our digital experiences, which include online distribution channels and product engagement, adaptive products

and personal fitness applications.

Hackers and data thieves are increasingly sophisticated and operate social engineering, such

as phishing, and large-scale, complex automated attacks that can evade detection for long periods of time.

Any breach of our or

our service providers’

network, or other vendor systems, may result in the loss of confidential business and financial data,

misappropriation of our consumers’, users’

addition to our own sensitive and proprietary business information, we handle transactional and personal information about our customers

and users of our digital experiences, which include online distribution channels and product engagement, adaptive products and personal

fitness applications.

Hackers and data thieves are increasingly sophisticated and operate social engineering, such as phishing, and large-scale,

complex automated attacks that can evade detection for long periods of time.

Any breach of our or our service providers’

or other vendor systems, may result in the loss of confidential business and financial data, misappropriation of our consumers’,

or employees’

personal information or a disruption of our business.

Any of these outcomes could have a material adverse effect on our business, including unwanted media attention, impairment of

our consumer and customer relationships, damage to our reputation;

resulting in lost sales and consumers, fines, lawsuits, or

significant legal and remediation expenses.

We also may need to expend significant resources to protect against, respond to and/or

redress problems caused by any breach.

addition, we must comply with increasingly complex and rigorous regulatory standards enacted to protect business and personal

data in the U.S., Europe and elsewhere.

For example, the European Union adopted the General Data Protection Regulation (the “GDPR”),

which became effective on May 25, 2018;

and California passed the California Consumer Privacy Act (the “CCPA”) which

will go into effect in 2020.

These laws impose additional obligations on companies regarding the handling of personal data and

provides certain individual privacy rights to persons whose data is stored.

Compliance with existing, proposed and recently enacted

laws (including implementation of the privacy and process enhancements called for under GDPR and CCPA) and regulations can be

any failure to comply with these regulatory standards could subject us to legal and reputational risks.

Misuse of or failure

to secure personal information could also result in violation of data privacy laws and regulations, proceedings against the Company

by governmental entities or others, damage to our reputation and credibility and could have a negative impact on revenues and

Any of these outcomes could have a material adverse

effect on our business, including unwanted media attention, impairment of our consumer and customer relationships, damage to our reputation;

resulting in lost sales and consumers, fines, lawsuits, or significant legal and remediation expenses.

We also may need to expend significant

resources to protect against, respond to and/or redress problems caused by any breach.

In addition, we must comply with increasingly

complex and rigorous regulatory standards enacted to protect business and personal data in the U.S., Europe and elsewhere.

of our contractors or our licensees’

contractors to comply with local laws and other standards could harm our business.

work with contractors outside of the United States to manufacture our products.

We require the contractors that directly manufacture

our products and our licensees that make products using our intellectual property (including, indirectly, their contract manufacturers)

to comply with environmental, health and safety standards for the benefit of workers.

We also require these contractors to comply

with applicable standards for product safety.

Notwithstanding their contractual obligations, from time to time contractors may

not comply with such standards or applicable local law or our licensees may fail to enforce such standards or applicable local

law on their contractors.

Significant or continuing noncompliance with such standards and laws by one or more contractors could

harm our reputation or result in a product recall and, as a result, could have an adverse effect on our sales and financial condition.

Negative publicity regarding production methods, alleged practices or workplace or related conditions of any of our suppliers,

manufacturers or licensees could adversely affect our brand image and sales and force us to locate alternative suppliers, manufacturers

work with contractors outside of the U.S.

to manufacture our products.

We require the contractors that directly manufacture our

products and our licensees that make products using our intellectual property (including, indirectly, their contract manufacturers) to

comply with environmental, health and safety standards for the benefit of workers.

We also require these contractors to comply with applicable

standards for product safety.

Notwithstanding their contractual obligations, from time-to-time contractors may not comply with

such standards or applicable local law or our licensees may fail to enforce such standards or applicable local law on their contractors.

Significant or continuing noncompliance with such standards and laws by one or more contractors could harm our reputation or result in

a product recall and, as a result, could have an adverse effect on our sales and financial condition.

Negative publicity regarding production

methods, alleged practices or workplace or related conditions of any of our suppliers, manufacturers or licensees could adversely affect

our brand image and sales and force us to locate alternative suppliers, manufacturers or licenses.

international operations involve inherent risks which could result in harm to our business.

of our equipment is manufactured outside of the United States with a large volume of our products being also sold outside

of the United States.

Accordingly, we are subject to the risks generally associated with global trade and doing business abroad,

which include foreign laws and regulations, varying consumer preferences across geographic regions, political unrest, disruptions

or delays in cross-border shipments and changes in economic conditions in countries in which our products are manufactured or

where we sell products.

