PAR Technology (PAR) risk factors, FY2024 10-K

Risks Related to Our Business and Operations

1. 01Our failure to meet service level commitments or milestones under customer contracts may result in our customer contracts being less profitable, and expose us to liability and reputational harm
2. 02We rely on third-party cloud and network infrastructure providers to deliver our subscription services, and any interruptions or delays in their services could harm our reputation and business
3. 03Our products might experience coding, configuration, or manufacturing errors, which could damage our reputation, deter current and potential customers from purchasing our products and materially and adversely affect our business, financial conditions, results of operations, and cash flows
4. 04Macroeconomic conditions and geopolitical events could have a material adverse effect on our business, financial condition, results of operations, and cash flows
5. 05Issues with product and component availability or supplier performance may affect our ability to assemble, repair, and deliver our hardware products and perform related services, which could have a material adverse effect on our business, financial condition, and results of operations
6. 06Further, in some instances, we are dependent on single-source suppliers for our hardware products, which may subject us to other significant risks, including inadequate inventory, higher prices, and reduced control over delivery schedules
7. 07inability to fill our supply needs, jeopardizing our ability to fulfill our contractual obligations, which could in turn, result in a decrease in sales and cash flows, contract penalties or terminations, and damage to customer relationships and our reputation
8. 08If we are unable to recruit, develop, and retain skilled employees, our business, financial condition, and results of operations may be materially and adversely harmed
9. 09Acquisitions are an element of our growth strategy, which subjects us to risks commonly associated with acquisition transactions, which could materially and adversely affect our business, financial condition, results of operations, and cash flows
10. 10Our international operations subject us to local laws and regulatory regimes, geopolitical or economic changes or events, uncertainties and other factors that could harm our business, financial condition and results of operations
11. 11Natural disasters, pandemics, or other natural or manmade disasters or outbreaks could negatively impact our business and operations

Risks Related to Cyber Security, Data Privacy, and Intellectual Property

1. 12Our failure to comply with data privacy or data protection laws and regulations could subject us to significant penalties and legal liability, harm our reputation or otherwise materially harm our business, financial condition, results of operations, and cash flows
2. 13Assertions by third parties of infringement or other violations by us of their intellectual property rights could result in significant costs and materially and adversely harm our business, financial conditions, results of operations and cash flows
3. 14There are risks related to our information technology systems, which could have a material adverse effect on our business, financial condition, results of operations, and cash flows
4. 15Our use of AI could have a material adverse effect on our business, financial condition, and results of operations

Financial Related Risks

1. 16We may not be able to achieve and sustain profitability, which could have a material adverse effect on our financial condition and the trading price of our common stock
2. 17If we fail to achieve and sustain profitability, our financial condition could be materially and adversely impacted and the market price of our common stock could decline
3. 18A conversion of the Senior Notes, or a fundamental change under the Senior Notes, if triggered, may materially and adversely affect our financial condition and results of operations
4. 19We make estimates and assumptions in connection with the preparation of our financial statements, and any changes to those estimates and assumptions could adversely affect our results of operations, cash flows and financial condition
5. 20Ineffective internal controls could have a material adverse effect on our business, financial conditions, and results of operations
6. 21Our financial results may be impacted by changes in tax law or changes in our tax position
7. 22consequences or other negative effects could have a material adverse effect on our financial condition, cash flows or results of operations

Risks Related to the Ownership of our Common Stock

1. 23We have not paid dividends in the past and we do not anticipate paying dividends in the foreseeable future
2. 24Future sales of our common stock or other securities could depress the price of our common stock and could result in dilution to our shareholders
3. 25Our evaluation or completion of strategic transactions may negatively impact our business and stock price
4. 26The trading price of our common stock may experience price and volume volatility, which could impair our ability to finance strategic transactions using our common stock and could result in losses for our shareholders
5. 27In addition, the market for technology stocks or the stock market in general may experience uneven investor confidence, which may cause the trading price for our common stock to decline for reasons unrelated to our operating performance
6. 28Certain provisions of our certificate of incorporation and bylaws and Delaware law may discourage a takeover of our company