Solana (HSDT) risk factors, FY2025 10-K

Solana's FY2025 10-K, filed Mar 31, 2026, lists 87 risk factors in 8 groups. Against the prior year's 43: 51 new, 7 dropped, 11 substantially reworded.

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Risk factors listed
878 groups
New this year
51vs 43 last year
Dropped
7since the prior 10-K
Substantially reworded
11of those kept
Section length
27k wordsItem 1A

What the changes say

  • The company added a digital asset treasury strategy focused on holding Solana, exposing results to cryptocurrency price volatility.

What changed since the prior 10-K

New

  • NewRisks related to our Solana Treasury Strategy

    Solana is a highly volatile asset

    Solana is highly volatile, trading between under $100 and over $240 on Coinbase in the past 12 months.

  • NewRisks related to our Solana Treasury Strategy

    Solana does not pay interest or dividends

    Solana does not pay interest or dividends, so cash can only be generated by selling holdings or implementing untested strategies.

  • NewRisks related to our Solana Treasury Strategy

    Our Solana holdings may significantly impact our financial results and the market price of our Class A common stock

    Our Solana holdings may significantly impact our financial results and the market price of our Class A common stock.

  • NewRisks related to our Solana Treasury Strategy

    Our assets are concentrated in Solana

    The vast majority of our assets are concentrated in Solana, limiting diversification of treasury assets.

  • NewRisks related to our Solana Treasury Strategy

    We intend to purchase Solana using primarily proceeds from equity and debt financing

    We intend to purchase Solana using primarily proceeds from equity and debt financing, which may not be available on favorable terms.

  • NewRisks related to our Solana Treasury Strategy

    Our treasury strategy has not been tested over an extended period of time or under different market conditions

    Our Solana treasury strategy implemented in September 2025 has not been tested over an extended period or under different market conditions.

  • NewRisks related to our Solana Treasury Strategy

    We are subject to counterparty risks, including risks relating to exchanges where we may purchase Solana and our custodians where we hold our Solana

    We face counterparty risks regarding exchanges and U.S. institutional-grade custodians holding our Solana, given undeveloped insolvency laws for digital assets.

  • NewRisks related to our Solana Treasury Strategy

    SOL faces unique technical, governance and concentration risks that could materially affect its long-term viability

    SOL faces technical and governance risks, including historical network outages, slow operations, and validator coordination failures.

  • NewRisks related to our Solana Treasury Strategy

    SOL validators are relatively small in number, which may lead to coordinated censorship

    SOL has a small number of validators due to high hardware demands, leading to high concentration and potential coordinated censorship.

  • NewRisks related to our Solana Treasury Strategy

    Our Solana validator reward yield is expected to decline over time and could have a material adverse effect on our financial results

    Solana's validator reward yield is expected to decline by 15% each year under its declining inflation model until reaching 1.5%.

  • NewRisks related to our Solana Treasury Strategy

    This is the first digital asset treasury strategy for the Company and our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our treasury strategy and Solana holdings

    Our historical financial statements do not reflect the potential earnings variability from our new digital asset treasury strategy and Solana holdings.

  • NewRisks related to our Solana Treasury Strategy

    Our Solana treasury strategy exposes us to risk of non-performance by counterparties

    Our Solana treasury strategy exposes us to the risk of non-performance by counterparties, particularly custodian performance obligations.

  • NewRisks related to our Solana Treasury Strategy

    We may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business, financial condition, and results of operations

  • NewRisks related to our Solana Treasury Strategy

    Our Solana strategy subjects us to enhanced regulatory oversight

  • NewRisks related to our Solana Treasury Strategy

    Regulatory change reclassifying Solana as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940, as amended, and could adversely affect the market price of Solana and the market price of our Class A common stock

  • NewRisks related to our Solana Treasury Strategy

    We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers

  • NewRisks related to our Solana Treasury Strategy

    The lack of legal recourse and insurance for digital assets increases the risk of total loss in the event of theft or destruction

