arcee-ai/sec-data-full · Datasets at Hugging Face

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existing suppliers or develop relationships with new suppliers on acceptable commercial terms, we may not be able to continue to offer
a broad selection of merchandise at competitive prices and, as a result, we could lose customers and our sales could decline. We also have limited
control over the products that our suppliers purchase or keep in stock. Our suppliers may not accurately forecast the products that will
be in high demand or they may allocate popular products to other resellers, resulting in the unavailability of certain products for delivery
to our customers. Any inability to offer a broad array of products at competitive prices and any failure to deliver those products to
our customers in a timely and accurate manner may damage our reputation and brand and could cause us to lose customers and our sales could
decline. In addition, the increasing
consolidation among auto parts suppliers may disrupt or end our relationship with some suppliers, result in product shortages and/or lead
to less competition and, consequently, higher prices. Furthermore, as part of our routine business, suppliers extend credit to us in connection
with our purchase of their products. In the future, our suppliers may limit the amount of credit they are willing to extend to us in connection
with our purchase of their products. If this were to occur, it could impair our ability to acquire the types and quantities of products
that we desire from the applicable suppliers on acceptable terms, severely impact our liquidity and capital resources, limit our ability
to operate our business and could have a material adverse effect on our financial condition and results of operations. We are dependent
upon relationships with manufacturers in Taiwan and China, which exposes us to complex regulatory regimes and logistical challenges. Approximately 95% of
our manufacturing is outsourced to contract manufacturers in China and Taiwan, resulting in additional factors could interrupt our relationships
or affect our ability to acquire the necessary products on acceptable terms, includin ● political, social and economic instability and the risk of war or other international incidents in Asia
or abroad; ● fluctuations in foreign currency exchange rates that may increase our cost of products; ● imposition of duties, taxes, tariffs or other charges on imports; ● difficulties in complying with import and export laws, regulatory requirements and restrictions; ● natural disasters and public health emergencies, such as the recent COVID-19 pandemic; ● import shipping delays resulting from foreign or domestic labor shortages, slow-downs, or stoppage; and ● the failure of local laws to provide a sufficient degree of protection against infringement of our intellectual
property; ● imposition of new legislation relating to import quotas or other restrictions that may limit the quantity
of our products that may be imported into the U.S. from countries or regions where we do business; ● financial or political instability in any of the countries in which our products are manufactured; ● potential recalls or cancellations of orders for any products that do not meet our quality standards; ● disruption of imports by labor disputes or strikes and local business practices; 58 ● political or military conflict involving the U.S. or any country in which our suppliers are located, which
could cause a delay in the transportation of our products, an increase in transportation costs and additional risk to products being damaged
and delivered on time; ● heightened terrorism security concerns, which could subject imported goods to additional, more frequent
or more thorough inspections, leading to delays in deliveries or impoundment of goods for extended periods; ● inability of our non-U.S. suppliers to obtain adequate credit or access liquidity to finance their operations;
and ● our ability to enforce any agreements with our foreign suppliers. If we were unable to
import products from China and Taiwan or were unable to import products from China and Taiwan in a cost-effective manner, we could suffer
irreparable harm to our business and be required to significantly curtail our operations, file for bankruptcy or cease operations. From time to time, we
may also have to resort to administrative and court proceedings to enforce our legal rights with foreign suppliers. However, it may be
more difficult to evaluate the level of legal protection we enjoy in Taiwan and China and the corresponding outcome of any administrative
or court proceedings than in comparison to our suppliers in the United States. We depend on third-party
delivery services, for both inbound and outbound shipping, to deliver our products to our distribution centers and subsequently to our
customers on a timely and consistent basis, and any deterioration in our relationship with any one of these third parties or increases
in the fees that they charge could harm our reputation and adversely affect our business and financial condition. We rely on third parties
for the shipment of our products, both inbound and outbound shipping logistics, and we cannot be sure that these relationships will continue
on terms favorable to us, or at all. Shipping costs have increased from time to time, and may continue to increase, and we may not be
able to pass these costs directly to our customers. Any increased shipping costs could harm our business, prospects, financial condition
and results of operations by increasing our costs of doing business and reducing gross margins which could negatively affect our operating
results. In addition, we utilize a variety of shipping methods for both inbound and outbound logistics. For inbound logistics, we rely
on trucking and ocean carriers and any increases in fees that they charge could adversely affect our business and financial condition.
For outbound logistics, we rely on “Less-than-Truckload” and parcel freight based upon the product and quantities
being shipped and customer delivery requirements. These outbound freight costs have increased on a year-over-year basis and may continue
to increase in the future. We also ship a number of oversized auto parts which may trigger additional shipping costs by third-party delivery
services. Any increases in fees or any increased use of “Less-than-Truckload” shipping would increase our shipping
costs which could negatively affect our operating results. In addition, if our relationships
with these third parties are terminated or impaired, or if these third parties are unable to deliver products for us, whether due to labor
shortage, slow down or stoppage, deteriorating financial or business condition, responses to terrorist attacks or for any other reason,
we would be required to use alternative carriers for the shipment of products to our customers. Changing carriers could have a negative
effect on our business and operating results due to reduced visibility of order status and package tracking and delays in order processing
and product delivery, and we may be unable to engage alternative carriers on a timely basis, upon terms favorable to us, or at all. If commodity prices
