Bark (BARK) risk factors, FY2025 10-K

Risks Related to Our Strategy

1. 01Our ability to execute our strategy depends on successfully navigating numerous challenges and uncertainties
2. 02revenue through reduced consumer discretionary spending, our cost structure or our supply chain
3. 03We may fail to acquire and retain customers in a cost-effective manner
4. 04We depend on various digital channels to reach and engage current and potential customers
5. 05We may be unable to sustain a high level of customer engagement, which could damage our brand and reputation
6. 06We may not be able to accurately predict consumer trends, successfully introduce new products and services, improve existing products and services, or expand into new offerings
7. 07Our success depends on our ability to recruit and retain senior leaders and key employees
8. 08We face challenges due to our reliance on third party sales channels to sell and distribute our products

Risks Related to the Macro-Economic Environment

1. 09We rely on consumer discretionary spending, which may be adversely affected by economic downturns and other macroeconomic conditions, events, or trends
2. 10We may be impacted by global disruptions or disasters
3. 11Changes in trade policy or the imposition of tariffs could affect our revenue and profitability

Risks Related to our Manufacturing, Inventory and Supply Chain

1. 12Our business critically relies on a limited number of suppliers, manufacturers, and logistics partners
2. 13We may face supply chain disruptions
3. 14Shipping, which is subject to numerous risks, is a critical part of our business
4. 15We may be unable to manage the complexities created by our omnichannel operations
5. 16If we are unable to implement appropriate systems, procedures and controls, we may not be able to successfully offer our products, grow our business and account for transactions in an appropriate and timely manner
6. 17We may not be able to successfully optimize, operate and manage our fulfillment centers and shipping services

Risks Related to Our Industry

1. 18Our estimate of the size of our addressable market may prove to be inaccurate
2. 19We may not be able to compete effectively in the dog products and services industry

Risks Related to Information Technology and Cybersecurity

1. 20We are subject to risks related to online payment methods
2. 21We rely on software-as-a-service (“SaaS”) technologies from third parties
3. 22The use of third-party “cookies” is the subject of litigation, regulatory scrutiny and industry self-regulatory
4. 23We may be unable to maintain and scale our technology
5. 24Our disaster recovery arrangements may be insufficient
6. 25The security of our and our partners’ computer networks and databases containing personal information may be compromised

Risks Related to Our Intellectual Property

1. 26We may be unable to adequately protect our intellectual property rights
2. 27We may be subject to intellectual property infringement claims or other allegations

Risks Related to Government Regulation and Legal Proceedings

1. 28We are subject to federal and state and foreign laws and regulations relating to privacy, data protection, advertising and consumer protection
2. 29We are subject to product safety, labor, or other laws
3. 30We are subject to extensive governmental regulation
4. 31We may be adversely affected by changes in tax laws, rules or regulations
5. 32Current and future litigation could have a material adverse effect on our business
6. 33Our estimates or judgments relating to our critical accounting policies could prove to be incorrect
7. 34We may be unable to accurately forecast our revenue and appropriately plan for our expenses in the future
8. 35We have in the past and may in the future identify material weaknesses in our internal control over financial reporting
9. 36Certain of our key performance indicators are subject to inherent challenges in measurement, and real or perceived inaccuracies
10. 37We have a history of losses and we may be unable to achieve or sustain profitability
11. 38We may fail to manage or integrate acquisitions of, or investments in, new or complementary businesses, facilities, technologies or products, or through strategic alliances
12. 39Our operating flexibility may be limited by our credit facilities and debt instruments
13. 40We may not be able to raise the capital we need to grow our business

Risks Relating to Ownership of Our Common Stock

1. 41Our stock price may be volatile or decline regardless of our operating performance
2. 42Sales of shares by existing stockholders may cause our stock price to decline
3. 43Securities or industry analysts may not publish accurate or favorable research about BARK
4. 44Delaware law, our certificate of incorporation and bylaws may impede a merger, tender offer, or proxy contest
5. 45Substantially all disputes between BARK and our stockholders are subject to exclusive forum provisions
6. 46We do not intend to pay dividends for the foreseeable future
7. 47Ownership of our stock is concentrated among our current officers, directors and their respective affiliates
8. 48We may issue additional shares of common stock or other equity securities, which would dilute your ownership interests and could depress the market price of our common stock

Risks Related to the 2025 Convertible Notes

1. 49Our obligation to redeem the 2025 Convertible Notes may not protect holders of those notes
2. 50There is no existing public trading market for the 2025 Convertible Notes