Asure Software (ASUR) risk factors, FY2025 10-K

Asure Software's FY2025 10-K, filed Feb 26, 2026, lists 38 risk factors in 2 groups. Against the prior year's 37: 4 new, 3 dropped, 7 substantially reworded.

Risk factors listed
382 groups
New this year
4vs 37 last year
Dropped
3since the prior 10-K
Substantially reworded
7of those kept
Section length
12k wordsItem 1A

What the changes say

  • AI now drives both competitive pressure and execution, data-governance, third-party, and regulatory risks.
  • Deferred Employee Retention Tax Credit receivables create collection and IRS challenge exposure.
  • Regulatory exposure now expressly covers payroll, benefits administration, insurance brokerage, and sensitive employee data.
  • 2025 net loss increased to $13.1 million, while accumulated deficit reached $320.4 million.

What changed since the prior 10-K

New

  • NewRISKS RELATED TO OUR BUSINESS

    Advancements and adoption of AI, either in our industry or those of our clients, could reduce demand for our solutions, which could have a material adverse effect on our business, operating results, and financial results

    Customer AI adoption could shrink workforces, reduce employee-based fees, or replace Asure’s HCM software with AI-native or internal tools.

  • NewRISKS RELATED TO OUR BUSINESS

    We are actively integrating AI technologies across our HCM platform and internal operations to enhance automation, analytics, customer experience, and operational efficiency. As we expand the use of AI-enabled capabilities, we are exposed to risks inherent in the development and deployment of emerging technologies

    AI features may produce flawed outputs, depend on vulnerable third parties, or face evolving U.S. and international AI requirements.

  • NewRISKS RELATED TO OUR BUSINESS

    Our AI-enabled features process sensitive customer and employee data. Any failure to maintain appropriate safeguards, governance controls, or oversight could result in regulatory scrutiny, litigation, or reputational harm

    Failures in safeguarding sensitive customer and employee data processed by AI features could trigger regulatory scrutiny, litigation, or reputational damage.

  • NewRISKS RELATED TO OUR BUSINESS

    A portion of our accounts receivable is related to tax processing services that enabled businesses to file for Employee Retention Tax Credits under the CARES Act

    Deferred Employee Retention Tax Credit receivables may be difficult to collect, while IRS challenges could create penalties or damages.

Dropped

  • DroppedRISKS RELATED TO OUR BUSINESS

    We may be required to incur debt to meet future capital requirements of our business. Should we be required to incur debt, the restrictions imposed by the terms of such debt could adversely affect our financial condition and our ability to respond to changes in our business

  • DroppedRISKS RELATED TO OUR BUSINESS

    We may require additional capital to support business growth, and this capital may not be available on acceptable terms, or at all

  • DroppedRISKS RELATED TO OUR BUSINESS

    Issues in the use of artificial intelligence (“AI”) in our HCM products and services may result in reputational harm or liability to us

Reworded

  • 91% rewrittenRISKS RELATED TO OUR BUSINESS

    Privacy concerns and laws and other regulations may limit the effectiveness of our applications and adversely affect our business

    The risk now covers payroll, benefits, insurance brokerage, and other regulated services, emphasizing personal, financial, biometric, and health data.

  • 77% rewrittenRISKS RELATED TO OUR BUSINESS

    The adoption of new or interpretation of existing money service business statutes and money transmitter statutes at the federal and state level could subject us to additional regulation and related expense and necessitate changes to our business model

    The discussion now specifically describes impounding payroll funds and remitting them to employees, tax authorities, and third parties.

  • 75% rewrittenRISKS RELATED TO OUR BUSINESS

    We have a history of losses, and we cannot be certain that we will achieve or sustain profitability

    The 2025 net loss rose to $13.1 million from $11.8 million, accumulated deficit to $320.4 million from $307.2 million, and equity to $197.8 million.

  • 68% rewrittenRISKS RELATED TO OUR BUSINESS

    Some of our key components are procured from a single or limited number of suppliers. Thus, we are at risk of shortages, price increases, tariffs, changes in international trade policies or treaties, delays, or discontinuation of key components, which could disrupt and materially and adversely affect our business

    The risk now refers to Time and Attendance products and adds recent tariffs and new trade restrictions affecting manufacturing regions.

    Was: Some of our key components are procured from a single or limited number of suppliers. Thus, we are at risk of shortage, price increases, tariffs, changes, delay, or discontinuation of key components, which could disrupt and materially and adversely affect our business

  • 67% rewrittenRISKS RELATED TO OUR BUSINESS

    Volatility and weakness in bank and capital markets may adversely affect credit availability and related financing costs for us

    No substantive change is shown; the banking, refinancing, credit availability, and financing-cost discussion is unchanged.

  • 33% rewrittenRISKS RELATED TO OUR BUSINESS

    We depend on data centers and computing infrastructure operated by third parties, and any disruption in these operations or changes of these providers could adversely affect our business

    No substantive change is shown; the reliance on Amazon Web Services and potential provider changes, costs, and service interruption remains unchanged.

  • 21% rewrittenRISKS RELATED TO OUR SECURITIES

    Our stock price has been, and likely will continue to be, volatile

    The 2025 stock-price range was $7.69–$12.62 versus $6.92–$10.41 in 2024, and AI advancements and market perception were added as influences.

All 38 risk factors

Headings as the filing states them, in filing order.