such as fuel, plastic and steel increase, our margins may be negatively impacted. Our third-party delivery
services have increased fuel surcharges from time to time, and such increases negatively impact our margins, as we are generally unable
to pass all of these costs directly to consumers. Increasing prices in the component materials for the parts we sell may impact the availability,
the quality and the price of our products, as suppliers search for alternatives to existing materials and increase the prices they charge.
We cannot ensure that we can recover all the increased costs through price increases, and our suppliers may not continue to provide the
consistent quality of product as they may substitute lower cost materials to maintain pricing levels, all of which may have a negative
impact on our business and results of operations. 59 If we are unable
to manage the challenges associated with our international operations, the growth of our business could be limited and our business could
suffer. In addition to our relationships
with foreign suppliers, we have contracts with sales representatives from thirteen regional sales companies in North America, Mexico,
Puerto Rico, the U.K., Europe, the Middle East and the industrial aftermarket. We are subject to a number of risks and challenges that
specifically relate to our international operations. Our international operations may not be successful if we are unable to meet and overcome
these challenges, which could limit the growth of our business and may have an adverse effect on our business and operating results. These
risks and challenges inclu ● difficulties and costs of staffing and managing foreign operations; ● restrictions imposed by local labor practices and laws on our business and operations; ● exposure to different business practices and legal standards; ● unexpected changes in regulatory requirements; ● the imposition of government controls and restrictions; ● political, social and economic instability and the risk of war, terrorist activities or other international
incidents; ● the failure of telecommunications and connectivity infrastructure; ● natural disasters and public health emergencies; ● potentially adverse tax consequences; and ● fluctuations in foreign currency exchange rates and relative weakness in the U.S. dollar. If our fulfillment
operations are interrupted for any significant period of time or are not sufficient to accommodate increased demand, our sales could decline
and our reputation could be harmed. Our success depends on
our ability to successfully receive and fulfill orders and to promptly deliver our products to our customers. Most of the orders for our
products are filled from our inventory in our distribution centers, where all our inventory management, packaging, labeling and product
return processes are performed. Increased demand and other considerations may require us to expand our distribution centers or transfer
our fulfillment operations to larger or other facilities in the future. If we do not successfully expand our fulfillment capabilities
in response to increases in demand, our sales could decline. In addition, our distribution
centers are susceptible to damage or interruption from human error, pandemics, fire, flood, power loss, telecommunications failures, terrorist
attacks, acts of war, break-ins, earthquakes and similar events. We do not currently maintain back-up power systems at our fulfillment
centers. We do not presently have a formal disaster recovery plan and our business interruption insurance may be insufficient to compensate
us for losses that may occur in the event operations at our fulfillment center are interrupted. In addition, alternative arrangements
may not be available, or if they are available, may increase the cost of fulfillment. Any interruptions in our fulfillment operations
for any significant period of time, including interruptions resulting from the expansion of our existing facilities or the transfer of
operations to a new facility, could damage our reputation and brand and substantially harm our business and results of operations. We face intense
competition and operate in an industry with limited barriers to entry, and some of our competitors may have greater resources than us
and may be better positioned to capitalize on the growing auto parts market. The aftermarket auto
parts industry is competitive and highly fragmented, with products distributed through multi-tiered and overlapping channels. We compete
with both online and offline retailers who offer OEMs and aftermarket auto parts. Current or potential competitors include FIAMM, Grote,
Peterson Manufacturing Company, ECCO, Vixen Horns, HornBlasters and Kleinn. Many of our current and
potential competitors have longer operating histories, large customer bases, superior brand recognition and significantly greater financial,
marketing, technical, management and other resources than we do. In addition, some of our competitors have used and may continue to use
aggressive pricing tactics and devote substantially more financial resources to website and system development than we do. We expect that
competition will further intensify in the future as Internet use and online commerce continue to grow worldwide. Increased competition
may result in reduced sales, lower operating margins, reduced profitability, loss of market share and diminished brand recognition. 60 We rely on key
personnel and may need additional personnel for the success and growth of our business. Our business is largely
dependent on the personal efforts and abilities of highly skilled executive, technical, managerial, merchandising and marketing personnel.
Competition for such personnel is intense, and we cannot assure that we will be successful in attracting and retaining such personnel.
The loss of any key employee or our inability to attract or retain other qualified employees could harm our business and results of operations. If our product
catalog database is stolen, misappropriated or damaged, or if a competitor is able to create a substantially similar catalog without infringing
our rights, then we may lose an important competitive advantage. We have invested significant
resources and time to build and maintain our product catalog, which is maintained in the form of an electronic database. We believe that
our product catalog provides us with an important competitive advantage. We cannot assure you that we will be able to protect our product
catalog from unauthorized copying or theft or that our product catalog will continue to operate adequately, without any technological
challenges. In addition, it is possible that a competitor could develop a catalog or database that is similar to or more comprehensive
than ours, without infringing our rights. In the event our product catalog is damaged or is stolen, copied or otherwise replicated to
compete with us, whether lawfully or not, we may lose an important competitive advantage and our business could be harmed. Economic conditions
have had, and may continue to have, an adverse effect on the demand for aftermarket auto parts and could adversely affect our sales and
operating results. Demand for our products