This includes, for example, the uncertainty surrounding the effect of Brexit, including changes to the

legal and regulatory framework that apply to the United Kingdom and its relationship with the European Union, as well as new and

proposed changes affecting tax laws and trade policy in the U.S.

and elsewhere as further described below under “We could

be subject to changes in tax rates, adoption of new tax laws, additional tax liabilities or increased volatility in our effective

tax rate”

and “Changes to U.S.

trade policy, tariff and import/export regulations may have a material adverse effect

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

presidential administration has indicated a focus

on policy reforms that discourage U.S.

of our equipment is manufactured outside of the U.S.

with a large volume of our products being also sold outside of the U.S.

Accordingly, we are subject to the risks generally associated with global trade and doing business abroad, which include foreign

laws and regulations, varying consumer preferences across geographic regions, political unrest, disruptions or delays in cross-border

shipments and changes in economic conditions in countries in which our products are manufactured or where we sell products.

This includes,

for example, the uncertainty surrounding the effect of Brexit, including changes to the legal and regulatory framework that apply to

the United Kingdom and its relationship with the European Union, as well as new and proposed changes affecting tax laws and trade policy

and elsewhere as further described in other risks in this section.

presidential administration has indicated

a focus on policy reforms that discourage U.S.

corporations from outsourcing manufacturing and production activities to foreign jurisdictions,

including through tariffs or penalties on goods manufactured outside the U.S., which may require us to change the way we conduct

business and adversely affect our results of operations.

The administration has also targeted the specific practices of certain

multinational corporations in public statements which, if directed at us, could harm our reputation or otherwise negatively

impact our business.

addition, disease outbreaks, terrorist acts and military conflict have increased the risks of doing business abroad.

These factors,

among others, could affect our ability to manufacture products or procure materials, our ability to import products, our ability

to sell products in international markets and our cost of doing business.

If any of these or other factors make the conduct of

business in a particular country undesirable or impractical, our business could be adversely affected.

In addition, many of our

imported products are subject to duties, tariffs or quotas that affect the cost and quantity of various types of goods imported

into the United States and other countries.

Any country in which our products are produced or sold may eliminate, adjust or impose

new quotas, duties, tariffs, safeguard measures, anti-dumping duties, cargo restrictions to prevent terrorism, restrictions on

the transfer of currency, climate change legislation, product safety regulations or other charges or restrictions, any of which

could have an adverse effect on our results of operations and financial condition.

could be subject to changes in tax rates, adoption of new tax laws, additional tax liabilities or increased volatility in our

effective tax rate.

are subject to the tax laws in the United States and numerous foreign jurisdictions.

Current economic and political conditions

make tax laws and regulations, or their interpretation and application, in any jurisdiction subject to significant change.

December 22, 2017, the U.S.

enacted the Tax Cuts and Jobs Act (the “Tax Act”), which includes a number of significant

changes to previous U.S.

tax laws that impact us, including provisions for a one-time transition tax on deemed repatriation of

undistributed foreign earnings, and a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December

31, 2017, among other changes.

The Tax Act also transitions U.S.

international taxation from a worldwide system to a modified

territorial system and includes base erosion prevention measures on non-U.S.

earnings, which has the effect of subjecting certain

earnings of our foreign subsidiaries to U.S.

including through tariffs or penalties on goods manufactured outside the U.S., which may require us to change the way we conduct business

and adversely affect our results of operations.

The administration has also targeted the specific practices of certain U.S.

multinational

corporations in public statements which, if directed at us, could harm our reputation or otherwise negatively impact our business.

could be subject to changes in tax rates, adoption of new tax laws, additional tax liabilities or increased volatility in our effective

are subject to the tax laws in the U.S.

and numerous foreign jurisdictions.

Current economic and political conditions make tax

laws and regulations, or their interpretation and application, in any jurisdiction subject to significant change.

On December 22, 2017,

enacted the Tax Cuts and Jobs Act (the “Tax Act”), which includes a number of significant changes to previous U.S.

tax laws that impact us, including provisions for a one-time transition tax on deemed repatriation of undistributed foreign earnings,

and a reduction in the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017, among other changes.

Act also transitions U.S.

international taxation from a worldwide system to a modified territorial system and includes base erosion prevention

measures on non-U.S.

earnings, which has the effect of subjecting certain earnings of our foreign subsidiaries to U.S.

earn a substantial portion of our income in foreign countries and are subject to the tax laws of those jurisdictions.

been proposals to reform foreign tax laws that could significantly impact how U.S.

multinational corporations are taxed on foreign

Although we cannot predict whether or in what form these proposals will pass, several of the proposals considered, if

enacted into law, could have an adverse impact on our income tax expense and cash flows.

There have been

proposals to reform foreign tax laws that could significantly impact how U.S.

multinational corporations are taxed on foreign earnings.

Although we cannot predict whether or in what form these proposals will pass, several of the proposals considered, if enacted into law,

could have an adverse impact on our income tax expense and cash flows.

of our operations are subject to a reduced tax rate or are free of tax under various tax holidays and rulings.

We also utilize

tax rulings and other agreements to obtain certainty in treatment of certain tax matters.

