{"url_path":"/sec/pmnt/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 BUSINESS**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-29","source_url":"https://www.sec.gov/Archives/edgar/data/1849221/0001493152-26-030418-index.html","accession_number":"0001493152-26-030418","cik":"0001849221","ticker":"PMNT","issuer_name":"Perfect Moment Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1849221/0001493152-26-030418-index.html","primary_entity_key":"0001849221","primary_entity_name":"Perfect Moment Ltd."},"word_count":4291,"has_tables":true,"body_markdown":"**ITEM\n1. BUSINESS**\n\n \n\n**Overview**\n\n \n\nPerfect\nMoment Ltd., a Delaware corporation (“Perfect Moment,” “we,” “our,” or “us”), is a high-performance,\nluxury skiwear and lifestyle brand that fuses technical excellence with fashion-led designs. We create apparel and products that feature\nwhat we believe is an unmatched combination of fashion, form, function and fun for women, men and children.\n\n \n\nThe\nidea for the Perfect Moment brand was born in Chamonix, France in 1984, when the professional skier and extreme sports filmmaker, Thierry\nDonard, began making apparel for his team of free-ride skiers and surfers. Donard used his experience to create designs that were characterized\nby quality, style and performance to enable his athletes to achieve their perfect ski-run or perfect wave-ride: that “perfect moment.”\nHis designs – combining high performance materials with daring prints and colors – were inspired by his team of free-ride\nskiers and surfers.\n\n \n\nToday,\nthe brand continues to draw on its rich heritage of performance garments and statement designs. Retro-inspired vivid and bold color palates\ncomplement technical fabrics to deliver fashion, form and function for women, men and children. Initially known for its on-and-off the\nslopes skiwear, in 2016 we developed a summer range inspired by the island of Ibiza to bring its unique style to swimwear and activewear.\nWe believe our bold fashion and technical proposition resonates with the modern fashion-conscious consumer that sees value in authentic\nEuropean heritage and statement-design tailored for an active and healthy lifestyle at a compelling quality-to-value price point.\n\n \n\n**Our\nIndustry**\n\n \n\nWe\noperate at the intersection of the global luxury skiwear, outerwear, and active lifestyle markets, which are large, resilient, and undergoing\nstructural growth. Our core addressable market segments benefit from rising demand for premium, functional fashion with a distinct brand\nidentity.\n\n \n\n**Luxury\nSkiwear and Outerwear**\n\n \n\nThe\nglobal luxury skiwear market was valued at $1.6 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.35%,\nreaching $2.4 billion by 2028, according to EIN Presswire. This market serves a niche yet affluent demographic, typically located near\nski regions or with a strong interest in recreational winter sports. This consumer group prioritizes both fashion and technical performance\nand has demonstrated consistent demand for luxury offerings in alpine apparel.\n\n \n\nThe\nglobal luxury outerwear market, a larger and more geographically diverse category, was valued at $15.9 billion in 2022 and is expected\nto grow at a CAGR of 6.51%, reaching $23.2 billion by 2028 (Research Reports World). Within this segment, we believe consumers are increasingly\nseeking heritage-driven, functional outerwear that delivers both performance and aesthetic appeal, especially in urban and lifestyle\ncontexts.\n\n \n\n**Lifestyle\nand Athleisure**\n\n \n\nIn\naddition, Perfect Moment is also targeting the broader leisure markets for swimwear, activewear and lifestyle products. Both the global\nluxury ski wear market and global luxury outerwear market share some key consumer demographics and purchasing behavior with the broader\nleisure markets. We believe these markets stretch beyond skiing and winter sports to a range of healthy and athletic pursuits, with products\nincreasingly being worn as part of a broader day-to-day lifestyle statement. We also believe the growth of this market goes hand-in-hand\nwith broader cultural shifts, such as a greater emphasis on health, exercise and well-being, as well as a relaxation in dress codes at\nwork and for social occasions. Based on the characteristics of these respective markets, we believe Perfect Moment has the right brand\nprofile, geographic footprint, target demographic, marketing tools and operational expansion plan to gain significant share.