existing suppliers or develop relationships with new suppliers on acceptable commercial terms, we may not be able to continue to offer

a broad selection of merchandise at competitive prices and, as a result, we could lose customers and our sales could decline. We also have limited

control over the products that our suppliers purchase or keep in stock. Our suppliers may not accurately forecast the products that will

be in high demand or they may allocate popular products to other resellers, resulting in the unavailability of certain products for delivery

to our customers. Any inability to offer a broad array of products at competitive prices and any failure to deliver those products to

our customers in a timely and accurate manner may damage our reputation and brand and could cause us to lose customers and our sales could

decline. In addition, the increasing

consolidation among auto parts suppliers may disrupt or end our relationship with some suppliers, result in product shortages and/or lead

to less competition and, consequently, higher prices. Furthermore, as part of our routine business, suppliers extend credit to us in connection

with our purchase of their products. In the future, our suppliers may limit the amount of credit they are willing to extend to us in connection

with our purchase of their products. If this were to occur, it could impair our ability to acquire the types and quantities of products

that we desire from the applicable suppliers on acceptable terms, severely impact our liquidity and capital resources, limit our ability

to operate our business and could have a material adverse effect on our financial condition and results of operations. We are dependent

upon relationships with manufacturers in Taiwan and China, which exposes us to complex regulatory regimes and logistical challenges. Approximately 95% of

our manufacturing is outsourced to contract manufacturers in China and Taiwan, resulting in additional factors could interrupt our relationships

or affect our ability to acquire the necessary products on acceptable terms, includin ● political, social and economic instability and the risk of war or other international incidents in Asia

or abroad; ● fluctuations in foreign currency exchange rates that may increase our cost of products; ● imposition of duties, taxes, tariffs or other charges on imports; ● difficulties in complying with import and export laws, regulatory requirements and restrictions; ● natural disasters and public health emergencies, such as the recent COVID-19 pandemic; ● import shipping delays resulting from foreign or domestic labor shortages, slow-downs, or stoppage; and ● the failure of local laws to provide a sufficient degree of protection against infringement of our intellectual

