Alset (AEI) risk factors, FY2024 10-K

Risks Related to Our Company

1. 01Management has identified a material weakness in the design and effectiveness of our internal controls, which, if not remediated, could affect the accuracy and timeliness of our financial reporting and result in misstatements in our financial statements

Risks Relating to Our Business

1. 02We have a history of annual net losses which may continue and which may negatively impact our ability to achieve our business objectives
2. 03We cannot ensure the long-term successful operation of our business or the execution of our growth strategy
3. 04We have a holding company ownership structure and will depend on distributions from our majority-owned and/or controlled operating subsidiaries to meet our obligations. Contractual or legal restrictions applicable to our subsidiaries could limit payments or distributions from them
4. 05Our significant ownership interests in public companies listed on limited public trading markets subjects us to risks relating to the sale of their shares and the fluctuations in their stock prices
5. 06General political, social and economic conditions can adversely affect our business
6. 07Disruptions in the financial markets and uncertain economic conditions could adversely affect the value of our real estate investments
7. 08We have made and expect to continue to make acquisitions as a primary component of our growth strategy. We may not be able to identify suitable acquisition candidates or consummate acquisitions on acceptable terms, which could disrupt our operations and adversely impact our business and operating results
8. 09We may be unable to successfully integrate acquisitions, which may adversely impact our operations
9. 10Acquisitions which we complete may have an adverse impact on our results of operations
10. 11Our resources may not be sufficient to manage our expected growth; failure to properly manage our potential growth would be detrimental to our business
11. 12Our officers will allocate some of their time to other business ventures including but not limited to subsidiaries of our Company, thereby limiting the amount of time they are able to devote to our affairs. This potential time management conflict could have a negative impact on our operations
12. 13Our international operations are subject to increased risks which could harm our business, operating results and financial condition
13. 14If we are unable to retain the services of Chan Heng Fai or if we are unable to successfully recruit qualified personnel, we may not be able to continue operations
14. 15If we do not successfully develop new products and services, our business may be harmed
15. 16If we do not adequately protect our intellectual property rights, we may experience a loss of revenue and our operations may be materially harmed
16. 17New legislation, regulations or rules related to obtaining patents or enforcing patents could significantly increase our operating costs and decrease our revenue
17. 18For our real estate business, the market for real estate is subject to fluctuations that may impact the value of the land or housing inventory that we hold, which may impact the price of our common stock
18. 19Zoning and land use regulations impacting the land development and homebuilding industries may limit our activities and increase our expenses, which would adversely affect our financial results
19. 20Health and safety incidents that occur in connection with our potential expansion into the homebuilding business could be costly with uninsured losses
20. 21Adverse weather conditions, natural disasters and man-made disasters may delay our real estate development projects or cause additional expenses
21. 22We may face liability for information displayed on or accessible via our website, and for other content and commerce-related activities, which could reduce our net worth and working capital and increase our operating losses
22. 23Any failure of our network could lead to significant disruptions in our businesses, which could damage our reputation, reduce our revenues or otherwise harm our businesses
23. 24Public scrutiny of Internet privacy and security issues may result in increased regulation and different industry standards, which could deter or prevent us from providing our current products and solutions to our members and customers, thereby harming our business
24. 25Particularly with regard to our biohealth business, product reliability, safety and effectiveness concerns can have significant negative impact on sales and results of operations, lead to litigation and cause reputational damage
25. 26Significant challenges or delays in our innovation and development of new products, technologies and indications could have an adverse impact on our long-term success
26. 27Our competitors may have greater financial and other resources than we do and those advantages could make it difficult for us to compete with them
27. 28Since some members of our board of directors are not residents of the United States and certain of our assets are located outside of the United States, you may not be able to enforce a U.S. judgment for claims you may bring against such directors or assets
28. 29We may be required to record a significant charge to earnings if our real estate properties become impaired
29. 30Fluctuations in foreign currency exchange rates affect our operating results
30. 31Our international operations expose us to additional legal and regulatory risks, which could have a material adverse effect on our business, results of operations and financial conditions
31. 32If tariffs or other restrictions are placed on foreign imports or any related counter-measures are taken by other countries, our business and results of operations could be harmed
32. 33We will incur increased costs as a result of being a U.S. public company, and our management expects to devote substantial time to public company compliance programs
33. 34If we are unable to address the weaknesses in our internal control over financial reporting, investors may lose confidence in our Company and it could result in material errors in our financial statements
34. 35Our business is subject to reporting requirements that continue to evolve and change, which could continue to require significant compliance effort and resources

Risks Related to Ownership of Our Common Stock

1. 36Our stock price may be volatile and your investment could decline in value
2. 37Future sales, or the perception of future sales, of a substantial amount of our shares of common stock could depress the trading price of our common stock
3. 38If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding our stock adversely, or if our actual results differ significantly from our guidance, our stock price and trading volume could decline
4. 39Anti-takeover provisions in our charter documents could discourage, delay or prevent a change in control of our Company and may affect the trading price of our common stock
5. 40Concentration of ownership of our common stock by our principal stockholder will limit new investors from influencing significant corporate decisions
6. 41We do not expect to pay any dividends on our common stock for the foreseeable future
7. 42We have 25,000,000 authorized unissued shares of preferred stock, and our board has the ability to designate the rights and preferences of this preferred stock without your vote