These holidays and rulings expire in

whole or in part from time to time and may be extended when certain conditions are met or terminated if certain conditions are

The impact of any changes in conditions would be the loss of certainty in treatment thus potentially impacting our effective

income tax rate.

may also subject to the examination of our tax returns by the United States Internal Revenue Service (“IRS”) and other

tax authorities.

We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy

of its provision for income taxes.

Although we believe our tax provisions are adequate, the final determination of tax audits

and any related disputes could be materially different from our historical income tax provisions and accruals.

The results of

audits or related disputes could have an adverse effect on our financial statements for the period or periods for which the applicable

final determinations are made.

For example, we and our subsidiaries are also engaged in a number of intercompany transactions

across multiple tax jurisdictions.

Although we believe we have clearly reflected the economics of these transactions and the proper

local transfer pricing documentation is in place, tax authorities may propose and sustain adjustments that could result in changes

that may impact our mix of earnings in countries with differing statutory tax rates.

trade policy, tariff and import/export regulations or our failure to comply with such regulations may have a material

adverse effect on our reputation, business, financial condition and results of operations.

or international social, political, regulatory and economic conditions or in laws and policies governing foreign trade,

manufacturing, development and investment in the territories or countries where we currently sell our products or conduct our

business, as well as any negative sentiment toward the U.S.

as a result of such changes, could adversely affect our business.

presidential administration has instituted or proposed changes in trade policies that include the negotiation or termination

of trade agreements, the imposition of higher tariffs on imports into the U.S., economic sanctions on individuals, corporations

or countries, and other government regulations affecting trade between the U.S.

and other countries where we conduct our business.

It may be time-consuming and expensive for us to alter our business operations in order to adapt to or comply with any such changes.

a result of recent policy changes of the U.S.

presidential administration and recent U.S.

government proposals, there may be greater

restrictions and economic disincentives on international trade.

The new tariffs and other changes in U.S.

trade policy has in

the past and could continue to trigger retaliatory actions by affected countries, and certain foreign governments have instituted

or are considering imposing retaliatory measures on certain U.S.

The Company, similar to many other multinational corporations,

does a significant amount of business that would be impacted by changes to the trade policies of the U.S.

and foreign countries

(including governmental action related to tariffs, international trade agreements, or economic sanctions).

Such changes have the

potential to adversely impact the U.S.

economy or certain sectors thereof, our industry and the global demand for our products,

and as a result, could have a material adverse effect on our business, financial condition and results of operations.

rely on one contract manufacturer to supply our products.

are supplied with all of our product constituent parts by 10 vendors all located in southern China who manufacture the constituent

part of Slinger Bag products and route all parts to a final assembly factory located in Xiamen, China.

We do not own or operate

any manufacturing facilities and depend upon independent contract manufacturers to manufacture all of the products we sell.

ability to meet our customers’

needs depends on our ability to maintain a steady supply of products from our independent

contract manufacturers.

If our manufacturer were to sever its relationship with us or significantly alter the terms of our relationship,

including due to changes in applicable trade policies, we may not be able to obtain replacement products in a timely manner, which

could have a material adverse effect on our sales, financial condition or results of operations.

Additionally, if our manufacturer

fails to make timely shipments, do not meet our quality standards or otherwise fail to deliver us product in accordance with our

plans, there could be a material adverse effect on our results of operations.

We also utilize tax rulings

and other agreements to obtain certainty in treatment of certain tax matters.

These holidays and rulings expire in whole or in part from

time to time and may be extended when certain conditions are met or terminated if certain conditions are not met.

The impact of any changes

in conditions would be the loss of certainty in treatment thus potentially impacting our effective income tax rate.

may also be subject to the examination of our tax returns by the U.S.

Internal Revenue Service (“IRS”) and other tax

We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of

our provision for income taxes.

Although we believe our tax provisions are adequate, the final determination of tax audits and any related

disputes could be materially different from our historical income tax provisions and accruals.

The results of audits or related disputes

could have an adverse effect on our financial statements for the period or periods for which the applicable final determinations are

For example, we and our subsidiaries are also engaged in a number of intercompany transactions across multiple tax jurisdictions.

Although we believe we have clearly reflected the economics of these transactions and the proper local transfer pricing documentation

is in place, tax authorities may propose and sustain adjustments that could result in changes that may impact our mix of earnings in

countries with differing statutory tax rates.

products are subject to risks associated with overseas sourcing, manufacturing and financing.

principal materials used in our products, injection molded plastics, polyester, electrical motors, remote controls, are available

principal materials used in our products (e.g., injection molded plastics, polyester, electrical motors, remote controls) are available

in countries where our manufacturing takes place.

1 unchanged sentence

to locate, train, employ and retain adequate personnel.

Slinger Bag contractors and suppliers buy raw materials and are subject

to wage rates that are oftentimes regulated by the governments of the countries in which our products are manufactured.

