1. The company is dependent on various vendors, who are global technology brands, for the products its distribute. Any delay or failure on part of such global technology brands to supply products may materially and adversely affect its business, profitability and reputation.
2. The company's business is dependent on global technology brands effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new information and communications technology products at regular intervals.
3. If the company is unable to maintain its relationships with it Channel Partners or customers or if any of these parties change the terms of their arrangements with it, The company business could be materially and adversely affected.
4. The company is reliant on its relationships with certain online marketplaces and disruptions to such relationships or changes in their business practices, may adversely affect its business and the company financial condition, results of operations and cash flows.
5. The company could be subject to product liability claims, which may have a material adverse impact on it.
6. Certain of its contracts or distribution agreements may have restrictive covenants and can typically be terminated without cause, which could negatively impact its business, results of operation and financial condition.
7. Increasing competition in the information and communications technology products distribution industry may create certain pressures that may adversely affect its business, prospects, results of operations, cash flows and financial condition.
8. The reputation and consumer goodwill associated with the company brand name is critical to the success of its business. An inability to maintain or enhance the popularity of its brand among brands and customers may adversely impact its business prospects and financial performance.
9. The company has significant credit exposure to its Channel Partners and other customers, and negative trends in their businesses could cause it significant credit loss and negatively impact its cash flow and liquidity position.
10. The company gross margins are low, which magnifies the impact of variation in revenue, operating costs, bad debts and interest expense on its operating results.