\n\n \n\n1\n\n \n\n \n\n**Market\nTrends**\n\n \n\nWe\nbelieve that several macroeconomic and demographic shifts are shaping the future of the global luxury apparel industry. These trends\nsupport our growth strategy and validate our digital-first, lifestyle-oriented brand positioning:\n\n \n\n \n●\n**Acceleration\nof Online Luxury Sales**: The luxury industry has historically lagged behind other retail sectors in digital adoption; however,\nthis dynamic is shifting rapidly. According to Bain & Company, online sales accounted for 22% of global luxury purchases in 2021\nand are expected to represent between 32% and 34% by 2030. This channel expansion is being driven by evolving consumer preferences\nand increased digital investment by luxury brands. As a digitally native brand, we believe Perfect Moment is well-positioned to capitalize\non this shift.\n\n \n \n \n\n \n●\n**Generational\nDemographic Transition**: The spending power of Generation Y, Generation Z, and Generation Alpha continues to increase. According\nto Bain, these generations accounted for all of the luxury market’s growth in 2022 and are expected to comprise 80% of total\nglobal luxury spending by 2030. These consumers demand authenticity, digital engagement, and values-driven branding—all core\nelements of our business model.\n\n \n \n \n\n \n●\n**Geographic\nExpansion of Luxury Demand**: Historically, the luxury market has been concentrated in North America and Europe; however, demand\nis shifting eastward. Mainland China is expected to become the world’s largest luxury market by 2030. In November 2024, we\nconducted a limited market entry in China through Tmall and are currently evaluating joint venture structures to support longer-term\nexpansion in the region and capitalize on emerging consumer demand.\n\n \n\n**Our\nBrand: Heritage and Evolution**\n\n \n\nOver\nthe last 40 years, the Perfect Moment brand has evolved from its origins as a small business founded by Thierry Donard—producing\napparel for his team of free-ride skiers and surfers—into a global luxury lifestyle brand. Built on a foundation of luxurious,\ndistinctively designed, and high-performance ski apparel, we have continued to expand the brand into new categories and across multiple\nseasons while maintaining our heritage of technical excellence and bold aesthetics.\n\n \n\nThis\nfoundation has enabled us to extend our product offering beyond core skiwear into surfwear, swimwear, activewear, lifestyle apparel,\nand accessories. We apply the same disciplined approach to design, product development, and merchandising across all categories, ensuring\nthat each item aligns with our brand’s identity—fusing function with style, and performance with fashion.\n\n \n\nIn\nparallel, we have expanded our distribution beyond a network of regional distributors to include a curated group of premium multichannel\nretail partners and a growing direct-to-consumer (DTC) business. This strategic evolution in both product and channel mix has positioned\nPerfect Moment as a year-round brand with growing relevance across sport, leisure, and lifestyle use cases.\n\n \n\nWe\nremain committed to offering apparel that reflects the demands of alpine performance while meeting the expectations of today’s\nfashion-conscious global consumer—delivering a distinct brand experience that resonates on the slopes, in the city, and everywhere\nin between.\n\n \n\n**Competition**\n\n \n\nPerfect\nMoment competes in the global luxury apparel and outerwear market, which includes a range of premium lifestyle, sportswear, and heritage\nbrands. Our direct competitors include both luxury skiwear specialists and broader luxury outerwear players.\n\n \n\nMost\ncompetitors tend to specialize in either technical performance or high fashion. Perfect Moment is uniquely positioned at the intersection\nof these two pillars, offering products that combine elevated design with technical integrity. This dual positioning allows us to differentiate\nourselves from heritage performance brands that prioritize function over form, and from fashion brands that lack alpine credibility.\n\n \n\nOur\nbrand also competes with emerging DTC brands focused on active lifestyles, as well as traditional wholesale-driven outerwear players.\nWe believe our distinct heritage, design philosophy, and rapidly scaling digital footprint allow us to compete effectively across both\nluxury and performance categories.\n\n \n\n2\n\n \n\n \n\n**Our\nStrengths**\n\n \n\n \n●\n**Balanced\nFashion and Performance Positioning**. Perfect Moment’s affordable luxury brand positioning bridges the gap between pure\nfashion and high-performance apparel. Our products integrate technical design with elevated aesthetics, enabling both alpine functionality\nand everyday style. This dual focus differentiates us from many competitors who are more narrowly focused.