Cryoport (CYRX) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01As an increasingly global business, we are exposed to economic, political, and other risks in different countries which could materially reduce our sales, profitability or cash flows, or materially increase our liabilities
2. 02Our business operations, financial performance and results of operations have been adversely affected and could in the future be materially adversely affected by the pandemics, epidemics or other public health crises, such as COVID-19
3. 03We will have difficulty increasing our revenues if we experience delays, difficulties or unanticipated costs in establishing the sales, marketing and distribution capabilities necessary to successfully commercialize our solutions
4. 04We expect to base our equipment and inventory purchasing decisions on our forecasts of customers’ demand, and if our forecasts are inaccurate, our operating results could be materially harmed
5. 05If we suffer a disruption or loss to our factories, facilities or distribution system due to factors outside of our control, our operations could be seriously harmed
6. 06Our products and services may expose us to liability in excess of our current insurance coverage
7. 07If we use biological and hazardous materials in a manner that causes injury, we could be liable for damages
8. 08We operate in a competitive industry and if we cannot compete effectively, we will lose business
9. 09If we successfully develop products and/or services, but those products and/or services do not achieve and maintain market acceptance, our business will not be profitable
10. 10The integration and operation of acquired businesses may disrupt our business and create additional expenses, and we may not achieve the anticipated benefits of the acquisitions
11. 11Impairment of our goodwill and other intangible assets has had, and in the future could have, a material non-cash adverse impact on our results of operations

Risks Related to Our Technology and Intellectual Property

1. 12We rely upon certain critical information systems, including our Cryoportal® software platform, for the operation of our business; the failure of any critical information system could adversely impact our reputation and future revenues, and we may be required to increase our spending on data and system security
2. 13Our success depends, in part, on our ability to obtain patent protection for our solutions, preserve our trade secrets, and operate without infringing the proprietary rights of others

Risks Related to Regulatory and Legal Matters

1. 14Complying with certain regulations that apply to shipments using our solutions can limit our activities and increase our cost of operations
2. 15Changes in trade policy, tariff and import/export regulations may have a material adverse effect on our business, financial condition and results of operations
3. 16We are subject to regulation by the FDA or certain similar foreign regulatory agencies, and failure to comply with such regulations could harm our reputation, business, financial condition and results of operations

Risks Related to Our Financial Condition

1. 17Historically, we have incurred significant losses and we may continue to incur losses in the future
2. 18Our indebtedness and liabilities could limit the cash flow available for our operations and expose us to risks that could adversely affect our business, financial condition and results of operations

Risks Related to Our Preferred Stock

1. 19The issuance of shares of our Series C Preferred Stock reduces the relative voting power of holders of our common stock, dilutes the ownership of such holders, and may adversely affect the market price of our common stock
2. 20The Series C Preferred Stockholders may exercise influence over us, including through their right to nominate for election one member to our board of directors
3. 21Our Series C Preferred Stock has rights, preferences, and privileges that are not held by, and are preferential to, the rights of holders of our common stock, which could adversely affect our liquidity and financial condition

Risks Related to Ownership of Our Common Stock

1. 22Certain of our existing stockholders own and have the right to acquire a substantial number of shares of common stock
2. 23Future sales of shares of our common stock may depress the price of our shares and be dilutive to our existing stockholders
3. 24Our stock price has been and will likely continue to be volatile
4. 25We have not paid dividends on our common stock in the past and do not expect to pay dividends in the foreseeable future. Any return on investment may be limited to the value of our common stock
5. 26Our Articles of Incorporation allows our board of directors to issue up to 2,500,000 shares of “blank check” preferred stock
6. 27Provisions in our bylaws and Nevada law might discourage, delay or prevent a change of control of our Company or changes in our management and, as a result, may depress the trading price of our common stock
7. 28Our ability to grow and compete in our industry will be hampered if we are unable to retain the continued service of our key professionals or to identify, hire and retain additional qualified professionals
8. 29If equity research analysts do not publish research or reports about our business or if they issue unfavorable commentary or downgrade our common stock, the price of our common stock could decline