MemGPT/example-sec-filings · Datasets at Hugging Face

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complexity around payments, and inability to offer local payment forms
like cash or country specific digital forms of payment;

•lack of familiarity and the burden of complying with a wide variety of
U.S. and foreign laws, legal standards, and regulatory requirements,
which are complex, sometimes inconsistent, and subject to unexpected
changes;

•potentially adverse tax consequences, including resulting from the
complexities of foreign corporate income tax systems, value added tax
("AT" regimes, tax withholding rules, lodging taxes, often known as
transient or occupancy taxes, hotel taxes, and other indirect taxes, tax
collection or remittance obligations, and restrictions on the
repatriation of earnings;

•difficulties in managing and staffing international operations,
including due to differences in legal, regulatory, and collective
bargaining processes;

•fluctuations in currency exchange rates, and in particular, decreases
in the value of foreign currencies relative to the U.S. dollar;

•regulations governing the control of local currencies and impacting the
ability to collect and remit funds to Hosts in those currencies or to
repatriate cash into the United States;

•oversight by foreign government agencies whose approach to privacy or
human rights may be inconsistent with that taken in other countries;

•increased financial accounting and reporting burdens, and complexities
and difficulties in implementing and maintaining adequate internal
controls in an international operating environment;

•political, social, and economic instability abroad, terrorist attacks,
and security concerns in general;

•operating in countries that are more prone to crime or have lower
safety standards;

•operating in countries that have higher risk of corruption; and

•reduced or varied protection for our intellectual property rights in
some countries.

Increased operating expenses, decreased revenue, negative publicity,
negative reaction from our Hosts and guests and other stakeholders, or
other adverse impacts from any of the above factors or other risks
related to our international operations could materially adversely
affect our brand, reputation, business, results of operations, and
financial condition.

In addition, we will continue to incur significant expenses to operate
our outbound business in China, and we may never achieve profitability
in that market. These factors, combined with sentiment of the workforce
in China, and China' policy towards foreign direct investment may
particularly impact our operations in China. In addition, we need to
ensure that our business practices in China are compliant with local
laws and regulations, which may be interpreted and enforced in ways that
are different from our interpretation, and/or create obligations on us
that are costly to meet or conflict with laws in other jurisdictions and
which may not be implemented within regulatory timelines.

We are subject to various requirements and requests from government
agencies to share information on users who use services in China through
our platform. Failure to comply with such requests or other requirements
as interpreted by government agencies may lead to impairment or
disruption to our business and operations, including failing to obtain
or losing the necessary licenses to operate in China, the blocking of
our platform and services in China, and/or enforcement action against
our community, corporate entities, or officers. Our failure to comply
with such requests or requirements, or conversely our compliance with
such requests or requirements, could materially adversely affect our
brand, reputation, business, results of operations, and financial
condition. Further, given that our headquarters is in the United States,
any significant or prolonged deterioration in U.S.-China bilateral
relations or escalation of geo-political risk in China could adversely
affect our outbound business in China.

The Chinese government has adopted laws, regulations, and implementation
measures that govern the dissemination of content over the Internet and
data processing in China. These impose additional requirements for
certain categories of operators, and are continuing to develop and be
clarified. At this point, it is uncertain what obligations will apply to
us in the future, and we cannot predict what impact these new laws and
regulations or the increased costs of compliance, if any, will have on
our operations in China. Actions by the U.S. government

16

could also impair our ability to effectively operate in China, including
through the use of Executive Orders or trade blacklists to ban or limit
the use of services provided by Chinese third parties.