Slinger contractors and suppliers buy raw materials and are subject to wage rates

that are oftentimes regulated by the governments of the countries in which our products are manufactured.

could be a significant disruption in the supply of raw materials from current sources or, in the event of a disruption, our contract

manufacturers might not be able to locate alternative suppliers of materials of comparable quality at an acceptable price or at

Further, our unaffiliated contract manufacturers have experienced and may continue to experience in the future, unexpected

increases in work wages, whether government mandated or otherwise and increases in compliance costs due to governmental regulation

concerning certain metals used in the manufacturing of our products.

In addition, we cannot be certain that our unaffiliated manufacturers

will be able to fill our orders in a timely manner.

If we experience significant increases in demand, or reductions in the availability

of materials, or need to replace an existing manufacturer, there can be no assurance additional supplies of raw materials or additional

manufacturing capacity will be available when required on terms acceptable to us, or at all, or that any supplier or manufacturer

would allocate sufficient capacity to us in order to meet our requirements.

In addition, even if we are able to expand existing

or find new manufacturing or sources of materials, we may encounter delays in production and added costs as a result of the time

it takes to train suppliers and manufacturers in our methods, products, quality control standards and labor, health and safety

Any delays, interruption or increased costs in labor or wages, or the supply of materials or manufacture of our products

could have an adverse effect on our ability to meet retail customer and consumer demand for our products and result in lower revenues

and net income both in the short- and long-term.

independent manufacturers make all of our products outside of our principal sales markets, our products must be transported by

third parties over large geographic distances.

manufacturers might not be able to locate alternative suppliers of materials of comparable quality at an acceptable price or at all.

Further, our unaffiliated contract manufacturers have experienced and may continue to experience in the future, unexpected increases

in work wages, whether government mandated or otherwise and increases in compliance costs due to governmental regulation concerning certain

metals used in the manufacturing of our products.

In addition, we cannot be certain that our unaffiliated manufacturers will be able

to fill our orders in a timely manner.

If we experience significant increases in demand, or reductions in the availability of materials,

or need to replace an existing manufacturer, there can be no assurance additional supplies of raw materials or additional manufacturing

capacity will be available when required on terms acceptable to us, or at all, or that any supplier or manufacturer would allocate sufficient

capacity to us in order to meet our requirements.

In addition, even if we are able to expand existing or find new manufacturing or sources

of materials, we may encounter delays in production and added costs as a result of the time it takes to train suppliers and manufacturers

in our methods, products, quality control standards and labor, health and safety standards.

Any delays, interruption or increased costs

in labor or wages, or the supply of materials or manufacture of our products could have an adverse effect on our ability to meet retail

customer and consumer demand for our products and result in lower revenues and net income both in the short- and long-term.

independent manufacturers make all of our products outside of our principal sales markets, our products must be transported by third

parties over large geographic distances.

Delays in the shipment or delivery of our products due to the availability of transportation,

work stoppages, port strikes, infrastructure congestion or other factors, and costs and delays associated with consolidating or

transitioning between manufacturers, could adversely impact our financial performance.

In addition, manufacturing delays or unexpected

demand for our products may require us to use faster, but more expensive, transportation methods such as air freight, which could

adversely affect our profit margins.

The cost of oil is a significant component in manufacturing and transportation costs, so

increases in the price of petroleum products can adversely affect our profit margins.

work stoppages, port strikes, infrastructure congestion or other factors, and costs and delays associated with consolidating or transitioning

between manufacturers, could adversely impact our financial performance.

In addition, manufacturing delays or unexpected demand for our

products may require us to use faster, but more expensive, transportation methods such as air freight, which could adversely affect our

profit margins.

The cost of oil is a significant component in manufacturing and transportation costs, so increases in the price of petroleum

products can adversely affect our profit margins.

Changes in U.S.

trade policies, including

new and potential changes to import tariffs and existing trade policies and agreements, could also have a significant impact on

our activities in foreign jurisdictions, and could adversely affect our results of operations.

success depends on our global distribution

distribute our products to customers directly from the factory and through distribution centers located throughout the world primarily

located in Xiamen, China, Ghent, Belgium and South Carolina USA.

Our ability to meet customer expectations, manage inventory,

complete sales and achieve objectives for operating efficiencies and growth, particularly in emerging markets, depends on the

proper operation of our distribution facilities, the development or expansion of additional distribution capabilities and the

timely performance of services by third parties (including those involved in shipping product to and from our distribution facilities).

Our distribution facilities could be interrupted by information technology problems and disasters such as earthquakes or fires.

Any significant failure in our distribution facilities could result in an adverse effect on our business.

