Financial Data and Key Metrics Changes - Owlet achieved $20.7 million in net revenue for Q2 2024, representing a 58% year-over-year increase [22] - Gross billings for Q2 were $26.9 million, up 59% year-over-year [22] - Gross margin for Q2 was approximately 50%, an increase of over 1,000 basis points from the previous year [23] - Adjusted EBITDA for Q2 was $100,000, a significant improvement from an adjusted EBITDA loss of $4.3 million in Q2 2023 [24] Business Line Data and Key Metrics Changes - Sales of Dream Sock products drove revenue growth, reflecting increased consumer demand compared to the same period last year [23] - The launch of the subscription service, Owlet Care, is expected to enhance long-term value for the company [4][7] Market Data and Key Metrics Changes - Owlet's international revenue grew over 275% year-over-year, indicating strong global demand for its products [16] - The company reported a 61% year-over-year increase in units sold and a 68% increase in revenue during the July Amazon Prime event [4] Company Strategy and Development Direction - Owlet is transitioning from a hardware company to a platform for pediatric health, focusing on personalized information for parents [7][9] - The company aims to drive continued adoption of Dream Sock, expand medical and healthcare channels, and enhance its subscription service [11] - Owlet's strategy includes leveraging its large dataset of infant health to provide insights and integrate professional services into its app [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2024 will be a turning point for the company, with a focus on sustainable growth and profitability [5][20] - The company anticipates net revenue for the second half of 2024 to be stronger than the first half, estimating between $37 million to $42 million [27] Other Important Information - The company has fully integrated its telehealth partnership with Wheel to facilitate insurance reimbursement [5] - Owlet's management highlighted the importance of addressing parental concerns regarding infant health and safety [6] Q&A Session Summary Question: How is Owlet tracking media exposure and its translation into sales? - Owlet is actively monitoring site traffic and engagement on social media platforms, leveraging a PR agency to expand reach [28] Question: Is Owlet continuing partnerships with nonprofit organizations? - Yes, Owlet continues to collaborate with partners focused on SIDS and other conditions, enhancing awareness among parents [29] Question: What is the expectation for positive adjusted EBITDA moving forward? - The company expects Q3 to be stronger due to holiday season sales, with potential for sequential increases in adjusted EBITDA [30][31] Question: What are the assumptions regarding shipping costs and gross margins? - Shipping costs are expected to impact gross margins, with a focus on managing inventory and shipping methods to mitigate costs [32][33] Question: What is the current return rate as a percentage of gross revenue? - Returns for Q2 were 4.1% of gross billings, significantly below the historical average of around 10% [35] Question: What is the potential for insurance reimbursement for Owlet products? - The company is working on building infrastructure for insurance reimbursement, aiming to position its products as standard home care for infants [38][39] Question: What is the strategy for increasing awareness of the Sock? - Owlet plans to continue achieving key financial milestones and enhance investor awareness through various channels [49][50]

Financial Performance - Q2 2024 revenue was approximately $20.7 million, up approximately 58% year over year from $13.1 million in Q2 2023[2] - Q2 2024 gross margin was approximately 50%, an increase of approximately 1,000 basis points year over year[2] - Q2 2024 net loss improved to approximately ($1.1) million, compared to a net loss of approximately ($8.5) million in Q2 2023, representing an improvement of approximately 85%[2][5] - Adjusted EBITDA for Q2 2024 was approximately $0.1 million, a significant improvement from an adjusted EBITDA loss of approximately ($4.3) million in the same period last year[6] - Total revenues for the three months ended June 30, 2024, were $20.7 million, a 57.5% increase compared to $13.1 million for the same period in 2023[25] - Gross profit for the six months ended June 30, 2024, was $16.8 million, up from $9.4 million in the same period of 2023, representing a 78.7% increase[25] - Operating loss for the three months ended June 30, 2024, improved to $(2.2) million from $(6.7) million in the same period of 2023[25] - Net loss attributable to common stockholders for the six months ended June 30, 2024, was $(0.7) million, compared to $(22.3) million in the same period of 2023[25] - Adjusted EBITDA for the six months ended June 30, 2024, was $(3.0) million, an improvement from $(10.1) million in the same period of 2023[26] - The company reported a net loss per share attributable to common stockholders of $(0.30) for the three months ended June 30, 2024, compared to $(1.19) for the same period in 2023[25] Future Projections - For the second half of 2024, the company estimates net revenue to be in the range of $37 million to $42 million[7] - For FY 2024, the company estimates net revenue to be in the range of $72.5 million to $77.5 million[7] Operating Expenses and Cash Flow - Operating expenses for Q2 2024 were approximately $12.5 million, compared to approximately $11.9 million for the same period in 2023[5] - Net cash used in operating activities for the six months ended June 30, 2024, was $(6.7) million, a significant improvement from $(16.8) million in the same period of 2023[23] - Cash and cash equivalents decreased to $15.4 million as of June 30, 2024, from $16.6 million as of December 31, 2023[21] Assets and Liabilities - Total current assets increased to $42.5 million as of June 30, 2024, compared to $39.9 million as of December 31, 2023[21] - Total liabilities decreased to $66.7 million as of June 30, 2024, down from $73.8 million as of December 31, 2023[21] Market Expansion and Consumer Demand - The company obtained CE Medical certification for the UK and Europe, launching Dream Sock across major European markets[2] - Record-breaking results were achieved during Amazon Prime Day, indicating strong consumer demand[4] - The company plans to continue laying the regulatory groundwork for commercial expansion in both the US and international markets[4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ t ...

