Myseum.AI (MYSE) risk factors, FY2025 10-K

Risks Related to our Business and Industry

1. 01We have a limited operating history and have not yet generated any revenues25% rewritten
2. 02We may fail to develop new products or may incur unexpected expenses or delays
3. 03We are dependent on the services of certain key management personnel, employees, and advisors. If we are unable to retain or motivate such individuals or hire qualified personnel, we may not be able to grow effectively
4. 04We may face intense competition and expect competition to increase in the future, which could prohibit us from developing a customer base and generating revenue47% rewritten
5. 05The application is based on new and unproven technologies and is subject to the risks of failure inherent in the development of new products and services
6. 06The Apple App Store is the primary distribution, marketing, promotion and payment platform for the application. Any deterioration in our relationship with Apple or any application marketplace we utilize in the future would harm our business and adversely affect the value of our common stock
7. 07The mobile application industry is subject to rapid technological change and, to compete, we must continually enhance the application
8. 08Defects in the application and the technology powering it may adversely affect our business
9. 09If we fail to retain current users or add new users, or if our users engage less with the application, our business would be seriously harmed
10. 10There is a risk that the public will not perceive the privacy protections that we offer to be necessary or useful and therefore will not be interested in our services
11. 11Users may not want to change the way that they send messages and therefore would not be interested in our products
12. 12The characteristics of the application, including but not limited to privacy and encryption, may be exploited to facilitate illegal activity; if any of our users do so or are alleged to have done so, it could adversely affect us and generate negative perception of our products in the marketplace
13. 13Negative publicity could adversely affect our reputation, our business, and our operating results
14. 14We expect to derive substantially all of our revenue from a limited number of products
15. 15The application depends on effectively operating with mobile operating systems, hardware, networks, regulations, and standards that we do not control. Changes in our products or to those operating systems, hardware, networks, regulations, or standards may seriously harm our user growth, retention, and engagement

Risks Related to Information Technology Systems, Intellectual Property and Privacy Laws

1. 16We rely on a single third-party provider, Amazon Web Services (“AWS”), for computing infrastructure, secure network connectivity, and other technology-related services needed to deliver our products. Any disruption in the services provided by such third-party provider could adversely affect our business
2. 17Major network failures could have an adverse effect on our business
3. 18If third parties claim that we infringe their intellectual property, it may result in costly litigation
4. 19We may not be able to adequately protect our proprietary technology, and our competitors may be able to offer similar products and services which would harm our competitive position
5. 20We could be harmed by improper disclosure or loss of sensitive or confidential data
6. 21Unauthorized breaches or failures in cybersecurity measures adopted by us and/or included in our products and services could have a material adverse effect on our business
7. 22We may be subject to stringent and changing laws, regulations, standards, and contractual obligations related to privacy, data protection, and data security. Our actual or perceived failure to comply with such obligations could adversely affect our business
8. 23Online applications are subject to various laws and regulations relating to children’s privacy and protection, which if violated, could subject us to an increased risk of litigation and regulatory actions
9. 24Myseum is currently under development and no assurance can be given that it will be accepted by others or generate sufficient interest
10. 25Myseum is based on new and unproven technologies and therefore is subject to the risks of failure inherent in the development of new products and services
11. 26We may not be able to adequately evaluate the risks associated with our planned social metaverse and advertising platforms
12. 27We are susceptible to market conditions and risks associated with the metaverse and digital entertainment industry, including the popularity, customers’ preferences, and potential regulations, all of which are difficult to predict and are beyond our control
13. 28If we fail to retain users or add new users, or if our users decrease their level of engagement with Myseum, revenue, bookings, and operating results will be harmed
14. 29We face intense competition for our products and services
15. 30Our costs are continuing to grow, and some of our investments, particularly our investments in virtual and augmented reality, have the effect of reducing our operating margin and profitability. If our investments are not successful longer-term, our business and financial performance will be harmed
16. 31Our industry is subject to rapid technological change, and if we do not adapt to, and appropriately allocate our resources among, emerging technologies and business models, our business may be negatively impacted

Risks Related to Our Common Stock and Series A Warrants

1. 32The price of our common stock and our Series A Warrants may fluctuate substantially
2. 33We may acquire other companies or technologies, which could divert our management’s attention, result in dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results
3. 34If research analysts do not publish research about our business or if they issue unfavorable commentary or downgrade our common stock or Series A Warrants, our securities’ price and trading volume could decline
4. 35We may issue additional equity securities, or engage in other transactions that could dilute our book value or relative rights of our common stock, which may adversely affect the market price of our common stock and Series A Warrants
5. 36Market and economic conditions may negatively impact our business, financial condition and share price
6. 37The ability of a stockholder to recover all or any portion of such stockholder’s investment in the event of a dissolution or termination may be limited
7. 38We are an “emerging growth company” and are able to avail ourselves of reduced disclosure requirements applicable to emerging growth companies, which could make our common stock less attractive to investors
8. 39We may be at risk of securities class action litigation
9. 40Financial reporting obligations of being a public company in the United States are expensive and time-consuming, and our management will be required to devote substantial time to compliance matters
10. 41If we fail to comply with the rules under Sarbanes-Oxley related to accounting controls and procedures in the future, or, if we discover material weaknesses and other deficiencies in our internal control and accounting procedures, our stock price could decline significantly and raising capital could be more difficult
11. 42Comprehensive tax reform bills could adversely affect our business and financial condition
12. 43We could issue “blank check” preferred stock without stockholder approval with the effect of diluting interests of then-current stockholders and impairing their voting rights, and provisions in our charter documents and under Nevada law could discourage a takeover that stockholders may consider favorable
13. 44Our ability to have our securities traded on the Nasdaq Capital Market is subject to us meeting applicable listing criteria
14. 45Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval
15. 46Our Articles of Incorporation, as amended, our Amended and Restated Bylaws, and Nevada law may have anti-takeover effects that could discourage, delay or prevent a change in control, which may cause our stock price to decline
16. 47If our shares become subject to the penny stock rules, it would become more difficult to trade our shares
17. 48FINRA sales practice requirements may limit a stockholder’s ability to buy and sell our stock