Form S-1 Table of Corncrib Over the past several years, we have invested significant time and resources analyzing this market segment and plan to enter into this market segment with differentiated natural therapeutic pet food products. While we do not expect to generate significant revenues from Therapeutic products in the near term, we believe these investments will be synergistic for our relationship with the veterinarian community and provide an incremental avenue of future growth. Industry Trends The U.S. pet food industry has been growing as a result of a number of factors, including: • continued humanization of pets — more pet parents consider their pets to be a family member. driving demand for more premium and specialized pct foods; • stung secular health and wellness trends crossing over from human foods — there is increased focus on pets consuming high- quality, natural foods, as evidenced by the growth in the Wholesome Natural market segment; and growth of the specialty channels — the specialty channels have been growing faster than the FDM channel as pet parents are attracted to the variety, premium assortment and tailored shopping experience offered by retailers in specialty channels. Nonetheless, the pet food industry faces a number of challenges and uncertainties including: • the pet food industry's continued ability to innovate and meet pet parents' future needs: • increased promotional activity in the pct food industry: • a challenging economic climate, which may impact spending on pets: and • new or increased regulatory requirements and scrutiny, including increased oversight by the FDA and the implementation of the Food Safety Modernization Act. Components of our Results of Operations Net Sales We develop, produce, market and sell natural pet food and cat litter in the specialty channels in the United States and Canada. We rely on consumer demand for our products. financial performance of our products for retailers and