Financial Performance - Q1 2024 revenue was approximately $14.8 million, representing a 37% increase year over year from approximately $10.7 million in Q1 2023[5] - Net income for Q1 2024 was approximately $3.3 million, compared to a net loss of approximately $11.9 million in Q1 2023[9] - Revenues for Q1 2024 increased to $14.8 million, up 38.7% from $10.7 million in Q1 2023[31] - Net income attributable to common stockholders was $1.3 million in Q1 2024, a significant improvement from a loss of $12.5 million in Q1 2023[31] Margins and Earnings - Gross margin for Q1 2024 was approximately 44.4%, an increase of 570 basis points year over year[7] - Gross profit for Q1 2024 was $6.5 million, compared to $4.2 million in Q1 2023, reflecting a gross margin improvement[31] - Basic earnings per share for Q1 2024 was $0.15, compared to a basic net loss per share of ($1.54) in Q1 2023[11] - Adjusted net loss per share attributable to common stockholders improved to $(0.39) in Q1 2024 from $(1.10) in Q1 2023[32] Operating Expenses - Operating expenses for Q1 2024 were approximately $12.3 million, down from approximately $15.1 million in Q1 2023[8] - Total operating expenses reduced to $12.3 million in Q1 2024, down from $15.1 million in Q1 2023[31] Cash Flow and Financing - Net cash used in operating activities decreased to $(3.3) million in Q1 2024 from $(9.4) million in Q1 2023[29] - Financing activities provided $5.2 million in Q1 2024, compared to $22.9 million in Q1 2023[29] Adjusted Metrics - Adjusted EBITDA loss for Q1 2024 was approximately $3.1 million, improving by approximately 46% year over year[10] - EBITDA for Q1 2024 was $3.5 million, a turnaround from $(8.8) million in Q1 2023[32] - Operating loss narrowed to $5.7 million in Q1 2024 from $11.0 million in Q1 2023[31] Consumer Demand and Market Presence - Consumer sell-through demand for Dream Sock and Dream Duo products increased by 60% year over year following FDA clearance[4] - The company has monitored over 2 million infants on its platform, enhancing its digital data capabilities[5] Assets and Liabilities - Total current assets as of March 31, 2024, were approximately $40.0 million, slightly up from $39.9 million as of December 31, 2023[28] - Total liabilities decreased to approximately $65.6 million as of March 31, 2024, down from $73.8 million at the end of 2023[28] Share Information - Weighted average shares used in computing net income per share increased to 8,740,059 in Q1 2024 from 8,110,387 in Q1 2023[32]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39516 OWLET, INC. (Exact name of Registrant as specified in its Charter) Delaware 85-1615012 (State or other jurisdiction of incorpor ...

Exhibit 99.1 Owlet Announces Fourth Quarter and Fiscal Year 2023 Results LEHI, Utah--(BUSINESS WIRE)-- Owlet, Inc. ("Owlet" or the "Company") (NYSE:OWLT), the pioneer of smart infant monitoring, today reported financial results for the fourth quarter and fiscal year ended December 31, 2023. Owlet's Chief Executive Officer and Co-Founder, Kurt Workman, and Chief Financial Officer, Kate Scolnick, will host a conference call to review the Company's results and provide a business update today, March 7, 2024, at ...

