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

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has been and may continue to be adversely affected by general economic conditions. In declining economies, consumers often defer regular
vehicle maintenance and may forego purchases of nonessential performance and accessories products, which can result in a decrease in demand
for auto parts in general. Consumers also defer purchases of new vehicles, which immediately impacts performance parts and accessories,
which are generally purchased in the first six months of a vehicle’s lifespan. In addition, during economic downturns, some
competitors may become more aggressive in their pricing practices, which would adversely impact our gross margin. Certain suppliers may
exit the industry which may impact our ability to procure parts and may adversely impact gross margin as the remaining suppliers increase
prices to take advantage of limited competition. Vehicle miles driven,
vehicle accident rates and insurance companies’ willingness to accept a variety of types of parts in the repair process have fluctuated
and may decrease, which could result in a decline of our revenues and negatively affect our results of operations. We and our industry depend
on the number of vehicle miles driven, vehicle accident rates and insurance companies’ willingness to accept a variety of types
of parts in the repair process. Decreased miles driven reduce the number of accidents and corresponding demand for parts, and reduce the
wear and tear on vehicles with a corresponding reduction in demand for vehicle repairs and parts. If consumers were to drive less in the
future and/or accident rates were to decline, as a result of higher gas prices, increased use of ride-shares, the advancement of driver
assistance technologies, or otherwise, our sales may decline and our business and financial results may suffer. We will be required
to collect and pay more sales taxes, and could become liable for other fees and penalties, which could have an adverse effect on our business. We have historically
collected sales or other similar taxes only on the shipment of goods to customers in the state of New York. However, following the U.S.
Supreme Court decision in South Dakota v. Wayfair , we are now required to collect sales tax in any state which passes legislation
requiring out-of-state retailers to collect sales tax even where they have no physical nexus. We have historically enjoyed a competitive
advantage to the extent our competitors are already subject to those tax obligations. By collecting sales tax in additional states, we
will lose this competitive advantage as total costs to our customers will increase, which could adversely affect our sales. Moreover, if we fail
to collect and remit or pay required sales or other taxes in a jurisdiction or qualify or register to do business in a jurisdiction that
requires us to do so or if we have failed to do so in the past, we could face material liabilities for taxes, fees, interest and penalties.
If various jurisdictions impose new tax obligations on our business activities, our sales and net income in those jurisdictions could
decrease significantly, which could harm our business. Higher wage and
benefit costs could adversely affect our business. Changes in federal and
state minimum wage laws and other laws relating to employee benefits could cause us to incur additional wage and benefit costs. Increased
labor costs brought about by changes in minimum wage laws, other regulations or prevailing market conditions could increase our expenses
and have an adverse impact on our profitability. 61 We face exposure
to product liability lawsuits. The automotive industry
in general has been subject to a large number of product liability claims due to the nature of personal injuries that result from car
accidents or malfunctions. As a distributor of auto parts, including parts obtained overseas, we could be held liable for the injury or
damage caused if the products we sell are defective or malfunction regardless of whether the product manufacturer is the party at fault.
While we carry insurance against product liability claims, if the damages in any given action were high or we were subject to multiple
lawsuits, the damages and costs could exceed the limits of our insurance coverage or prevent us from obtaining coverage in the future.
If we were required to pay substantial damages as a result of these lawsuits, it may seriously harm our business and financial condition.
Even defending against unsuccessful claims could cause us to incur significant expenses and result in a diversion of management’s
attention. In addition, even if the money damages themselves did not cause substantial harm to our business, the damage to our reputation
and the brands offered on our websites could adversely affect our future reputation and our brand and could result in a decline in our
net sales and profitability. Business interruptions
in our facilities may affect the distribution of our products and/or the stability of our computer systems, which may affect our business. Weather, terrorist activities,
war or other disasters, or the threat of them, may result in the closure of one or more of our facilities, or may adversely affect our
ability to timely provide products to our customers, resulting in lost sales or a potential loss of customer loyalty. Most of our
products are imported from other countries and these goods could become difficult or impossible to bring into the United States, and we
may not be able to obtain such products from other sources at similar prices. Such a disruption in revenue could potentially have
a negative impact on our results of operations, financial condition and cash flows. We rely extensively on
our computer systems to manage inventory, process transactions and timely provide products to our customers. Our systems are subject
to damage or interruption from power outages, telecommunications failures, computer viruses, security breaches or other catastrophic events.
If our systems are damaged or fail to function properly, we may experience loss of critical data and interruptions or delays in
our ability to manage inventories or process customer transactions. Such a disruption of our systems could negatively impact revenue
and potentially have a negative impact on our results of operations, financial condition and cash flows. Security threats,