\n\n \n \n \n\n \n●\n**Heritage-Driven\nBrand Identity**. Founded in Chamonix in 1984, our brand draws from over four decades of ski and surf heritage. This foundation\nunderpins our credibility in luxury outerwear and appeals to a global consumer base seeking authenticity and timeless design.\n\n \n \n \n\n \n●\n**Direct-to-Consumer\nand Selective Wholesale Distribution**. We operate a digitally native, direct-to-consumer ecommerce platform that allows us\nto control the customer experience, optimize pricing, and drive margin expansion. Our wholesale partnerships are selective and aligned\nwith our premium positioning, providing additional reach while preserving brand integrity. We complement these channels with short-term\nphysical retail activations to test new markets and deepen engagement.\n\n \n \n \n\n \n●\n**Scalable\nOperating Model**. With in-house control over design and development and a flexible, asset-light manufacturing base, we are\nable to scale seasonally and geographically while maintaining margin discipline.\n\n \n \n \n\n \n●\n**Experienced\nLeadership.**Our senior team brings leadership experience from global apparel and lifestyle brands, guiding our disciplined\ngrowth strategy with an entrepreneurial approach.\n\n \n\n \n●\n**Strategic\nRetail Expansion:**. We are testing physical retail through short-term, low-risk formats such as pop-up stores and shop-in-shops,\nwith plans to scale selectively based on performance.\n\n \n\n**Our\nBusiness Strategy and Product**\n\n \n\nPerfect\nMoment sits at the intersection of three large and growing markets (luxury ski apparel, premium outerwear and lifestyle). Based on the\ncharacteristics of these respective markets, we believe we have the right brand profile, geographic footprint, target demographic, marketing\ntools and operational expansion plan to gain significant market share. We believe we are also well-positioned to drive sustainable growth\nand profitability by executing on the following strategies:\n\n \n\n**Grow\nBrand Awareness and Attract New Customers**\n\n \n\nExpanding brand awareness and\ndeepening customer engagement remain central to our growth strategy. While Perfect Moment has built strong loyalty among existing customers\nand achieved meaningful global traction, we continue to see significant opportunity in underpenetrated and emerging markets.  \n\n \n\nRooted in our rich ski heritage,\nPerfect Moment appeals to a global audience that values both high-performance apparel and elevated design. Skiing’s association\nwith affluence and lifestyle has enabled us to position the brand as aspirational, particularly on social media, where our visual identity\nand storytelling strongly resonate. \n\n \n\nBy combining our signature aesthetic\nwith high-impact marketing, celebrity endorsements, influencer partnerships, editorial features, and collaborations, we have crafted a\ncompelling brand narrative that aligns with the values of our target audience. \n\n \n\n3\n\n \n\n \n\n**Metric**\n  \n**FY2026**\n  \n**FY2025**\n  \n**YoY\nChange**\n\nGlobal UVPM (Unique Visitors\nper Month)\n  \n16.8\nbillion\n  \n16.6 billion\n  \n+1.2%\n\nTotal Social Audience (KOLs)\n  \n1.2 billion\n  \n934 million\n  \n+28%\n\nSocial Audience During\nSki Season (Q3–Q4)\n  \n905.2 million\n  \n597.1 million\n  \n+52%\n\nGlobal Print Circulation\n  \n9.6 million\n  \n25.6 million\n  \n-62%**\n\nCelebrity/Influencer Posts\n  \nTaylor Swift, Hailey Bieber, Chloe\nKim, Emma Roberts, Anitta, Miranda Kerr\n  \nMultiple including Priyanka\nChopra Jonas, Anitta, Miranda Kerr, and more\n  \nSignificant increase with\nkey VIP’s\n\nKey Media Features \n  \nVogue, WWD, British Vogue,\nELLE, Harper’s BAZAAR\n  \nVogue, Harper’s BAZAAR,\nELLE, WWD, Tatler \n  \nExpanded global reach \n\n \n\n**A 9.6M print circulation figure today represents a\nfar more premium, intentional readership than 25.6M did a last year, casual readers have migrated online, leaving a committed,\nhigh-affinity core. Our media mix is evolving in lockstep with how our audience consumes content, and our digital and social numbers\nreflect that shift positively.\n\n \n\nThe announcement of our strategic collaboration with Alpine generated additional momentum,\nreaching over 1.1 billion in global PR (UVPM) and delivering high-impact social media performance across both brand channels.