Financial Data and Key Metrics Changes - Revenues for Q3 2023 were approximately $9.2 million, with gross billings at $11 million, impacted by a shift in Amazon selling revenue from Q3 to Q4 [19][35][42] - Adjusted EBITDA loss for Q3 was $5.5 million, a significant improvement from a loss of $18.4 million in Q3 2022 [42] - Operating loss for the quarter was $7.9 million, compared to $21.8 million year-over-year [42] - Cash and cash equivalents as of September 30, 2023, were approximately $15.2 million [43] Business Line Data and Key Metrics Changes - Total revenues were primarily driven by sales of Dream Sock and Dream Duo, with a 7.4% sequential increase in sell-through [36] - The company experienced a 75% reduction in cost per acquisition, indicating improved efficiency in reaching customers [38] - Gross margin for Q3 was 36.3%, down from 40% sequentially but improved from 26.6% in Q3 2022 [39] Market Data and Key Metrics Changes - The company signed a significant distribution agreement with Amazon, which is expected to enhance gross margins and customer access [19] - Gross billings in October 2023 were 3.5 times higher than in October 2022, indicating strong momentum heading into Q4 [27] - The company anticipates a sequential growth in sell-through for Q4, marking four consecutive quarters of improvement [38] Company Strategy and Development Direction - The company aims to achieve FDA clearances for BabySat and Dream Sock, targeting market introduction by the end of 2023 [7][8] - Owlet is positioning itself as a leader in the pediatric health monitoring market, with a vision that every baby will have access to a health monitor at home [70][71] - The strategy includes expanding distribution channels into healthcare and enhancing connectivity with healthcare providers [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving adjusted EBITDA breakeven by the end of 2023, supported by higher gross sales and stable operating expenses [28][42] - The company is focused on operational efficiency and plans to stabilize gross margins within a range of 40% to 50% [40] - Management highlighted the importance of the recent FDA clearances in driving future growth and adoption of their products [34][70] Other Important Information - The company appointed Marc Stoll to the Board of Directors and Jonathan Harris as President and Chief Revenue Officer, aiming to drive growth and expansion [33] - The FDA clearance for Dream Sock marks a shift in its value proposition from sleep tracking to health monitoring, enhancing customer assurance [10][11] Q&A Session Summary Question: How does the Amazon agreement impact product visibility? - The product shipped is compatible with FDA-cleared features, and messaging around FDA clearance is being communicated to customers [48][51] Question: What is the expected revenue impact from the Amazon shift? - The shift in Amazon selling revenue is expected to result in a steeper revenue increase in Q4, capturing Q3 sell-in [56] Question: How will BabySat's distribution channel accelerate market entry? - A distribution partner will help manage complexities in shipping, prescription verification, and insurance coverage, facilitating faster market entry [61][64] Question: Is Owlet experiencing competition from new consumer monitoring products? - Owlet maintains market leadership, with FDA clearance setting a new standard for the category [68][69] Question: What is the long-term vision for Owlet? - The vision is to ensure every baby has access to a health monitor at home, leveraging existing insurance codes for home monitoring [70][71]

PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Owlet Inc. reported significant revenue decline and a weakened financial position, raising going concern doubts despite new financing [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$42.3 million**, and stockholders' deficit worsened to **$32.0 million** due to operating losses Balance Sheet Comparison (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | **$15,165** | **$11,231** | | Inventory | **$11,038** | **$18,515** | | Total current assets | **$37,526** | **$51,262** | | **Total assets** | **$42,286** | **$58,104** | | Total current liabilities | **$41,102** | **$66,602** | | **Total liabilities** | **$67,326** | **$68,739** | | **Total stockholders' deficit** | **($31,952)** | **($10,635)** | - In February 2023, the company issued **30,000** shares of Series A convertible preferred stock, which are recorded on the balance sheet with a liquidation preference of **$30.0 million**[21](index=21&type=chunk)[84](index=84&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q3 2023 revenue declined to **$9.2 million**, but cost reductions significantly narrowed operating and net losses Statement of Operations Highlights (in thousands) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | **$9,182** | **$17,359** | **$33,006** | **$57,246** | | Gross Profit | **$3,329** | **$4,613** | **$12,715** | **$19,992** | | Operating Loss | **($7,880)** | **($21,821)** | **($25,550)** | **($63,880)** | | Net Loss | **($5,641)** | **($19,362)** | **($25,975)** | **($59,838)** | | Net Loss Per Share | **($0.84)** | **($2.42)** | **($3.56)** | **($7.55)** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations