Cineverse (CNVS) risk factors, FY2025 10-K

Risks Related to our Business

1. 01We face the risks of doing business in new and rapidly evolving markets and may not be able to successfully address such risks and achieve acceptable levels of success or profits
2. 02We expect competition to be intense. If we are unable to compete successfully, our business and results of operations will be seriously harmed
3. 03Our plan to acquire additional businesses involves risks, including our inability to complete or integrate an acquisition successfully, our assumption of liabilities, dilution of your investment and significant costs
4. 04We have recorded goodwill impairment charges in the past and may be required to record additional charges to future earnings if our goodwill becomes further impaired or our intangible assets become impaired
5. 05If we do not manage our growth, our business will be harmed
6. 06If we are not successful in protecting our intellectual property, our business will suffer
7. 07We maintain outstanding indebtedness, which could impair our ability to operate our business and react to changes in our business, remain in compliance with debt covenants and make payments on our debt
8. 08requiring them to dedicate a substantial portion of their cash flow to payments on their debt obligations, thereby reducing the availability of their cash flow for other uses
9. 09We may not be able to generate the amount of cash needed to fund our future operations
10. 10seeking additional funding
11. 11We have incurred losses over the long-term
12. 12Our success will significantly depend on our ability to hire and retain key personnel
13. 13Our success depends on external factors in the media industry
14. 14Our business involves risks of liability claims for media content, which could adversely affect our business, results of operations and financial condition
15. 15other claims based on the nature and content of the materials distributed
16. 16Our revenues and earnings are subject to market downturns
17. 17Changes in economic conditions could have a material adverse effect on our business, financial position and results of operations
18. 18Changes to existing accounting pronouncements or taxation rules or practices may affect how we conduct our business and affect our reported results of operations
19. 19Our ability to utilize our net operating loss carryforwards in the future is subject to substantial limitations and we may not be able to use some identified net operating loss carryforwards, which could result in increased tax payments in future periods

RISKS RELATED TO INFORMATION TECHNOLOGY

1. 20If the technology we use in operating our business fails, is unavailable, or does not operate to expectations, our business and results of operations could be adversely impacted
2. 21We rely upon Amazon Web Services (“AWS”) and Google Cloud Platform (“GCP) to operate certain aspects of our service, and any disruption of or interference with our use of AWS or GCP would impact our operations and our business would be adversely affected
3. 22Interruptions or delays in service arising from our own systems or from our third-party vendors could impair the delivery of our service and harm our business

Risks Related to Our Common Stock

1. 23The liquidity of our Common Stock is uncertain; the limited trading volume of our Common Stock may depress the price of such stock or cause it to fluctuate significantly
2. 24Substantial resales or future issuances of our Common Stock could depress our stock price
3. 25You will incur substantial dilution as a result of certain future equity issuances
4. 26Our issuance of preferred stock could adversely affect holders of Common Stock
5. 27Our stock price has been volatile and may continue to be volatile in the future; this volatility may affect the price at which you could sell our Common Stock
6. 28general economic and political conditions such as recessions, interest rates, international currency fluctuations and acts of war or terrorism
7. 29The Company's Fifth Amended and Restated Certificate of Incorporation, as amended, and our Second Amended and Restated Bylaws contain provisions that could have the effect of delaying or preventing changes in control or changes in our management without the consent of the Board of Directors
8. 30controlling the procedures for the conduct and scheduling of stockholder meetings
9. 31These provisions, alone or together, could delay hostile takeovers and changes in control of the Company or changes in our management
10. 32We may not be able to maintain the listing of our Common Stock on Nasdaq, which may adversely affect the flexibility of holders of Common Stock to resell their securities in the secondary market
11. 33A sustained decrease in share price may indicate a risk the Company's goodwill may become impaired
12. 34We have no present intention of paying dividends on our Common Stock
13. 35Our ability to raise capital in the future may be limited, which could make us unable to fund our capital requirements
14. 36The execution of our stock repurchase program may not provide the desired return on investment
15. 37We incur significant costs as a result of operating as a public company
16. 38Compliance obligations under the Sarbanes-Oxley Act require substantial financial and management resources
17. 39Global health threats may adversely affect our business