such as ransomware attacks, to our IT infrastructure could expose us to liability, and damage our reputation and business. It is essential to our
business strategy that our technology and network infrastructure remain secure and is perceived by our customers to be secure. Despite
security measures, however, any network infrastructure may be vulnerable to cyber-attacks. Information security risks have significantly
increased in recent years in part due to the proliferation of new technologies and the increased sophistication and activities of organized
crime, hackers, terrorists and other external parties, including foreign private parties and state actors. We may face cyber-attacks that
attempt to penetrate our network security, including our data centers, to sabotage or otherwise disable our network of websites and online
marketplaces, misappropriate our or our customers’ proprietary information, which may include personally identifiable information,
or cause interruptions of our internal systems and services. If successful, any of these attacks could negatively affect our reputation,
damage our network infrastructure and our ability to sell our products, harm our relationship with customers that are affected and expose
us to financial liability. We maintain a comprehensive
system of preventive and detective controls through our security programs; however, given the rapidly evolving nature and proliferation
of cyber threats, our controls may not prevent or identify all such attacks in a timely manner or otherwise prevent unauthorized access
to, damage to, or interruption of our systems and operations, and we cannot eliminate the risk of human error or employee or vendor malfeasance. In addition, any failure
by us to comply with applicable privacy and information security laws and regulations could cause us to incur significant costs to protect
any customers whose personal data was compromised and to restore customer confidence in us and to make changes to our information systems
and administrative processes to address security issues and compliance with applicable laws and regulations. In addition, our customers
could lose confidence in our ability to protect their personal information, which could cause them to stop shopping on our sites altogether.
Such events could lead to lost sales and adversely affect our results of operations. We also could be exposed to government enforcement
actions and private litigation. 62 Failure to comply
with privacy laws and regulations and failure to adequately protect customer data could harm our business, damage our reputation and result
in a loss of customers. Federal and state and
regulations may govern the collection, use, sharing and security of data that we receive from our customers. In addition, we have and
post on our websites our own privacy policies and practices concerning the collection, use and disclosure of customer data. Any failure,
or perceived failure, by us to comply with our posted privacy policies or with any data-related consent orders, U.S. Federal Trade Commission
requirements or other federal, state or international privacy-related laws and regulations could result in proceedings or actions against
us by governmental entities or others, which could potentially harm our business. Further, failure or perceived failure to comply with
our policies or applicable requirements related to the collection, use or security of personal information or other privacy-related matters
could damage our reputation and result in a loss of customers. The regulatory framework for privacy issues is currently evolving and is
likely to remain uncertain for the foreseeable future. Challenges by OEMs
to the validity of the aftermarket auto parts industry and claims of intellectual property infringement could adversely affect our business
and the viability of the aftermarket auto parts industry. OEMs have attempted to
use claims of intellectual property infringement against manufacturers and distributors of aftermarket products to restrict or eliminate
the sale of aftermarket products that are the subject of the claims. The OEMs have brought such claims in federal court and with the United
States International Trade Commission. We have received in the past, and we anticipate we may in the future receive, communications alleging
that certain products we sell infringe the patents, copyrights, trademarks and trade names or other intellectual property rights of OEMs
or other third parties. The United States Patent
and Trademark Office records indicate that OEMs are seeking and obtaining more design patents and trademarks than they have in the past.
In some cases, we have entered into license agreements that allow us to sell aftermarket parts that replicate OEM patented parts in exchange
for a royalty. In the event that our license agreements, or other similar license arrangements are terminated, or we are unable to agree
upon renewal terms, we may be subject to restrictions on our ability to sell aftermarket parts that replicate parts covered by design
patents or trademarks, which could have an adverse effect on our business. Litigation or regulatory
enforcement could also result in interpretations of the law that require us to change our business practices or otherwise increase our
costs and harm our business. We may not maintain sufficient, or any, insurance coverage to cover the types of claims that could be asserted.
If a successful claim were brought against us, it could expose us to significant liability. If we are unable
to protect our intellectual property rights, our reputation and brand could be impaired and we could lose customers. We regard our patents,
trademarks, trade secrets and similar intellectual property as important to our success. We rely on patent, trademark and copyright law,
and trade secret protection, and confidentiality and/or license agreements with employees, customers, partners and others to protect our
proprietary rights. We cannot be certain that we have taken adequate steps to protect our proprietary rights, especially in countries
where the laws may not protect our rights as fully as in the United States. In addition, our proprietary rights may be infringed or misappropriated,
and we could be required to incur significant expenses to preserve them. In the past we have filed litigation to protect our intellectual