  • NewRisks related to our Solana Treasury Strategy

    Digital asset lending arrangements may expose us to risks of borrower default, operational failures and cybersecurity threats

  • NewRisks related to our Solana Treasury Strategy

    We will be subject to significant competition in the growing digital asset industry and our business, operating results, and financial condition may be adversely affected if we are unable to compete effectively

  • NewRisks related to our Solana Treasury Strategy

    SOL is subject to technological obsolescence, including competition from emerging blockchain and artificial intelligence protocols

  • NewRisks related to our Solana Treasury Strategy

    Staking Solana may limit our liquidity and restrict our ability to access capital in a timely manner

  • NewRisks related to our Solana Treasury Strategy

    In addition, a portion of our SOL holdings may be subject to longer-term lock-up restrictions or otherwise considered “locked” for accounting and operational purposes. We may not be able liquidate these positions in a timely manner and may need to sell at a discount to unrestricted SOL traded on exchanges

  • NewRisks related to our Solana Treasury Strategy

    We may be subject to additional tax liability if regulation or policy changes adversely affect the tax treatment of rewards from staking SOL

  • NewRisks related to our Solana Treasury Strategy

    Decentralized finance arrangements and smart contract-based protocols expose us to risks of asset loss, operational failure, and cybersecurity vulnerabilities

  • NewRisks related to our Solana Treasury Strategy

    protocols may also be subject to governance attacks, protocol upgrades, or other changes that could adversely affect their functionality or economic terms

  • NewRisks related to our Solana Treasury Strategy

    We may make, or otherwise be subject to, trade errors

  • NewRisks related to our Solana Treasury Strategy

    The tax treatment of decentralized finance activities is uncertain and evolving, and adverse tax determinations could materially affect our financial condition and results of operations

  • NewRisks related to our Solana Treasury Strategy

    Stablecoins used in our operations are subject to de-pegging, issuer, and regulatory risks that could result in material losses

  • NewRisks related to our Solana Treasury Strategy

    Our financial results and the market price of our Class A common stock may be affected by the prices of Solana

  • NewRisks related to our Solana Treasury Strategy

    In addition, if investors view the value of our Class A common stock as dependent upon or linked to the value or change in the value of our Solana holdings, the price of Solana may significantly influence the market price of our Class A common stock

  • NewRisks related to our Solana Treasury Strategy

    The concentration of our Solana holdings enhances the risks inherent in our Solana strategy

  • NewRisks related to our Solana Treasury Strategy

    We face risks relating to the use of third-party exchanges in connection with our Solana strategy

  • NewRisks related to our Solana Treasury Strategy

    We face risks relating to the custody of our Solana tokens, including the loss or destruction of private keys required to access our Solana tokens and cyberattacks or other data loss relating to our Solana tokens, including smart contract related losses and vulnerabilities

  • NewRisks related to our Solana Treasury Strategy

    Our Solana holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents

  • NewRisks related to our Solana Treasury Strategy

    While we have implemented security measures designed to protect against security incidents, there can be no assurance that these measures will be effective

  • NewRisks related to our Solana Treasury Strategy

    investigation costs, regulatory penalties and fines, and legal proceedings. Our insurance coverage may not be adequate to cover all the costs related to such cybersecurity incidents

  • NewRisks related to our Solana Treasury Strategy

    The Blockchain protocols, including some of the networks and protocols of the Solana tokens we hold, are supported by foundations and/or founding teams that may influence the development of our the Blockchain protocols and could adversely affect the value of the Solana tokens we hold in our treasury

  • NewRisks related to our Solana Treasury Strategy

    We face significant risks relating to disruptions, forks, 51% attacks, hacks, network disruptions, or other adverse events or other compromises to the cryptocurrency blockchains, which could materially and adversely impact our business, financial condition and results of operations

  • NewRisks related to our Solana Treasury Strategy

    We face other risks related to our Solana treasury reserve business model

  • NewRisks related to our Solana Treasury Strategy

    The Tokenization of our Class A common stock could introduce risks and uncertainties that adversely affect the market for, and the trading price of, our Class A common stock, among other potential consequences

