MOVING iMAGE Technologies (MITQ) risk factors, FY2026 10-K

Risks Related to Our Business

1. 01General political, social and economic conditions can adversely affect our business
2. 02Interruptions of, or higher prices of, products and services from our suppliers may affect our results of operations and financial performance
3. 03If we are unable to timely introduce new products and services or enhance existing products and services, our business may be adversely affected
4. 04We 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
5. 05Our 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
6. 06Our operating margins may decline as a result of increasing product costs
7. 07Our 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
8. 08We are substantially dependent upon significant customers who could cease purchasing our products and services at any time45% rewritten
9. 09Our success depends on our ability to maintain our brand. If events occur that damage our brand, our business and financial results may be harmed
10. 10Any failure to offer high-quality customer support may harm our relationships with our customers and our results of operations
11. 11The nature of our business exposes us to product liability claims as well as other legal proceedings
12. 12We may not convert all of our backlog into revenue and cash flows32% rewritten
13. 13We operate in a highly competitive market. If we do not compete effectively, our prospects, operating results, and financial condition could be adversely affected
14. 14We are subject to competitive pricing pressure from our customers
15. 15Our international operations subject us to indirect risks, which could adversely affect our operating results
16. 16We are undertaking and may enter into new lines of business and these new business initiatives may not be successful
17. 17We 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
18. 18We 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
19. 19We 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
20. 20We 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
21. 21If 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 suffer58% rewritten
22. 22Our business could be adversely affected by security breaches through cyber-attacks, cyber intrusions or otherwise
23. 23Natural disasters and other catastrophic events beyond our control, have and could continue in the future to adversely affect our business operations and financial performance50% rewritten
24. 24Our business could be adversely affected by entertainment content provider labor disputes, strikes and shutdowns
25. 25Trade disputes could have a material adverse impact on our business, financial condition, liquidity and results of operations
26. 26We are subject to the rules and regulation of the NYSE American stock exchange and are required to comply with certain continued exchange listing standards and requirements or be subject to delisting
27. 27Our 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

Risks Related to Ownership of Our Common Stock

1. 28An active trading market may not develop or continue to be liquid and the market price of shares of our common stock may be volatile
2. 29Our operating results and share price may be volatile and the market price of our Common Stock may decrease
3. 30We may be subject to securities litigation, which is expensive and could divert management attention
4. 31Insiders exercise significant control over our company and all corporate matters
5. 32We 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 investors39% rewritten
6. 33Our 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. 34We 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. 35Because 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. 36Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans, or otherwise will dilute all other stockholders
10. 37Some 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. 38Our 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. 39If 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