We maintain business

interruption insurance, but it may not adequately protect us from adverse effects caused by significant disruptions in our distribution

rely significantly on information technology to operate our business, including our supply chain and retail operations, and any

failure, inadequacy or interruption of that technology could harm our ability to effectively operate our business.

trade policies, including new and potential changes to import tariffs

and existing trade policies and agreements, could also have a significant impact on our activities in foreign jurisdictions, and could

adversely affect our results of operations.

rely significantly on information technology to operate our business, including our supply chain and retail operations, and any failure,

inadequacy or interruption of that technology could harm our ability to effectively operate our business.

are heavily dependent on information technology systems and networks, including the Internet and third-party services (“Information

Technology Systems”), across our supply chain, including product design, production, forecasting, ordering, manufacturing,

transportation, sales and distribution, as well as for processing financial information for external and internal reporting purposes,

retail operations and other business activities.

Information Technology Systems are critical to many of our operating activities

and our business processes and may be negatively impacted by any service interruption or shutdown.

For example, our ability to

effectively manage and maintain our inventory and to ship products to customers on a timely basis depends significantly on the

reliability of these Information Technology Systems.

We have implemented Information Technology Systems in all of the geographical

regions in which we operate.

Our work to integrate, secure and enhance these systems and related processes in our global operations

is ongoing and Slinger Bag will continue to invest in these efforts.

The failure of these systems to operate effectively, including

as a result of security breaches, viruses, hackers, malware, natural disasters, vendor business interruptions or other causes,

or failure to properly maintain, protect, repair or upgrade systems, or problems with transitioning to upgraded or replacement

systems could cause delays in product fulfillment and reduced efficiency of our operations, could require significant capital

investments to remediate the problem which may not be sufficient to cover all eventualities, and may have an adverse effect on

our reputation, results of operations and financial condition.

also use Information Technology Systems to process financial information and results of operations for internal reporting purposes

and to comply with regulatory financial reporting, legal and tax requirements.

If Information Technology Systems suffer severe

damage, disruption or shutdown and our business continuity plans, or those of our vendors, do not effectively resolve the issues

in a timely manner, we could experience delays in reporting our financial results, which could result in lost revenues and profits,

as well as reputational damage.

Furthermore, we depend on Information Technology Systems and personal data collection for digital

marketing, digital commerce, consumer engagement and the marketing and use of our digital products and services.

on our ability to engage in electronic communications throughout the world between and among our employees as well as with other

third parties, including customers, suppliers, vendors and consumers.

Any interruption in Information Technology Systems may impede

our ability to engage in the digital space and result in lost revenues, damage to our reputation, and loss of users.

weather conditions and natural disasters could negatively impact our operating results and financial condition.

weather conditions in the areas in which our suppliers, customers, distribution centers and vendors are located could adversely

affect our operating results and financial condition.

Moreover, natural disasters such as earthquakes, hurricanes and tsunamis,

whether occurring in the United States or abroad, and their related consequences and effects, including energy shortages and public

health issues, could disrupt our operations, the operations of our vendors and other suppliers or result in economic instability

that may negatively impact our operating results and financial condition.

Technology Systems”), across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation,

sales and distribution, as well as for processing financial information for external and internal reporting purposes, retail operations

and other business activities.

Information Technology Systems are critical to many of our operating activities and our business processes

and they may be negatively impacted by any service interruption or shutdown.

For example, our ability to effectively manage and maintain

our inventory and to ship products to customers on a timely basis depends significantly on the reliability of these Information Technology

We have implemented Information Technology Systems in all of the geographical regions in which we operate.

Our work to integrate,

secure and enhance these systems and related processes in our global operations is ongoing and Slinger will continue to invest in these

The failure of these systems to operate effectively, including as a result of security breaches, viruses, hackers, malware,

natural disasters, vendor business interruptions or other causes, or failure to properly maintain, protect, repair or upgrade systems,

or problems with transitioning to upgraded or replacement systems could cause delays in product fulfillment and reduced efficiency of

our operations, could require significant capital investments to remediate the problem which may not be sufficient to cover all eventualities,

and may have an adverse effect on our reputation, results of operations and financial condition.

also use Information Technology Systems to process financial information and results of operations for internal reporting purposes and

to comply with regulatory financial reporting, legal and tax requirements.

If Information Technology Systems suffer severe damage, disruption

or shutdown and our business continuity plans, or those of our vendors, do not effectively resolve the issues in a timely manner, we

could experience delays in reporting our financial results, which could result in lost revenues and profits, as well as reputational

Furthermore, we depend on Information Technology Systems and personal data collection for digital marketing, digital commerce,

consumer engagement and the marketing and use of our digital products and services.

We also rely on our ability to engage in electronic

communications throughout the world between and among our employees as well as with other third parties, including customers, suppliers,

vendors and consumers.