significantly reduced to **$22.0 million**, offset by **$25.9 million** from financing activities Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | **($21,951)** | **($71,555)** | | Net cash used in investing activities | **($30)** | **($1,403)** | | Net cash provided by financing activities | **$25,915** | **$1,078** | | **Net change in cash** | **$3,934** | **($71,880)** | | **Cash at end of period** | **$15,165** | **$23,174** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight going concern doubt due to losses, mitigated by **$30 million** financing and a debt waiver, plus a reverse stock split - The company has concluded that recurring operating losses, negative cash flows, and a low cash balance raise substantial doubt about its ability to continue as a going concern within one year[40](index=40&type=chunk)[41](index=41&type=chunk) - On July 7, 2023, the company effected a **1-for-14** reverse stock split of its common stock, with all share and per-share amounts retroactively adjusted[37](index=37&type=chunk)[38](index=38&type=chunk) - In February 2023, the company raised gross proceeds of **$30 million** by selling Series A convertible preferred stock and warrants, with warrants classified as a liability valued at **$26.1 million** at issuance[84](index=84&type=chunk)[88](index=88&type=chunk) - As of September 30, 2023, the company was in violation of its minimum adjusted EBITDA covenant with SVB, but a waiver and amendment to the loan agreement was executed on November 13, 2023[63](index=63&type=chunk) - The company is defending against **Two** class action complaints alleging violations of the Securities Exchange Act concerning disclosures about the FDA's classification of the Owlet Smart Sock[74](index=74&type=chunk)[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q3 2023 revenue declined due to Amazon transition, but expense cuts narrowed losses; going concern doubt persists despite financing [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q3 2023 revenue decreased by **$8.2 million** due to Amazon transition, but expense cuts reduced the operating loss Revenue Change (in millions) | Period | 2023 | 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Q3 | **$9.2** | **$17.4** | **($8.2)** | **(47.1%)** | | 9 Months | **$33.0** | **$57.2** | **($24.2)** | **(42.3%)** | - The Q3 revenue decrease was primarily caused by the transition to a direct first-party seller relationship with Amazon, resulting in no revenue recognized from that channel during the quarter, with shipments under the new arrangement beginning in October 2023[122](index=122&type=chunk) Gross Margin Change | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q3 | **36.3%** | **26.6%** | | 9 Months | **38.5%** | **34.9%** | Operating Expense Reductions (Q3 2023 vs Q3 2022, in millions) | Expense Category | 2023 | 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | General and administrative | **$5.4** | **$9.7** | **($4.2)** | **(43.7%)** | | Sales and marketing | **$3.3** | **$9.7** | **($6.4)** | **(65.6%)** | | Research and development | **$2.4** | **$7.1** | **($4.6)** | **(65.7%)** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Substantial doubt exists about the company's going concern ability, with **$15.2 million** cash and **$30 million** financing - Management has evaluated conditions and events, including recurring operating losses and negative cash flows, and concluded they raise substantial doubt about the company's ability to continue as a going concern[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - In February 2023, the company raised **$30.0 million** in gross proceeds from a private placement of Series A convertible preferred stock and warrants[140](index=140&type=chunk) - The company violated its minimum adjusted EBITDA requirement under its LSA with SVB for the three months ended September 30, 2023, but SVB waived this violation and amended future covenant requirements on November 13, 2023[158](index=158&type=chunk) - The SVB credit facility includes a **$10.0 million** revolving line of credit, of which **$5.1 million** was available as of September 30, 2023, and an **$8.5 million** term loan with a **$6.5 million** balance, maturing in October 2024[159](index=159&type=chunk)[161](index=161&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Owlet is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Owlet is not required to provide quantitative and qualitative disclosures about market risk[171](index=171&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses in internal control over financial reporting - Based on an evaluation as of September 30, 2023, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were not effective[175](index=175&type=chunk) - The company identified several material weaknesses, including insufficient personnel with adequate accounting and internal controls experience, lack of segregation of duties for journal entries, ineffective controls over accounting for inventory, accrued liabilities, convertible preferred stock, and warrants, and ineffective IT general controls related to program changes, user access, and computer operations[178](index=178&type=chunk)[179](index=179&type=chunk) - A remediation