RISKS RELATED TO OUR BUSINESS

  1. 01We have a history of losses, and we cannot be certain that we will achieve or sustain profitability75% rewritten
  2. 02Volatility and weakness in bank and capital markets may adversely affect credit availability and related financing costs for us67% rewritten
  3. 03Privacy concerns and laws and other regulations may limit the effectiveness of our applications and adversely affect our business91% rewritten
  4. 04The adoption of new or interpretation of existing money service business statutes and money transmitter statutes at the federal and state level could subject us to additional regulation and related expense and necessitate changes to our business model77% rewritten
  5. 05Our software and solutions may not function adequately, which could damage our reputation and give rise to claims against us, which could harm our business and operating results
  6. 06We depend on data centers and computing infrastructure operated by third parties, and any disruption in these operations or changes of these providers could adversely affect our business33% rewritten
  7. 07Some of our key components are procured from a single or limited number of suppliers. Thus, we are at risk of shortages, price increases, tariffs, changes in international trade policies or treaties, delays, or discontinuation of key components, which could disrupt and materially and adversely affect our business68% rewritten
  8. 08If we are unable to release timely updates to reflect changes in wage and hour laws, tax, privacy, benefit and other laws and regulations that our products help our clients address, the market acceptance of our products may be adversely affected and our revenues could decline
  9. 09If we are not able to develop enhancements and new features to our products, keep pace with technological developments or respond to future technologies, our business, operating results and financial results will be adversely affected
  10. 10In order for us to improve our operating results, it is important that our clients renew their agreements with us when the initial contract term expires and also purchase additional products or add additional users
  11. 11Client funds that we hold in trust are subject to market, interest rate, credit and liquidity risk. The loss of these funds could have a material adverse effect on our business, financial condition and results of operations
  12. 12The markets in which we participate are highly competitive, and if we do not compete effectively, our operating results could be adversely affected
  13. 13Our clients could have insufficient funds to cover payments we have made on their behalf or credit that we have extended to them in connection with the services that we have provided, resulting in financial loss to us
  14. 14Our balance sheet includes significant amounts of goodwill and intangible assets. The impairment of a significant portion of these assets would adversely affect our business, operating results and financial condition
  15. 15If we fail to adequately protect our proprietary rights, our competitive advantage and brand could be impaired and we may lose valuable assets, generate reduced revenue and incur costly litigation to protect our rights
  16. 16We may be sued by third parties for infringement of their proprietary rights
  17. 17Even if demand for HCM products and services increases generally, there is no guarantee that demand for SaaS products generally or our products in particular will increase to a corresponding degree, or at all
  18. 18We may be subject to claims, lawsuits, governmental investigations and other proceedings that could adversely affect our business, financial condition and results of operations
  19. 19Advancements and adoption of AI, either in our industry or those of our clients, could reduce demand for our solutions, which could have a material adverse effect on our business, operating results, and financial resultsNew
  20. 20We are actively integrating AI technologies across our HCM platform and internal operations to enhance automation, analytics, customer experience, and operational efficiency. As we expand the use of AI-enabled capabilities, we are exposed to risks inherent in the development and deployment of emerging technologiesNew
  21. 21Our AI-enabled features process sensitive customer and employee data. Any failure to maintain appropriate safeguards, governance controls, or oversight could result in regulatory scrutiny, litigation, or reputational harmNew
  22. 22Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported operating results
  23. 23The use of open-source software in our applications may expose us to risks and harm our intellectual property rights
  24. 24We may be adversely affected by failure of third parties in providing their services
  25. 25Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
  26. 26Inability to maintain the third-party licensed software we use in our applications at the current costs could result in increased costs or reduced service levels, which could adversely affect our business
  27. 27Evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet access may adversely affect our business, operating results and financial condition by increasing our expenditures and causing client dissatisfaction
  28. 28A portion of our accounts receivable is related to tax processing services that enabled businesses to file for Employee Retention Tax Credits under the CARES ActNew
  29. 29If we lose key personnel, including key management personnel, or are unable to attract and retain additional personnel as needed in the future, it could disrupt the operation of our business, delay our product development, harm our growth efforts and have a material adverse effect on our business
  30. 30Adverse tax laws or regulations could be enacted, or existing laws could be applied to us or our clients, which could increase the costs of our services and adversely impact our business
  31. 31Political, economic and social factors may materially adversely affect our business and financial results

RISKS RELATED TO OUR SECURITIES

  1. 32Sales, or the potential for sales, of a substantial number of shares of our common stock in the public market, including sales done by us in connection with financing activities or by our existing stockholders, could cause our stock price to fall
  2. 33Our common stock has traded in low volumes. We cannot predict whether an active trading market for our common stock will ever develop
  3. 34Our stock price has been, and likely will continue to be, volatile21% rewritten
  4. 35We do not intend to pay dividends for the foreseeable future, and you must rely on increases in the market price of our common stock for returns on equity investment
  5. 36Our stockholder rights plan, or “poison pill,” includes terms and conditions which could discourage a takeover or other transaction that stockholders may consider favorable
  6. 37Provisions in our charter documents, our stockholder rights plan, and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of our management and board of directors
  7. 38Our business could be negatively affected as a result of actions of activist stockholders, and such activism could impact the trading value of our securities

Other Asure Software 10-Ks

  • FY2024 10-K risk factors
    37 risks

    Asure Software faces financial risks, including a net loss of $11.8 million and an accumulated deficit of $307.2 million. The company is heavily reliant on third-party cloud infrastructure like Amazon Web Services. Client funds held in trust expose the company to market and interest rate risks.

    Filed Mar 06, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.