Conrad:

Regarding our operations, like numerous companies, the most significant immediate challenge has been the unpredictable tariff situation. As a reminder, aside from a few accessories and our passive speaker partnership with Sonance (I believe that’s correct), the entirety of our manufacturing intended for the US is conducted in Vietnam and Malaysia.

We discussed last quarter the contingency planning we engaged in to mitigate the impacts of tariffs on our business, while also striving to minimize the downstream effects on our customers. Recent news indicated that the tariff rates we will face moving forward seem to be 20 percent for Vietnam and 19 percent for Malaysia.

We continue collaborating closely with our contract manufacturers and Channel Partners to distribute the tariff costs, though it has become evident that adjusting prices for certain products will be necessary later this year. As we implement these price changes, we will closely monitor consumer behavior and industry trends across our categories. We plan to make adjustments in consultation with our Channel Partners, as needed, to explore all options for optimizing both our top and bottom lines.