has been and may continue to be adversely affected by general economic conditions. In declining economies, consumers often defer regular

vehicle maintenance and may forego purchases of nonessential performance and accessories products, which can result in a decrease in demand

for auto parts in general. Consumers also defer purchases of new vehicles, which immediately impacts performance parts and accessories,

which are generally purchased in the first six months of a vehicle’s lifespan. In addition, during economic downturns, some

competitors may become more aggressive in their pricing practices, which would adversely impact our gross margin. Certain suppliers may

exit the industry which may impact our ability to procure parts and may adversely impact gross margin as the remaining suppliers increase

prices to take advantage of limited competition. Vehicle miles driven,

vehicle accident rates and insurance companies’ willingness to accept a variety of types of parts in the repair process have fluctuated

and may decrease, which could result in a decline of our revenues and negatively affect our results of operations. We and our industry depend

on the number of vehicle miles driven, vehicle accident rates and insurance companies’ willingness to accept a variety of types

of parts in the repair process. Decreased miles driven reduce the number of accidents and corresponding demand for parts, and reduce the

wear and tear on vehicles with a corresponding reduction in demand for vehicle repairs and parts. If consumers were to drive less in the

future and/or accident rates were to decline, as a result of higher gas prices, increased use of ride-shares, the advancement of driver

assistance technologies, or otherwise, our sales may decline and our business and financial results may suffer. We will be required

to collect and pay more sales taxes, and could become liable for other fees and penalties, which could have an adverse effect on our business. We have historically

collected sales or other similar taxes only on the shipment of goods to customers in the state of New York. However, following the U.S.

Supreme Court decision in South Dakota v. Wayfair , we are now required to collect sales tax in any state which passes legislation

requiring out-of-state retailers to collect sales tax even where they have no physical nexus. We have historically enjoyed a competitive

advantage to the extent our competitors are already subject to those tax obligations. By collecting sales tax in additional states, we

will lose this competitive advantage as total costs to our customers will increase, which could adversely affect our sales. Moreover, if we fail

to collect and remit or pay required sales or other taxes in a jurisdiction or qualify or register to do business in a jurisdiction that

requires us to do so or if we have failed to do so in the past, we could face material liabilities for taxes, fees, interest and penalties.

If various jurisdictions impose new tax obligations on our business activities, our sales and net income in those jurisdictions could

decrease significantly, which could harm our business. Higher wage and

benefit costs could adversely affect our business. Changes in federal and

state minimum wage laws and other laws relating to employee benefits could cause us to incur additional wage and benefit costs. Increased

labor costs brought about by changes in minimum wage laws, other regulations or prevailing market conditions could increase our expenses

and have an adverse impact on our profitability. 61 We face exposure

to product liability lawsuits. The automotive industry

in general has been subject to a large number of product liability claims due to the nature of personal injuries that result from car

accidents or malfunctions. As a distributor of auto parts, including parts obtained overseas, we could be held liable for the injury or

damage caused if the products we sell are defective or malfunction regardless of whether the product manufacturer is the party at fault.

While we carry insurance against product liability claims, if the damages in any given action were high or we were subject to multiple

lawsuits, the damages and costs could exceed the limits of our insurance coverage or prevent us from obtaining coverage in the future.

If we were required to pay substantial damages as a result of these lawsuits, it may seriously harm our business and financial condition.

Even defending against unsuccessful claims could cause us to incur significant expenses and result in a diversion of management’s

attention. In addition, even if the money damages themselves did not cause substantial harm to our business, the damage to our reputation

and the brands offered on our websites could adversely affect our future reputation and our brand and could result in a decline in our

net sales and profitability. Business interruptions

in our facilities may affect the distribution of our products and/or the stability of our computer systems, which may affect our business. Weather, terrorist activities,

war or other disasters, or the threat of them, may result in the closure of one or more of our facilities, or may adversely affect our

ability to timely provide products to our customers, resulting in lost sales or a potential loss of customer loyalty. Most of our

products are imported from other countries and these goods could become difficult or impossible to bring into the United States, and we

may not be able to obtain such products from other sources at similar prices. Such a disruption in revenue could potentially have

a negative impact on our results of operations, financial condition and cash flows. We rely extensively on

our computer systems to manage inventory, process transactions and timely provide products to our customers. Our systems are subject

to damage or interruption from power outages, telecommunications failures, computer viruses, security breaches or other catastrophic events.

