If we are unable to maintain our line of credit facility or have a significant change in our maximum borrowing amount, we could face a deficiency in our short-term cash needs that would negatively impact our business.
The restrictive covenants contained in our 2018 Credit and Security Agreement may limit our activities.
Our level of indebtedness reduces our financial flexibility and could impede our ability to operate.
Increases in interest rates may increase our interest expense and adversely affect our cash flow and our ability to service our indebtedness.
Because sales of consumer electronic accessories are dependent on new products and consumer acceptance, we could experience sharp decreases in our sales and profit margin if we are unable to continually introduce new products and achieve consumer acceptance.
Because we sell indirectly to customers through third-party retailers who operate traditional brick-and-mortar locations, the shift of sales demographics to more online retail business could harm our market share and our revenues.
Because we face intense competition, including competition from companies with significantly greater resources than ours, we may be unable to compete effectively with these companies, our market share may decline, and our business could be harmed.
Because we are dependent on third-party sources to acquire sufficient quantities of raw materials to produce our products, any interruption in those relationships could harm our results of operations and our revenues.
Because we do not own all the technology incorporated in our products, the impact of technological advancements may cause profit margin erosion and adversely impact our profitability and inventory value.
There can be no guarantee that we will be able to expand into additional complementary product categories or to continue to configure our products to match new products or devices.
Breaches of our information technology systems may materially damage business partner and customer relationships, curtail or otherwise adversely impact access to online stores, or subject us to significant reputational, financial, legal, and operational consequences.
If we fail to maintain proper inventory levels, our business could be harmed.
As we continue to grow our business into new markets, including internationally, it may put pressure on our gross profit margins.
As we continue to grow our business, entrance into new and complimentary product categories may put pressure on our gross profit margins.
Because we are dependent on key executive officers for our success, our inability to retain these officers could impede our business plan and growth strategies, which could have a negative impact on our business.
A small number of our customers account for a significant amount of our net sales, and the loss of, or reduced purchases from, these or other customers could have an adverse effect on our operating results.
We may be adversely affected by the financial condition of our retailers and distributors.
If we fail to attract, train and retain sufficient numbers of qualified personnel, our prospects, business, financial condition and results of operations may be materially and adversely affected.
If our products contain defects, our reputation could be harmed and our results of operations adversely affected.
Because we experience seasonal and quarterly fluctuations in demand for our products, no one quarter is indicative of our results of operations for the entire fiscal year.
Because we have limited protection on the IP underlying our products, we may not be able to protect our products from the infringement of others or may be prevented from marketing our products.
Our financial condition and results of operations in future periods could be adversely affected by the recent coronavirus (COVID-19) outbreak.
Uncertainty in the economy can affect consumer spending patterns, which could adversely affect our business.
If we are unable to effectively manage our growth, our operating results and financial condition will be adversely affected.
If our competitors misappropriate our proprietary know-how and trade secrets, it could have a material adverse effect on our business.
If any of our facilities were to experience catastrophic loss, our operations would be seriously harmed.
If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results, and current and potential stockholders may lose confidence in our financial reporting.
Because we distribute products internationally, economic, political and other risks associated with our international sales and operations could adversely affect our operating results.
There can be no guarantee that additional amounts spent on marketing or advertising will result in receipt of additional sales or revenues.
U.S. tariffs and international trade disputes could increase the cost of our products or make our products more expensive for customers.
Because we may, at some time in the future, issue additional securities, shareholders are subject to dilution of their ownership.
Because we do not expect to pay dividends for the foreseeable future, investors seeking cash dividends will not purchase our common stock.
We may not be able to successfully integrate businesses we have acquired or which we may acquire in the future, and we may not be able to realize anticipated cost savings, revenue enhancements, or other synergies from such acquisitions.
Techniques employed by short sellers may drive down the market price of our common stock.
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