Company: IPAR
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001753926-25-000424
Chunk: 18

Company: INTERPARFUMS INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 18
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 are developing and evolving, and certain areas are subject to assumptions that could change over time. In addition, we could be criticized for the scope of our initiatives or goals or perceived as not acting responsibly in connection with these matters. Any such matters could have a material adverse effect on our business.
 
President Trump’s anti-DEI sentiment could subject our
business to potential claims.
 
In the United States, the President has recently
issued Executive Order 14173 opposing diversity, equity, and inclusion (“DEI”) initiatives
in the private sector. In recent years, anti-DEI sentiment has gained momentum
across the United States in favor of a merit based system, as several states
and Congress have proposed or enacted “anti-DEI” policies, legislation, or
initiatives. However, the European Union and France, the country where our 72%
owned subsidiary is organized and has its principal place of business, have
enacted both ESG (environmental, social and governance) and DEI initiatives,
regulations and requirements. Compliance with such anti-DEI-related policies,
legislation, initiatives, and scrutiny in the United States, while our French
operating subsidiary complies with European ESG and DEI requirements, could
result in our company facing additional compliance obligations, becoming the
subject of investigations or enforcement actions, or sustaining damage to our reputation.

We
have identified material weaknesses in our internal control over financial
reporting for the fiscal year ended December 31, 2024. If we are unable to
remediate these material weaknesses or if we identify additional material
weaknesses in the future or otherwise fail to maintain effective internal
control over financial reporting, we may not be able to accurately or timely
report financial information. 

27   

As
disclosed in Part II, Item 9A, “Controls and Procedures,” we have identified
material weaknesses in our internal controls over financial reporting related
to risk assessment, monitoring of controls, lack of documentation of evidence
of control operating effectiveness and information technology general
controls.  A material weakness is a deficiency or a combination of
deficiencies, in internal control over financial reporting such that there is a
reasonable possibility that a material misstatement of the registrant’s
financial statements will not be prevented or detected on a timely basis. As a
result of the material weakness, we concluded that our internal control over
financial reporting and related disclosure controls and procedures were not
effective as of December 31