If our systems are damaged or fail to function properly, we may experience loss of critical data and interruptions or delays in

our ability to manage inventories or process customer transactions. Such a disruption of our systems could negatively impact revenue

and potentially have a negative impact on our results of operations, financial condition and cash flows. Security threats,

such as ransomware attacks, to our IT infrastructure could expose us to liability, and damage our reputation and business. It is essential to our

business strategy that our technology and network infrastructure remain secure and is perceived by our customers to be secure. Despite

security measures, however, any network infrastructure may be vulnerable to cyber-attacks. Information security risks have significantly

increased in recent years in part due to the proliferation of new technologies and the increased sophistication and activities of organized

crime, hackers, terrorists and other external parties, including foreign private parties and state actors. We may face cyber-attacks that

attempt to penetrate our network security, including our data centers, to sabotage or otherwise disable our network of websites and online

marketplaces, misappropriate our or our customers’ proprietary information, which may include personally identifiable information,

or cause interruptions of our internal systems and services. If successful, any of these attacks could negatively affect our reputation,

damage our network infrastructure and our ability to sell our products, harm our relationship with customers that are affected and expose

us to financial liability. We maintain a comprehensive

system of preventive and detective controls through our security programs; however, given the rapidly evolving nature and proliferation

of cyber threats, our controls may not prevent or identify all such attacks in a timely manner or otherwise prevent unauthorized access

to, damage to, or interruption of our systems and operations, and we cannot eliminate the risk of human error or employee or vendor malfeasance. In addition, any failure

by us to comply with applicable privacy and information security laws and regulations could cause us to incur significant costs to protect

any customers whose personal data was compromised and to restore customer confidence in us and to make changes to our information systems

and administrative processes to address security issues and compliance with applicable laws and regulations. In addition, our customers

could lose confidence in our ability to protect their personal information, which could cause them to stop shopping on our sites altogether.

Such events could lead to lost sales and adversely affect our results of operations. We also could be exposed to government enforcement

actions and private litigation. 62 Failure to comply

with privacy laws and regulations and failure to adequately protect customer data could harm our business, damage our reputation and result

in a loss of customers. Federal and state and

regulations may govern the collection, use, sharing and security of data that we receive from our customers. In addition, we have and

post on our websites our own privacy policies and practices concerning the collection, use and disclosure of customer data. Any failure,

or perceived failure, by us to comply with our posted privacy policies or with any data-related consent orders, U.S. Federal Trade Commission

requirements or other federal, state or international privacy-related laws and regulations could result in proceedings or actions against

us by governmental entities or others, which could potentially harm our business. Further, failure or perceived failure to comply with

our policies or applicable requirements related to the collection, use or security of personal information or other privacy-related matters

could damage our reputation and result in a loss of customers. The regulatory framework for privacy issues is currently evolving and is

likely to remain uncertain for the foreseeable future. Challenges by OEMs

to the validity of the aftermarket auto parts industry and claims of intellectual property infringement could adversely affect our business

and the viability of the aftermarket auto parts industry. OEMs have attempted to

use claims of intellectual property infringement against manufacturers and distributors of aftermarket products to restrict or eliminate

the sale of aftermarket products that are the subject of the claims. The OEMs have brought such claims in federal court and with the United

States International Trade Commission. We have received in the past, and we anticipate we may in the future receive, communications alleging

that certain products we sell infringe the patents, copyrights, trademarks and trade names or other intellectual property rights of OEMs

or other third parties. The United States Patent

and Trademark Office records indicate that OEMs are seeking and obtaining more design patents and trademarks than they have in the past.

In some cases, we have entered into license agreements that allow us to sell aftermarket parts that replicate OEM patented parts in exchange

for a royalty. In the event that our license agreements, or other similar license arrangements are terminated, or we are unable to agree

upon renewal terms, we may be subject to restrictions on our ability to sell aftermarket parts that replicate parts covered by design

patents or trademarks, which could have an adverse effect on our business. Litigation or regulatory

enforcement could also result in interpretations of the law that require us to change our business practices or otherwise increase our

costs and harm our business. We may not maintain sufficient, or any, insurance coverage to cover the types of claims that could be asserted.

If a successful claim were brought against us, it could expose us to significant liability. If we are unable

to protect our intellectual property rights, our reputation and brand could be impaired and we could lose customers. We regard our patents,

trademarks, trade secrets and similar intellectual property as important to our success. We rely on patent, trademark and copyright law,

and trade secret protection, and confidentiality and/or license agreements with employees, customers, partners and others to protect our

proprietary rights. We cannot be certain that we have taken adequate steps to protect our proprietary rights, especially in countries

where the laws may not protect our rights as fully as in the United States. In addition, our proprietary rights may be infringed or misappropriated,

and we could be required to incur significant expenses to preserve them. In the past we have filed litigation to protect our intellectual