Interlink Electronics (LINK) risk factors, FY2025 10-K

Interlink Electronics's FY2025 10-K, filed Mar 26, 2026, lists 31 risk factors in 4 groups. Against the prior year's 34: 2 new, 5 dropped, 6 substantially reworded.

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Risk factors listed
314 groups
New this year
2vs 34 last year
Dropped
5since the prior 10-K
Substantially reworded
6of those kept
Section length
9k wordsItem 1A

What the changes say

  • Interlink Electronics removed specific risks related to its Series B Preferred Stock and Series A Convertible Preferred Stock, while updating manufacturing locations and insider ownership figures.

What changed since the prior 10-K

New

  • NewRisks Relating to Ownership of Our Stock

    The issuance of shares of our Preferred Stock in the future would reduce the amount available to our holders of Common Stock in the event of our liquidation or winding up, utilize cash resources in the payment of dividends, and potentially limit our ability to obtain additional financing thereafter

    Future issuances of preferred stock could reduce common stock liquidation payouts, utilize cash for dividends, dilute common stock upon conversion, and restrict financing.

  • NewGeneral Risks

    result, management’s attention may be diverted from other business concerns, which could harm our business and results of operations. We may need to hire additional employees to comply with these requirements, which will increase our costs and expenses

    Public company compliance requirements may divert management attention, increase costs, raise D&O insurance premiums, and make recruiting qualified board and executive members more difficult.

Dropped

  • Dropped

    Defects may also result in product returns, loss of sales and cancelled orders, delays in market acceptance, injury to our reputation, injury to customer relationships and increased warranty costs, which could have an adverse effect on our business, operating results and financial condition

  • DroppedRisks Relating to Ownership of Our Stock

    While our common stock is quoted on The Nasdaq Capital Market, the daily trading volume is typically very low. This is due in part to the significant percentage (approximately 83% as of December 31, 2024) of our shares that are held by officers and directors and their affiliates

  • DroppedRisks Relating to Ownership of Our Stock

    The liquidation preference of shares of our Preferred Stock currently outstanding or issued in the future would reduce the amount available to our common stockholders in the event of our liquidation or winding up

  • DroppedRisks Relating to Ownership of Our Stock

    The issuance of shares of common stock upon conversion of the Series A Convertible Preferred Stock may cause immediate and substantial dilution to our existing stockholders

    Risks from product defects, natural disasters, cyber break-ins, and pandemics on business.

  • DroppedRisks Relating to Ownership of Our Stock

    Certain provisions in our Series A Convertible Preferred Stock may impact our ability to obtain additional financing in the future

Reworded

  • 100% rewrittenRisks Relating to Ownership of Our Stock

    There is a limited or no public market for our securities

    Updated the insider ownership figure to approximately 77% as of December 31, 2025, with a specific mention of Mr. Bronson.

  • 66% rewritten

    Disruptions in our manufacturing facilities or arrangements could cause our revenue and operating results to decline

    Removed the manufacturing facility in Barnsley, England, leaving only Shenzhen, Fremont, and Irvine.

  • 45% rewrittenRisks Relating to Ownership of Our Stock

    We do not intend to pay dividends on our Common Stock for the foreseeable future and, consequently, our common stockholders’ ability to achieve a return on their investment will depend on appreciation in the price of our shares

    Replaced references to Series A Convertible Preferred Stock dividend restrictions with generic language about any future preferred stock.

    Was: We do not intend to pay dividends on our common stock for the foreseeable future and, consequently, our common stockholders’ ability to achieve a return on their investment will depend on appreciation in the price of our common stock

  • 44% rewrittenGeneral Risks

    The requirements of being a public company may strain our resources, divert our management’s attention and affect our ability to attract and retain qualified board members

    Added capitalization to Common Stock in the disclosure about Exchange Act and Sarbanes-Oxley reporting requirements.

  • 27% rewrittenRisks Relating to Ownership of Our Stock

    Our charter documents and Nevada law could discourage takeover attempts and lead to management entrenchment

    Shortened references from Board of Directors to Board regarding anti-takeover provisions and preferred stock issuance powers.

  • 21% rewrittenGeneral Risks

    Our business, financial position, results of operations, and cash flows may be adversely affected by a resurgence of the global COVID-19 pandemic or any broad outbreak of any other epidemic in the human population

    Updated pandemic risk phrasing to reflect historical disruption from COVID-19 and potential future global health crises.

