▸ Actions of activist stockholders could be costly and time-consuming, divert management’s attention and resources, and have an adverse effect on our business.· · · · ● 1 ▸ Our insurance coverage may be insufficient to cover litigation or other claims asserted against us, which could have a material adverse effect on our business, financial condition and results of operation.· · · · ● 1 ▸ Product recalls and other claims could affect our financial position and results of operations.· · · · ● 1 ▸ We have faced and may face price competition in the future. In addition, competitors with whom we compete, or who can obtain better pricing, more favorable contractual terms and conditions, or more favorable allocations of products during· · · · ● 1 ▸ We may not be able to achieve expected returns from additional investments in U.S. domestic manufacturing capabilities.· · · · ● 1 ▸ We cannot guarantee that our share repurchase program will be fully consummated or will enhance long-term stockholder value, and share repurchases could increase the volatility of the trading price of our common stock and diminish our cash reserves.· · · ● ● 2 ▸ We may not be able to fully utilize our media credits if our third-party vendor ceases operations or if there are significant changes to our marketing strategy before the credits expire.· · · ● ● 2 ▸ Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.· · ● ● ● 3 ▸ We face risks related to the restatement of our previously issued financial statements and the material weaknesses in our internal control over financial reporting.· · ● ● ● 3 ▸ We may fail to meet our publicly announced guidance or other expectations about our business and future operating results, which would cause the price of our securities to decline.· · ● ● ● 3 ▸ group Business and Industry Risks· ● ● ● ● 4 ▸ Climate change or measures to address climate change can negatively affect our business or damage our reputation.· ● ● ● ● 4 ▸ Failure to comply with personal data protection and privacy laws, and other laws and regulations applicable to our business, can adversely affect our business.· ● ● ● ● 4 ▸ Our business, results of operations and financial condition may be adversely affected by global economic conditions and the effect of economic pressures and other business factors on discretionary consumer spending and consumer preferences.· ● ● ● ● 4 ▸ Seasonal trends in our business create variability in our financial and operating results and place increased strain on our operations.· ● ● ● ● 4 ▸ We may not be able to accurately forecast our operating results and growth rate. We use a variety of factors in our forecasting and planning processes, including historical results, recent history and assessments of economic and market· · · ● · 1 ▸ The ongoing COVID-19 pandemic, and any future outbreaks or other public health emergencies, could materially affect our business, liquidity, financial condition and operating results.· ● · · · 1 ▸ We intend to continue remodeling our existing showroom base to reflect our new showroom design, and we intend to expend capital doing so. Our new showroom concept is designed to increase customer traffic and sales by emphasizing our· ● · ● · 2 ▸ As we expand our showroom base, we may not be able to achieve the showroom sales growth rates that we have achieved in the past, which could cause our share price to decline.● ● · · · 2 ▸ Changes in lease accounting standards may materially and adversely affect us.● · · · · 1 ▸ Our business depends on effective marketing and increased customer traffic.● · · · · 1 ▸ Our business is sensitive to economic conditions and consumer spending.● · · · · 1 ▸ Our inability to manage the complexities created by our omni-channel operations may have a material adverse effect on our business, financial condition, operating results and prospects.● ● · · · 2 ▸ Our lease obligations are substantial and expose us to increased risks.● ● ● · · 3 ▸ The impact of COVID-19 continues to create uncertainty for our business and may have a significant negative impact on our business, sales, results of operations and financial condition.● · · · · 1 ▸ The occurrence of any of the foregoing could materially increase the cost and reduce or delay the supply of our products, which could adversely affect our business, financial condition, operating results and prospects.● ● · · · 2 ▸ The various United States federal government orders and regulations directing employers to require their employees to be vaccinated could lead to labor disruptions, which could have a material adverse effect on our business and results of operations.