  • NewRisks related to our Solana Treasury Strategy

    Tokenized HSDT would also be subject to the broader risks associated with digital assets, including cybersecurity, technological failures, and operational risks, which could affect our reputation, financial condition, and operating results. As of March 30, 2026, the Company has not issued Tokenized HSDT

  • NewRisks Related to the Development and Commercialization of our Product

    require additional funding, and each such indication would be subject to the same foregoing risks and uncertainties for FDA clearance/authorization

  • NewRisks Related to the Development and Commercialization of our Product

    New developments occur rapidly, and we anticipate that we will face increasing competition as new companies enter our market

  • NewRisks Related to our Reliance on Third Parties

    We are, and will continue to be, dependent in significant part on third parties to manage our SOL and outside scientists and third-party research institutions for our research and development in order to be able to commercialize our product

  • NewRisks Related to Government Regulation

    Regulatory uncertainty and evolving treatment of digital assets could adversely affect our business

  • NewRisks Related to Government Regulation

    device can be costly and time consuming, and we may not be able to successfully obtain pre-market reviews on a timely basis, if at all

  • NewRisks Related to Government Regulation

    discretion. Any action against us for violation of these laws, even if we successfully defend against it, could cause us to incur significant legal expenses and divert our management’s attention from the operation of our business

  • NewRisks Related to our Business Operations

    Conflicts of interest may arise because certain of our directors hold, or may in the future hold, a management or board position with Summer Wisdom Holdings Limited and Pantera Capital Management LP

  • NewRisks Related to our Business Operations

    Investors could lose confidence in our financial reports, and the value of our Class A common stock may be harmed, if internal controls over financial reporting are found not to be effective by management or our independent public accounting firm

  • NewRisks Related to Our Class A Common Stock

    On July 2, 2025, a reverse split at a ratio of 1-for-50 became effective (the “July 2025 Reverse Stock Split”)

  • NewRisks Related to Our Class A Common Stock

    Upon the exercise of our outstanding warrants, holders of our Class A common stock may experience immediate dilution and the market price of our common stock may be adversely affected

Dropped

  • DroppedRisks Related to Our Financial Position and Need for Capital

    We have incurred substantial net losses since our inception and anticipate that we will continue to incur substantial net losses for the foreseeable future. We may never achieve or sustain profitability

    Substantial net losses since inception and accumulated deficit of $171.7 million.

  • DroppedRisks Related to Our Financial Position and Need for Capital

    We will require additional financing to carry out our plan of operations and if we are unable to obtain such financing, our business may fail

    Requirement for additional financing and limited commercial revenues of $0.5 million.

  • DroppedRisks Related to Our Financial Position and Need for Capital

    Our independent registered public accounting firm has included an explanatory paragraph relating to our ability to continue as a going concern in its report on our audited financial statements. We may be unable to continue to operate without the threat of liquidation for the foreseeable future

  • DroppedRisks Related to our Reliance on Third Parties

    product to meet market demand or lead to significant delays in the availability of materials for our product and/or FDA enforcement actions against them and/or us

    Going concern explanatory paragraph from independent registered public accounting firm.

  • DroppedRisks Related to Government Regulation

    decisions by government programs or private payers underscore the uncertainty that our products face in the market and could have a material adverse effect on our business

  • DroppedRisks Related to our Business Operations

    Several people who work for us on a part-time consulting basis may be subject to conflicts of interest

  • DroppedRisks Related to our Business Operations

    Our business and operations would suffer in the event of computer system failures, cyber-attacks or a deficiency in our cyber-security

Reworded

  • 100% rewrittenRisks Related to Government Regulation

    We are, and will continue to be, dependent in significant part on outside scientists and third-party research institutions for our research and development in order to be able to commercialize our product

    Updated to focus on conducting clinical trials for FDA marketing authorization and reliance on third-party clinical investigators and cGCP compliance.

