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There were no material changes in risk factors as disclosed in our 2025 Form 10-K, except as set forth below:
Techniques employed by short sellers may in the future drive down the market price of our common stock.
Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third-party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale. As it is in the short seller’s best interests for the price of the stock to decline, many short sellers publish, or arrange for the publication of, negative opinions or allegations regarding the relevant issuer and its business prospects, including regarding its supply chain, commercial arrangements, or financial reporting, in order to create negative market momentum and generate profits for themselves after selling a stock short. These short attacks have led to selling of shares in the market.
Short sellers have published reports containing allegations regarding us and our business, and we have been, and may in the future be, the subject of such activities. The publication of any such articles, reports or other statements regarding us has and may continue to bring about a temporary, or possibly long-term, decline in the market price of our common stock, and may adversely affect our relationships with customers, suppliers, and financing parties. We may have to expend a significant amount of resources to investigate such allegations and/or defend ourselves. While we have and would continue to strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by applicable state law or issues of commercial confidentiality, including because we treat information regarding our suppliers and sourcing arrangements as confidential and proprietary. Responding to short attacks has been and may continue to be costly and time-consuming, disrupt our operations, and divert the attention of management and our employees.