The lack of long-term contracts with suppliers poses a risk of supply disruption. Additionally, the company is exposed to risks from foreign trade regulations, as a large percentage of its products are manufactured in Asia, subjecting it to potential tariffs, transportation delays, and currency fluctuations. The company identifies several key risks, including the dependency on a single supplier, Lelon Electronics, for a significant portion of its inventory. The potential loss of major customers, who account for a large percentage of net sales, could materially affect operations. Surge also faces intense competition from larger, well-resourced competitors, which could impact its market position. Cybersecurity threats pose a risk to operations, as evidenced by a past ransomware attack. Additionally, the company is vulnerable to component shortages, which could disrupt its supply chain and affect customer relationships.