Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 5

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 5
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 product. If we fail to design and develop appropriate functions for our smart locks to attract enough customers and
establish commercial manufacturing capabilities or if our smart lock products can’t meet the local regulatory requirements
where we sell such products, our financial condition and results of operations may be adversely affected. If we fail to obtain and
maintain patent, trade secret and other intellectual property protection and regulatory exclusivity for our new smart locks or if we
are unable to ensure that we do not infringe, misappropriate or otherwise violate the valid patent, trade secret or other
intellectual property rights of third parties regarding smart locks on the market, our business, financial condition and results of
operations may be materially adversely affected.

We may not be able to successfully implement our
growth strategy on a timely basis or at all.

Our future success depends, in large part, on our
ability to implement our growth strategy, including expanding distribution and improving placement of our products in the stores of our
retail customers, attracting new consumers to our brands, introducing new products and product line extensions and expanding into new
markets. Our ability to implement this growth strategy depends, among other things, on our ability to:

  enter into distribution and other strategic arrangements with current and new retailers and other potential distributors of our products;  

  continue to effectively compete in our distribution channels;  

  increase our brand recognition by effectively implementing our marketing strategy and advertising initiatives;  
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  create and maintain brand loyalty;  

  develop new products and product line extensions that appeal to consumers;  

  maintain and, to the extent necessary, improve our high standards for product quality, safety and integrity;  

  maintain sources for the required supply of quality raw materials and ingredients to meet our growing demand; and  

  identify and successfully enter and market our products in new geographic areas and market segments.  

   8  

We may not be able to successfully implement our growth
strategy and may need to change our strategy from time to time. If we fail to implement our growth strategy or if we invest resources
in a growth strategy that ultimately proves unsuccessful, our business, financial condition and results of operations may be materially
adversely affected.

We incurred net losses for the year ended December 31, 2024
and the past two years and may not be able to generate sufficient operating cash flows and working capital to continue as a going concern
over the next 12 months. Failure to manage our