Aquabounty Technologies (AQB) risk factors, FY2024 10-K

Risks Relating to our Business and Future Plans

1. 01We have a history of net losses and expect to incur future losses, and there is substantial doubt about our ability to continue as a going concern
2. 02There can be no assurance that substantial additional capital will be available on a timely basis, on acceptable terms, or at all, or that such funds, if raised, would be sufficient to enable us to continue to implement our business strategy
3. 03If we lose key vendors, including those necessary to complete the construction of our Ohio Farm Project, or are unable to engage additional vendors, it could delay our construction or commercialization plans
4. 04We require approvals and permits to construct and operate our Ohio Farm Project, and any delay or denial of those approvals or permits could potentially delay or halt certain operations and commercial efforts
5. 05Delays and defects may prevent the commencement of farm operations
6. 06The financing of our Ohio Farm Project through the placement of municipal bonds may require restrictive debt covenants that could limit our control over the farm’s operation and restrict our ability to utilize a portion of any cash that the farm generates
7. 07We may pursue strategic acquisitions, investments or mergers that could have an adverse impact on our business if they are unsuccessful
8. 08assume significant liabilities
9. 09potential loss of key employees

Risks Relating to Our Business

1. 10Atlantic salmon farming is subject to disease outbreaks, which can increase the cost of production and/or reduce production harvests
2. 11The successful development of our business depends on our ability to efficiently and cost-effectively produce and sell salmon at large commercial scale
3. 12Security breaches, cyber-attacks and other disruptions could compromise our information, or expose us to fraud or liability, which would cause our business and reputation to suffer
4. 13We may be required to further write down the value of our assets at the end of a reporting period

Risks Relating to the Industry and Macro Environment

1. 14Business, political, or economic disruptions or global health concerns could seriously harm our current or planned business and increase our costs and expenses
2. 15Adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties, could adversely affect our business, financial condition or results of operations
3. 16Our ability to use net operating losses and other tax attributes to offset future taxable income may be subject to certain limitations

Risks Relating to our Common Stock

1. 17The price of our shares of common stock is likely to be volatile
2. 18We may not be able to maintain our listing on Nasdaq, which could limit investors’ ability or willingness to make transactions in our securities and subject us to additional trading restrictions
3. 19a decreased ability to issue additional securities or obtain additional financing in the future
4. 20An active trading market for our common stock may not be sustained
5. 21We are a “smaller reporting company” and a “non-accelerated filer” and we cannot be certain if applicable scaled disclosure requirements will make our shares of common stock less attractive to investors
6. 22We may issue preferred stock with terms that could dilute the voting power or reduce the value of our common stock
7. 23Provisions in our corporate documents and Delaware law could have the effect of delaying, deferring, or preventing a change in control of us, even if that change may be considered beneficial by some of our stockholders
8. 24authorizing the issuance of “blank check” preferred stock, which could be issued by our Board of Directors to issue securities with voting rights and thwart a takeover attempt
9. 25We do not anticipate paying cash dividends in the foreseeable future, and, accordingly, stockholders must rely on stock appreciation for any return on their investment