Eastman Kodak (KODK) risk factors, FY2025 10-K

Risks Related to Kodak’s Business and Operations

1. 01The ability to generate positive operating cash flows will be necessary for Kodak to continue to operate our business
2. 02Future sources of funding will be available in amounts sufficient to enable funding of our liquidity needs
3. 03If Kodak is unable to continue successful development, funding, and commercialization of products in businesses upon which we are focused or do so within an acceptable timeframe, Kodak’s financial performance could be adversely affected
4. 04If Kodak is unable to successfully or timely implement cost structure reductions, Kodak’s business, financial condition and results of operations could be adversely affected
5. 05The loss of one or more of Kodak’s key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business
6. 06If Kodak cannot effectively anticipate or rapidly respond to technology trends or develop and market new products that meet changing customer needs, our revenue, earnings and cash flow could be adversely affected
7. 07Kodak’s ability to innovate may also be affected by competitors with greater resources, resulting in inferior assessments of technological trends and weaker product roadmaps
8. 08Increased competition, including price competition, could materially adversely affect Kodak’s revenue, gross margins, cash flow and market share
9. 09Kodak is exposed to risks associated with expanding into related or new markets and industries
10. 10Kodak’s investment in new products and services may not achieve expected returns
11. 11Kodak must address reliability and quality issues across product development, manufacturing, and servicing, including defects in our processes and in third-party components. Because Kodak’s products are sophisticated and technology evolves rapidly, defects may increase, particularly with new product lines
12. 12Aging manufacturing facilities and equipment could lead to failures and require significant capital investment
13. 13If Kodak fails to manage distribution of our products and services properly, our revenue, gross margins and earnings could be adversely impacted
14. 14If Kodak cannot protect its intellectual property ("IP") rights or if third parties claim we infringe theirs, our revenue, earnings, expenses and liquidity may be adversely impacted
15. 15Failure to successfully manage the development and improvement of IT systems could diminish or delay any anticipated efficiencies and operational improvements, and our operations and business could be disrupted
16. 16Emerging issues related to the development and use of artificial intelligence ("AI") could give rise to legal or regulatory action, damage our reputation, or otherwise materially harm our business
17. 17Successfully executing these transactions requires identifying suitable partners completing transactions that may be large and complex, and managing post-closing obligations. Risks increase with larger or multiple simultaneous transactions
18. 18If the reputation of Kodak or its brand erodes significantly, it could have a material impact on our financial results
19. 19Business disruptions could seriously harm Kodak’s future revenue and financial condition
20. 20Kodak relies on third-party suppliers and service providers to support its manufacturing, logistics, and business operations and faces the risks associated with reliance on external business partners
21. 21Kodak faces additional costs and risks associated with its worldwide business operations
22. 22An inability to provide competitive financing arrangements to Kodak’s customers or extension of credit to customers whose creditworthiness deteriorates could adversely impact our revenue, profitability and financial position

Risks Related to Kodak’s Indebtedness and Access to Capital Markets

1. 23The Company’s substantial monetary obligations require a portion of our cash flow to be used to fund other obligations rather than be invested in the business and could adversely affect our ability to fund our operations
2. 24The Company has obligations for borrowed money or in connection with letters of credit under the Term Loan Credit Agreement and the cash collateralized Amended and Restated L/C Facility Agreement (together, the “Credit Agreements”)
3. 25Adverse economic or industry conditions may have more of a negative impact
4. 26Availability under the Company’s Amended and Restated L/C Facility Agreement is based on cash collateral in an amount greater than or equal to 104% of the aggregate amount of letters of credit issued and outstanding at any given time (the “L/C Cash Collateral”)
5. 27Kodak may desire additional capital funding and such capital may not be available to us and/or may be limited
6. 28General economic and capital market conditions
7. 29A breach of any of the covenants contained in the Credit Agreements could result in an event of default under these facilities
8. 30The current non-investment grade status may adversely impact Kodak’s commercial operations, increase our liquidity requirements and increase the cost of refinancing opportunities. We may not have adequate liquidity to post required amounts of additional collateral
9. 31In carrying out our commercial business strategy, the current non-investment grade credit ratings have resulted and will likely continue to result in requirements that Kodak either prepay obligations or post significant amounts of collateral to support our business

Legal, Regulatory and Compliance Risks

1. 32Legal proceedings and governmental investigations could materially adversely affect Kodak’s operations and prospects, reputation, financial condition, results of operations and stock price
2. 33Improper conduct by employees, agents, distributors or others perceived as acting on behalf of Kodak could impair Kodak’s reputation, business and financial condition
3. 34Failure to comply with privacy, data protection and cybersecurity laws and regulations could materially adversely affect Kodak’s reputation, results of operations, or financial condition
4. 35Kodak is subject to environmental laws and regulations, and failure to comply could adversely affect our business, results of operations, and financial condition
5. 36Failure to effectively manage sustainability-related expectations could impact Kodak's operational success, financial performance and investor confidence
6. 37If Kodak fails to maintain effective internal controls over financial reporting, we may be unable to accurately report our financial results, which could materially affect Kodak’s operations, investor confidence, and the trading prices of our securities
7. 38Kodak may have additional tax liabilities
8. 39Changes in trade policies, including tariffs or other trade restrictions, may adversely affect Kodak’s business, financial condition, and results of operations
9. 40Kodak may be required to recognize impairments in the value of our trade name and/or other long-lived assets which could adversely affect our results of operations

Risks Related to the Company’s Common Stock

1. 41The holder of the recently exchanged Series C Preferred Stock may have the ability to influence future actions by the Company due to its voting power and a nominated board member
2. 42The Company has registered, and has a duty to register, the resale of a large portion of our outstanding securities. The resale of the Company’s common stock, or the perception that such resale may occur, may adversely affect the price of our common stock
3. 43The resale of a significant portion of the Company’s securities or certain accumulations or transfers of the Company’s securities could result in a change of control of the Company and the loss of favorable tax attributes
4. 44The Company’s stock price has been and may continue to be volatile