There is a risk that the United States will increase and expand the anti-dumping laws against aluminium imports from China. Since some of iCTABLE's components are made out of aluminium, this could potentially increase the cost of goods. In order to mitigate the potential harm from this risk, we are moving manufacturing to the United States. With additional investments, we will be able to manufacture more parts stateside. However, we maintain connections with our established business partners in China to deliver products to our non-US customers.
There are companies that manufacture similar products to ours. These companies may use our innovative solutions to improve the appeal of their products. In consideration of this risk, we are actively protecting our products with patents and make unique engineering solutions that are difficult to adapt and replicate.
Considering the growth of eSports and Gaming industries, there is a risk of acquisition. The appeal of our products increases the odds of this risk happening.
There is a risk of rapid growth, which might lead to several problems, including changes in product availability,(whenever there is an unexpected major increase in orders, companies must change manufacturers in order to accommodate the volume—meaning establishing new relationships, moving to other cities, spending more time with manufacturers). One of the main advantages of our product is high quality and even when recognizing the shift in shipping times, we do not intend to compromise on the quality. iCTABLE community appreciates the efforts that go into the manufacturing of the product and note the high quality of the desks as one of its main features.
When we commenced the sales of iCTABLE, the sales from the product generated 100% of our revenues. At the moment, even though we sell accessories, the vast majority of our revenue comes from the sale of iCTABLE and related products. In the near term, successful sales of iCTABLE units are vital to the success of the company. We recognize this, and are developing new products to offset our reliance on a single brand of products and to diversify our offerings.
Reliance on third parties. We rely on third parties to provide a variety of essential business functions for us, including manufacturing, shipping, accounting, legal work, public relations, advertising, retailing, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or nor recourse to recover damages for these losses. In particular, we manufacture the majority of the parts for our products in China with multiple manufacturers involved. A disruption in their operations could adversely affect our business.
We are an early stage company. The Company has a limited operating history and has received limited revenues to date. If you are investing in this company, it’s because you think this is a good idea, that the founders can execute it better than their competition, that they can price their product right and sell it to enough people such that the company will succeed. You are taking all these things on faith, because it’s impossible to know what will happen. We are dependent upon additional capital resources for the continuation of our planned principal operations and are subject to significant risks and uncertainties, including failing to secure funding to operationalize our planned operations or failing to profitably operate the business.