Astrotech (ASTC) risk factors, FY2025 10-K

Other

1. 01We have incurred significant losses since inception and anticipate that we will incur continued losses for the foreseeable future100% rewritten
2. 02We may not be able to obtain patents, other intellectual property protection or licenses for the technologies contained in the products we develop100% rewritten
3. 03A failure of a key information technology system, process, or site could have a material adverse impact on our ability to conduct business100% rewritten
4. 04We and our suppliers may not meet regulatory quality standards applicable to our device-manufacturing processes, which could have an adverse effect on our business, financial condition, and results of operations89% rewritten
5. 05Legislative or regulatory healthcare reforms may make it more difficult and costly for us to obtain reimbursement for our products or regulatory clearance or approval of our future products, if any, and to produce, market and distribute those products after clearance or approval is obtained100% rewritten
6. 06Our financial performance may be adversely affected by medical device tax provisions in healthcare reform laws88% rewritten

Risks Related to Our Business and Industry

1. 07We have incurred significant losses since inception and anticipate that we will incur continued losses for the foreseeable futureNew
2. 08Our business units are in the development stage. They have earned limited revenues and it is uncertain whether they will earn any revenues in the future or whether any of them will ultimately be profitable
3. 09We may need to raise additional capital to fund the operations of our business units and commercialize our products
4. 10finance capital expenditures and general and administrative expenses
5. 11the potential cost of and delays in product development as a result of any regulatory oversight that may be applicable to our products59% rewritten
6. 12Third parties have infringed on our intellectual property rights, and may claim in the future that we are infringing on their intellectual property rights, and we could suffer significant litigation or licensing expenses or be prevented from selling products53% rewritten
7. 13We may not be able to successfully develop the BreathTest-1000 or any other new products or services31% rewritten
8. 14Our sales and operations in international markets expose us to operational, financial and regulatory risks
9. 15Our business, financial condition and results of operations may be adversely impacted by the effects of inflation
10. 16We generate substantial revenue from a limited number of customers and the loss of any such customer may harm our business, results of operations and financial results24% rewritten
11. 17Our success depends significantly on the establishment and maintenance of successful relationships with our customers
12. 18Third parties may claim we are infringing their intellectual property rights, and we could suffer significant litigation or licensing expenses or be prevented from selling products
13. 19Our ongoing success is dependent upon the continued availability of certain key employees
14. 20Our operating results may be adversely affected by increased competition
15. 21Our facilities located in Austin are susceptible to damage caused by hurricanes or other natural disasters
16. 22If we are unable to anticipate technological advances and customer requirements in the commercial and governmental markets, our business and financial condition may be adversely affected
17. 23We incur substantial upfront, non-reimbursable costs in preparing proposals to bid on contracts or to receive research and development grants that we may not be awarded66% rewritten
18. 24Our manufacturing operations are mostly dependent upon third party suppliers, including single source suppliers, making us vulnerable to external factors such as supply shortages and price fluctuations, which could harm our business
19. 25fluctuation in delivery by our suppliers due to changes in demand from us or their other customers
20. 26Repair or replacement costs due to warranties we provide on our products could have a material adverse effect on our business, financial condition and results of operations

Legal and Regulatory Risks

1. 27Our products and operations are subject to extensive governmental regulation, and failure to comply with applicable requirements could cause our business to suffer
2. 28recalls and field‑safety corrective actions
3. 29the manufacturing process or facilities we use may not meet applicable requirements89% rewritten
4. 30Although we do not grow, sell or distribute cannabis products, our products are closely tied to the hemp and cannabis industry and could subject us to regulatory, financial, operational and reputational risks and challenges
5. 31Evolving federal and state laws and regulations pertaining to the use or cultivation of hemp and cannabis, as well active enforcement by federal or state authorities of the laws and regulations governing the use and cultivation of hemp and cannabis may indirectly affect our business, our revenues and our profits
6. 32As the possession and use of marijuana is illegal under the CSA, it is possible that our manufacture and sale of equipment that is used to cultivate marijuana or marijuana products may be deemed to be aiding and abetting illegal activities
7. 33We may become subject to FDA or ATF regulation with respect to our AgLab business
8. 34The hemp and cannabis industry could face strong opposition from other industries
9. 35There may be difficulty enforcing certain of our commercial agreements and contracts
10. 36A drop in the retail price of hemp and cannabis products may negatively impact our business
11. 37We may be subject to constraints on and differences in marketing our products under varying state laws
12. 38We are subject to differing tax rates in several jurisdictions in which we operate, which may adversely affect our business, financial condition, results of operations and prospects
13. 39Changes in U.S. trade policy, including changes to existing trade agreements and any resulting changes in international trade relations, may have a material adverse effect on us and our export compliance as it relates to our international customers65% rewritten

Risks Related to Ownership of Our Common Stock

1. 40Our stock price has fluctuated in the past, has recently been volatile and may be volatile in the future, and as a result, investors in our common stock could incur substantial losses21% rewritten
2. 41general economic, industry and market conditions; and
3. 42We can sell additional shares of common stock without consulting shareholders and without offering shares to existing shareholders, which would result in dilution of shareholders’ interests in the Company and could depress our stock price
4. 43Our Certificate of Incorporation provides that the Court of Chancery of the State of Delaware will be the sole and exclusive forum for any disputes between us and our stockholders, which could limit stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors or officers
5. 44A sale of a substantial number of shares of the common stock may cause the price of our common stock to decline
6. 45We are a smaller reporting company and, as a result of the reduced disclosure and governance requirements applicable to such companies, our common stock may be less attractive to investors
7. 46Our failure to maintain compliance with Nasdaq’s continued listing requirements could result in the delisting of our Common Stock
8. 47Increased cybersecurity requirements, vulnerabilities, threats, and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, services, and data
9. 48Increased costs associated with corporate governance compliance may significantly impact our results of operations
10. 49Our insurance coverage may be inadequate to cover all significant risk exposures