Cineverse (CNVS) risk factors, FY2026 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-term38% rewritten
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 operations32% rewritten
19. 19As of March 31, 2026 and 2025, the Company had $19.2 million and $16.2 million of net operating lossNew
20. 20Our advertising technology growth is subject to the growth of connected television and the platforms to which we have accessNew
21. 21If we do not continue to acquire premium content, our advertising-related businesses will declineNew
22. 22Our profitability is impacted by sales channels and we are subject to pricing pressures at each stage in our advertising technology businesses' supply chain, which may negatively impact profitabilityNew
23. 23Our advertising technology business does not have contractual protections against sudden customer loss which may expose us to a material decline in revenueNew
24. 24Our advertising technology performance, scalability and viability requires continuous successful investment in order to stay competitiveNew
25. 25Our business may be heavily influenced by artificial intelligence ("AI") and our ability to compete in an evolving regulatory landscape may expose us to cost and compliance riskNew
26. 26An increase in privacy tools and laws may lead to a reduction in data available which may adversely impact our advertising technology businessNew
27. 27Our place in our advertising technology supply chain exposes us to credit risk and material working capital commitmentsNew

RISKS RELATED TO INFORMATION TECHNOLOGY

1. 28If 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. 29We 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. 30Interruptions 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. 31The 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. 32Substantial resales or future issuances of our Common Stock could depress our stock price50% rewritten
3. 33We have convertible notes and warrants currently outstanding which may be immediately converted or exercised toNew
4. 34Our issuance of preferred stock could adversely affect holders of Common Stock
5. 35Our 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. 36general economic and political conditions such as recessions, interest rates, international currency fluctuations and acts of war or terrorism
7. 37The 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. 38controlling the procedures for the conduct and scheduling of stockholder meetings
9. 39These provisions, alone or together, could delay hostile takeovers and changes in control of the Company or changes in our management
10. 40We 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. 41A sustained decrease in share price may indicate a risk the Company's goodwill may become impaired62% rewritten
12. 42We have no present intention of paying dividends on our Common Stock
13. 43Our ability to raise capital in the future may be limited, which could make us unable to fund our capital requirements
14. 44We incur significant costs as a result of operating as a public company
15. 45Compliance obligations under the Sarbanes-Oxley Act require substantial financial and management resources
16. 46Global health threats may adversely affect our business