\nThese results reinforce our position at the intersection of luxury performance and lifestyle, and demonstrate the effectiveness\nof targeted collaborations in amplifying reach and engagement. \n\n \n\n**Customer\nAcquisition and Market Expansion Strategy**\n\n \n\nAttracting\nnew customers while deepening engagement with existing ones remains a foundational pillar of our long-term growth strategy. Perfect Moment\nhas built a loyal customer base and strong brand equity in core markets such as the United States, the United Kingdom, and the European\nUnion, while still seeing significant untapped potential across emerging regions and underpenetrated demographics. In FY2026, we expanded\noutreach across continental Europe and initiated a market test in China via Tmall. We are actively exploring deeper market penetration\nopportunities, including potential joint ventures or partnerships, particularly in China where we seek to balance growth potential with\nlocal market complexities.\n\n \n\nOur international\ngrowth strategy is closely integrated with our marketing and customer engagement approach. We leverage our brand’s unique heritage—rooted\nin performance-driven ski apparel with a distinctive retro-modern aesthetic—to connect with affluent, style-conscious consumers\nwho engage deeply with lifestyle content. Skiing remains an aspirational category, and our ability to tell culturally relevant, visually\ncompelling stories has been central to growing awareness in new markets.\n\n \n\nTo support\ncustomer acquisition and global reach, we execute a multi-channel marketing strategy that blends aspirational brand storytelling with\ndata-driven performance marketing. This includes premium editorial placements, influencer activations, celebrity collaborations, and visibility\nin luxury destinations, as well as robust paid social, search engine marketing (SEM), SEO, programmatic media, and retargeting campaigns.\nOur proprietary data and customer insights allow us to refine targeting, optimize customer acquisition costs, and improve return on advertising\nspend (ROAS).\n\n \n\nLooking\nahead, we plan to further invest in digital community development by enhancing engagement across both core and emerging social platforms\nand scaling our network of social media ambassadors. In parallel, we are committed to offering a localized customer experience in priority\nmarkets through language-specific content, local currency pricing, and improved shipping and distribution capabilities.\n\n \n\nComplementing our\ndigital expansion, we are developing a selective network of Perfect Moment-owned retail locations in key global cities. These physical\ntouchpoints are designed to serve as immersive brand destinations that foster loyalty and drive community engagement. This holistic,\nmulti-channel approach—anchored by strong creative execution, performance discipline, and a globally resonant brand voice—remains\ncentral to our strategy for customer acquisition, market expansion, and long-term value creation.\n\n \n\n**Elevating Brand Equity and Market Positioning**\n\n \n\nWe continue to enhance brand desirability\nby deepening strategic partnerships and cultivating cultural relevance through collaborations with globally resonant brands. These alliances\nare complemented by curated cultural touchpoints designed to reinforce the brand’s aspirational positioning.\n\n \n\nTo further strengthen brand exclusivity, we are expanding\naccess to premium, invitation-only experiences, limited-edition product capsules, and bespoke VIP programs. These initiatives are designed\nto reinforce scarcity-driven value and deepen emotional affinity with our most engaged customer segments.\n\n \n\nOur brand amplification strategy includes highly selective\nalignments with globally recognized influencers and tastemakers, as well as targeted celebrity endorsements. These efforts are bolstered\nby high-visibility editorial placements in tier-one publications.\n\n \n\n**Enhancing Product Storytelling and Technical\nCredibility**\n\n \n\nWe are investing in elevated storytelling formats\nto articulate our product innovation and craftsmanship. This includes the use of advanced content technologies, such as CGI and AI-powered\neducational tools, to bring our product narratives to life across digital channels.\n\n \n\nWe continue to validate the performance\nand functionality of our products through strategic endorsements by elite athletes, subject matter experts, and professionals in relevant\nfields. This expert-led validation reinforces product credibility and supports the brand’s premium technical positioning.