property; ● imposition of new legislation relating to import quotas or other restrictions that may limit the quantity

of our products that may be imported into the U.S. from countries or regions where we do business; ● financial or political instability in any of the countries in which our products are manufactured; ● potential recalls or cancellations of orders for any products that do not meet our quality standards; ● disruption of imports by labor disputes or strikes and local business practices; 58 ● political or military conflict involving the U.S. or any country in which our suppliers are located, which

could cause a delay in the transportation of our products, an increase in transportation costs and additional risk to products being damaged

and delivered on time; ● heightened terrorism security concerns, which could subject imported goods to additional, more frequent

or more thorough inspections, leading to delays in deliveries or impoundment of goods for extended periods; ● inability of our non-U.S. suppliers to obtain adequate credit or access liquidity to finance their operations;

and ● our ability to enforce any agreements with our foreign suppliers. If we were unable to

import products from China and Taiwan or were unable to import products from China and Taiwan in a cost-effective manner, we could suffer

irreparable harm to our business and be required to significantly curtail our operations, file for bankruptcy or cease operations. From time to time, we

may also have to resort to administrative and court proceedings to enforce our legal rights with foreign suppliers. However, it may be

more difficult to evaluate the level of legal protection we enjoy in Taiwan and China and the corresponding outcome of any administrative

or court proceedings than in comparison to our suppliers in the United States. We depend on third-party

delivery services, for both inbound and outbound shipping, to deliver our products to our distribution centers and subsequently to our

customers on a timely and consistent basis, and any deterioration in our relationship with any one of these third parties or increases

in the fees that they charge could harm our reputation and adversely affect our business and financial condition. We rely on third parties

for the shipment of our products, both inbound and outbound shipping logistics, and we cannot be sure that these relationships will continue

on terms favorable to us, or at all. Shipping costs have increased from time to time, and may continue to increase, and we may not be

able to pass these costs directly to our customers. Any increased shipping costs could harm our business, prospects, financial condition

and results of operations by increasing our costs of doing business and reducing gross margins which could negatively affect our operating

results. In addition, we utilize a variety of shipping methods for both inbound and outbound logistics. For inbound logistics, we rely

on trucking and ocean carriers and any increases in fees that they charge could adversely affect our business and financial condition.

For outbound logistics, we rely on “Less-than-Truckload” and parcel freight based upon the product and quantities

being shipped and customer delivery requirements. These outbound freight costs have increased on a year-over-year basis and may continue

to increase in the future. We also ship a number of oversized auto parts which may trigger additional shipping costs by third-party delivery

services. Any increases in fees or any increased use of “Less-than-Truckload” shipping would increase our shipping

costs which could negatively affect our operating results. In addition, if our relationships

with these third parties are terminated or impaired, or if these third parties are unable to deliver products for us, whether due to labor

shortage, slow down or stoppage, deteriorating financial or business condition, responses to terrorist attacks or for any other reason,

we would be required to use alternative carriers for the shipment of products to our customers. Changing carriers could have a negative

effect on our business and operating results due to reduced visibility of order status and package tracking and delays in order processing

and product delivery, and we may be unable to engage alternative carriers on a timely basis, upon terms favorable to us, or at all. If commodity prices

such as fuel, plastic and steel increase, our margins may be negatively impacted. Our third-party delivery

services have increased fuel surcharges from time to time, and such increases negatively impact our margins, as we are generally unable

to pass all of these costs directly to consumers. Increasing prices in the component materials for the parts we sell may impact the availability,

the quality and the price of our products, as suppliers search for alternatives to existing materials and increase the prices they charge.

We cannot ensure that we can recover all the increased costs through price increases, and our suppliers may not continue to provide the

consistent quality of product as they may substitute lower cost materials to maintain pricing levels, all of which may have a negative

impact on our business and results of operations. 59 If we are unable

to manage the challenges associated with our international operations, the growth of our business could be limited and our business could

suffer. In addition to our relationships

with foreign suppliers, we have contracts with sales representatives from thirteen regional sales companies in North America, Mexico,

