Mama's Creations (MAMA) risk factors, FY2025 10-K

Risks Related to our Business

1. 01We have a limited history of profitability
2. 02We may need additional capital, which may be difficult to raise for a variety of reasons
3. 03The majority of our business depends on a limited number of principal customers
4. 04Competitive product and pricing pressures in the food industry and the financial condition of customers and suppliers could adversely affect our ability to gain or maintain market share and/or profitability
5. 05We face competition from companies who produce similar products and other prepared foods, many of whom have longer operating histories or have substantially more financial resources
6. 06The need for and effect of product recalls could have a material adverse impact on our business
7. 07We may be subject to significant liability if the consumption of any of our products causes illness or physical harm
8. 08The impact of various food safety issues, environmental, legal, tax, and other regulations and related developments could adversely affect our sales and profitability
9. 09Increases in the cost and restrictions on the availability of raw materials could adversely affect our financial results
10. 10Disruption of our supply chain could adversely affect our business
11. 11Higher energy costs and other factors affecting the cost of producing, transporting, and distributing our products could adversely affect our financial results
12. 12Global economic uncertainties continue to affect consumers’ purchasing habits and customer financial stability, which may affect sales volume and profitability on some of our products and have other impacts that we cannot fully predict
13. 13We rely on key personnel and, if we are unable to retain, motivate key personnel, or hire qualified personnel, we may not be able to grow effectively
14. 14The failure of new product or packaging introductions to gain trade and consumer acceptance and address changes in consumer preferences could adversely affect our sales
15. 15Changes in our promotional activities may impact, and may have a disproportionate effect on, our overall financial condition and results of operations
16. 16We may not be able to successfully implement our growth strategy on a timely basis or at all
17. 17We are currently selling products in food retailers in the United States. If we are unable to expand into additional mass-market retailers or sell products in a greater number of supermarkets, we will fall short of our projections and our business and financial condition would be adversely affected
18. 18We may be unable to successfully execute our identified growth strategies or other growth strategies that we determine to pursue
19. 19We may be unable to maintain quality control
20. 20Our brand and reputation may suffer from real or perceived issues involving the labeling and marketing of our products as “natural.”
21. 21Our finished goods inventory is located in a small number of warehouse facilities. Any damage or disruption at a storage facility would have an adverse effect on our business, results of operations and financial condition
22. 22We may be unable to defend our intellectual property
23. 23Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our services and brand
24. 24Cyberattacks impacting our computer networks or information technology systems could have an adverse impact on our business
25. 25Damage to our reputation can adversely impact our business
26. 26Political and social conditions can impact our business
27. 27Increases in income tax rates, changes in income tax laws or disagreements with tax authorities may impact our financial performance

Risks Related To Our Securities

1. 28We currently have a limited trading volume, which can result in higher price volatility for, and reduced liquidity of, our common stock
2. 29You may experience dilution of your ownership interest because of the future issuance of additional shares of our common stock and our preferred stock
3. 30If and when a larger trading market for our common stock develops, the market price of our common stock is still likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the price at which you acquired them
4. 31We have never declared or paid any cash dividends or distributions on our common stock. We currently intend to retain our future earnings, if any, to support operations and to finance expansion, and therefore we do not anticipate paying any cash dividends on our common stock in the foreseeable future
5. 32If securities or industry analysts do not publish 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