\n\n \n\n**Accelerating Customer Retention and Lifetime\nValue**\n\n \n\nWe are launching a high-touch VIP loyalty program\ndesigned to reward our most valuable customers with elevated services including personal styling, concierge shopping experiences, and\ncurated ski retreats. This program aims to drive repeat engagement and strengthen brand loyalty.\n\n \n\nIn addition, we are deepening customer relationships\nthrough exclusive community engagement initiatives, which focus on fostering a sense of belonging and shared identity among our luxury\nconsumer base. These efforts are designed to support long-term customer retention and maximize customer lifetime value.\n\n \n\n**Enhance Our Wholesale Network**\n\n \n\nAlthough in the next five (5)\nyears we will be mainly focused on accelerating digital growth and our direct-to-consumer channel, we still intend to continue broadening\ncustomer access and strengthening our global foothold in new and existing markets by strategically expanding our wholesale network and\ndeepening current relationships. In all of our markets, we have an opportunity to increase sales by adding new wholesale partners\nand increasing volume in existing retailers. Additionally, we are focused on strengthening relationships with our retail partners through\nbroader offerings, exclusive products and shop-in-shop formats, which are dedicated spaces within another company’s retail\nstore on a short-term rental basis. We believe our retail partners have a strong incentive to showcase our brand as our products\ndrive customer traffic and consistent full-price sell-through in their stores.\n\n \n\n**Broaden Our Product Offerings**\n\n \n\nWe continue to develop new product\ncategories to engage customers across all seasons and expand our share of wallet. These include:\n\n  \n\n  \n●\n**Fall/Winter Lifestyle**:\nLess technical but equally premium outerwear, loungewear, and accessories.\n\n  \n●\n**Spring/Summer Expansion**:\nActivewear, surfwear, swimwear, and transitional layering pieces.\n\n  \n●\n**Multi-Seasonal Lifestyle\nCollection**: Launching a new lifestyle collection to complement our core skiwear line, designed to support year-round customer\nengagement.\n\n  \n●\n**Accessories Expansion**:\nInvesting in the growth of our accessories business, working with expert vendor partners to capture commercial uplift and enhance\nbrand exposure.\n\n  \n●\n**Style Expansion**:\nIncreasing annual style count from approximately 75 styles to 220–240 styles. \n\n  \n●\n**Pricing Architecture**: Establishing a\nGood / Better / Best pricing model to improve value perception, broaden customer access, and support luxury tier collaborations.\n\n \n\nWe believe this strategy supports year-round engagement,\nreduces seasonal revenue concentration, and enhances gross margin through full-price, high-margin items. FY2026 marked the launch of our\nfirst spring/summer capsule under this strategy, with additional lines planned based on customer response and inventory performance.\n\n \n\n4\n\n \n\n \n\n**Establish Perfect Moment Owned Physical Retail** \n\n \n\nWe are actively redefining the\naprès-ski lifestyle as a distinct luxury category, transcending its traditional association with winter sports. Our product strategy\nincludes broadening the après assortment to incorporate versatile knitwear, accessories, and transitional outerwear suited for\nboth urban and alpine environments.\n\n \n\nTo support this repositioning,\nwe are deploying high-impact experiential activations, including luxury pop-up stores and immersive brand experiences in strategic mountain\nand resort locations. These initiatives are designed to increase customer engagement, drive retail conversion, and extend our physical\nbrand footprint in high-value markets. \n\n \n\nIn FY2025 and FY2026, we tested\ntemporary physical retail spaces to evaluate customer response and operational learnings. In FY2027, we plan to open two concession\nlocations in high-profile markets. Our physical retail rollout is focused on near-term milestones and aligned with our broader brand experience\ngoals. \n\n \n\nThis approach is designed to strengthen\ncustomer touchpoints and deliver a consistent luxury retail experience across channels.\n\n \n\n**Other Strategies to Improve Margin**\n\n \n\nWe intend to focus on the following other strategies\nto improve our margin:\n\n  \n\n  \n●\n**Shift towards direct-to-consumer\nrevenue (such as ecommerce and physical retail).** We expect that rebalancing from wholesale to direct-to-consumer, coupled\nwith the other margin initiatives, would result in a double-digit percentage point improvement in our gross margin over time, driven\nby favorable channel mix. \n\n  \n●\n**Reducing product range\nwithin skiwear.