Aurora Innovation (AUR) risk factors, FY2025 10-K

Risks Related to Our Technology, Business Model and Industry

1. 01Self-driving technology is an emerging technology, and we face significant technical challenges to commercialize our technology. If we cannot successfully overcome those challenges or do so on a timely basis, our ability to grow our business will be negatively impacted
2. 02We have incurred net losses since our inception, and we expect to incur significant expenses and may not be able to achieve, or maintain, profitability
3. 03Our limited operating history makes it difficult to evaluate our future prospects and the risks and challenges we may encounter21% rewritten
4. 04It is possible that our technology will have more limited performance or technology development and commercialization may take us longer to complete than is currently projected. This would adversely impact our addressable markets, commercial competitiveness, and business prospects63% rewritten
5. 05Our services and technology may not be accepted and adopted by the market at the pace we expect or at all
6. 06We expect that our business model will become less capital intensive as we transition our business to our Driver as a Service model and if that transition is delayed or does not occur, we will require significant additional capital investment to run our business
7. 07It is possible that Aurora’s self-driving unit economics do not materialize as expected, in particular as we transition to our Driver as a Service model. This could significantly hinder our ability to generate a commercially viable product and adversely affect our business prospects

Risks Related to Our Business Operations

1. 08Our business plans require a significant amount of capital, and if we cannot obtain additional financing when needed on acceptable terms, or at all, our business, financial condition and results of operations could be adversely affectedNew
2. 09Our estimates of our cash needs may prove inaccurate in which case we may need to raise capital sooner or change our operating plans and timelines25% rewritten
3. 10We may experience difficulties in managing our growth and expanding our operations
4. 11As part of growing our business, we have in the past and may in the future make acquisitions. If we fail to successfully select, execute or integrate our acquisitions, it could materially and adversely affect our business, financial condition and results of operations, and our stock price could decline
5. 12Interruption or failure of Amazon Web Services or other information technology and communications systems that we rely upon could materially and adversely affect our business, financial condition and results of operations
6. 13Unauthorized control or manipulation of systems in autonomous vehicles may cause them to operate improperly or not at all, or compromise their safety and data security, which could result in loss of confidence in us and our products and harm our business
7. 14Issues relating to our use of artificial intelligence and machine learning technologies, combined with an uncertain legal and regulatory environment, could materially and adversely affect our business, financial condition and results of operations
8. 15Our insurance coverage may not be adequate to protect us from all business risks or may be prohibitively expensive
9. 16Any financial or economic crisis, or perceived threat of such a crisis, including a significant decrease in consumer confidence, could materially and adversely affect our business, financial condition and results of operations45% rewritten
10. 17Our financial instruments, including warrants, are accounted for as liabilities and the changes in fair value could have a material effect on our financial results
11. 18If we are unable to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us and materially and adversely affect our business and operating results
12. 19A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented, or detected and corrected on a timely basis
13. 20In addition, we may be subject to audits of our income, sales and other transaction taxes by taxing authorities. Outcomes from these audits could materially and adversely affect our business, prospects, financial condition and results of operations
14. 21Our ability to utilize our net operating loss carryforwards may be limited
15. 22Recent changes and currently proposed changes in tax laws could have a material adverse effect on our business, cash flow, results of operations or financial conditions40% rewritten

Risks Related to Our Dependence on Third Parties

1. 23Our success is contingent on our ability to successfully maintain, manage, execute and expand on our existing partnerships and obtain new partnerships67% rewritten
2. 24We are dependent on others for the supply of vehicles, and are also dependent on our suppliers, some of which are single or limited source suppliers, for the production, provision, and/or full lifecycle support of the current and future generations of our Aurora Driver systemNew
3. 25In certain cases, we plan to upfit, including by retaining third parties on our behalf, vehicles with the Aurora Driver and the necessary redundancies for driverless operations, and failures or delays in these activities could materially and adversely affect our business, financial condition, and results of operationsNew
4. 26Manufacturing in collaboration with partners is subject to risks

