Stran (SWAG) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01Shortages of supply of merchandise from suppliers, interruptions in our manufacturing, and local conditions in the countries in which we source goods and materials could adversely affect our results of operations
2. 02Increases in the price of merchandise and raw materials used to manufacture our products could materially increase our costs and decrease our profitability
3. 03Our customers may cancel or decrease the quantity of their orders, which could negatively impact our operating results
4. 04We may be unable to identify or to complete acquisitions or to successfully integrate the businesses we acquire
5. 05If our information technology systems suffer interruptions or failures, including as a result of cyberattacks, our business operations could be disrupted and our reputation could suffer
6. 06We rely on software and services from other parties. Defects in or the loss of access to software or services from third parties could increase our costs and adversely affect the quality of our products
7. 07Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business
8. 08The Consumer Product Safety Improvement Act and other existing or future government regulation could harm our business or may cause us to incur additional costs associated with compliance
9. 09We are subject to international, federal, national, regional, state, local and other laws and regulations, and failure to comply with them may expose us to potential liability
10. 10Implementation of technology initiatives could disrupt our operations in the near term and fail to provide the anticipated benefits
11. 11Inability to attract and retain key management or other personnel could adversely impact our business
12. 12Failure to preserve positive labor relationships with our employees could adversely affect our results of operations
13. 13We are exposed to the risk of non-payment by our customers on a significant amount of our sales
14. 14There is a risk of dependence on one or a group of customers
15. 15Our business incurs significant freight and transportation costs. Any changes in our shipping arrangements or any interruptions in shipping could harm our business, results of operations and financial condition
16. 16Our business may be impacted by unforeseen or catastrophic events, including the emergence of pandemics or other widespread health emergencies, terrorist attacks, extreme weather events or other natural disasters and other unpredicted events
17. 17We face intense competition within our industry and our revenue and/or profits may decrease if we are not able to respond to this competition effectively
18. 18We face intense competition to gain market share, which may lead some competitors to sell substantial amounts of goods at prices against which we cannot profitably compete
19. 19Global, national or regional economic slowdowns, high unemployment levels, fewer jobs, changes in tax laws or cost increases might have an adverse effect on our operating results
20. 20The promotional products, trade show and events marketplace, loyalty and program management business industries are subject to pricing pressures that may cause us to lower the prices we charge for our products and services that adversely affect our financial performance
21. 21The apparel industry, including corporate identity apparel, is subject to changing fashion trends and if we misjudge consumer preferences, the image of one or more of our brands may suffer and the demand for our products may decrease
22. 22Our success depends upon the continued protection of our intellectual property rights and we may be forced to incur substantial costs to maintain, defend, protect and enforce our intellectual property rights
23. 23Climate change impacts including supply chain disruptions, operational impacts, and geopolitical events may impact our business operations
24. 24Increased focus by governments, vendors, stockholders, and customers on sustainability issues, including those related to climate change, may have a material adverse effect on our business and operations
25. 25Some of the products that we design or otherwise assist customers with producing create exposure to potential product liability, warranty liability or personal injury claims and litigation
26. 26Defects in the products that we design or otherwise assist customers with producing could reduce demand for our products and result in a decrease in sales and market acceptance and damage to our reputation
27. 27We may be subject to periodic litigation in both domestic and international jurisdictions that may adversely affect our financial position and results of operations
28. 28Volatility in the global financial markets could adversely affect results
29. 29We identified material weaknesses in our internal control over financial reporting as of December 31, 2024. If we fail to remediate the material weaknesses, we may be unable to accurately report our financial results or prevent fraud, and investor confidence and the market price of our shares may be adversely affected
30. 30Increases in the cost of employee benefits could impact our financial results and cash flow
31. 31We may recognize impairment charges, which could adversely affect our financial condition and results of operations
32. 32Environmental regulations may impact our future operating results
33. 33If we are unable to accurately predict our future tax liabilities, become subject to increased levels of taxation or our tax contingencies are unfavorably resolved, our results of operations and financial condition could be adversely affected

Risks Related to our Common Stock and Publicly-Traded Warrants

1. 34The market prices of our securities may fluctuate, and you could lose all or part of your investment
2. 35We may not be able to maintain a listing of our common stock and publicly-traded warrants on Nasdaq
3. 36Our publicly-traded warrants may not have any value
4. 37Holders of publicly-traded warrants have no rights as stockholders until such holders exercise their publicly-traded warrants and acquire our shares of common stock
5. 38Notwithstanding the foregoing, these provisions of the warrant certificate will not apply to suits brought to enforce any liability or duty created by the Exchange Act or any other claim for which the federal district courts of the United States are the sole and exclusive forum
6. 39We do not expect to declare or pay dividends in the foreseeable future
7. 40If securities industry analysts do not publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our securities could be negatively affected
8. 41We are authorized to issue “blank check” preferred stock without stockholder approval, which could adversely impact the rights of holders of our securities
9. 42If our securities become subject to the penny stock rules, it would become more difficult to trade our shares
10. 43We are subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our stockholders could receive less information than they might expect to receive from more mature public companies
11. 44As a non-accelerated filer, we are not required to comply with the auditor attestation requirements of the Sarbanes-Oxley Act
12. 45A non-accelerated filer is not required to file an auditor attestation report on internal control over financial reporting that is otherwise required under Section 404(b) of the Sarbanes-Oxley Act
13. 46As a “smaller reporting company,” we may at some time in the future choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public stockholders