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EFTA01381278

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Form S-I Table of Contents Our success depends on our ability to at 'ad and retain key employees and the succession of senior management as well as team members within stores. Our continued growth and suceiss requires us to hire, retain and develop our leadership bench. If we arc unable to attract and retain talented, highly qualified senior management and other key executives, as well as provide for the succession of senior management. our growth and results of operations may be adversely impacted. Our success also depends on our ability to continue to attract, motivate and retain employees who understand and appreciate our culture and are able to represent our brand effectively, including our Pet Detectives who interact with consumers in stores. If we arc unable to attract, train and retain new employees and new team members to act as Pet Detectives, this could delay or prevent the implementation of our business strategy and in turn, lead to fewer sales of our products. In addition, we have in the past been a defendant in a purported class action by former and current Pet Detectives, which alleged certain violations of wage and labor laws in California and Oregon, and we may be subject to other claims in the future. Risks Related to this Offering and Ownership of our Common Stock We are a "controlled company" within the meaning of NASDAQ rules and, as a result, quail:6,1ot exemptions from certain corporate governance requirements. Our Sponsor will continue to control a majority of the voting power of our outstanding common stock after completion of this offering. Under NASDAQ rules a listed company of which more than 50% of the voting power for the election of directors is held by another person or group of persons acting together is a "controlled company- and such a company may elect not to comply with certain NASDAQ corporate governance requirements, including the requirement (1) that a majority of the Board of Directors consist of independent

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