Mobileye Global (MBLY) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01If we are unable to develop and introduce new solutions and improve existing solutions in a cost-effective and timely manner, then our competitive position would be negatively impacted and our business, results of operations, and financial condition would be adversely affected
2. 02We invest significantly in research and development, and to the extent our research and development efforts are unsuccessful, our competitive position would be negatively impacted and our business, results of operations, and financial condition would be adversely affected
3. 03We operate in a highly competitive market
4. 04We have previously experienced constraints in the supply of our EyeQ™ SoCs as the result of the global semiconductor shortage during 2021 and 2022, and future shortages in the supply of our EyeQ™ SoCs or other critical parts would adversely affect our business, results of operations, and financial condition
5. 05We depend on STMicroelectronics to manufacture our EyeQ™ SoCs
6. 06We face additional supply chain risks and risks of interruption of requisite services, including, as a result of our reliance on a single supplier or limited suppliers and vendors, for certain components, equipment, and services
7. 07Increases in costs of the materials and other components that we use in our solutions would adversely affect our business, results of operations, and financial condition
8. 08There is no guarantee that our customers will purchase our solutions in any certain quantity or at any certain price even after we achieve design wins, and there may be significant delays between the time we achieve a design win until we realize revenue from the vehicle model
9. 09The success of our AMaaS solutions will depend on their effective deployment and operation by third parties
10. 10Developing RoadBook™ depends on continued cooperation by OEMs
11. 11We are highly dependent on the services of Professor Amnon Shashua, our President and Chief Executive Officer
12. 12If we are unable to attract, retain, and motivate key employees, then our business, results of operations, and financial condition would be adversely affected
13. 13We face integration risks and costs associated with companies, assets, employees, products, and technologies that we have or that we may acquire
14. 14We may need to raise additional capital in the future, which may not be available on terms acceptable to us, or at all
15. 15We are affected by fluctuations in currency exchange rates, including those in connection with recent inflationary trends in the United States
16. 16Our historical financial information may not be representative of our results as an independent public company
17. 17We are a holding company

Risks Related to Privacy, Data, and Cybersecurity

1. 18Interruptions to our information technology systems and networks and cybersecurity incidents could adversely affect our business, results of operations, and financial condition
2. 19Security breaches and other disruptions of our in-vehicle systems and related data could impact the safety of our end users and reduce confidence in us and our solutions

Risks Related to our Intellectual Property Rights

1. 20We may not be able to adequately protect, defend or enforce our intellectual property rights, and our efforts to do so may be costly
2. 21We have previously faced claims and may in the future become subject to additional claims and litigation brought by third parties alleging infringement. misappropriation or other violation by us of their intellectual property rights
3. 22We depend on licenses for certain technologies from third parties, some of which require us to pay royalties, and our inability to use such technologies in the future would harm our ability to remain competitive
4. 23We may become subject to claims for remuneration or royalties for assigned service invention rights by our employees that result in litigation, which would adversely affect our business, results of operations, and financial condition
5. 24In addition to patented technology, we rely on our unpatented proprietary technology, trade secrets, processes, and know-how
6. 25We use certain software and data governed by open-source licenses, which under certain circumstances could adversely affect our business, results of operations, and financial condition

Risks Related to Our Industry

1. 26An uncertain economic environment and inflationary conditions may adversely affect global vehicle production and demand for our solutions
2. 27If OEMs are unable to maintain and increase consumer acceptance of ADAS and autonomous driving technology, our business, results of operations, and financial condition would be adversely affected

Regulatory and Compliance Risks

1. 28We are subject to a variety of laws and regulations that affect our operations and that could adversely affect our business, results of operations, and financial condition
2. 29Our business, results of operations, and financial condition may be adversely affected by changes in automotive safety regulations or concerns that drive regulations that increase our costs or delay or halt adoption of our solutions
3. 30We are subject to risks related to trade policies, sanctions, and import and export controls
4. 31The current conflict between Ukraine and Russia has exacerbated market instability and disrupted the global economy

Risks Related to Operations in Israel

1. 32Conditions in Israel affect our operations and may limit our ability to produce and sell our solutions
2. 33Our operations may be disrupted by the obligations of personnel to perform military service as a result of current or future military actions involving Israel
3. 34The tax benefits that are available to us under Israeli law require us to meet various conditions and may be terminated or reduced in the future, which could increase our costs and taxes

Risks Related to our Relationship with Intel and our Dual Class Structure

1. 35Our dual class structure may depress the trading price of our Class A common stock
2. 36Any actions or publications by stockholder advisory firms critical of our corporate governance practices or capital structure could also adversely affect the value of our Class A common stock
3. 37Certain corporate actions by us would require the prior consent of Intel, and there can be no guarantee that Intel will consent to such actions, even if they are in our best interests

Risks Related to Ownership of Our Class A Common Stock

1. 38The market price of our Class A common stock may fluctuate, and you could lose all or part of your investment
2. 39We do not expect to pay dividends in the foreseeable future
3. 40The requirements of being a public company may strain our resources and divert management’s attention
4. 41Failure to establish and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have an adverse effect on our business, results of operations, and financial condition
5. 42If securities and industry analysts do not publish research or publish inaccurate or unfavorable research about our business, then the stock price and trading volume of our Class A common stock could decline
6. 43The issuance by us of additional equity securities may dilute your ownership and adversely affect the market price of our Class A common stock
7. 44Delaware law and certain provisions of our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer, or proxy contest difficult, thereby adversely affecting the market price of our common stock
8. 45Our amended and restated certificate of incorporation contains exclusive forum provisions for certain claims, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees
9. 46Accordingly, actions by our stockholders to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder must be brought in federal court. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the regulations promulgated thereunder

General Risks

1. 47Changes in our effective tax rates may reduce our net income
2. 48Global or regional conditions can adversely affect our business, results of operations, and financial condition
3. 49Catastrophic events can adversely affect our business, results of operations, and financial condition