    Was: Our business, financial position, results of operations, and cash flows may be adversely affected by the global COVID-19 pandemic, in particular if there is a resurgence in infections, or any broad outbreak of an avian flu or other epidemic in the human population

All 31 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01We have derived, and expect to continue to derive, a significant share of our revenue from a small number of customers
  2. 02We rely on third parties for the materials that we use to manufacture our products, and supply shortages and price increases could adversely affect our revenue, operating results and customer relationships
  3. 03Disruptions in our manufacturing facilities or arrangements could cause our revenue and operating results to decline66% rewritten
  4. 04We cannot guarantee that our solutions for new markets will be successful or that we will be able to generate significant revenue from these markets
  5. 05If we fail to build and maintain relationships with new and existing customers, or if our customers’ products that utilize our solutions do not gain widespread market acceptance, our revenue may stagnate or decline
  6. 06If we are not able to protect our intellectual property or if we infringe on the intellectual property of others, our business and operating results could be adversely affected
  7. 07Our success depends in part on our CEO and CFO, who simultaneously lead other public corporations
  8. 08We face risks associated with security breaches or cyber-attacks

Risks Related to Our Industry

  1. 09If we are unable to keep pace with rapid technological change and gain market acceptance of new products, we may not be able to compete effectively
  2. 10Our markets are intensely competitive and many of our potential competitors have resources that we lack

Risks Relating to Ownership of Our Stock

  1. 11There is a limited or no public market for our securities100% rewritten
  2. 12The price of our Common Stock may be volatile, and the value of a stockholder’s investment could decline
  3. 13The issuance of shares of our Preferred Stock in the future would reduce the amount available to our holders of Common Stock in the event of our liquidation or winding up, utilize cash resources in the payment of dividends, and potentially limit our ability to obtain additional financing thereafterNew
  4. 14If securities or industry analysts do not publish research or reports about our business, or if they publish inaccurate or unfavorable research reports, our share price and trading volume could decline
  5. 15Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our product candidates on unfavorable terms to us
  6. 16Our CEO has control over key decision making as a result of his control of a majority of our voting stock
  7. 17We do not intend to pay dividends on our Common Stock for the foreseeable future and, consequently, our common stockholders’ ability to achieve a return on their investment will depend on appreciation in the price of our shares45% rewritten
  8. 18Our charter documents and Nevada law could discourage takeover attempts and lead to management entrenchment27% rewritten

Risks Related to Government Regulation

  1. 19Our failure to comply with U.S. laws and regulations relating to the export and import of goods, technology, and software could subject us to penalties and other sanctions and restrict our ability to license and develop our circuit designs
  2. 20Increasing global tariffs create risks to our global business and that of our customers
  3. 21If we fail to comply with anti-bribery laws, including the U.S. Foreign Corrupt Practices Act (“FCPA”), we could be subject to civil and/or criminal penalties
  4. 22We cannot provide any assurance that current environmental laws and product quality specification standards, or any laws or standards enacted in the future, will not have a material adverse effect on our business

General Risks

  1. 23Our business, financial position, results of operations, and cash flows may be adversely affected by a resurgence of the global COVID-19 pandemic or any broad outbreak of any other epidemic in the human population21% rewritten
  2. 24If we fail to manage change successfully, our operations could be adversely impacted and our business could be impaired
  3. 25International sales and manufacturing risks could adversely affect our operating results
  4. 26Political instability and uncertainty could adversely affect our operating results
  5. 27Acquisitions involve multiple risks and uncertainties
  6. 28Our ability to operate effectively could be impaired if we were to lose the services of key personnel, or if we are unable to recruit qualified managers and key personnel in the future
  7. 29We are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, and any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price
  8. 30The requirements of being a public company may strain our resources, divert our management’s attention and affect our ability to attract and retain qualified board members44% rewritten
  9. 31result, management’s attention may be diverted from other business concerns, which could harm our business and results of operations. We may need to hire additional employees to comply with these requirements, which will increase our costs and expensesNew

Other Interlink Electronics 10-Ks

  • FY2024 10-K risk factors
    34 risks

    Customer concentration is high, with the top three customers generating 15%, 12%, and 5% of 2024 revenue. Manufacturing spans Shenzhen, Fremont, Irvine, and Barnsley, exposing operations to regional disruptions. CEO Steven N. Bronson and CFO Ryan J. Hoffman hold key leadership roles while managing other affiliated companies.

    Filed Mar 27, 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.