Mobileye Global (MBLY) risk factors, FY2025 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 affected29% rewritten
3. 03We operate in a highly competitive market26% rewritten
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 condition28% rewritten
8. 08services that affect the performance of EyeQ™ SoCs, notwithstanding the absence of any defect in design or manufacture or other failure in EyeQ™ SoCs themselves, could result in additional claims being made against usNew
9. 09There 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
10. 10The success of our AMaaS and robotaxi solutions will depend on their effective deployment and operation by third parties, and may be adversely affected by regulatory developments, safety incidents, negative media coverage or public perceptionNew
11. 11Developing RoadBook™ depends on continued cooperation by OEMs
12. 12We are highly dependent on the services of Professor Amnon Shashua, our President and Chief Executive Officer
13. 13If we are unable to attract, retain, and motivate key employees, then our business, results of operations, and financial condition would be adversely affected29% rewritten
14. 14We face integration risks and costs associated with companies, assets, employees, products, and technologies that we have or that we may acquire, including in respect of our acquisition of Mentee Robotics Ltd47% rewritten
15. 15We may need to raise additional capital in the future, which may not be available on terms acceptable to us, or at all
16. 16We are affected by fluctuations in currency exchange rates, including those in connection with prior inflationary trends in the United States24% rewritten
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 solutions41% rewritten
3. 20security and systems may result in fines, penalties, and damages, harm our reputation, and adversely affect our business, results of operations, and financial conditionNew

Risks Related to our Intellectual Property Rights

1. 21We may not be able to adequately protect, defend or enforce our intellectual property rights, and our efforts to do so may be costly
2. 22We 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. 23We 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. 24We 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. 25In addition to patented technology, we rely on our unpatented proprietary technology, trade secrets, processes, and know-how
6. 26We 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. 27An uncertain economic environment and inflationary conditions may adversely affect global vehicle production and demand for our solutions
2. 28If 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. 29We 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. 30Our 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. 31We are subject to risks related to trade policies, sanctions, and import and export controls28% rewritten
4. 32The current conflict between Ukraine and Russia has exacerbated market instability and disrupted the global economy

Risks Related to Operations in Israel

1. 33Conditions in Israel affect our operations and may limit our ability to produce and sell our solutions27% rewritten
2. 34Our operations may be disrupted by the obligations of personnel to perform military service as a result of current or future military actions involving Israel22% rewritten
3. 35The 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. 36Our dual class structure may depress the trading price of our Class A common stock
2. 37Any 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 stock72% rewritten
3. 38meaning that the product prices, terms, warranties, and benefits provided between us and Intel shall be comparable to or better than the equivalent terms being offered by the party providing the products to any single, present customer of such partyNew
4. 39Certain 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. 40The market price of our Class A common stock may fluctuate, and you could lose all or part of your investment
2. 41We do not expect to pay dividends in the foreseeable future
3. 42The ongoing compliance requirements of being a public company may strain our resources and divert management’s attention21% rewritten
4. 43Failure 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. 44If 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. 45The issuance by us of additional equity securities may dilute your ownership and adversely affect the market price of our Class A common stock
7. 46Delaware 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. 47Our 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. 48Accordingly, 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. 49Changes in our effective tax rates may reduce our net income (loss)23% rewritten
2. 50Global or regional conditions can adversely affect our business, results of operations, and financial condition
3. 51If we determine that our goodwill has become impaired, we may incur impairment charges, which would negatively impact our operating resultsNew
4. 52Catastrophic events can adversely affect our business, results of operations, and financial condition