Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 13

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 13
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2022, respectively. Our
COO has taken a marketing trip recently to promote our products in the US for new and potential customers. It is likely that our future marketing efforts will require us to incur significant additional expenses. These efforts may not result
in increased revenues in the immediate future or at all and, even if they do, any increases in revenues may not offset the expenses incurred.
If we fail to successfully promote and maintain our brand while incurring substantial expenses, our results of operations and financial
condition would be adversely affected, which may impair our ability to grow our business.

If we fail to manage our inventory effectively,
our results of operations, financial condition and liquidity may be materially and adversely affected.

Our inventories are mostly raw materials, such as
copper, iron, zinc alloy and packaging materials comprised of paper and plastic, which require us to manage our inventory effectively.
We depend on our demand forecasts for various kinds of raw materials and pre-made products to make purchase decisions and to manage our
inventory. Such demand, however, can change significantly between the time inventory is ordered and the date by which we hope to sell
it. Demand may be affected by seasonality, the economy, new product launches, pricing and discounts, product defects, changes in customer
spending patterns, changes in customer tastes and other factors, and our customers may not order products in the quantities that we expect.
The acquisition of certain types of inventory may require significant lead time and prepayment.

Furthermore, as we plan to continue expanding our
product offerings, we expect to include a wider variety of products and raw materials in our inventory, which will make it more challenging
for us to manage our inventory and logistics effectively. We cannot guarantee that our inventory levels will be able to meet the demands
of customers, which may adversely affect our sales. If we fail to manage our inventory effectively, we may be subject to a heightened
risk of inventory obsolescence resulting in a decline in inventory value, and significant inventory write-downs or write-offs. Any of
the above may materially and adversely affect our results of operations and financial condition. On the other hand, if we underestimate
demand for our products, or if our suppliers fail to supply quality raw materials and pre-made products in a timely manner, we may experience
inventory shortages, which might result in diminished brand loyalty and lost revenues, any of which could harm our business and reputation.

We may not be able to prevent others from unauthorized
use of our intellectual property, which could harm our