  • 84% rewrittenRisks Related to Our Class A Common Stock

    We could be delisted from The Nasdaq Capital Market, which could seriously harm the liquidity of our stock and our ability to raise capital or complete a strategic transaction

    Added specific Nasdaq notification details from August 2024 and February 2025 regarding bid price and minimum stockholders equity deficiencies.

  • 66% rewrittenRisks Related to Government Regulation

    We have and may continue to encounter substantial delays in planned clinical trials, or our planned clinical trials for other indications using the PoNS device may fail to demonstrate the safety and efficacy of the PoNS device to the satisfaction of applicable regulatory authorities

    Retained clinical trial delays and IDE requirements for the PoNS device with unchanged core risk text.

  • 62% rewrittenRisks Related to our Reliance on Third Parties

    We depend on third parties for the manufacture and distribution of our product and the loss of our third-party manufacturer and distributor could harm our business

    Retained contract manufacturing and distribution partner dependencies for the PoNS device with identical core text.

  • 61% rewrittenRisks Related to Our Financial Position and Need for Capital

    Global macroeconomic instability could adversely affect our ability to raise additional financing

    Updated macroeconomic instability risks to specify U.S. tariffs, retaliatory actions, and tariff refund uncertainties.

  • 61% rewrittenRisks Related to Government Regulation

    If we are unable to obtain coverage or adequate reimbursement for our products, use of our products may decline and our ability to generate revenue may be decreased

    Retained CMS and third-party payer reimbursement dependencies for commercial success with identical core text.

  • 54% rewrittenRisks Related to the Development and Commercialization of our Product

    We face significant competition in an environment of rapid technological change, and our competitors may develop devices or products that are more advanced or more effective than ours are which may adversely affect our financial condition and our ability to successfully market the PoNS device

    Truncated neurostimulation market competition risk text by removing the final sentence on market position maintenance.

  • 34% rewrittenRisks Related to our Business Operations

    Investors could lose confidence in our financial reports, and the value of our Class A common stock may be adversely affected, if our internal controls over financial reporting are found not to be effective by management or by our independent registered public accounting firm

    Truncated internal controls risk text by removing the final sentence regarding management or auditor attestation impacts.

    Was: Investors could lose confidence in our financial reports, and the value of our common stock may be adversely affected, if our internal controls over financial reporting are found not to be effective by management or by our independent registered public accounting firm

  • 33% rewrittenRisks Related to Government Regulation

    If we fail to comply with healthcare laws, we could face substantial penalties and financial exposure, and our business, operations and financial condition could be adversely affected

  • 32% rewrittenRisks Related to Our Class A Common Stock

    An active trading market for our Class A common stock on The Nasdaq Capital Market may not continue to develop or be sustained

    Was: An active trading market for our common stock on The Nasdaq Capital Market may not continue to develop or be sustained

  • 28% rewrittenRisks Related to the Development and Commercialization of our Product

    We currently only have one product which is approved in the U.S. only for treatment of gait deficit, for MS and otherwise only in Canada and Australia

All 87 risk factors

Headings as the filing states them, in filing order.