Risks Related to Our Legal and Regulatory Environment

1. 27Burdensome regulations, inconsistent regulations, or a failure to receive regulatory approvals or exemptions for our technology could have a material adverse effect on our business, financial condition and results of operation
2. 28We are subject to governmental export and import control laws and regulations and trade and economic sanctions. Our failure to comply with these laws and regulations could materially and adversely affect our business, prospects, financial condition and results of operations
3. 29We may become involved in legal and regulatory proceedings and commercial or contractual disputes, which could have an adverse effect on our profitability and consolidated financial position
4. 30Changes to global political, regulatory and economic conditions or foreign laws and policies, or interpretation of existing foreign laws and policies, could materially and adversely affect our business, prospects, financial condition and results of operations
5. 31We are subject to, and must remain in compliance with, numerous laws and governmental regulations concerning the manufacturing, use, distribution and sale of our products. Some of our partners also require that we comply with their own unique requirements relating to these matters
6. 32We are subject to environmental regulation and may incur substantial costs
7. 33Our business may be adversely affected if our lidar technology fails to comply with the regulatory requirements under the Federal Food, Drug, and Cosmetic Act or otherwise by the FDA
8. 34We may be subject to product liability that could result in significant direct or indirect costs, which could materially and adversely affect our business, prospects, financial condition and results of operations

Risks Related to Our Intellectual Property Rights

1. 35Third-party claims that we are infringing intellectual property rights, whether successful or not, could subject us to costly and time-consuming litigation or expensive licenses, and our business could be adversely affected
2. 36We may need to defend ourselves against intellectual property rights infringement claims, which may be time-consuming and could cause us to incur substantial costs
3. 37We rely on licenses from third parties for intellectual property rights that are critical to our business, and we would lose the rights to such intellectual property rights if those agreements were terminated or not renewed
4. 38Our intellectual property rights applications for registration may not issue or be registered, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours
5. 39In addition to patented technology, we rely on our unpatented proprietary technology, trade secrets, processes and know-how
6. 40We may be subject to damages resulting from claims that we or our employees have wrongfully used or disclosed alleged trade secrets of our employees’ former employers
7. 41Our software contains third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to sell our products or our use of those components give rise to disclosure obligations of proprietary software

Risks Related to Ownership of Our Securities

1. 42We have incurred and will continue to incur significant expenses and administrative burdens as a public company, which could materially and adversely affect our business, prospects, financial condition and results of operations
2. 43Our management team has limited experience in operating a public company
3. 44The terms of our public warrants may be amended in a manner adverse to a holder if holders of at least 50% of the then outstanding public warrants approve of such amendment
4. 45Any failure to effectively maintain controls and procedures required by Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business
5. 46Charter documents and Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of our stock
6. 47Our Certificate of Incorporation and Bylaws provide that we will indemnify our directors and officers, in each case to the fullest extent permitted by Delaware law
7. 48We do not intend to pay dividends for the foreseeable future
8. 49We may be subject to securities litigation, which is expensive and could divert management’s attention
9. 50Future resales of common stock may cause the market price of our securities to drop significantly, even if our business is doing well81% rewritten
10. 51The market price and trading volume of our common stock may be volatile and could decline significantly
11. 52The dual class structure of our common stock has the effect of concentrating voting control with the Aurora Founders. This will limit or preclude your ability to influence corporate matters, including the outcome of important transactions, including a change in control
12. 53Our dual-class structure may result in volatility of our market price of our Class A common stock due to, among other things, adverse publicity or the reaction of institutional investors, governance-focused investors, or proxy advisory firmsNew
13. 54The exercise of warrants for our Class A common stock would increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders27% rewritten
14. 55There is no guarantee that the warrants will become in the money prior to their expiration on November 3, 2026, and as such, the warrants may expire worthless
15. 56We may redeem unexpired public warrants prior to their exercise at a time that is disadvantageous to their holders, thereby making public warrants worthless
16. 57If securities or industry analysts do not continue to publish or cease publishing research or reports about us, our business, or the market in which we operate, or if they change their recommendations regarding our securities adversely, the price and trading volume of our securities could decline
17. 58Future issuances of equity or debt securities may adversely affect us, including the market price of our Class A common stock and may be dilutive to existing stockholders44% rewritten
18. 59Our failure to meet the continued listing requirements of Nasdaq could result in a delisting of our securities