Puerto Rico, the U.K., Europe, the Middle East and the industrial aftermarket. We are subject to a number of risks and challenges that

specifically relate to our international operations. Our international operations may not be successful if we are unable to meet and overcome

these challenges, which could limit the growth of our business and may have an adverse effect on our business and operating results. These

risks and challenges inclu ● difficulties and costs of staffing and managing foreign operations; ● restrictions imposed by local labor practices and laws on our business and operations; ● exposure to different business practices and legal standards; ● unexpected changes in regulatory requirements; ● the imposition of government controls and restrictions; ● political, social and economic instability and the risk of war, terrorist activities or other international

incidents; ● the failure of telecommunications and connectivity infrastructure; ● natural disasters and public health emergencies; ● potentially adverse tax consequences; and ● fluctuations in foreign currency exchange rates and relative weakness in the U.S. dollar. If our fulfillment

operations are interrupted for any significant period of time or are not sufficient to accommodate increased demand, our sales could decline

and our reputation could be harmed. Our success depends on

our ability to successfully receive and fulfill orders and to promptly deliver our products to our customers. Most of the orders for our

products are filled from our inventory in our distribution centers, where all our inventory management, packaging, labeling and product

return processes are performed. Increased demand and other considerations may require us to expand our distribution centers or transfer

our fulfillment operations to larger or other facilities in the future. If we do not successfully expand our fulfillment capabilities

in response to increases in demand, our sales could decline. In addition, our distribution

centers are susceptible to damage or interruption from human error, pandemics, fire, flood, power loss, telecommunications failures, terrorist

attacks, acts of war, break-ins, earthquakes and similar events. We do not currently maintain back-up power systems at our fulfillment

centers. We do not presently have a formal disaster recovery plan and our business interruption insurance may be insufficient to compensate

us for losses that may occur in the event operations at our fulfillment center are interrupted. In addition, alternative arrangements

may not be available, or if they are available, may increase the cost of fulfillment. Any interruptions in our fulfillment operations

for any significant period of time, including interruptions resulting from the expansion of our existing facilities or the transfer of

operations to a new facility, could damage our reputation and brand and substantially harm our business and results of operations. We face intense

competition and operate in an industry with limited barriers to entry, and some of our competitors may have greater resources than us

and may be better positioned to capitalize on the growing auto parts market. The aftermarket auto

parts industry is competitive and highly fragmented, with products distributed through multi-tiered and overlapping channels. We compete

with both online and offline retailers who offer OEMs and aftermarket auto parts. Current or potential competitors include FIAMM, Grote,

Peterson Manufacturing Company, ECCO, Vixen Horns, HornBlasters and Kleinn. Many of our current and

potential competitors have longer operating histories, large customer bases, superior brand recognition and significantly greater financial,

marketing, technical, management and other resources than we do. In addition, some of our competitors have used and may continue to use

aggressive pricing tactics and devote substantially more financial resources to website and system development than we do. We expect that

competition will further intensify in the future as Internet use and online commerce continue to grow worldwide. Increased competition

may result in reduced sales, lower operating margins, reduced profitability, loss of market share and diminished brand recognition. 60 We rely on key

personnel and may need additional personnel for the success and growth of our business. Our business is largely

dependent on the personal efforts and abilities of highly skilled executive, technical, managerial, merchandising and marketing personnel.

Competition for such personnel is intense, and we cannot assure that we will be successful in attracting and retaining such personnel.

The loss of any key employee or our inability to attract or retain other qualified employees could harm our business and results of operations. If our product

catalog database is stolen, misappropriated or damaged, or if a competitor is able to create a substantially similar catalog without infringing

our rights, then we may lose an important competitive advantage. We have invested significant

resources and time to build and maintain our product catalog, which is maintained in the form of an electronic database. We believe that

our product catalog provides us with an important competitive advantage. We cannot assure you that we will be able to protect our product

catalog from unauthorized copying or theft or that our product catalog will continue to operate adequately, without any technological

challenges. In addition, it is possible that a competitor could develop a catalog or database that is similar to or more comprehensive

than ours, without infringing our rights. In the event our product catalog is damaged or is stolen, copied or otherwise replicated to

compete with us, whether lawfully or not, we may lose an important competitive advantage and our business could be harmed. Economic conditions

have had, and may continue to have, an adverse effect on the demand for aftermarket auto parts and could adversely affect our sales and

operating results. Demand for our products