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ITEM 1A. Risk Factors
We are exposed to certain risks and uncertainties that could have a material adverse impact on our business, financial condition and operating results. Except as set forth below, there have been no material changes to the Risk Factors described in Part I, Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024.
Recently enacted imposed tariffs and upcoming tariffs-related decisions may have a material adverse impact on our business
In recent monthsBeginning in our second quarter of 2025, significant new and expanded tariffs, reciprocal tariffs and other trade restrictions have been imposed with selective tariff exemptions impacting global trade. The tariffs and other trade restrictions between the U.S. and China have escalated and include high tariff and reciprocal tariff rates. We purchase or manufacture our products largely in Haiti, China, Madagascar, Kenya, Vietnam, Pakistan and Bangladesh. Demand for our products may be adversely impacted if we are unable to share the cost increases with our suppliers and third-party manufacturers or pass along the remaining cost increases to our customers. The continuation or , expansion of the , or introduction of U.S. tariffs on China, and the expanscountries from which we source and/or manufacture products, such as China and Vietnam, could have a material adverse impact on our revenue, operation of s, financial position and cash flows.
Additionally, the U.S. tariffs on otherhas trade agreements and/or preferences with certain countries in which we manufacture, couAfrica, through the African Growth and Opportunity Act ("AGOA"), and with Haiti, through the Haitian Hemispheric Opportunity through Partnership Encouragement Act ("HOPE") and the Haiti Economic Lift Program of 2010 ("HELP"), all of which are set to expire on September 30, 2025, if not renewed or extended. Other trade agreements and/or preferences may expire or be terminated as well. The outcome of these trade agreements and/or preferences could have a material adverse impact on our revenue, operations, financial position and cash flows.
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