Impact Biomedical (IBO) risk factors, FY2025 10-K

Risks Related to Liquidity, the Company’s Business and Industry

1. 01If we do not adequately protect our intellectual property rights, our operations may be materially harmed
2. 02New legislation, regulations or rules related to obtaining patents or enforcing patents could significantly increase our operating costs and decrease any potential revenue we might otherwise make
3. 03Safety and effectiveness concerns can have significant negative impacts on sales and results of operations, lead to litigation and cause reputational damage
4. 04Significant challenges or delays in our innovation and development of new products, technologies and indications could have an adverse impact on our long-term success
5. 05We are subject to risks related to corporate social responsibility and reputational matters
6. 06We may not have adequate funds to implement our business plan
7. 07Our ability to resell and/or license our products will depend upon successful clinical trials
8. 08We face significant competition from other biopharmaceutical and consumer product companies
9. 09We are dependent on our collaborative agreements for the development of products and business development, which exposes us to the risk of reliance on the viability of third parties
10. 10We are a human healthcare and consumer wellness company with no significant revenue. We have incurred operating losses since our inception, and we expect to incur losses for the foreseeable future and may never achieve profitability
11. 11We are increasingly dependent on information technology systems to operate our business and a cyber-attack or other breach of our systems, or those of third parties on whom we may rely, could subject us to liability or interrupt the operation of our business
12. 12If we are unable to obtain U.S. and/or foreign regulatory approval, we will be unable to resell or license our drug candidates
13. 13We will rely on third parties for manufacturing of our clinical drug supplies; our dependence on these manufacturers may impair the development of our drug candidates

Risks Related to Intellectual Property Rights

1. 14We rely on various intellectual property rights, including patents and licenses, in order to operate our business
2. 15The Company could be negatively impacted if found to have infringed on intellectual property rights
3. 16We rely heavily on our technology and intellectual property, but we may be unable to adequately or cost-effectively protect or enforce our intellectual property rights, thereby weakening our competitive position and increasing operating costs
4. 17We rely on agreements with third parties to provide certain services, goods, technology, and intellectual property rights necessary to enable us to implement some of our applications
5. 18We may enter into licenses for third-party intellectual property in the future. Our success will depend in part on the ability of our licensors to obtain, maintain and enforce patent protection for their intellectual property, in particular, those patents to which we have secured exclusive rights
6. 19Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information and may not adequately protect our intellectual property

Risks Related to Ownership of Our Securities

1. 20The market price of our common stock may be highly volatile, and you could lose all or part of your investment
2. 21We do not anticipate paying any dividends in the foreseeable future. Consequently, any gains from an investment in our common stock will likely depend on whether the price of our common stock increases
3. 22Our certificate of incorporation grants our Board of Directors the power to designate and issue additional shares of common and/or preferred stock
4. 23We are an “emerging growth company” under the federal securities laws and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors
5. 24Our common stock is currently listed for trading on the NYSE American LLC Exchange (“NYSE American”), and the continued listing of our common stock on the NYSE American is subject to our compliance with a number of listing standardsNew
6. 25If we are delisted from the NYSE American, your ability to sell your shares of our common stock may be limited by the penny stock restrictions, which could further limit the marketability of your sharesNew
7. 26If our common stock is not listed on a national securities exchange, compliance with applicable state securities laws may be required for certain offers, transfers and sales of the shares of our common stockNew