Interest Rate Risk - The company is exposed to interest rate risk with fixed-rate debt instruments bearing interest rates of approximately 7-23% as of December 31, 2025[351]. - A hypothetical 100 basis point increase in market interest rates would not have materially impacted the company's results for the year ended December 31, 2025[352]. - The company does not utilize derivative instruments or hedging strategies, believing that current market risk exposures did not materially affect its financial condition for the year ended December 31, 2025[364]. Raw Material and Logistics Costs - The company sources approximately one-third of its raw materials domestically, one-third from China, and the remainder from other international sources[357]. - A 10% increase in raw material or logistics costs could have a material adverse effect on gross margins if not offset through pricing or cost controls[357]. - The company is subject to commodity and input cost risks associated with changes in the cost and availability of raw materials[356]. Foreign Currency Exposure - The company does not currently hedge foreign currency exposures, and a 10% adverse movement in foreign currency exchange rates could increase input costs[354]. Market Conditions - The market price of the company's common stock has been volatile since listing, influenced by factors beyond its control[358]. - The company faces risks from inflation and broader macroeconomic conditions that may increase costs and reduce consumer demand[360]. - The company has ongoing monitoring of input costs and pricing strategies to manage market risks[362].
Functional Brands(MEHA) - 2025 Q4 - Annual Report