Any interruption in Information Technology Systems may impede our ability to engage in the digital space and result

in lost revenues, damage to our reputation, and loss of users.

financial results may be adversely affected if substantial investments in businesses and operations fail to produce expected returns.

time to time, we may invest in technology, business infrastructure, new businesses, product offering and manufacturing innovation

and expansion of existing businesses, such as our digital commerce operations, which require substantial cash investments and

management attention.

time to time, we may invest in technology, business infrastructure, new businesses, product offering and manufacturing innovation and

expansion of existing businesses, such as our digital commerce operations, which require substantial cash investments and management

We believe cost-effective investments are essential to business growth and profitability;

however, significant

investments are subject to typical risks and uncertainties inherent in developing a new business or expanding an existing business.

The failure of any significant investment to provide expected returns or profitability could have a material adverse effect on

our financial results and divert management attention from more profitable business operations.

are subject to a complex array of laws and regulations, which could have an adverse effect on our business, financial condition

and results of operations.

however, significant investments

are subject to typical risks and uncertainties inherent in developing a new business or expanding an existing business.

The failure of

any significant investment to provide expected returns or profitability could have a material adverse effect on our financial results

and divert management attention from more profitable business operations.

are subject to a complex array of laws and regulations, which could have an adverse effect on our business, financial condition and results

of operations.

a global business, we are subject to and must comply with extensive laws and regulations in the U.S.

and other jurisdictions in

which we have operations and distribution channels.

If we or our employees, agents, suppliers, and other partners fail to comply

with any of these laws or regulations, such failure could subject us to fines, sanctions or other penalties that could negatively

affect our reputation, business, financial condition and results of operations.

We may be involved in various types of claims,

lawsuits, regulatory proceedings and government investigations relating to our business, our products and the actions of our employees

and representatives, including contractual and employment relationships, product liability, antitrust, trademark rights and a

variety of other matters.

It is not possible to predict with certainty the outcome of any such legal or regulatory proceedings

or investigations, and we could in the future incur judgments, fines or penalties, or enter into settlements of lawsuits and claims

that could have a material adverse effect on our business, financial condition and results of operations and negatively impact

our reputation.

The global nature of our business means legal and compliance risks, such as anti-bribery, anti-corruption, fraud,

trade, environmental, competition, privacy and other regulatory matters, will continue to exist and additional legal proceedings

and other contingencies will arise from time to time, which could adversely affect us.

In addition, the adoption of new laws or

regulations, or changes in the interpretation of existing laws or regulations, may result in significant unanticipated legal and

reputational risks.

Any current or future legal or regulatory proceedings could divert management’s attention from our operations

and result in substantial legal fees.

success of our business depends, in part, on high-quality employees, including key personnel.

success depends in part on the continued service of high-quality employees, including key executive officers and personnel.

loss of the services of key individuals, or any negative perception with respect to these individuals, could harm our business.

Our success also depends on our ability to recruit, retain and engage our personnel sufficiently, both to maintain our current

business and to execute our strategic initiatives.

Competition for employees in our industry is intense and we may not be successful

in attracting and retaining such personnel.

In addition, shifts in U.S.

immigration policy could negatively impact our ability

to attract, hire and retain highly skilled employees who are from outside the U.S.

sale of a large number of shares of common stock by our principal stockholder could depress the market price of our common stock.

of the date hereof, Yonah Kalfa beneficially owned approximately 82% of our common stock.

The shares may become available for

resale, subject to the requirements of the U.S.

and other jurisdictions in which

we have operations and distribution channels.

If we or our employees, agents, suppliers, and other partners fail to comply with any of

these laws or regulations, such failure could subject us to fines, sanctions or other penalties that could negatively affect our reputation,

business, financial condition and results of operations.

We may be involved in various types of claims, lawsuits, regulatory proceedings

and government investigations relating to our business, our products and the actions of our employees and representatives, including

contractual and employment relationships, product liability, antitrust, trademark rights and a variety of other matters.

It is not possible

to predict with certainty the outcome of any such legal or regulatory proceedings or investigations, and we could in the future incur

judgments, fines or penalties, or enter into settlements of lawsuits and claims that could have a material adverse effect on our business,

financial condition and results of operations and negatively impact our reputation.

The global nature of our business means legal and

compliance risks, such as anti-bribery, anti-corruption, fraud, trade, environmental, competition, privacy and other regulatory matters,

will continue to exist and additional legal proceedings and other contingencies will arise from time to time, which could adversely affect

In addition, the adoption of new laws or regulations, or changes in the interpretation of existing laws or regulations, may result

in significant unanticipated legal and reputational risks.

Any current or future legal or regulatory proceedings could divert management’s

attention from our operations and result in substantial legal fees.

sale of a large number of shares of common stock by our principal shareholder could depress the market price of our common stock.

of July 31, 2021, Yonah Kalfa beneficially owned approximately 67% of our common stock outstanding.

The shares may

become available for resale, subject to the requirements of the U.S.

securities laws.

The sale or prospect of a sale of a substantial number of these

shares could have an adverse effect on the market price of our common stock.

our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be

adversely affected.

preparation of financial statements in conformity with accounting principles generally accepted in the United States of America

requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements

and accompanying notes.

