MOVING iMAGE Technologies (MITQ) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01The COVID-19 pandemic and ensuing governmental responses have negatively impacted, and could further materially adversely affect, our business, financial condition, results of operations and cash flows
2. 02General political, social and economic conditions can adversely affect our business
3. 03Interruptions of, or higher prices of, products and services from our suppliers may affect our results of operations and financial performance
4. 04If we are unable to timely introduce new products and services or enhance existing products and services, our business may be adversely affected
5. 05We depend in part on distributors, dealers and resellers to sell and market our products and services, and our failure to maintain and further develop our sales channels could harm our business
6. 06Our operating results could be materially harmed if we are unable to accurately forecast consumer demand for our products and services and adequately manage our inventory
7. 07Our operating margins may decline as a result of increasing product costs
8. 08Our sales and contract fulfillment cycles can be long, unpredictable and vary seasonally, which can cause significant variation in revenues and profitability in a particular quarter
9. 09We are substantially dependent upon significant customers who could cease purchasing our products and services at any time
10. 10Our success depends on our ability to maintain our brand. If events occur that damage our brand, our business and financial results may be harmed
11. 11Any failure to offer high-quality customer support may harm our relationships with our customers and our results of operations
12. 12The nature of our business exposes us to product liability claims as well as other legal proceedings
13. 13We may not convert all of our backlog into revenue and cash flows
14. 14We operate in a highly competitive market. If we do not compete effectively, our prospects, operating results, and financial condition could be adversely affected
15. 15We are subject to competitive pricing pressure from our customers
16. 16Our international operations subject us to indirect risks, which could adversely affect our operating results
17. 17We are undertaking and may enter into new lines of business and these new business initiatives may not be successful
18. 18We may need to raise additional capital required to grow our business, and we may not be able to raise capital on terms acceptable to us or at all
19. 19We may make acquisitions that are dilutive to existing stockholders. In addition, our limited experience in acquiring other businesses, product lines and technologies may make it difficult for us to overcome problems encountered in connection with any acquisitions we may undertake
20. 20We have limited human resources; we need to attract and retain highly skilled personnel; and we may be unable to manage our growth with our limited resources effectively
21. 21We depend on our founders, senior professionals and other key personnel, and our ability to retain them and attract additional qualified personnel is critical to our success and our growth prospects
22. 22If we are unable to maintain and protect our intellectual property, or if third parties assert that we infringe on their intellectual property rights, our business could suffer
23. 23Also, third parties may claim that our business operations infringe on their intellectual property rights. These claims may harm our reputation, cost us money to defend, distract the attention of our management and prevent us from offering some services
24. 24Our business could be adversely affected by security breaches through cyber-attacks, cyber intrusions or otherwise
25. 25Natural disasters and other catastrophic events beyond our control, including but not limited to the COVID-19 pandemic, has and could continue in the future adversely affect our business operations and financial performance
26. 26Our business could be adversely affected by entertainment content provider labor disputes, strikes and shutdowns

Risks Related to Ownership of Our Common Stock

1. 27We do not know whether an active, liquid and orderly trading market will develop for our Common Stock or what the market price of our Common Stock will be and as a result it may be difficult for you to sell your shares of our Common Stock
2. 28Our operating results and share price may be volatile and the market price of our Common Stock may decrease
3. 29We may be subject to securities litigation, which is expensive and could divert management attention
4. 30Insiders exercise significant control over our company and all corporate matters
5. 31We are an “emerging growth company” and we intend to take advantage of reduced disclosure and governance requirements applicable to emerging growth companies, which could result in our shares of Common Stock being less attractive to investors
6. 32Our status as an “emerging growth company” under the JOBS Act may make it more difficult to raise capital as and when we need it
7. 33We incur increased costs as a result of being a public company and our management expects to devote substantial time to public company compliance programs
8. 34Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of potential gain
9. 35Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders
10. 36Some provisions of our charter documents and Delaware law may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition would be beneficial to our stockholders and may prevent attempts by our stockholders to replace or remove our current management
11. 37Our Bylaws have an exclusive forum for adjudication of disputes provision which limits the forum to the Delaware Court of Chancery for certain actions against the Company
12. 38If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, the trading price of our Common Stock and trading volume could decline
13. 39Our business depends on motion picture production and performance and is subject to intense competition, including increases in alternative film delivery methods or other forms of entertainment