Aware (AWRE) risk factors, FY2024 10-K

Other

1. 01Our operating results may fluctuate significantly from period-to-period and are difficult to predict
2. 02We derive a significant portion of our revenue directly or indirectly from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities
3. 03delays in the payment of our invoices by government payment offices
4. 04We derive a significant portion of our revenue from third party channel partners
5. 05A significant commercial market for biometrics technology may not develop, and, even if it does, there can be no assurance our biometrics technology will be successful
6. 06solutions; ii) costs involved in adopting and integrating biometric solutions; iii) public concerns regarding privacy; and iv) potential privacy legislation
7. 07If the biometrics market does not experience significant growth or if our products do not achieve broad acceptance both domestically and internationally, we may not be able to grow our business
8. 08marketing efforts and publicity regarding biometrics solutions
9. 09We face intense competition from other biometrics solutions providers
10. 10Component providers that offer biometrics software and hardware components for fingerprint, facial, iris and voice biometric identification. This group of competitors includes companies such as FaceTec, iProov, and Innovatrics
11. 11The biometrics industry is characterized by rapid technological change and evolving industry standards, which could render our existing products obsolete
12. 12Our software products may have errors, defects or bugs, which could result in delayed or lost revenue, expensive correction, liability to our customers, and claims against us
13. 13Our business may be adversely affected by our use of open-source software
14. 14We rely on third-party software to develop and provide our solutions and significant defects in third-party software could harm our business
15. 15We rely on third-party relationships
16. 16Part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software
17. 17Our operational systems, networks and products are subject to continually evolving cybersecurity or other technological risks, which could result in the disclosure of our or our customers' confidential information, damage to our reputation, additional costs, regulatory penalties and financial losses
18. 18Our intellectual property is subject to limited protection
19. 19We may be sued by third parties for alleged infringement of their proprietary rights
20. 20litigation based on allegations of patent infringement. Third parties have asserted against us in the past and may assert against us in the future patent, copyright and other intellectual property rights to technologies that are important to our business
21. 21If we are unable to attract and retain key personnel, our business could be harmed
22. 22Our business may be affected by government laws and regulations
23. 23Adverse economic conditions could harm our business
24. 24We may not realize the anticipated benefits of our acquisitions or investments
25. 25We may have additional tax liabilities
26. 26The market price of our common stock has been and may continue to be subject to wide fluctuations, and this may make it difficult for shareholders to resell the common stock when they want or at prices they find attractive
27. 27corporate actions we may initiate, such as acquisitions, stock sales or repurchases, dividend declarations, or corporate reorganizations
28. 28If we are unable to maintain effective internal controls over financial reporting, investors could lose confidence in the reliability of our financial statements, which could result in a decline in the price of our common stock
29. 29We must make judgments in the process of preparing our financial statements
30. 30Our officers, directors and holders of 5% of outstanding shares together beneficially own a significant portion of our common stock and, as a result, can exercise control over stockholder and corporate actions