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Item 1A. Risk Factors.
TheExcept as set forth below, there have been no material changes from the risk factors previously disclosed in our 2024 10-K.
On August 4, 2025, our Board of Directors approved the 2025 Reorganization Plan, designed to realign the Companys operations to further increase efficiency and productivity. The 2025 Reorganization Plan includes, among other things, downsizing approximately 10% of our then current workforce and adapting our organizational structure, roles, and responsibilities accordingly. The 2025 Reorganization Plan was based on our estimates, assumptions and forecasts, which are subject to known and unknown risks and uncertainties, including assumptions regarding cost savings, cash burn rate and gross profit improvements. Accordingly, we may not be able to fully realize the cost savings, enhanced liquidity and other benefits anticipated from the 2025 Reorganization Plan. Additionally, implementation of our 2025 Reorganization Plan and any other cost-saving initiatives may be costly and disruptive to our business, the expected costs and charges may be greater than we have forecasted, and the estimated cost savings may be lower than we have forecasted. In addition, our initiatives could result in personnel attrition beyond our planned reduction in headcount or reduce employee morale, which could in turn adversely impact productivity, including through a loss of continuity, loss of accumulated knowledge and/or inefficiency during transitional periods, or our ability to attract highly skilled employees. Unfavorable publicity about us or the 2025 Reorganization Plan could result in reputational harm and could diminish confidence in our brand and business. The 2025 Reorganization Plan may require a significant amount of managements and other employees time and focus, which may divert attention from effectively operating and growing our business.