Blaize Holdings (BZAI) risk factors, FY2025 10-K

Risks Related to our Business and Industry

1. 01We have a history of operating losses, and we may not be able to generate sufficient revenue to achieve and sustain profitability
2. 02We depend on a small number of customers, including related parties, for a significant portion of our revenue, and our accounts receivable balances are similarly concentrated
3. 03Our business may depend on our ability to expand sales to customers located outside of the United States, and we may experience difficulties in collections of our accounts receivable, or other matters that could adversely affect our revenue
4. 04Development of our next-generation chip may be delayed or may not be feasible due to financial constraints
5. 05Our customer pipeline may take time to mature and may not result in revenue opportunities
6. 06A substantial portion of our revenue for the fiscal year ended December 31, 2025 was generated from sales of third-party hardware products
7. 07Our partnerships with certain automotive OEMs and Tier-1 suppliers are long-term in nature, and we will not receive firm purchase order commitments until we deliver our automotive-grade chip
8. 08Our future revenue and operating results could be harmed if we are unable to acquire new customers, retain existing customers, or expand sales to our existing customers
9. 09We may not be able to successfully implement our growth strategy on a timely basis or at all
10. 10Failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our platform and products
11. 11The sales cycle with large enterprise customers can be long and unpredictable, and our sales efforts require considerable time and expense
12. 12If we fail to maintain or grow our brand recognition, our ability to expand our customer base will be impaired and our financial condition may suffer
13. 13If we fail to offer high quality support, our business and reputation could suffer
14. 14We depend on timely supply of materials sourced from a limited number of suppliers, and are directly impacted by unexpected delays or problems from our third-party manufacturers
15. 15We depend on third-party manufacturers, including Samsung Foundry and Plexus, for producing our AI chips, and in the event of a disruption in our supply chain, any efforts to develop alternative supply sources may not be successful or may take longer to take effect than anticipated
16. 16If we fail to improve and enhance the functionality, performance, reliability, design, security and scalability of our platform and products and innovate and introduce new solutions in a manner that responds to our customers’ evolving needs, our business may be adversely affected
17. 17We may not be successful in driving the global deployment and customer adoption of digital offerings characterized by digital applications and solutions
18. 18If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and customer satisfaction or adequately address competitive challenges
19. 19We face intense competition, especially from well-established companies offering solutions and related applications
20. 20However, significant investment is needed to develop cutting-edge technologies and products, and some of our competitors may have greater resources than us. If these competitors ramp up their research and development and marketing efforts, we may struggle to compete effectively
21. 21We may need to reduce or change our pricing model to remain competitive
22. 22If we fail to adapt and respond effectively to rapidly changing technology, evolving industry standards, and changing customer needs or preferences, our platform and products may become less competitive
23. 23The estimates of market opportunity and forecasts of market growth included in this Annual Report on Form 10-K may prove to be inaccurate
24. 24If our software or hardware contains serious errors or defects, we may lose revenue and market acceptance and may incur costs to defend or settle claims with our customers
25. 25We use AI Technologies throughout our business and are making significant investments in this area. For example, we use AI Technologies internally to prepare data provided by customers for assisting such customers with AI development when using AI Studio
26. 26We depend on third-party data hosting and transmission services
27. 27We rely on third-party proprietary and open source materials for our platform
28. 28Our use of open source software or datasets could subject us to possible litigation or cause us to subject our platform or products to unwanted open source license conditions that could negatively impact our sales
29. 29We rely on computer hardware, purchased or leased, and software licensed from and services rendered by third parties in order to run our business, which we have incorporated into our platform and products
30. 30Our growth depends in part on the success of our strategic relationships with third parties

Human Capital Risks

1. 31We anticipate that our operations will continue to increase in complexity as we grow, which will create management challenges
2. 32We depend on our senior management team and the loss of one or more key employees or an inability to attract and retain highly skilled employees may adversely affect our business
3. 33If we are unable to hire, retain and motivate qualified personnel, our business will suffer
4. 34If we are unable to maintain our corporate culture as we grow, we could lose the innovation, teamwork, passion and focus on execution that we believe contribute to our success, and our business may be harmed
5. 35The obligations associated with being a public company require significant resources and attention from our senior management team
6. 36Our senior management team has limited experience with the complexities of managing a publicly traded company

Legal, Regulatory, and Compliance Risks

1. 37If we fail to execute invention assignment agreements with our employees and contractors involved in the development of intellectual property or are unable to protect the confidentiality of our trade secrets, the value of our products and our business and competitive position could be harmed
2. 38We could incur substantial costs in protecting or defending our proprietary rights
3. 39In general, we are subject to various laws and regulations in the U.S. and internationally, which may expose us to liability, increased costs or have other adverse effects that could harm our business
4. 40We may conduct a portion of our business with third-party ecosystem partners to provide defensive solutions that incorporate our products to various foreign and domestic government agencies, which are subject to unique risks
5. 41We are subject to anti-corruption, anti-bribery, anti-money laundering and similar laws
6. 42We process proprietary, confidential and personal information which may subject us to certain laws or other obligations regarding the privacy and security of such information

Financial and Market Risks

1. 43There is substantial doubt about our ability to continue as a going concern
2. 44Currency controls may limit our ability to access or repatriate funds
3. 45Approval from or registration with appropriate government authorities is required for the conversion of RMB into foreign currency and remittance of such foreign currency out of China for capital account items, such as direct investment, loans, and repatriation of investment proceeds

Risks Related to Our Common Stock

1. 46Future issuances of shares of our common stock or other securities convertible into our common stock could cause the market value of shares of our common stock to decline and could result in dilution of your shares
2. 47A substantial number of warrants and equity awards are outstanding, each of which are convertible into common stock in the case of warrants, exercisable for shares of our common stock in the case of stock options, or become common stock after the passage of time in the case of RSUs
3. 48We may not be able to meet the continued listing standards of the Nasdaq from time to time
4. 49Activist shareholders could disrupt our operations, cause uncertainty, and adversely affect our business and stock price
5. 50We do not intend to pay dividends on our common stock for the foreseeable future, and investors should intend to rely on stock price appreciation for a return on their investment
6. 51Our ability to timely raise capital in the future may be limited, or may be unavailable on acceptable terms, if at all
7. 52It is not possible to predict the actual number of shares we will sell to B. Riley under the Committed Equity Facility, or the actual gross proceeds resulting from those sales
8. 53Some provisions of Delaware law and our certificate of incorporation and bylaws may deter third parties from acquiring us and diminish the value of our common stock

General Risk Factors

1. 54Macroeconomic conditions could materially adversely affect our business, financial condition, results of operations, and prospects
2. 55Our supply chain and production process may be affected by tariffs on equipment or materials that we may rely on or use for our products, which could also cause our costs to increase
3. 56Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect the price and trading volume of our common stock
4. 57Our actual operating results may differ significantly from any guidance that we may provide
5. 58We may be subject to litigation, claims, investigations, and regulatory actions from time to time