Tandy Leather Factory (TLF) risk factors, FY2024 10-K

Risks Related to our Business and Business Strategy

1. 01The successful execution of our multi-year transformation and operational efficiency initiatives is key to the long-term growth of our business
2. 02Our business is subject to the risks inherent in global sourcing activities
3. 03Increases in the price of leather and other items we sell or a reduction in availability of those products could increase our cost of goods and decrease our profitability
4. 04Relocation of the Company’s headquarters and main distribution facility in 2025 might cause significant disruption to the Company’s business and operations
5. 05We may be unable to sustain our financial performance or our past growth, which could have a material adverse effect on our future operating results
6. 06Competition, including internet-based competition, could negatively impact our business
7. 07Declines in foot traffic in our retail store locations could negatively impact our sales and profits
8. 08Our business could be harmed if we are unable to maintain our brand image
9. 09Changes in customer demand could materially adversely affect our sales, results of operations and cash flow
10. 10Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel
11. 11Disruptions in the operation of our Fort Worth distribution center or assembly facility could have an adverse effect on our ability to supply our retail stores, fulfill web orders and/or manufacture product, resulting in possible decreases in sales and margin

Risks Related to Cash Flow and Capitalization

1. 12If our cash from operations falls short and we are unable to raise additional working capital, we might be unable to fully fund our operations or to otherwise execute our business plan

Risks Related to Technology, Data Security and Privacy

1. 13Failure to protect the integrity and security of personal information of our customers and employees could result in substantial costs, expose us to litigation and damage our reputation
2. 14A cybersecurity incident and other technology disruptions could negatively affect our business and our relationships with customers
3. 15Unreliable or inefficient information technology or the failure to successfully implement or invest in technology initiatives in the future could adversely impact operating results

Risks Related to the Macroeconomic Environment

1. 16Our business may be negatively impacted by general economic conditions in the United States and abroad
2. 17Foreign currency fluctuations could adversely impact our financial condition and results of operations
3. 18We face risks related to the effect of economic uncertainty
4. 19While the impact of the COVID-19 pandemic has mostly receded, there are residual effects such as higher consumer prices and interest rates. Furthermore, another serious outbreak of coronavirus or other deadly disease could also have a material adverse effect on our business and liquidity

Risks Related to Legal, Regulatory and Compliance

1. 20Our success depends on the continued protection of our trademarks and other proprietary intellectual property rights