Our Bond (OBAI) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01If our security measures are breached or unauthorized access to individually identifiable biometric or other personally identifiable information is otherwise obtained, our reputation may be harmed, and we may incur significant liabilities
2. 02Our collection, processing, use and disclosure of individually identifiable biometric or other personally identifiable information is subject to evolving and expanding privacy and security regulations both in the U.S. and internationally
3. 03We are subject to government regulation related to security agencies, and our failure or inability to comply with these regulations could materially restrict our operations and subject us to substantial penalties
4. 04Our success is highly dependent on our ability to attract and retain highly skilled executive officers and employees globally
5. 05Privacy and data security laws and regulations could require us to make changes to our business, impose additional costs on us and reduce the demand for our software solutions
6. 06We rely on other companies to provide certain hardware and software solutions for our products
7. 07We depend on AWS servers to operate our Bond Preventative Personal Security Platform with online features and our online services. If we were to lose server functionality for any reason, our business may be negatively impacted
8. 08Further, insufficient server capacity could also negatively impact our business. Conversely, if we overestimate the amount of server capacity required by our business, we may incur additional operating costs
9. 09Cost of insurance is a significant part of our expenses and it is subject to market fluctuations, as well as to fluctuations due to our track record. This price can therefore increase unexpectedly and our insurance may not adequately cover our future operating risk
10. 10Our online Bond Preventative Personal Security Platform and services offered through our platform may contain defects
11. 11We rely on AWS to deliver our offerings to users on our platform, and any disruption of or interference with our use of AWS could adversely affect our business, financial condition, results of operations and prospects
12. 12Certain acquisitions could adversely affect our financial results
13. 13Our business may be adversely impacted by additional leverage in connection with acquisitions
14. 14Recent and potential tariffs imposed by the U.S. government or a global trade war could increase the cost of our services, which could have a material adverse effect on our business, financial condition and results of operations
15. 15Intellectual property rights do not necessarily address all potential threats to our competitive advantage
16. 16Intellectual property litigation may lead to unfavorable publicity that harms our reputation and causes the market price of our common shares to decline
17. 17If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed
18. 18If our efforts to build a strong brand identity and maintain a high level of user satisfaction and loyalty are unsuccessful, we may not be able to attract or retain users, and our operating results may be adversely affected

Risks Related to our Management and Control Persons

1. 19We are a “controlled company” within the meaning of the Nasdaq Stock Market Rules because our insiders beneficially own more than 50% of the voting power of our outstanding voting securities

Risks Related to Our Financial Condition and Capital Requirements

1. 20We will require substantial additional capital to finance our operations. If we are unable to raise such capital when needed, or on acceptable terms, we may be forced to delay, reduce and/or eliminate one or more of our research and drug development programs or future commercialization efforts
2. 21Our ability to sell a substantial amount of common stock in the future under the Equity Line SPA may pose a risk of significant dilution to our existing stockholders
3. 22We have a limited operating history, which may make it difficult for you to evaluate our current business and predict our future success and viability
4. 23We have historically operated at a loss, which has resulted in an accumulated deficit
5. 24We anticipate sustaining operating losses for the foreseeable future
6. 25Raising additional capital may cause dilution to our existing stockholders
7. 26We may not be able to continue as a going concern without additional financing, and if such financing is not available to us or is not available to us on acceptable terms, we may be forced to cease operations
8. 27We have a substantial customer concentration, with a limited number of customers accounting for a substantial portion of our revenue
9. 28Because many of our expenses are fixed, we may be unable to limit our losses if we fail to achieve our forecasted revenue

Risks Related to Ownership of Our Common Stock

1. 29Future sales of Common Stock by our existing stockholders could cause our share price to decline
2. 30You may be diluted by future issuances of preferred stock or additional Common Stock in connection with our incentive plans, acquisitions or otherwise; future sales of such shares in the public market, or the expectations that such sales may occur, could lower our stock price
3. 31Because we have no current plans to pay cash dividends on our Common Stock, you may not receive any return on investment unless you sell your Common Stock for a price greater than that which you paid for it
4. 32We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Common Stock less attractive to investors
5. 33It is possible that some investors will find our Common Stock less attractive as a result of the foregoing, which may result in a less active trading market for our Common Stock and higher volatility in our stock price

General Risks

1. 34Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect the price and trading volume of our Common Stock
2. 35Future or past business transactions (such as acquisitions or integrations) could expose us to additional cybersecurity risks and vulnerabilities, as our systems could be negatively affected by vulnerabilities present in acquired or integrated entities’ systems and technologies
3. 36Our operations are vulnerable to interruption by fire, severe weather conditions, power loss, telecommunications failure, terrorist activity and other events beyond our control, which could harm our business