CuriosityStream (CURI) risk factors, FY2024 10-K

RISKS RELATED TO THE COMPANY'S BUSINESS

1. 01If our efforts to attract and retain users are not successful, our business will be adversely affected
2. 02If we do not continuously provide value to our users, including making improvements to our service in a manner that is favorably received by them, our revenue, results of operations and business will be adversely affected
3. 03We may be unable to realize intended efficiencies and benefits from our ongoing cost-savings initiatives, which may adversely affect our profitability, financial condition or our business
4. 04We have a history of net losses, and we anticipate that we will experience net losses for the foreseeable future
5. 05Our operating results are expected to be difficult to predict based on a number of factors that also may affect our long-term performance
6. 06If we are not able to manage our growth, our business could be adversely affected
7. 07Our business could be adversely impacted by costs and challenges associated with strategic acquisitions and investments, including joint ventures
8. 08Certain of our growth strategies are untested, unproven or not yet fully developed
9. 09We believe there is an opportunity for us to commission or create content for other program providers. However, there can be no assurance that these partners will, or will continue to, engage us for co-productions or commissioned content, or that we will earn the margins that we expect on such projects
10. 10If we experience excessive rates of user churn, our revenues and business will be harmed
11. 11of user acquisition. We cannot assure you that these estimates will be indicative of future performance or that the risks related to these estimates will not materialize
12. 12If our efforts to build a strong brand identity and improve user satisfaction and loyalty are not successful, we may not be able to attract or retain users, and our operating results may be adversely affected
13. 13We may be unable to compete successfully against current and future competitors, and competitive pressures could harm our business and prospects
14. 14We face risks, such as unforeseen costs and potential liability, in connection with content we acquire, produce, license and/or distribute through our service
15. 15We rely upon a number of partners to make our service available on their platforms and devices
16. 16We are subject to payment processing risk
17. 17In addition, the military invasion of Ukraine by Russian forces and the economic sanctions imposed by the U.S. and other nations on Russia, Belarus and certain Russian organizations and individuals may disrupt payments we receive for distribution of our content in Russia
18. 18Distributors’ failure to promote our content could adversely affect our revenue and could adversely affect our business results
19. 19If we fail to maintain or, in newer markets establish, a positive reputation with consumers concerning our service and the content we offer, we may not be able to attract or retain users, we may face regulatory scrutiny and our operating results may be adversely affected
20. 20Changes in competitive offerings for video entertainment, including the potential rapid adoption of piracy-based video offerings, could adversely impact our business
21. 21If government regulations relating to the internet or other areas of our business change, we may need to alter the manner in which we conduct our business or incur greater operating expenses
22. 22Changes in how we market our service, or increases in our advertising rates, could adversely affect our marketing expenses and user levels may be adversely affected
23. 23Emerging industry trends in digital advertising may pose challenges for our ability to forecast or optimize our advertising inventory, which may adversely impact our ability to capture advertising spend
24. 24Our user metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics may seriously harm and negatively affect our reputation and our business
25. 25We rely on subscription data provided by our third-party distributors and platform partners that has not been independently verified, and inaccuracies in that data may seriously harm and adversely affect our reputation and our business
26. 26Our business emphasizes rapid innovation and prioritizes long-term user engagement over short-term financial condition or results of operations, which strategy could have an adverse impact on our business, operating results and financial condition
27. 27We may incur non-cash impairment charges for our content assets, goodwill and other intangible assets and equity method investments which would negatively impact our business, financial condition and operating results

RISKS RELATED TO INTELLECTUAL PROPERTY

1. 28If content providers or other rights holders refuse to license streaming content or other rights upon terms acceptable to us, our business could be adversely affected
2. 29If our trademarks and other proprietary rights are not adequately protected to prevent use or appropriation by our competitors, the value of our brand and other intangible assets may be diminished and our business may be adversely affected
3. 30Intellectual property claims against us could be costly and result in the loss of significant rights related to, among other things, our website, streaming technology, our recommendation and promotion capabilities, title selection processes and marketing activities

RISKS RELATED TO LIQUIDITY

1. 31We may find it difficult to successfully compete without significant capital investment or loans beyond what is available to us in current and future capital raising efforts
2. 32We may not be able to generate sufficient cash to service our obligations and any debt we may incur in the future
3. 33Our cash and cash equivalents could be adversely affected if the financial institutions in which we hold our cash and cash equivalents fail
4. 34We have a substantial amount of obligations, including streaming content obligations, which, together with any debt we may incur in the future, could adversely affect our financial position, and we may not be able to generate sufficient cash to service our obligations
5. 35The long-term and fixed cost nature of our content commitments may limit our operating flexibility and could adversely affect our liquidity and results of operations

RISKS RELATED TO INFORMATION TECHNOLOGY

1. 36If 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. 37We rely upon Amazon Web Services (“AWS”) to operate certain aspects of our service, and any disruption of or interference with our use of AWS would impact our operations and our business would be adversely affected
3. 38Interruptions 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
4. 39Some of our services and technologies may use open-source software, which may restrict how we use or distribute our service or require that we release the source code of certain services subject to those licenses
5. 40Changes in how network operators handle and charge for access to data that travel across their networks could adversely impact our business
6. 41We are at risk of attempts at unauthorized access to our service through cyberattacks, and failure to effectively prevent and remediate such attempts could have an adverse impact on our business, operating results and financial condition

RISKS RELATED TO INTERNATIONAL OPERATIONS

1. 42We could be subject to economic, political, regulatory and other risks arising from our international operations

RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK

1. 43NASDAQ may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions
2. 44If securities analysts do not publish research or reports about our business or if they downgrade our stock or our sector, our stock price and trading volume could decline
3. 45There can be no assurance that we will continue to declare cash dividends
4. 46Future sales, or the perception of future sales, by us or our stockholders in the public market could cause the market price for our Common Stock to decline
5. 47Certain of our stockholders may engage in business activities that compete with us or otherwise conflict with our interests
6. 48We are an “emerging growth company,” and the reduced disclosure requirements applicable to emerging growth companies may make our Common Stock less attractive to investors
7. 49An active, liquid trading market for our Common Stock may not be sustained, which may make selling the Common Stock you purchased more difficult
8. 50Anti-takeover provisions in our organizational documents could delay or prevent a change of control

RISKS RELATED TO PRIVACY

1. 51Privacy concerns could limit our ability to collect and leverage our user data and disclosure of user data could adversely impact our business and reputation
2. 52these cases. The plaintiffs in these cases are seeking damages for class members, including statutory damages of up to $2,500 per violation, as well as other potential relief
3. 53Our reputation and relationships with users would be harmed if our user data, particularly billing data, were to be accessed by unauthorized persons

RISKS RELATED TO HUMAN RESOURCES

1. 54We may lose key employees or may be unable to hire qualified employees, and the failure to maintain and improve our company culture may adversely affect our business
2. 55Our Private Placement Warrants are accounted for as liabilities and the changes in value of our Private Placement Warrants could have a material effect on our financial results
3. 56From time to time, we may be engaged in legal proceedings that could cause us to incur unforeseen expenses and could occupy a significant amount of our management’s time and attention
4. 57We incur significant costs as a result of operating as a public company
5. 58Compliance obligations under the Sarbanes-Oxley Act require substantial financial and management resources