Strive (ASST) risk factors, 2025 10-K

Risks Related to Our Business and Industry

1. 01We have a limited operating history, which may make it difficult to evaluate our business and prospects
2. 02The Company may experience negative cash flow
3. 03The Company may need to raise additional capital to support its operations
4. 04The Company may incur significant losses, and there can be no assurance that the Company will ever become a profitable business
5. 05The Company’s future revenue and operating results are unpredictable and may fluctuate significantly
6. 06If we are unable to maintain our good standing with the social media platforms where we operate, our business will suffer
7. 07The regulation of social media services, and the ban of TikTok in the United States in particular, may threaten our ability to market and promote our services effectively
8. 08Risks relating to the blockchain, cryptocurrencies, and NFT industries may cause material adverse effects on our business operations
9. 09If demand for our services does not develop as expected, our projected revenues and profits will be affected
10. 10The Company will be subject to risk associated with the development of new products or services
11. 11The Company may not be able to create and maintain a competitive advantage, given the rapid technological and other competitive changes affecting all markets nationally and worldwide. The Company’s success will depend on its ability to keep pace with any such changes
12. 12The technology area is subject to rapid change, and there are risks associated with new products and services
13. 13If our paying subscribers are not satisfied with our Discord subscription services, we may face additional cost, loss of profit opportunities, damage to our reputation, or legal liability
14. 14Our services are based in a new and unproved market and are subject to the risks of failure inherent in the development of new products and services
15. 15Our business depends on a strong brand, and if we are not able to maintain and enhance our brand, our ability to expand our customer base will be impaired and our business and operating results will be harmed
16. 16The social media, education, and community-based platform sectors are subject to rapid technological change and, to compete, we must continually evolve and upgrade the user experience to enhance our business
17. 17The Company operates in a highly competitive industry and there can be no assurance that the Company will be able to compete successfully
18. 18We are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom could adversely affect our business, operating results and financial condition
19. 19If our co-founders were to experience a loss to their social media followings, it could adversely affect our business, operating results and financial condition
20. 20Our business depends on our ability to attract and retain talented qualified employees or key personnel
21. 21We may not be able to manage future growth effectively
22. 22We may have difficulty scaling and adapting our existing infrastructure to accommodate a larger customer base, technology advances or customer requirements
23. 23If the Company fails to develop or protect its intellectual property adequately, the Company’s business could suffer
24. 24The Company’s products, services or processes could be subject to claims of infringement of the intellectual property of others
25. 25We may experience disruption to our servers or our software which could cause us to lose customers
26. 26A failure or breach of our security systems or infrastructure as a result of cyberattacks could disrupt our business, result in the disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses
27. 27Certain stockholders have substantial influence over our company, and their interests may not be aligned with the interests of other stockholders
28. 28Current market conditions and recessionary pressures in one or more of the Company’s markets could impact the Company’s ability to grow its business
29. 29Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited

Risks Related to Government Regulation and Being a Public Company

1. 30We are not currently registered as an investment adviser and if we should have registered as an investment adviser, our failure to do so could subject us to civil and/or criminal penalties
2. 31We will face growing regulatory and compliance requirements which can be costly and time-consuming
3. 32Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business
4. 33Our business could be negatively impacted by changes in the U.S. political environment
5. 34Our business could be affected by new governmental regulations regarding the Internet
6. 35The requirements of being a public company may strain our resources
7. 36Climate change and increased focus by governmental organizations on sustainability issues, including those related to climate change, may have a material adverse effect on our business and operations
8. 37If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired
9. 38Our management team has limited experience managing a public company
10. 39Industry and other market data used in this Annual Report and in other periodic reports that we may in the future file with the SEC, including those undertaken by us or our engaged consultants, may not prove to be representative of current and future market conditions or future results

Risks Related to Ownership of Our Class B Common Stock

1. 40Our Class B Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell your shares at or above your purchase price
2. 41Volatility in the market price of our Class B Common Stock may prevent investors from being able to sell their shares at or above the price at which they purchased our Class B Common Stock. As a result, you may suffer a loss on your investment
3. 42We may not be able to maintain a listing of our Class B Common Stock on Nasdaq
4. 43If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the market price for the shares and trading volume could decline
5. 44We have never paid cash dividends on our stock and do not intend to pay dividends for the foreseeable future
6. 45We have issued and may in the future issue additional debt or equity securities which are senior to our Class B Common Stock as to distributions and in liquidation, which could materially adversely affect the market price of our Class B Common Stock
7. 46We are subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our stockholders could receive less information than they might expect to receive from more mature public companies
8. 47As a non-accelerated filer, we are not required to comply with the auditor attestation requirements of the Sarbanes-Oxley Act
9. 48A non-accelerated filer is not required to file an auditor attestation report on internal control over financial reporting that is otherwise required under Section 404(b) of the Sarbanes-Oxley Act
10. 49As a “smaller reporting company,” we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public stockholders