Amesite (AMST) risk factors, FY2024 10-K

Risks Related to Our Healthcare Business

1. 01We have significant compliance and regulatory risks
2. 02We have risks in gaining market adoption and winning customers from competitors
3. 03We face significant operational and financial risks
4. 04We face combined legal and reputational risks because of the data we manage and the nature of the business

Risks Related to Our Higher Education Business

1. 05We have a limited operating history in online programs and may fail to grow our customer base
2. 06We will be relying on our college, university and museum customers to drive enrollment and revenue and continue to license our platform and pay for our services
3. 07We face intense competition, which may cause pricing pressures, decreased gross margins and loss of market share, and may materially and adversely affect our business, financial condition and results of operations

General Risks

1. 08There is substantial doubt about our ability to continue as a going concern
2. 09We are dependent on the services of certain key management personnel, employees, advisors, and consultants. If we are unable to retain or motivate such individuals or hire qualified personnel, we may not be able to grow effectively
3. 10Our customers will rely on us to deliver stable platforms, with correct measures of performance in a manner that users can easily use
4. 11We have a history of losses, will need substantial additional funding to continue our operations and may not achieve or sustain profitability in the future
5. 12We may engage in future acquisitions that could disrupt our business, cause dilution to our stockholders and harm our financial condition and operating results
6. 13If our security measures or those of our future business partners are breached or fail and result in unauthorized disclosure of data, we could lose customers and/or fail to attract new customers. Such breach or failure could also harm our reputation and expose us to protracted and costly lawsuits
7. 14Unfavorable global economic, business, or political conditions could adversely affect our business, financial condition or results of operations
8. 15Cyber security risks and the failure to maintain the integrity of internal, partner, and consumer data could result in damages to our reputation, the disruption of operations and/or subject us to costs, fines or lawsuits

Risks Related to Our Common Stock

1. 16An active trading market for our common stock may not be sustained
2. 17We may acquire other companies or technologies, which could divert our management’s attention, result in dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results
3. 18Market and economic conditions may negatively impact our business, financial condition and share price
4. 19Future sales and issuances of our securities could result in additional dilution of the percentage ownership of our shareholders and could cause our share price to fall
5. 20We do not intend to pay cash dividends on our shares of common stock so any returns will be limited to the value of our shares
6. 21We are an “emerging growth company” and can avail ourselves of reduced disclosure requirements applicable to emerging growth companies, which could make our common stock less attractive to investors
7. 22We may be at risk of securities class action litigation
8. 23The Nasdaq Capital Market may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions
9. 24Financial reporting obligations of being a public company in the United States are expensive and time-consuming, and our management will be required to devote substantial time to compliance matters
10. 25Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval
11. 26Certain provisions of our certificate of incorporation and Delaware law make it more difficult for a third party to acquire us and make a takeover more difficult to complete, even if such a transaction were in stockholders’ interest