ClearSign Technologies (CLIR) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We are a company with a limited operating history and our future profitability is uncertain. We anticipate future losses and negative cash flows and we may never be profitable
2. 02If we do not receive additional financing when and as needed in the future, we may not be able to continue our development and commercialization efforts and our business may fail
3. 03Market acceptance of our technology and business is difficult to predict. If our technology does not achieve market acceptance, our business could fail
4. 04Our efforts may never demonstrate the feasibility of our product
5. 05Changes to environmental regulations or future legislation could make our technology less desirable67% rewritten
6. 06We are subject to sustainability efforts risks that could adversely affect our reputation and our business and results of operations
7. 07Our revenue has been highly concentrated among a small number of customers, and our results of operations could be harmed if we lose a key revenue source and fail to replace it26% rewritten
8. 08Our revenue concentration may also pose credit risks which could negatively affect our cash flow and financial condition
9. 09We may fail to adequately protect our proprietary technology, which would allow our competitors to take advantage of our research and development efforts
10. 10We may incur substantial costs as a result of litigation or other proceedings relating to patent and other intellectual property rights
11. 11Adverse judgments or settlements in legal proceedings could materially harm our business, financial condition, operating results and cash flowsNew
12. 12A cybersecurity incident or other technology disruptions could negatively impact our business and our relationships with customers
13. 13We cannot guarantee that any collaborative business research and development partnership we enter into will be successful
14. 14If we are unable to keep up with rapid technological changes, our products may become obsolete
15. 15There are inherent dangers involved in the combustion process that utilize our technologies and products and the occurrence of any associated accident may negatively impact our business
16. 16We depend on approval from various local, state and federal agencies to implement and operate our technology. There is no assurance that these agencies will approve our technology
17. 17We are uncertain of our profit margins and whether such profit margins, if achieved, will be able to sustain our business
18. 18Many of our potential competitors have greater resources, and it may be difficult to compete against them
19. 19The loss of the services of our key management and personnel or the failure to attract additional key personnel could adversely affect our ability to operate our business
20. 20There are many risks we are exposed to relating to our presence and prior business activities in China46% rewritten
21. 21We cannot provide assurance that rising inflation will not adversely affect our operations
22. 22We face an inherent risk of exposure to claims in the event that the failure, use or misuse of our products results, or is alleged to result, in death, bodily injury, property damage, or economic loss
23. 23We cannot provide assurance that global supply-chain constraints and the threat of, or implementation of tariffs on imported or exported goods and materials will not adversely affect our commercialization efforts and business operations
24. 24We are dependent on third-party suppliers
25. 25Failure of third parties to manufacture quality products or provide reliable services in a timely manner could cause delays in developing, constructing, and operating our projects, which could damage our reputation, adversely affect our partner relationships or adversely affect our growth
26. 26Macroeconomic pressures in the markets in which we operate may adversely affect our financial results
27. 27market value of our investments and harm our financial results

Risks Related to Owning Our Securities

1. 28The public market for our securities is volatile. This may affect not only the ability of our investors to sell their securities, but the price at which they can sell their securities25% rewritten
2. 29There may be future sales of our common stock, or a perception that these sales could occur, which events could cause the price of our common stock to decline
3. 30We may be required to raise additional capital by issuing new securities, which may have terms or rights superior to those of our shares of common stock, which could adversely affect the market price of our shares of common stock and our business
4. 31We will have broad discretion as to the proceeds that we receive from the cash exercise by any holder of our outstanding warrants, and we may not use the proceeds effectively
5. 32We have not paid dividends in the past and have no immediate plans to pay dividends
6. 33We have a significant number of options and restricted stock units outstanding and we may issue additional awards in the future to employees, officers, directors, independent contractors and agents. Sales of the underlying shares of common stock could adversely affect the market price of our common stock39% rewritten
7. 34The effective increase in the number of shares of our common stock available for issuance as a result of our reverse stock split could result in further dilution to our existing stockholders and have antitakeover implicationsNew
8. 35If we are unable to satisfy the continued listing requirements of the Nasdaq, our common stock could be delisted and the price and liquidity of our common stock may be adversely affectedNew
9. 36We have the right to issue shares of preferred stock. If we were to issue preferred stock, it is likely to have rights, preferences and privileges that may adversely affect our common stock or other securities
10. 37Our certificate of incorporation provides for indemnification of our directors and officers to the fullest extent authorized or permitted under Delaware law, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended
11. 38We have incurred and will incur significant costs as a result of being a public company that reports to the Securities and Exchange Commission and our management is required to devote substantial time to meet compliance obligations