We base our estimates on historical experience and on various other assumptions we believe to be reasonable

under the circumstances, as provided in “Management’s Discussion and Analysis of Financial Condition and Results of

Operations.”

The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities

and equity, and the amount of revenue and expenses that are not readily apparent from other sources.

Significant assumptions and

estimates used in preparing our consolidated financial statements include those related to revenue recognition, inventory reserves,

contingent payments under endorsement contracts, accounting for property, plant and equipment and definite-lived assets, hedge

accounting for derivatives, stock-based compensation, income taxes and other contingencies.

Our operating results may be adversely

affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our operating

results to fall below the expectations of securities analysts and investors, resulting in a decline in the price of our Common

may fail to meet market expectations, which could cause the price of our stock to decline.

common stock is traded publicly and at any given time various securities analysts may follow our financial results and issue reports

These reports include information about our historical financial results as well as analysts’

opinions of our future

performance, which may, in part, be based upon any guidance we have provided.

Analysts’

estimates are often different from

our estimates or expectations.

If our operating results are below the estimates or expectations of public market analysts and

investors, our stock price could decline.

In the past, securities class action litigation has been brought against other companies

following a decline in the market price of their securities.

If our stock price is volatile for any reason, we may become involved

in this type of litigation in the future.

Any litigation could result in reputational damage, substantial costs and a diversion

of management’s attention and resources needed to successfully run our business.

we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board which would limit the

ability of broker-dealers to sell our securities in the secondary market.

trading on the Over the Counter Bulletin Board must be reporting issuers under Section 12 of the Securities Exchange Act of 1934,

as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC

Bulletin Board.

As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability

of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.

addition, we may be unable to get relisted on the OTC Bulletin Board, which may have an adverse material effect on the Company.

do not expect to pay dividends in the future;

any return on investment may be limited to the value of our common stock.

do not currently anticipate paying cash dividends in the foreseeable future.

The payment of dividends on our common stock will

depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors

may consider relevant.

Our current intention is to apply net earnings, if any, in the foreseeable future to increasing our capital

base and development and marketing efforts.

There can be no assurance that the Company will ever have sufficient earnings to declare

and pay dividends to the holders of our common stock, and in any event, a decision to declare and pay dividends is at the sole

discretion of our board of directors.

If we do not pay dividends, our common stock may be less valuable because a return on your

investment will only occur if its stock price appreciates.

Authorization

of preferred stock.

may amend our Certificate of Incorporation to authorize the issuance of up to 50,000,000 shares of preferred stock with designations,

rights and preferences determined from time to time by our Board of Directors.

Accordingly, our Board of Directors may be empowered,

without stockholder approval, to issue preferred stock with dividend, liquidation, conversion, voting, or other rights which could

adversely affect the voting power or other rights of the holders of the common stock.

market price for our common stock may be particularly volatile given our status as a relatively unknown company, with a limited

operating history and lack of profits which could lead to wide fluctuations in our share price.

You may be unable to sell your

common stock at or above your purchase price, which may result in substantial losses to you.

stock price may be particularly volatile when compared to the shares of larger, more established companies that trade on a national

securities exchange and have large public floats.

The volatility in our share price will be attributable to a number of factors.

First, our common stock will be compared to the shares of such larger, more established companies, sporadically and thinly traded.

As a consequence of this limited liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately

influence the price of those shares in either direction.

The price for our shares could decline precipitously in the event that

a large number of shares of our common stock are sold on the market without commensurate demand.

Second, we are a speculative

or “risky”

investment due to our limited operating history and lack of profits to date, and uncertainty of future

market acceptance for our potential products.

As a consequence of this enhanced risk, more risk-averse investors may, under the

fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their

shares on the market more quickly and at greater discounts than would be the case with the stock of a larger, more established

company that trades on a national securities exchange and has a large public float.

Many of these factors are beyond our control

and may decrease the market price of our common stock, regardless of our operating performance.

We cannot make any predictions

or projections as to what the prevailing market price for our common stock will be at any time.

Moreover, the OTC Bulletin Board

is not a liquid market in contrast to the major stock exchanges.

We cannot assure you as to the liquidity or the future market

prices of our common stock if a market does develop.

If an active market for our common stock does not develop, the fair market

value of our common stock could be materially adversely affected.

shares are subject to the U.S.

“Penny Stock”

Rules and investors who purchase our shares may have difficulty re-selling

their shares as the liquidity of the market for our shares may be adversely affected by the impact of the “Penny Stock”

stock is subject to U.S.

“Penny Stock”

rules, which may make the stock more difficult to trade on the open market.

A “penny stock”

is generally defined by regulations of the U.S.

Securities and Exchange Commission (“SEC”)

as an equity security with a market price of less than US$5.00 per share.