** We believe the current range offers too much choice, resulting in reduced economies of scale and higher\nlevels of markdowns and discounts. Rationalizing the range is expected to improve both margin and sell-through. \n\n  \n●\n**Review and modify supplier\nbase.**We expect our supplier base to evolve as we source fabrics and trims more efficiently and introduce new finished goods\nsuppliers with better commercial terms. This includes shifting production to regions with lower labor costs or more favorable duty\nrates, such as the EU, UK, or Vietnam. \n\n  \n●\n**Review and revise price\npositioning.**We are introducing more structured pricing discipline and processes, with a focus on assessing margin by product,\ncountry of manufacture, and country of sale. We believe our industry and customer segment exhibit relatively inelastic demand,\nallowing for modest annual price increases in line with luxury market expectations. These pricing strategies will support margin\nexpansion as we grow. \n\n  \n●\n**Focusing on reducing\ncosts relating to crossing borders.** As a global brand, Perfect Moment incurs significant costs from freight, duty, couriers,\nand other logistics fees. We are focused on improving cost efficiency by shifting more volume to sea freight from air freight, relocating production\nto lower-duty countries, and reducing broker and customs-related costs through improved planning and process.\n\n  \n●\n**Implementing a Good\n/ Better / Best pricing model.**This tiered structure enhances customer value perception and supports product and price\naccessibility across a broader consumer base. It also enables luxury-tier expansion for high-profile collaborations and licensed\nprojects.\n\n \n\nThese margin enhancement initiatives are central to\nour efforts to increase profitability, streamline operations, and create a scalable business model that can support long-term growth and\nbrand equity.\n\n \n\n**Operations\nand Supply Chain**\n\n \n\nPerfect\nMoment’s global supply chain strategy is designed to support premium quality, timely delivery, and scalable growth across all major\nproduct categories. We work with a curated network of manufacturing partners in Europe and Asia, selected based on their technical expertise,\nmaterial sourcing capabilities, and alignment with our brand values.\n\n \n\nWe\nhave implemented a hybrid sourcing model that balances high-performance technical partners for outerwear with more agile suppliers for\nlifestyle and accessory categories. This approach enables product differentiation while supporting cost-efficiency and flexibility.\n\n \n\nOur\nsupply chain is structured around regional fulfillment centers that serve North America, the UK, and continental Europe. We also produce\na portion of our products in China, alongside our established manufacturing partnerships in Europe and broader Asia. This setup reduces\nlead times and supports localized customer experience. In fiscal 2025, we began implementing initiatives to improve margin by consolidating\nshipments, introducing duty optimization measures, and shifting a portion of logistics from air to sea freight. As part of these efforts,\nwe have also begun assessing the impact of international tariffs on sourcing decisions, which will be further discussed in the Risk Factors\nsection of this Annual Report.\n\n \n\nLooking\nforward, we aim to further diversify our supplier base to reduce concentration risk, optimize raw material procurement, and improve inventory\nturnover through tighter integration between merchandising, production, and logistics planning.\n\n \n\n5\n\n \n\n \n\n**Technology**\n\n \n\nTechnology\nis at the core of our business strategy, powering our operational capabilities and the sustainable scalability of our platform. We believe\nthat continuous investment in our technology has given us a competitive advantage and enabled fast innovation. Our technology platform\nwith MACH architecture is designed to provide Perfect Moment with longer term ease of integration, stability, performance, and scalability\nbased on three main components:\n\n \n\n \n(1)\nService\nOriented Architecture facilitates design and maintenance of partner integrations:\n\n \n\n \n●\nKey\nenabler of omni-channel\n\n \n \n \n\n \n●\nAble\nto cater to evolving business needs\n\n \n \n \n\n \n●\nDecreases\nTotal Cost of Ownership and increases efficiency\n\n \n\n \n(2)\nCloud-focused\nstrategy designed to:\n\n \n\n \n●\nImprove\nscalability and cost efficiency\n\n \n \n \n\n \n●\nAllow\nfor better accessibility and performance in markets around the worlds\n\n \n\n \n(3)\nHeadless\nArchitecture allows:\n\n \n\n \n●\nRapid\nbuild of differentiating user experience without impact to the backend systems\n\n \n \n \n\n \n●\nInnovative\nnew user experiences build on headless building blocks\n\n \n \n \n\n \n●\nEvolution\nof front-end over time to take advantage of new technologies and innovations\n\n \n\n**Trademarks\nand Other Intellectual Property**\n\n \n\nWe\nprotect our intellectual property through a combination of trademarks, domain names, copyrights, design rights/design patents and trade\nsecrets, as well as contractual provisions and restrictions on access to our proprietary technology related to our ecommerce platform.