Everspin Technologies (MRAM) risk factors, FY2024 10-K

Other

1. 01We are subject to the cyclical nature of the semiconductor industry
2. 02We may be unable to match production with customer demand for a variety of reasons including our inability to accurately forecast customer demand, supply chain constraints, or the capacity constraints of our suppliers, which could adversely affect our operating results
3. 03As we expand into new potential markets, we expect to face intense competition, including from our customers and potential customers, and may not be able to compete effectively, which could harm our business
4. 04We rely on third parties to distribute, manufacture, package, assemble and test our products, which exposes us to a number of risks, including reduced control over manufacturing and delivery timing and potential price fluctuations, which could result in a loss of revenue or reduced profitability
5. 05consuming and allow potential competitors to take opportunities in the marketplace. Moreover, if we are unable to find another foundry to manufacture our products or if we have to redesign our core technology, this could cause material harm to our business and operating results
6. 06Disruptions in our supply chain and increased cost of components used in our products may adversely impact our business, results of operations and financial condition, including our ability to fulfill customer demand
7. 07Our joint development agreement and strategic relationships involve numerous risks
8. 08If our strategic relationships are unsuccessful, our business, results of operations, or financial condition may be materially adversely affected
9. 09The loss of one or several of our customers or reduced orders or pricing from existing customers may have a significant adverse effect on our operations and financial results
10. 10Our costs may increase substantially if we or our third-party manufacturing contractors do not achieve satisfactory product yields or quality. The complexity of our products may lead to defect, which could negatively impact our reputation with customers and result in liability
11. 11We may experience difficulties in transitioning to new wafer fabrication process technologies or in achieving higher levels of design integration, which may result in reduced manufacturing yields, delays in product deliveries and increased expenses
12. 12manufacturing processes for our products and to redesign some products, which in turn may result in delays in product deliveries
13. 13Changes to industry standards and technical requirements relevant to our products and markets could adversely affect our business, results of operations and prospects
14. 14Our success depends on our ability to attract and retain key employees, and our failure to do so could harm our ability to grow our business and execute our business strategies
15. 15We currently maintain and are seeking to expand operations outside of the United States which exposes us to significant risks
16. 16We may need additional funding and may be unable to raise capital when needed, which could force us to delay, reduce, or eliminate planned activities
17. 17We cannot be certain that we will sustain profitability
18. 18Failure to protect our intellectual property could substantially harm our business
19. 19remedies for any such breach or that our customers, suppliers, distributors, employees, or consultants will not assert rights to intellectual property or damages arising out of such contracts
20. 20Interruptions in or other compromises of our information technology systems or data or that of third parties upon whom we rely could adversely affect our business
21. 21To comply with environmental laws and regulations, we may need to modify our activities or incur substantial costs, and if we fail to comply with environmental regulations, we could be subject to substantial fines or be required to have our suppliers alter their processes
22. 22Regulations related to “conflict minerals” may force us to incur additional expenses, may make our supply chain more complex and may result in damage to our reputation with customers
23. 23Our ability to use net operating losses to offset future taxable income may be subject to certain limitations

Risks Related to Our Common Stock

1. 24We expect that the price of our common stock will fluctuate substantially
2. 25Provisions in our corporate charter documents and under Delaware law could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management
3. 26We are subject to governmental export and import controls that could impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws
4. 27Our business may be adversely impacted by natural disasters and other catastrophic events