Cuentas (CUEN) risk factors, FY2024 10-K

Risks Related to Our Financial Position and Need for Additional Capital

1. 01As a result of our current lack of financial liquidity, there is substantial doubt regarding our ability to continue as a “going concern,” within one year from the issuance date of our financial statements

Risks Related to Our Company

1. 02We have a limited operating history and therefore we cannot ensure, either in the near- or long-term, that we will be able to generate cash flow or profit
2. 03Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to generate revenues, manage development costs and expenses, and compete successfully with our direct and indirect competitors
3. 04We have incurred substantial losses from operations to date and we may never achieve profitability from operations or generate sufficient cash flows to make or sustain distributions to our shareholders
4. 05We may not be able to secure sufficient capital to effectively execute our business plan
5. 06We have identified material weaknesses in our disclosure controls and procedures and internal control over financial reporting
6. 07We are involved in various litigation matters that are expensive and time consuming, and, if resolved adversely, could harm our business, financial condition, or results of operations
7. 08Operating our business on a larger scale could result in substantial increases in our expenses
8. 09Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer
9. 10We are dependent on our executive officers and dedicated personnel, and the departure of any of our key personnel could materially and adversely affect us
10. 11We are subject to regulation which may adversely affect our ability to execute our business plan
11. 12We are subject to Anti-Money Laundering Regulation
12. 13We are subject to Consumer Protection Regulation
13. 14We are subject to Federal Regulation
14. 15We are subject to Money Transmitter Licenses or Permits
15. 16We are subject to Privacy Regulation
16. 17We were subject to Card Association and Network Organization Rules
17. 18Our success depends, in part, upon our ability to hire and retain highly skilled managerial, and operational personnel, and the past performance of our senior management may not be indicative of future results
18. 19The Company and its subsidiaries have well-financed, well-managed competitors and may not be able to adequately compete in its market
19. 20Cuentas Mobile will be dependent on the performance of third-party network operators
20. 21To compete effectively, Cuentas needs to improve its offerings continuously
21. 22Cuentas Mobile or World Mobile may be unable to attract and retain users
22. 23Cuentas may be adversely affected by fraudulent activity

Risks Related to an Investment in Our Securities

1. 24The market price of our Common Stock and Warrants may be highly volatile, and you could lose all or part of your investment
2. 25Liens on Fintech assets; potential asset transfer
3. 26Our shares are subject to the penny stock rules, which make it more difficult to trade our shares
4. 27If we do not remain current in our SEC reporting obligations, our ability to raise capital and the liquidity of our common stock could be materially harmed
5. 28Failure to remain current in our SEC filings could result in restrictions or interruptions in the trading of our common stock