● · · · · 1 ▸ We have and will continue to expend capital remodeling our existing showrooms, and there is no guarantee that this will result in incremental showroom traffic or sales.● ● · · · 2 ▸ We may be unable to protect our trademarks or brand image, which could harm our business.● ● ● ● · 4 ▸ A significant disruption in, or breach in security of, our information technology systems or violations of data protection laws could have a material adverse effect on our business and reputation.● ● ● ● ● 5 ▸ Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our Company more difficult, and limit attempts by our stockholders to replace or remove our current management.● ● ● ● ● 5 ▸ Even if a showroom location becomes unsuitable, we will generally be unable to cancel the long-term lease associated with such showroom.● ● ● ● ● 5 ▸ Evolving government regulations and investor expectations on environmental, social and governance factors may impose additional costs and expose us to new risks.● ● ● ● ● 5 rw ▸ Future sales and issuances of our common stock or rights to purchase common stock could result in additional dilution of the percentage ownership of our stockholders and could cause our stock price to decline.● ● ● ● ● 5 ▸ Government regulation of the Internet and ecommerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm our business and results of operations.● ● ● ● ● 5 ▸ If any of the foregoing occur, our business, financial condition, operating results and prospects could be materially adversely affected.● ● ● ● ● 5 ▸ If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.● ● ● ● ● 5 ▸ If we fail to acquire new customers, or fail to do so in a cost-effective manner, we may not be able to achieve revenue growth or profitability.● ● ● ● ● 5 ▸ If we fail to manage our growth effectively, our business, financial condition and operating results could be harmed.● ● ● ● ● 5 rw ▸ Increases in the demand for, or the price of, raw materials used to manufacture our products or other fluctuations in sourcing or distribution costs could increase our costs and negatively impact our gross margin.● ● ● ● ● 5 ▸ group Legal, Tax and Regulatory Risks● ● ● ● ● 5 ▸ Our efforts to launch new products may not be successful.● ● ● ● ● 5 ▸ Our inability to maintain our brand image, engage new and existing customers and gain market share could have a material adverse effect on our growth strategy and our business, financial condition, operating results and prospects.● ● ● ● ● 5 ▸ Our inability to manage our inventory levels and products, including with respect to our omni-channel operations, could have a material adverse effect on our business, financial condition, operating results and prospects.● ● ● ● ● 5 ▸ Our increased use of social media poses reputational risks.● ● ● ● ● 5 ▸ Our products or marketing activities may be found to infringe or violate the intellectual property rights of others.● ● ● ● ● 5 ▸ Product warranty claims could have a material adverse effect on our business.● ● ● ● ● 5 ▸ Purchasers of furniture may choose not to shop online, which could affect the growth of our business.● ● ● ● ● 5 ▸ group Risks Related to Ownership of Our Common Stock● ● ● ● ● 5 ▸ Significant merchandise returns could harm our business.● ● ● ● ● 5 ▸ System interruptions that impair customer access to our sites or other performance failures in our technology infrastructure could damage our business, reputation and brand, and substantially harm our business and results of operations.● ● ● ● ● 5 ▸ The trading price of the shares of our common stock has been and is likely to continue to be highly volatile.● ● ● ● ● 5 ▸ Unauthorized disclosure of sensitive or confidential information, whether through a breach of our computer system or otherwise, could severely hurt our business.● ● ● ● ● 5 ▸ We are and may in the future be subject to securities litigation, which is expensive and could divert management attention.● ● ● ● ● 5 rw ▸ We are subject to risks associated with our dependence on foreign manufacturing, suppliers and imports for our products.● ● ● ● ● 5 rw ▸ We are subject to risks related to online payment methods.● ● ● ● ● 5 ▸ We do not expect to declare any dividends in the foreseeable future.● ● ● ● ● 5 ▸ We may be subject to product liability claims if people or property are harmed by the products we sell.● ● ● ● ● 5 ▸ We may be unable to accurately forecast our operating results and growth rate, which may adversely affect our reported results and stock price.● ● ● ● ● 5 ▸ We may be unable to successfully open and operate new showrooms, which could have a material adverse effect on our business, financial condition, operating results and prospects.● ● ● ● ● 5 ▸ We may not be able to adequately protect our intellectual property rights.● ● ● ● ● 5 