\nOur principal trademark assets include the trademark “Perfect Moment,” which is registered in the United States and targeted\nforeign jurisdictions, as are our logos and taglines. We have applied to register or registered many of our trademarks in the United\nStates and other jurisdictions in all classes relevant to our business, and we will pursue additional trademark registrations to the\nextent we believe they would be beneficial and cost-effective. We actively oppose and defend our position on the trademark registers\nand subscribe to a trademark watch service for our key assets. Further we subscribe to an online monitoring system to search for infringements\nof our intellectual property rights and, in addition, act on any reported to us by customers or employees.\n\n \n\nWe\nare the registered holder of multiple domestic and international domain names that include “perfect moment” and similar variations.\nWe also hold domain registrations for many of our product names and other related trade names and slogans. We own or have control over\nrelevant social media handles which contain our key assets. In addition to the protection provided by our intellectual property rights,\nwe enter into confidentiality and proprietary rights agreements with our employees, consultants, contractors and business partners. Where\nappropriate we enter into relevant license agreements to allow others to use our Intellectual Property or where we need permission to\nuse Intellectual Property of third parties. We further control the use of our proprietary technology and intellectual property through\nprovisions in both our customer terms of use on our website and the terms and conditions governing our agreements with other third parties.\n\n \n\n**Government\nRegulation**\n\n \n\nIn\nthe United States and the United Kingdom and in the other jurisdictions in which we operate, we are subject to labor and employment laws,\nlaws governing advertising, privacy and data security laws, safety regulations and other laws, including consumer protection regulations\nthat apply to retailers and/or the promotion and sale of merchandise and the operation of stores and warehouse facilities. Our products\nsold worldwide are subject to tariffs, treaties and various trade agreements as well as laws affecting the importation of consumer goods.\nWe monitor changes in these laws, regulations, treaties and agreements, and believe that we are in material compliance with applicable\nlaws.\n\n \n\n6\n\n \n\n \n\n**Licenses,\nCertificates and Approvals**\n\n \n\nThe\nCompany has obtained all licenses, certificates and approvals required for carrying on its business activities during the two fiscal\nyears ended March 31, 2026 and 2025.\n\n \n\n**Employees\nand Human Capital Resources**\n\n \n\nAs\nof March 31, 2026 and 2025, we had a total of 52 and 50 full-time employees, respectively, as well as a limited number of temporary\nemployees and consultants. Our employees are neither unionized nor covered by collective bargaining agreements, and we consider our current\nemployee relations to be good.\n\n \n\n**Website\nand Available Information**\n\n** **\n\nWe\nfile annual, quarterly and current reports; proxy and information statements and other information with the SEC. We also make our annual\nreport on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all related amendments, available free of charge\nthrough our website at www.perfectmoment.com as soon as reasonably practical after they have been filed with the SEC. We also provide\nto anyone, without charge, copies of the documents upon written request. Requests should be directed to the attention of the Corporate\nSecretary at our address on the cover page of this Form 10-K. We are an electronic filer. The SEC maintains an internet website at www.sec.gov\nthat contains reports, proxy and information statements and other information regarding issuers, such as us, that file electronically\nwith the SEC."}