All In FutureTech Alliance (AIFA) risk factors, FY2024 10-K

Risks Related to Our Business Operations

1. 01We may not be able to execute successfully our new strategic and business plans
2. 02Our business could be negatively affected as a result of actions of activist shareholders, and such activism could impact the trading value of our securities
3. 03We may be subject to litigation, including as a result of stockholder activism, which has caused us and may continue to cause us to incur significant expense, impact the execution of our business strategy and have an adverse effect on our business and operations
4. 04We may engage in strategic transactions that could impact our liquidity, increase our expenses and present significant distractions to our management
5. 05Our growth could be adversely affected if we are not able to pursue our acquisition strategy, to successfully integrate acquired businesses or to achieve the anticipated benefit from acquired companies
6. 06Allied is subject to risks associated with operating in a rapidly developing industry and a relatively new market
7. 07Allied may not be able to generate sufficient revenue to achieve and sustain profitability
8. 08Allied generates a portion of its revenues from advertising and sponsorship. If it fails to attract more advertisers and sponsors to its live events, tournaments or content, or if advertisers or sponsors are less willing to advertise with or sponsor Allied, its revenues may be adversely affected
9. 09Allied’s business model may not remain effective and it cannot guarantee that its future monetization strategies will be successfully implemented or generate sustainable revenues and profit
10. 10Even if Allied is able to license its brand to third party esports operators, there is a risk that those operators could damage its brand by operating esports arenas that are not at Allied’s standards of operation
11. 11Allied’s long-term growth strategy includes deploying additional mobile arenas in the U.S. and Europe to host its tournaments and events and it must operate them profitably
12. 12The nature of hosting esports related or live events exposes Allied to negative publicity or customer complaints, including in relation to, among other things, accidents, injuries or thefts at the arenas, and health and safety concerns
13. 13Allied’s marketing and advertising efforts may fail to resonate with gamers
14. 14The esports gaming and entertainment industry is competitive, and gamers may prefer competitors’ arenas, leagues, competitions tournaments or live events over those offered by Allied
15. 15Allied may not provide events or tournaments with games or titles for which the esports gaming community is interested
16. 16If Allied fails to keep its existing gamers engaged, acquire new gamers and expand interest in its live events, leagues, tournaments and competitions, its business, its ability to achieve profitability, and its prospects may be adversely affected
17. 17A decline in the number of gamers may adversely affect the engagement level of gamers with Allied’s tournament and entertainment platform under development may reduce our revenue opportunities and have a material and adverse effect on our business, financial condition and results of operations
18. 18There is no guarantee that Allied will be able to complete its planned online esports tournament and gaming subscription platform, or that such platform once completed will be or remain popular
19. 19If Allied fails to maintain and enhance its brands, its business, results of operations and prospects may be materially and adversely affected
20. 20If Allied fails to anticipate and successfully implement new esports technologies or adopt new business strategies, technologies, or methods, its business may suffer
21. 21Allied uses third-party services in connection with its business, and any disruption to these services could result in a disruption to its business, negative publicity and a slowdown in the growth of its users, materially and adversely affecting its business, financial condition and results of operations
22. 22Allied may not be able to procure the necessary permits and licenses to operate its arenas
23. 23Negotiations with unionized employees could delay opening or operating Allied’s arenas
24. 24Allied’s business is subject to regulation, and changes in applicable regulations may negatively impact its business
25. 25Allied has historically operated at a net loss on a consolidated basis, and there is no guarantee that that it will be able to be profitable
26. 26Forecasts of our market and market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, there can be no assurance that our business will grow at similar rates, or at all
27. 27Any actual or perceived failure by us to comply with our privacy policies or legal or regulatory requirements in one or multiple jurisdictions could result in proceedings, actions, or penalties against us
28. 28Our failure to raise additional capital or generate cash flows necessary to expand our operations and invest in new business initiatives in the future could reduce our ability to compete successfully and harm our operating results
29. 29We may experience security breaches and cyber threats
30. 30Global health threats, such as a global pandemic, could have a material adverse effect on our business

Risks Related to Intellectual Property

1. 31Allied licensed certain brand names under agreements that have expired and may also be subject to claims of infringement of third-party intellectual property rights
2. 32Allied’s technology, content and brands are subject to the threat of piracy, unauthorized copying and other forms of intellectual property infringement
3. 33Allied may not be able to prevent others from unauthorized use of its intellectual property, which could harm our business and competitive position
4. 34Allied may not be able to develop compelling intellectual property content or secure media content distributors to promote, sell, and distribute such content, which could harm its business and competitive position
5. 35Allied has not entered into definitive license agreements with all game publishers that it currently has relationships with, and it may never do so
6. 36The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline
7. 37If our operating and financial performance in any given period does not meet the guidance that we provide to the public, the market price of our common stock may decline
8. 38We incur increased costs and are subject to additional regulations and requirements as a result of being a public company, which could lower our profits or make it more difficult to run our business
9. 39We may not be able to maintain a listing of our common stock on the Nasdaq Capital Market
10. 40Our business depends substantially on the continuing efforts of our executive officers, key employees and qualified personnel, and our business operations may be severely disrupted if we lose the services of such personnel
11. 41We have two major stockholders that each own a significant percentage of our outstanding common stock, enabling them to exert significant influence over our operations and activities, which may affect the trading price of our common stock
12. 42Our failure to achieve and maintain an effective system of disclosure controls and internal control over financial reporting could adversely affect our financial position and lower our stock price
13. 43We have no current plans to pay cash dividends on our common stock; as a result, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it
14. 44If securities or industry analysts do not publish research or reports about our business or publish negative reports, the market price of our common stock could decline
15. 45You will be diluted by the future issuance of common stock, preferred stock, or securities convertible into common or preferred stock, in connection with our incentive plans, acquisitions, capital raises or otherwise
16. 46Provisions of our amended and restated articles of incorporation and bylaws may delay or prevent a takeover which may not be in the best interest of our stockholders
17. 47Our stockholder rights plan, or “poison pill,” includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorable