Laird Superfood (LSF) risk factors, FY2025 10-K

Risks Relating to Our Limited Operating History, Financial Position and Capital Needs

1. 01We are an early-stage company and have incurred significant losses since our inception. We may continue to incur losses for the foreseeable future
2. 02We may need additional funding in order to grow our business
3. 03finance capital expenditures and general and administrative expenses
4. 04the effect of competing market developments
5. 05Our limited operating history may make it difficult to assess our future viability
6. 06effectively source key raw materials38% rewritten
7. 07We may be unable to manage our future growth effectively, which could make it difficult to execute our business strategy
8. 08successfully hire, train, and motivate employees, including additional personnel for our technological, sales and marketing efforts
9. 09We have a history of losses, and we may be unable to sustain profitability and positive cash flows from operating activities57% rewritten
10. 10Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud

Risks Relating to Our Business

1. 11We may not be able to effectively integrate the businesses of Navitas, or realize the anticipated benefits and synergies expected from the Navitas AcquisitionNew
2. 12The integration and transition associated with the Navitas Acquisition may result in the Company incurring significant costs to implement changes to its control over financial reporting following the Navitas AcquisitionNew
3. 13Nexus controls the Company and its interests may conflict with the interests of our other stockholdersNew
4. 14Nexus has certain director appointment rights, which limits the ability of other stockholders to affect the outcome of director electionsNew
5. 15Nexus has certain limited consent rights that could prevent us from taking certain corporate actionsNew
6. 16Our status as a controlled company may permit us to rely on exemptions from certain of the NYSE American ’ s corporate governance requirements, which could reduce protections for minority stockholdersNew
7. 17We depend on third parties for manufacturing and distribution36% rewritten
8. 18Competition in the food and beverage retail industry, especially online competition, is strong and presents an ongoing threat to the success of our business
9. 19We may not be able to successfully implement our growth strategy for our brand on a timely basis or at all
10. 20attract, retain, and motivate qualified personnel
11. 21Our Laird Superfood products are new, and our industry is rapidly evolving
12. 22We are subject to the risks associated with conducting business operations outside of the U.S., which could adversely affect our business
13. 23less developed infrastructure50% rewritten
14. 24Our results may be negatively affected by changes in foreign currency exchange rates
15. 25We may be unable to adequately protect our brand and our other intellectual property rights
16. 26We may not be able to enforce our intellectual property rights throughout the world
17. 27Third parties may assert that our employees or consultants have wrongfully used or disclosed confidential information or misappropriated trade secrets
18. 28A food safety or quality issue that results in a product disruption such as a recall, health issue, or death of a consumer could harm our business
19. 29We may be subject to significant liability that is not covered by insurance
20. 30We rely on independent certification for a number of our products
21. 31Our future results of operations may be adversely affected by the availability of Non-GMO and organic ingredients
22. 32Adverse weather conditions, fires, natural disasters, crop disease, pests and other natural conditions can impose significant costs and losses on our business
23. 33Climate change may negatively affect our business and operations
24. 34We rely on a small number of suppliers to provide our raw materials, and our supply chain may be interrupted and prevent us from obtaining the necessary materials we need to operate
25. 35Our future results of operations may be adversely affected by volatile commodity costs
26. 36We rely on our founders, Laird Hamilton and Gabrielle Reece
27. 37If the reputation of our brand erodes significantly, it could have a material impact on our results of operations
28. 38We sell a substantial portion of our products through retailers such as Costco, through distributors such as United Natural Foods, Inc. and KeHE Distributors, and online through Amazon, and we depend on these third parties to sell our products to consumers
29. 39Our customer acquisition costs may increase, and our customer lifetime values may decrease, harming our margins and results
30. 40Our customers generally are not obligated to continue purchasing products from us
31. 41Our financial success depends on our ability to successfully predict changes in consumer preferences and develop successful new products and marketing strategies in response
32. 42increasing awareness of the environmental and social effects of product production, including agricultural production by food manufacturers and their suppliers
33. 43Consumer preferences for natural and organic food products are difficult to predict and may change
34. 44Technology failures or security breaches could disrupt our operations and negatively impact our business
35. 45Economic downturns could limit consumer demand for our products and negatively affect our sales and profitability
36. 46Adverse developments affecting the financial services industry, such as recent bank failures or concerns involving liquidity, may have a material effect on the Company ’ s operations54% rewritten

Regulatory Risks

1. 47Our products and operations are subject to government regulation and oversight both in the United States and abroad, and our failure to comply with applicable requirements could adversely affect our business and results of operations40% rewritten
2. 48product import and export
3. 49total or partial suspension of production
4. 50Regulatory enforcement concerning marketing and labeling of food or dietary supplement products could adversely affect our business and reputation
5. 51Our reputation could suffer from real or perceived issues involving regulatory enforcement or litigation concerning the marketing or labeling of our products
6. 52We may be subject to specific FTC endorsement and/or testimonial regulations that would interfere with our advertising, marketing, and labeling strategies
7. 53We may face scrutiny from evolving state regulations concerning health, safety, our supply chain, and marketing

Risks Relating to the Ownership of Our Common Stock

1. 54Sales of substantial amounts of shares of our common stock, including shares issuable upon conversion of the Series A Preferred Stock, could depress our stock priceNew
2. 55The market price of our common stock may be highly volatile, and you may not be able to resell your shares at or above the price you purchased them
3. 56the size of our market float
4. 57We will incur increased costs in connection with operating as a public company and our management will be required to devote substantial time to compliance initiatives and corporate governance practices
5. 58If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline
6. 59We may not be able to maintain a listing of our common stock on the NYSE American
7. 60Economic and business factors could result in impairment of intangible assets
8. 61Provisions in our governing documents under Nevada law could discourage a takeover that shareholders may consider favorable
9. 62Since we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, stock price appreciation, if any, will be your sole source of gain
10. 63This provision would not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the U.S. federal courts have exclusive jurisdiction