We conduct our business in China through a variable interest entity
("IE" and a wholly-foreign owned entity. We do not own shares in our VIE
and instead rely on contractual arrangements with the equity holders of
our VIE to operate our business in China because foreign investment is
restricted or prohibited. Under our contractual arrangements, we must
rely on the VIE and the VIE equity holders to perform their obligations
in order to exercise our control over the VIE. The VIE equity holders

complexity around payments, and inability to offer local payment forms

like cash or country specific digital forms of payment;

•lack of familiarity and the burden of complying with a wide variety of

U.S. and foreign laws, legal standards, and regulatory requirements,

which are complex, sometimes inconsistent, and subject to unexpected

changes;

•potentially adverse tax consequences, including resulting from the

complexities of foreign corporate income tax systems, value added tax

("AT" regimes, tax withholding rules, lodging taxes, often known as

transient or occupancy taxes, hotel taxes, and other indirect taxes, tax

collection or remittance obligations, and restrictions on the

repatriation of earnings;

•difficulties in managing and staffing international operations,

including due to differences in legal, regulatory, and collective

bargaining processes;

•fluctuations in currency exchange rates, and in particular, decreases

in the value of foreign currencies relative to the U.S. dollar;

•regulations governing the control of local currencies and impacting the

ability to collect and remit funds to Hosts in those currencies or to

repatriate cash into the United States;

•oversight by foreign government agencies whose approach to privacy or

human rights may be inconsistent with that taken in other countries;

•increased financial accounting and reporting burdens, and complexities

and difficulties in implementing and maintaining adequate internal

controls in an international operating environment;

•political, social, and economic instability abroad, terrorist attacks,

and security concerns in general;

•operating in countries that are more prone to crime or have lower

safety standards;

•operating in countries that have higher risk of corruption; and

•reduced or varied protection for our intellectual property rights in

some countries.

Increased operating expenses, decreased revenue, negative publicity,

negative reaction from our Hosts and guests and other stakeholders, or

other adverse impacts from any of the above factors or other risks

related to our international operations could materially adversely

affect our brand, reputation, business, results of operations, and

financial condition.

In addition, we will continue to incur significant expenses to operate

our outbound business in China, and we may never achieve profitability

in that market. These factors, combined with sentiment of the workforce

in China, and China' policy towards foreign direct investment may

particularly impact our operations in China. In addition, we need to

ensure that our business practices in China are compliant with local

laws and regulations, which may be interpreted and enforced in ways that

are different from our interpretation, and/or create obligations on us

that are costly to meet or conflict with laws in other jurisdictions and

which may not be implemented within regulatory timelines.

We are subject to various requirements and requests from government

agencies to share information on users who use services in China through

our platform. Failure to comply with such requests or other requirements

as interpreted by government agencies may lead to impairment or

disruption to our business and operations, including failing to obtain

or losing the necessary licenses to operate in China, the blocking of

our platform and services in China, and/or enforcement action against

our community, corporate entities, or officers. Our failure to comply

with such requests or requirements, or conversely our compliance with

such requests or requirements, could materially adversely affect our

brand, reputation, business, results of operations, and financial

condition. Further, given that our headquarters is in the United States,

any significant or prolonged deterioration in U.S.-China bilateral

relations or escalation of geo-political risk in China could adversely

affect our outbound business in China.

The Chinese government has adopted laws, regulations, and implementation

measures that govern the dissemination of content over the Internet and

data processing in China. These impose additional requirements for

certain categories of operators, and are continuing to develop and be

clarified. At this point, it is uncertain what obligations will apply to

us in the future, and we cannot predict what impact these new laws and

regulations or the increased costs of compliance, if any, will have on

our operations in China. Actions by the U.S. government

16

could also impair our ability to effectively operate in China, including

through the use of Executive Orders or trade blacklists to ban or limit

the use of services provided by Chinese third parties.

We conduct our business in China through a variable interest entity

("IE" and a wholly-foreign owned entity. We do not own shares in our VIE

and instead rely on contractual arrangements with the equity holders of

our VIE to operate our business in China because foreign investment is

restricted or prohibited. Under our contractual arrangements, we must

rely on the VIE and the VIE equity holders to perform their obligations

in order to exercise our control over the VIE. The VIE equity holders