Risks related to our Solana Treasury Strategy

  1. 01Solana is a highly volatile assetNew
  2. 02Solana does not pay interest or dividendsNew
  3. 03Our Solana holdings may significantly impact our financial results and the market price of our Class A common stockNew
  4. 04Our assets are concentrated in SolanaNew
  5. 05We intend to purchase Solana using primarily proceeds from equity and debt financingNew
  6. 06Our treasury strategy has not been tested over an extended period of time or under different market conditionsNew
  7. 07We are subject to counterparty risks, including risks relating to exchanges where we may purchase Solana and our custodians where we hold our SolanaNew
  8. 08SOL faces unique technical, governance and concentration risks that could materially affect its long-term viabilityNew
  9. 09SOL validators are relatively small in number, which may lead to coordinated censorshipNew
  10. 10Our Solana validator reward yield is expected to decline over time and could have a material adverse effect on our financial resultsNew
  11. 11This is the first digital asset treasury strategy for the Company and our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our treasury strategy and Solana holdingsNew
  12. 12Our Solana treasury strategy exposes us to risk of non-performance by counterpartiesNew
  13. 13We may be subject to regulatory developments related to crypto assets and crypto asset markets, which could adversely affect our business, financial condition, and results of operationsNew
  14. 14Our Solana strategy subjects us to enhanced regulatory oversightNew
  15. 15Regulatory change reclassifying Solana as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940, as amended, and could adversely affect the market price of Solana and the market price of our Class A common stockNew
  16. 16We are not subject to legal and regulatory obligations that apply to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisersNew
  17. 17The lack of legal recourse and insurance for digital assets increases the risk of total loss in the event of theft or destructionNew
  18. 18Digital asset lending arrangements may expose us to risks of borrower default, operational failures and cybersecurity threats New
  19. 19We will be subject to significant competition in the growing digital asset industry and our business, operating results, and financial condition may be adversely affected if we are unable to compete effectivelyNew
  20. 20SOL is subject to technological obsolescence, including competition from emerging blockchain and artificial intelligence protocolsNew
  21. 21Staking Solana may limit our liquidity and restrict our ability to access capital in a timely mannerNew
  22. 22In addition, a portion of our SOL holdings may be subject to longer-term lock-up restrictions or otherwise considered “locked” for accounting and operational purposes. We may not be able liquidate these positions in a timely manner and may need to sell at a discount to unrestricted SOL traded on exchangesNew
  23. 23We may be subject to additional tax liability if regulation or policy changes adversely affect the tax treatment of rewards from staking SOLNew
  24. 24Decentralized finance arrangements and smart contract-based protocols expose us to risks of asset loss, operational failure, and cybersecurity vulnerabilitiesNew
  25. 25protocols may also be subject to governance attacks, protocol upgrades, or other changes that could adversely affect their functionality or economic termsNew
  26. 26We may make, or otherwise be subject to, trade errorsNew
  27. 27The tax treatment of decentralized finance activities is uncertain and evolving, and adverse tax determinations could materially affect our financial condition and results of operationsNew
  28. 28Stablecoins used in our operations are subject to de-pegging, issuer, and regulatory risks that could result in material lossesNew
  29. 29Our financial results and the market price of our Class A common stock may be affected by the prices of SolanaNew
  30. 30In addition, if investors view the value of our Class A common stock as dependent upon or linked to the value or change in the value of our Solana holdings, the price of Solana may significantly influence the market price of our Class A common stockNew
  31. 31The concentration of our Solana holdings enhances the risks inherent in our Solana strategyNew
  32. 32We face risks relating to the use of third-party exchanges in connection with our Solana strategyNew
  33. 33We face risks relating to the custody of our Solana tokens, including the loss or destruction of private keys required to access our Solana tokens and cyberattacks or other data loss relating to our Solana tokens, including smart contract related losses and vulnerabilitiesNew
  34. 34Our Solana holdings are less liquid than our existing cash and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalentsNew
  35. 35While we have implemented security measures designed to protect against security incidents, there can be no assurance that these measures will be effectiveNew
  36. 36investigation costs, regulatory penalties and fines, and legal proceedings. Our insurance coverage may not be adequate to cover all the costs related to such cybersecurity incidentsNew
  37. 37The Blockchain protocols, including some of the networks and protocols of the Solana tokens we hold, are supported by foundations and/or founding teams that may influence the development of our the Blockchain protocols and could adversely affect the value of the Solana tokens we hold in our treasuryNew
  38. 38We face significant risks relating to disruptions, forks, 51% attacks, hacks, network disruptions, or other adverse events or other compromises to the cryptocurrency blockchains, which could materially and adversely impact our business, financial condition and results of operations New
  39. 39We face other risks related to our Solana treasury reserve business modelNew
  40. 40The Tokenization of our Class A common stock could introduce risks and uncertainties that adversely affect the market for, and the trading price of, our Class A common stock, among other potential consequencesNew
  41. 41Tokenized HSDT would also be subject to the broader risks associated with digital assets, including cybersecurity, technological failures, and operational risks, which could affect our reputation, financial condition, and operating results. As of March 30, 2026, the Company has not issued Tokenized HSDTNew

