Reed's (REED) risk factors, FY2024 10-K

Other

1. 01Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud
2. 02Global economic uncertainty and unfavorable global economic conditions caused by political instability, changes in trade agreements and conflicts, such as the Russia-Ukraine conflict and the conflict in the Middle East, could adversely affect our business, financial condition, results of operations or prospects
3. 03We are a “smaller reporting company” and we cannot be certain if the reduced reporting requirements applicable to “smaller reporting companies” will make our common stock less attractive to investors

Business and Operational Risks

1. 04Failure to realize benefits from our productivity initiatives can adversely affect our financial performance
2. 05When we underestimate demand for our products, are unable to secure sufficient ingredients or raw materials or procure adequate packing arrangements to obtain adequate or timely shipment of our products, we are not able to satisfy demand on a short-term basis
3. 06Our reliance on distributors, retailers and brokers could affect our ability to efficiently and profitably distribute and market our products, maintain our existing markets and expand our business into other geographic markets
4. 07Supply chain challenges have impacted our ability to benefit from strong demand for, and increased sales of our products and adversely impacted our business. Supply chain constraints could cause a disruption in our ability to obtain raw materials required to manufacture our products and adversely affect our operations
5. 08Reduction in future demand for our products would adversely affect our business
6. 09Damage to our reputation or brand image can adversely affect our business
7. 10Product recalls or other issues or concerns with respect to product quality and safety can adversely affect our business
8. 11Any inability to compete effectively can adversely affect our business
9. 12Dependence on Key Personnel
10. 13Failure to attract, develop and maintain a highly skilled and diverse workforce or effectively manage changes in our workforce can have an adverse effect on our business
11. 14Changes in the retail landscape or in sales to any key customer can adversely affect our business
12. 15We compete in an industry characterized by rapid changes in consumer preferences and public perception, so our ability to continue developing new products to satisfy the changing preferences of consumers will determine our long-term success
13. 16We may experience a reduced demand for some of our products due to health concerns (including obesity) and legislative initiatives against sweetened beverages
14. 17Changes in economic conditions can adversely impact our business
15. 18Future cyber incidents and other disruptions to our information systems can adversely affect our business
16. 19The company relies on its information technology, and potential cyber-attack, data breach or other failure or disruption of its information technology could disrupt its operations and adversely affect its results of operations
17. 20Our largest stockholder’s preemptive right could dissuade a strategic investor from making an investment in the Company

Legal, Tax and Regulatory Risks

1. 21Taxes aimed at our products can adversely affect our business or financial performance
2. 22Limitations on the marketing or sale of our products can adversely affect our business and financial performance
3. 23Laws and regulations related to the use or disposal of plastics or other packaging materials can adversely affect our business and financial performance
4. 24Failure to comply with personal data protection and privacy laws can adversely affect our business
5. 25Our manufacturing process is not patented
6. 26If we are unable to adequately protect our intellectual property rights, or if we are found to infringe on the intellectual property rights of others, our business can be adversely affected
7. 27Failure to comply with laws and regulations applicable to our business can adversely affect our business
8. 28Potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations inherent in our business can have an adverse impact on our business
9. 29Regulations concerning our alcohol beverages may adversely affect our business, financial condition or results of operations
10. 30Significant changes to or failure to comply with various environmental laws may our co-packers to liability or cause them to close, relocate or operate at reduced production levels, which could adversely affect our business, financial condition and results of operations
11. 31Water scarcity and poor quality could negatively impact our costs and capacity
12. 32Climate change and legal or regulatory responses thereto may have a long-term adverse impact on our business and results of operations