plan has been initiated, which includes hiring additional accounting personnel and implementing new policies and controls, but the material weaknesses will not be considered remediated until the plan is fully implemented and tested for effectiveness over time[181](index=181&type=chunk)[182](index=182&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending against **Two** class action lawsuits alleging misleading statements about FDA Smart Sock classification - **Two** class action complaints, Butala v. Owlet, Inc. and Cherian v. Owlet, Inc., were filed in November 2021, alleging violations of the Securities Exchange Act of 1934[188](index=188&type=chunk) - The complaints allege false and/or misleading statements regarding the FDA's likely classification of the Owlet Smart Sock as a medical device requiring marketing authorization, and the company plans to file motions to dismiss the cases[188](index=188&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section incorporates by reference risk factors from the company's prior Form 10-K and Form 10-Q filings - The company directs investors to carefully consider the risk factors disclosed in its Form 10-K and prior Form 10-Q filings[189](index=189&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) On November 13, 2023, the company amended its SVB loan, waiving a Q3 2023 EBITDA covenant violation - On November 13, 2023, the company amended its loan agreement with SVB to waive a violation of its minimum adjusted EBITDA requirement for Q3 2023[194](index=194&type=chunk) - The amendment also revised the adjusted EBITDA requirements for future periods, starting with the quarter ending December 31, 2023[194](index=194&type=chunk)

Financial Data and Key Metrics Changes - Operating loss for the quarter was $6.7 million, and net loss was $8.5 million, compared to $11 million and $11.9 million sequentially [2] - Adjusted EBITDA loss for Q2 was $4.3 million, an improvement from a loss of $5.8 million in Q1 and $16.7 million in Q2 2022 [36] - Total revenues for Q2 were $13.1 million, up from $10.9 million in Q1, driven primarily by sales of Dream Sock and Dream Duo [81] - Gross billings for Q2 were $16.9 million, a sequential increase of 36% from $12.4 million in Q1 [44] - Operating expenses in Q2 were $11.9 million, a sequential decline of 21% from $15.1 million in Q1 [35] Business Line Data and Key Metrics Changes - The company is focused on operational efficiency, resulting in a 75% improvement in adjusted EBITDA loss year-over-year [51] - The clearance of BabySat by the FDA is expected to significantly enhance product offerings and market reach [71][72] - The company has seen a 19% year-over-year increase in channel sell-through, indicating strong consumer demand [44] Market Data and Key Metrics Changes - Early signs show that Amazon is picking up some demand following the bankruptcy of buybuy BABY, with Babylist and Target also expected to see increased performance [40] - The company is leveraging new channels, including pharmacy and healthcare providers, to expand its market presence [10][11] Company Strategy and Development Direction - The company aims to return gross margins to the 40% to 50% range through optimizations in warehouse and shipping, production, and inventory management [1] - The strategy includes focusing on core business activities to maximize sell-through of products and efficiently managing operational plans towards breakeven and profitability [37] - The company plans to commercialize BabySat before the end of the year, targeting families with children who have medical conditions [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technology and the positive impact of FDA approvals on market adoption [16][31] - The company is not anticipating deeper discounts in the second half of the year, focusing instead on profitability and maintaining gross margin improvements [28] - Management highlighted the importance of FDA clearances as a catalyst for establishing digital health monitoring as a standard practice at home [16][31] Other Important Information - Cash and cash equivalents as of June 30, 2023, were approximately $25 million [17] - The company completed a 1:14 reverse stock split in July to maintain compliance with the New York Stock Exchange [17] - The company has added key team members with experience in consumer and healthcare sectors to support future growth [58][59] Q&A Session Summary Question: What do you expect regarding the timing of the second FDA approval? - Management indicated that the BabySat clearance is a strong indicator of the quality of their core technology and they are on track with the FDA review process [14][16] Question: Do you anticipate a higher general promotional environment for the second half of the year? - Management plans to take advantage of key promotional events but does not anticipate going deeper in discounts than in the past, focusing on profitability instead [27][28] Question: Can you provide details on channel performance following the buybuy BABY bankruptcy? - Management noted that Amazon and other retailers like Babylist and Target are picking up demand, indicating a positive shift in channel performance [39][40]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ...