Axe Compute (AGPU) risk factors, FY2024 10-K

Other

1. 01Risk Factors Related to the Proposed Acquisition of the Company by Renovaro, Inc
2. 02While the LOI in in effect we are, and once a definitive agreement is in effect we will be, subject to certain restrictions as to the operation of our business
3. 03Risk Factors Related to Our Business
4. 04The divestiture of our STREAMWAY product line presents risks that could negatively impact our business, financial condition, and results of operations. There is no assurance that we will realize the anticipated benefits of the divestiture consistent with our expectations
5. 05The use of AI in our business is subject to risks associated with new and rapidly evolving technologies and industries, may result in reputational harm or liability, and may not result in the development of commercially viable therapies, drugs or treatments
6. 06We have entered into, and may enter into additional, collaborations, in-licensing arrangements, joint ventures, strategic alliances or partnerships with third parties that may not result in the development of commercially viable products or the generation of significant future revenues
7. 07Our limited operating history with respect to our drug discovery solutions makes evaluation of our business difficult
8. 08Continue to develop and upgrade our products
9. 09We rely on sole suppliers for some of the materials used in our business, and we may not be able to find replacements or transition to alternative suppliers in a timely manner
10. 10If we are sued for product liability or errors and omissions liability, we could face substantial liabilities that exceed our resources
11. 11If our R&D and commercialization efforts for our PEDAL platform take longer than expected, the commercial revenues that use this platform could also be delayed
12. 12we may not be able to attract and retain the appropriately qualified staff to perform the necessary R&D
13. 13If demand for our molecular diagnostic tests is unexpectedly high or if we experience problems in scaling our operations, there may be supply interruptions or delays that could limit the growth of our revenue
14. 14We are dependent on a few key executive officers for our success. Our inability to retain those officers would impede our business plan and growth strategies, which would have a negative impact on our business, financial condition, and results of operations
15. 15Our business is dependent upon proprietary intellectual property rights, which if we were unable to protect, could have a material adverse effect on our business
16. 16If we become subject to intellectual property actions, it could hinder our ability to deliver our products and services and our business could be negatively impacted
17. 17If we breach our license agreements it could have a material adverse effect on our commercialization efforts for our product candidates
18. 18Patent term may be inadequate to protect our competitive position on our products for an adequate amount of time
19. 19Changes in patent law, including recent patent reform legislation, could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents
20. 20We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties
21. 21We may not be able to enforce our intellectual property rights throughout the world
22. 22Our business is subject to intense governmental regulation and scrutiny, both in the U.S. and abroad
23. 23If the FDA begins to enforce regulation of our molecular diagnostic tests, we could incur substantial costs and delays associated with trying to obtain pre-market clearance or approval and costs associated with complying with post-market requirements
24. 24If we fail to comply with Federal, State, and foreign laboratory licensing requirements, we could lose the ability to perform our tests or experience disruptions to our business
25. 25Complying with numerous statutes and regulations pertaining to our molecular diagnostics business is an expensive and time-consuming process, and any failure to comply could result in substantial penalties
26. 26If we use hazardous materials in a manner that causes contamination or injury, we could be liable for resulting damages
27. 27The healthcare regulatory and political framework is uncertain and evolving
28. 28Risk Factors Related to the Securities Markets and Ownership of Our Common Stock
29. 29Our common stock could be delisted from the Nasdaq Capital Market, which delisting could hinder your ability to obtain accurate quotations on the price of our common stock or dispose of our common stock in the secondary market
30. 30On April 23, 2023, we effected a 20-for-1 reverse stock split to cure this deficiency. As a result, our stock price increased significantly, and we regained compliance with the Minimum Bid Price Requirement
31. 31If we subsequently fail to meet any of the requirements for continued listing on Nasdaq, we could be delisted
32. 32Limitations on director and officer liability and indemnification of our officers and directors by us may discourage stockholders from bringing a suit against a director
33. 33You may experience dilution as a result of future equity offerings
34. 34The exercise of outstanding warrants, and issuance of equity awards may have a dilutive effect on our stock, and negatively impact the price of our common stock
35. 35Shares eligible for future sale may adversely affect the market
36. 36We do not expect to pay cash dividends for the foreseeable future, and we may never pay dividends; investors must rely on stock appreciation, if any, for any return on investment in our common stock
37. 37Our board of directors’ ability to issue undesignated preferred stock and the existence of anti-takeover provisions may depress the value of our common stock
38. 38Our stock price may be volatile, and you could lose all or part of your investment
39. 39Business disruptions could harm our operations, lead to a decline in revenue and increase our costs
40. 40Our success is dependent on our ability to attract and retain technical personnel, sales and marketing personnel, and other skilled management
41. 41Our ability to use net operating loss and tax credit carryforwards and certain built-in losses to reduce future tax payments is limited by provisions of the Internal Revenue Code and may be subject to further limitation because of prior or future offerings of our stock or other transactions
42. 42Costs incurred because we are a public company may affect our profitability
43. 43Acquisitions involve risks that could result in adverse changes to operating results, cash flows, and liquidity
44. 44​the ability to retain or hire qualified personnel required for expanded operations
45. 45If our information technology and communications systems fail or we experience a significant interruption in our operations, our reputation, business, and results of operations could be materially and adversely affected