Glimpse Group (BTLN) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We are an early stage technology company
2. 02We have incurred significant net losses since inception and anticipate that we will continue to incur net losses for the foreseeable future and may never achieve or maintain profitability. There is also doubt about our ability to continue as a going concern
3. 03We may not be successful in raising additional capital necessary to meet expected funding needs. If we need additional funding for operations and we are unable to raise it, we may not be able to continue our business operations
4. 04Our market is competitive and dynamic. New competing products and services could be introduced at any time that could result in reduced profit margins and loss of market share
5. 05Competitive pricing pressure may reduce our gross profits and adversely affect our financial results
6. 06Our plans for growth will place significant demands upon our resources. If we are unsuccessful in achieving our plan for growth, our business could be harmed
7. 07We have material customer concentration, with a limited number of customers accounting for a material portion of our revenues
8. 08Our future growth depends on our ability to attract and retain customers, and the loss of existing customers, or failure to attract new ones, could adversely impact our business and future prospects
9. 09We anticipate our products and technologies will require ongoing research and development and we may experience technical problems or delays and may not have the funds necessary to continue their development, which could lead our business to fail
10. 10Our success depends on our ability to anticipate technological changes and develop new and enhanced products and services
11. 11We place significant decision making powers with our underlying entities’ management, which presents certain risks that may cause the operating results of individual entities to vary
12. 12Our centralized management will have significant discretion over directing our resources and if management does not allocate resources effectively, our business, financial condition or result of operations could be harmed
13. 13The failure to attract, hire, retain and motivate key personnel could have a significant adverse impact on our operations
14. 14The continued operation of our business depends on the performance and reliability of the Internet, mobile networks, and other infrastructure that is not under our control
15. 15If we do not make our platforms, including new versions or technology advancements, easier to use or properly train customers on how to use our platforms, our ability to broaden the appeal of our products and services and to increase our revenue could suffer
16. 16Interruptions, performance problems or defects associated with our platforms may adversely affect our business, financial condition and results of operations
17. 17If we fail to timely release updates and new features to our platforms and adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, or changing customer needs, requirements or preferences, our platforms may become less competitive
18. 18We must continue to improve existing features and add new features and functionality to our platforms in order to retain our existing customers and attract new ones. If the technology underlying our platforms become obsolete or do not address the needs of our customers, our business would suffer
19. 19A failure in our information technology systems could cause interruptions in our services, undermine the responsiveness of our services, disrupt our business, damage our reputation and cause losses
20. 20If we fail to prevent security breaches, improper access to or disclosure of our data or user data, or other hacking and attacks, we may lose users, and our business, reputation, financial condition and results of operations may be materially and adversely affected
21. 21Our financial results may fluctuate substantially for many reasons, and past results should not be relied on as indications of future performance

Risks Related to Our Acquisition Strategy

1. 22We may be unable to obtain additional financing, if required, to fund the existing operations of the business, complete future acquisitions or to fund the development and commercialization of the companies, technologies, or intellectual property
2. 23If we fail to integrate any existing or acquired entities into the Glimpse ecosystem, we may not realize the anticipated benefits of the collaborative Glimpse ecosystem and the integration of any acquisitions, which could harm our business, financial condition or results of operations
3. 24We may make more acquisitions in the future. Our ability to identify complementary assets, products or businesses for acquisition and successfully integrate them could affect our business, financial condition and operating results

Risks Related to Our Intellectual Property

1. 25If we cannot obtain and maintain appropriate patent and other intellectual property rights protection for our technology, our business will suffer
2. 26We may incur substantial costs or lose important rights as a result of litigation or other proceedings relating to our products, patents and other intellectual property rights
3. 27Our failure to renew, register or otherwise protect our trademarks could have a negative impact on the value of our brand names and our ability to use those names in certain geographical areas

Risks Related to Our Securities and Other Risks

1. 28Our stock price may be volatile, and the value of our common stock may decline
2. 29Our common stock is listed on the Nasdaq Capital Market, and we must meet certain financial and liquidity criteria to maintain such listing. If we fail to meet applicable continued listing requirements of the Nasdaq Stock Market LLC (“Nasdaq”), our common stock may be delisted
3. 30We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock
4. 31Costs as a result of operating as a public company are significant, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices

General Risks

1. 32We are an “emerging growth company” and a “smaller reporting company,” and we cannot be certain if the reduced reporting and disclosure requirements applicable to emerging growth companies and/or smaller reporting companies will make our common stock less attractive to investors
2. 33If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, the market price and trading volume of our common stock could decline