Risks Related to Our Financial Position and Need for Capital

  1. 42Raising additional capital by issuing securities or through debt financings or licensing arrangements may cause significant dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our technologies or product on terms unfavorable to us
  2. 43Global macroeconomic instability could adversely affect our ability to raise additional financing61% rewritten

Risks Related to the Development and Commercialization of our Product

  1. 44We currently only have one product which is approved in the U.S. only for treatment of gait deficit, for MS and otherwise only in Canada and Australia28% rewritten
  2. 45require additional funding, and each such indication would be subject to the same foregoing risks and uncertainties for FDA clearance/authorizationNew
  3. 46Our PoNS technology is a novel form of neurostimulation therapy, and the medical community tends not to adopt new therapies very rapidly. If physicians elect not to prescribe the PoNS Therapy, we will be unable to generate significant revenue
  4. 47There is limited market awareness of our product, and the neuromodulation market is new and uncertain
  5. 48We face significant competition in an environment of rapid technological change, and our competitors may develop devices or products that are more advanced or more effective than ours are which may adversely affect our financial condition and our ability to successfully market the PoNS device54% rewritten
  6. 49New developments occur rapidly, and we anticipate that we will face increasing competition as new companies enter our marketNew
  7. 50Our product is currently made available to authorized users of the Department of Veterans Affairs Federal Supply Schedule and if we were no longer eligible to sell our products through such channel, our business may be adversely affected

Risks Related to our Reliance on Third Parties

  1. 51We are, and will continue to be, dependent in significant part on third parties to manage our SOL and outside scientists and third-party research institutions for our research and development in order to be able to commercialize our productNew
  2. 52We depend on third parties for the manufacture and distribution of our product and the loss of our third-party manufacturer and distributor could harm our business62% rewritten

Risks Related to Intellectual Property

  1. 53If our intellectual property protection is inadequate, competitors may gain access to our technology and undermine our competitive position
  2. 54We may be subject to various litigation claims and legal proceedings, including intellectual property litigation, such as patent infringement claims, which could adversely affect our business
  3. 55There are risks to our intellectual property based on our international business operations

Risks Related to Government Regulation

  1. 56Regulatory uncertainty and evolving treatment of digital assets could adversely affect our businessNew
  2. 57device can be costly and time consuming, and we may not be able to successfully obtain pre-market reviews on a timely basis, if at allNew
  3. 58Obtaining and maintaining FDA marketing authorization will be costly, may result in time-consuming delays and will subject us to ongoing compliance costs and regulatory risk for non-compliance
  4. 59Once commercialized, modifications to our marketed products may require new 510(k) clearances or approval of PMA supplements or may require us to cease marketing or recall the modified products until clearances or regulatory approvals are obtained
  5. 60The transition to the new presidential administration could hinder the FDA’s ability to perform normal business functions on which our business may rely, which could negatively impact our business
  6. 61We have in the past and may be required to conduct clinical trials to support a de novo submission or PMA application for the PoNS device with respect to one or more indications and we expect to be required to conduct clinical trials to support regulatory marketing authorization for future product candidates
  7. 62We have and may continue to encounter substantial delays in planned clinical trials, or our planned clinical trials for other indications using the PoNS device may fail to demonstrate the safety and efficacy of the PoNS device to the satisfaction of applicable regulatory authorities66% rewritten
  8. 63We are, and will continue to be, dependent in significant part on outside scientists and third-party research institutions for our research and development in order to be able to commercialize our product100% rewritten
  9. 64We may be required to suspend or discontinue clinical trials due to side effects or other safety risks that could preclude approval of our products
  10. 65If we are unable to obtain coverage or adequate reimbursement for our products, use of our products may decline and our ability to generate revenue may be decreased61% rewritten
  11. 66If we fail to comply with healthcare laws, we could face substantial penalties and financial exposure, and our business, operations and financial condition could be adversely affected33% rewritten
  12. 67discretion. Any action against us for violation of these laws, even if we successfully defend against it, could cause us to incur significant legal expenses and divert our management’s attention from the operation of our businessNew
  13. 68The FDA enforces these requirements via periodic announced and unannounced inspections of manufacturing facilities. In addition, in the future, regulatory authorities and/or customers may require specific packaging of sterile products, which could increase our costs and the price of our products
  14. 69U.S. legislative or FDA regulatory reforms may make it more difficult and costly for us to obtain regulatory approval of our product and to manufacture, market and distribute our products after marketing authorization is obtained