However, an equity security with a market price under

US $5.00 will not be considered a penny stock if it fits within any of the following exceptions:

the equity security is listed on NASDAQ or a national securities exchange;

the issuer of the equity security has been in continuous operation for less than three years, and either has (a) net tangible

assets of at least US $5,000,000, or (b) average annual revenue of at least US $6,000,000;

the issuer of the equity security has been in continuous operation for more than three years and has net tangible assets of

at least US $2,000,000.

common stock does not currently fit into any of the above exceptions.

an investor buys or sells a penny stock, SEC regulations require that the investor receive, prior to the transaction, a disclosure

explaining the penny stock market and associated risks.

Furthermore, trading in our common stock will be subject to Rule 15g-9

of the Exchange Act, which relates to non-NASDAQ and non-exchange listed securities.

Under this rule, broker/dealers who recommend

our securities to persons other than established customers and accredited investors must make a special written suitability determination

for the purchaser and receive the purchaser’s written agreement to a transaction prior to sale.

Securities are exempt from

this rule if their market price is at least $5.00 per share.

Since our common stock is currently deemed penny stock regulations,

it may tend to reduce market liquidity of our common stock, because they limit the broker/dealers’

ability to trade, and

a purchaser’s ability to sell, the stock in the secondary market.

low price of our common stock has a negative effect on the amount and percentage of transaction costs paid by individual shareholders.

The low price of our common stock also limits our ability to raise additional capital by issuing additional shares.

several reasons for these effects.

First, the internal policies of certain institutional investors prohibit the purchase of low-priced

Second, many brokerage houses do not permit low-priced stocks to be used as collateral for margin accounts or to be purchased

Third, some brokerage house policies and practices tend to discourage individual brokers from dealing in low-priced

Finally, broker’s commissions on low-priced stocks usually represent a higher percentage of the stock price than

commissions on higher priced stocks.

As a result, the Company’s shareholders may pay transaction costs that are a higher

percentage of their total share value than if our share price were substantially higher.

we can issue additional shares of common stock, purchasers of our common stock may incur immediate dilution and experience further

are authorized to issue up to 300,000,000 shares of common stock, of which 26,209,714 shares of common stock are issued and outstanding

as of the date hereof.

Our Board of Directors has the authority to cause us to issue additional shares of common stock and to

determine the rights, preferences and privileges of such shares, without consent of any of our stockholders.

Consequently, the

stockholders may experience more dilution in their ownership of our stock in the future.

reverse stock split may decrease the liquidity of the shares of our common stock.

liquidity of the shares of our common stock may be affected adversely by a reverse stock split given the reduced number of shares

that will be outstanding following a reverse stock split, especially if the market price of our common stock does not increase

as a result of the reverse stock split.

have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to

what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise.

Investors should carefully consider all of such risk factors before making an investment decision with respect to our common stock.

The sale or prospect of a sale of a substantial

number of these shares could have an adverse effect on the market price of our common stock.

we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board, which would limit the ability

of broker-dealers to sell our securities in the secondary market.

trading on the Over the Counter (OTC) Bulletin Board must be reporting issuers under Section 12 of the Securities Exchange Act of 1934,

as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin

As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers

to sell our securities and the ability of shareholders to sell their securities in the secondary market.

In addition, we may be

unable to get relisted on the OTC Bulletin Board, which may have an adverse material effect on the Company.

common stock is considered a “penny stock,”

any investment in our shares is considered to be a high-risk investment and

is subject to restrictions on marketability.

common stock is considered a “penny stock”

because it is quoted on the OTCQB and it trades for less than $5.00 per share.

The OTCQB is generally regarded as a less efficient trading market than the NASDAQ Capital or Global Markets or the New York Stock Exchange.

The SEC has rules that regulate broker-dealer practices in connection with transactions in “penny stocks.”

Penny stocks generally

are equity securities with a price of less than $5.00 per share (other than securities registered on certain national securities exchanges

or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is

provided by the exchange or system).

The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise

exempt from those rules, to deliver a standardized risk disclosure document prepared by the SEC, which specifies information about penny

stocks and the nature and significance of risks of the penny stock market.

The broker-dealer also must provide the customer with bid

and offer quotations for the penny stock, the compensation of the broker-dealer and any salesperson in the transaction, and monthly account

statements indicating the market value of each penny stock held in the customer’s account.

In addition, the penny stock rules require

that, prior to effecting a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special

written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement

to the transaction.

These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our

common stock.

Since our common stock is subject to the regulations applicable to penny stocks, the market liquidity for our common stock

could be adversely affected because the regulations on penny stocks could limit the ability of broker-dealers to sell our common stock

and thus your ability to sell our common stock in the secondary market in the future.

We can provide no assurance that our common stock

will be quoted or listed on the OTCQB, NASDAQ or any exchange, even if eligible in the future.

UNRESOLVED STAFF COMMENTS

of the date hereof, we do not lease or own any properties.

Not applicable

to smaller reporting companies.

of the date of this report, we do not own any properties.

The Company does lease some office space under short-term leases

with terms under a year.

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 1A. Risk Factors