▸ Although the Company may from time to time enter into hedging arrangements to mitigate interest rate risk, such arrangements may not fully offset increases in interest rates and may expose the Company to counterparty risk or additional costs.· · · · · ● 1 ▸ Changes in economic policies of the government of China have had a material adverse effect on our business, results of operations and financial condition, and may continue to do so for the foreseeable future.· · · · · ● 1 ▸ The carrying value of the goodwill for the U.S. reporting unit was zero as of December 31, 2025.· · · · · ● 1 ▸ The rapid development and adoption of artificial intelligence technologies, including AI-driven search tools, may adversely affect our product visibility, competitive position and results of operations.· · · · · ● 1 ▸ The Company’s results of operations could be negatively impacted by inflation or deflation in supply chain costs, including raw materials, sourcing, transportation and energy· ● ● ● ● ● 5 rw ▸ Receivables Purchase Agreement, which could have a material and adverse effect upon the Company’s financial condition, results of operations and cash flows.· · · · ● · 1 ▸ If the Company expands its international operations, it will be subject to increased foreign exchange variability which could have a material adverse effect on the Company’s results of operations.· ● ● ● ● · 4 ▸ Legislative or regulatory initiatives related to climate change could have a material adverse effect on our business.· ● ● ● · · 3 ▸ Company’s competitors may independently develop technologies that are substantially equivalent or superior to the Company’s technology.● · · · · · 1 ▸ group Economic and political risks● · · · · · 1 ▸ For further discussion of the Company's legal proceedings refer to NOTE 14 — COMMITMENTS AND CONTINGENCIES to the Company's consolidated financial statements included in this Annual Report on Form 10-K.● · · · · · 1 ▸ International suppliers subject the Company to regional regulatory, man-made or natural disasters, health epidemics, political, economic and foreign currency exchange risk that could materially and adversely affect the Company’s operating results.● · · · · · 1 ▸ The Company may be materially adversely affected by the exit of the U.K. from the European Union.● ● ● · · · 3 rw ▸ The Company’s business may be unfavorably impacted by the fear of exposure to or actual effects of the COVID-19 pandemic, such as reduced travel or recommendations or mandates from governmental authorities to cease particular business activities.● · · · · · 1 ▸ The further recognition of an impairment of the Company’s goodwill or any of the Company’s assets would negatively affect the Company’s results of operations and total capitalization, the effect of which could be material.● ● ● ● ● · 5 ▸ The replacement of the LIBOR benchmark interest rate with SOFR could increase the Company's borrowing costs.● ● ● · · · 3 rw ▸ A failure in or compromise of the Company’s operating systems or infrastructure or those of third parties could disrupt the Company’s business and cause losses.● ● ● ● ● ● 6 ▸ Changes at the Company’s large customers, or actions taken by them, and consolidation in the retail industry could materially adversely affect the Company’s operating results.● ● ● ● ● ● 6 ▸ Changes in the Company’s customer purchasing practices could materially adversely affect the Company’s operating results.● ● ● ● ● ● 6 ▸ Cost reduction efforts may not be successful and restructuring benefits may not be realized.● ● ● ● ● ● 6 ▸ Demand for new products and the inability to develop and introduce new competitive products at favorable profit margins could adversely affect the Company’s performance and prospects for future growth.● ● ● ● ● ● 6 ▸ Foreign exchange variability and currency controls could materially adversely affect the Company’s operating results and financial condition.● ● ● ● ● ● 6 ▸ If the Company is unable to effectively manage its existing online business, the Company's reputation and operating results may be harmed.● ● ● ● ● ● 6 rw ▸ If the Company is unable to protect the confidentiality of its proprietary information and know-how, the value of the Company’s technology, products and services could be materially adversely affected.● ● ● ● ● ● 6 rw ▸ If the Company’s goodwill or other long-term assets become impaired, the Company will be required to record impairment charges, which may be significant.● ● ● ● ● ● 6 ▸ Increases in the cost of employee benefits could materially adversely impact the Company’s financial results and cash flows.● ● ● ● ● ● 6 ▸ Interruptions in the Company’s operations caused by outside forces could cause material losses.● ● ● ● ● ● 6 ▸ group Liquidity and financial risks● ● ● ● ● ● 6 ▸ New and future laws and regulations governing the Internet and e-commerce could have a material adverse effect on the Company’s business, results of operations and financial condition.● ● ● ● ● ● 6 ▸ group Operational and regulatory risks● ● ● ● ● ● 6 ▸ The Company depends on third-party manufacturers to produce the vast majority of its products, which presents quality control risks to the Company.● ● ● ● ● ● 6 ▸ The Company faces intense competition from other companies worldwide and if the Company is unable to compete successfully, the Company’s business, results of operations and financial condition could be materially and adversely affected.● ● ● ● ● ● 6 ▸ The Company has substantial indebtedness and the highly seasonal nature of the Company’s business impacts its borrowing needs.● ● ● ● ● ● 6 ▸ The Company is subject to cyber security risks and may incur increasing costs in efforts to minimize those risks and to comply with regulatory standards.● ● ● ● ● ● 6 ▸ The Company may not be able to adequately establish or protect its intellectual property rights, and the infringement or loss of the Company’s intellectual property rights could harm its business.● ● ● ● ● ● 6 ▸ The Company sells consumer products which involve an inherent risk of product liability claims.● ● ● ● ● ● 6 ▸ The Company’s ability to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by macroeconomic and company-specific events, as well as the financial condition of insurers.● ● ● ● ● ● 6 rw ▸ The Company’s borrowings, and discount rate applied to sale of receivables, are subject to interest rate fluctuations and an increase in interest rates could adversely affect the Company’s financial results.● ● ● ● ● ● 6 ▸ The Company’s brands are subject to reputational risks and damage to the Company’s brands or reputation could adversely affect its business.● ● ● ● ● ● 6 ▸ The Company’s business may be materially adversely affected by market conditions, global and economic conditions and other factors beyond its control.● ● ● ● ● ● 6 rw ▸ The Company’s business may be materially adversely affected by the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments.● ● ● ● ● ● 6 rw ▸ The Company’s business requires it to maintain large fixed costs that can affect its profitability.● ● ● ● ● ● 6 ▸ The Company’s failure to meet certain covenants or comply with other requirements of its Debt Agreements may materially and adversely affect the Company’s assets, financial position and cash flows.● ● ● ● ● ● 6 ▸ The Company’s inability to complete future acquisitions or strategic alliances and/or integrate acquired businesses could have a material adverse effect on the Company’s business and results of operations.● ● ● ● ● ● 6 ▸ The Company’s international operations present special challenges that the Company may not be able to meet, and this could materially and adversely affect the Company’s financial results.● ● ● ● ● ● 6 ▸ The Company’s international trade activity subjects it to transportation risks.● ● ● ● ● ● 6 rw ▸ The Company’s product costs are subject to price fluctuation.● ● ● ● ● ● 6 ▸ The Company’s projections of product demand, sales and net income are highly subjective in nature and the Company’s future sales and net income could vary materially from the Company’s projections.● ● ● ● ● ● 6 ▸ The loss of certain licenses or material changes in royalty rates could materially adversely affect the Company’s operating margin and cash flow.● ● ● ● ● ● 6 ▸ The occurrence of negative events related to any of the foregoing may adversely impact the Company’s results of operations and financial condition.● ● ● ● ● ● 6 ▸ There are inherent limitations on the effectiveness of the Company’s controls.● ● ● ● ● ● 6 