Risks Related to our Business Operations

  1. 70Conflicts of interest may arise because certain of our directors hold, or may in the future hold, a management or board position with Summer Wisdom Holdings Limited and Pantera Capital Management LPNew
  2. 71Worldwide economic and social instability could adversely affect our revenue, financial condition, or results of operations
  3. 72If our expenses are greater than anticipated, then we will have fewer funds with which to pursue our plan of operations and our financing requirements will be greater than anticipated
  4. 73Our ability to use net operating losses to offset future taxable income may be subject to certain limitations
  5. 74As a result of the use of our product in clinical trials, and through the sale of our products, we may be liable for product liability claims and we may not carry sufficient product liability insurance
  6. 75We are a “smaller reporting company” under federal securities laws and we cannot be certain whether the reduced reporting requirements applicable to such companies will make our Class A common stock less attractive to investors
  7. 76Investors could lose confidence in our financial reports, and the value of our Class A common stock may be adversely affected, if our internal controls over financial reporting are found not to be effective by management or by our independent registered public accounting firm34% rewritten
  8. 77Investors could lose confidence in our financial reports, and the value of our Class A common stock may be harmed, if internal controls over financial reporting are found not to be effective by management or our independent public accounting firmNew

Risks Related to Our Class A Common Stock

  1. 78We could be delisted from The Nasdaq Capital Market, which could seriously harm the liquidity of our stock and our ability to raise capital or complete a strategic transaction84% rewritten
  2. 79On July 2, 2025, a reverse split at a ratio of 1-for-50 became effective (the “July 2025 Reverse Stock Split”)New
  3. 80Upon the exercise of our outstanding warrants, holders of our Class A common stock may experience immediate dilution and the market price of our common stock may be adversely affectedNew
  4. 81An active trading market for our Class A common stock on The Nasdaq Capital Market may not continue to develop or be sustained32% rewritten
  5. 82Trading of our Class A common stock could be sporadic, and the price of our Class A common stock may be volatile; we caution you as to the highly illiquid nature of an investment in our shares
  6. 83Provisions in our corporate charter documents and under Delaware law may prevent or frustrate attempts by our stockholders to change our management and hinder efforts to acquire a controlling interest in us, and the market price of our Class A common stock may be lower as a result
  7. 84If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding our stock adversely, our stock price and trading volume could decline
  8. 85We have not paid any dividends and do not foresee paying dividends in the future
  9. 86A decline in the price of our Class A common stock could affect our ability to raise any required working capital and adversely affect our operations
  10. 87We are heavily dependent upon the ability and expertise of our management team and a very limited number of employees and the loss of such individuals could have a material adverse effect on our business, operating results or financial condition

Other Solana 10-Ks

  • FY2024 10-K risk factors
    43 risks

    Solana Co faces going-concern doubts after incurring a $11.7 million net loss in 2024 with limited revenue. Commercial success depends heavily on adoption of its PoNS neurostimulation device for MS and other indications. The company relies on single third-party partners for manufacturing and distribution. Compliance with strict FDA regulations and Department of Veterans Affairs supply requirements is essential for operations.

    Filed Mar 25, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.