Research Solutions (RSSS) risk factors, FY2025 10-K

Risks Related to Our Business and Our Industry

1. 01We have historically incurred significant losses and may be unable to maintain profitability. If we continue to incur significant losses, we may have to curtail our operations, which may prevent us from successfully operating and expanding our business47% rewritten
2. 02The loss of our largest customers would significantly reduce our revenue and adversely affect our results of operations22% rewritten
3. 03The loss of our largest suppliers of content would significantly reduce our revenue and adversely affect our results of operations
4. 04We are exposed to credit risk on our accounts receivable and prepayments to suppliers of content. This risk is heightened during periods when economic conditions worsen
5. 05Our services, technology and industry relationships are key assets and competitive advantages of our Company and our business may be affected by how we are perceived in the marketplace
6. 06Our business performance is dependent upon the effectiveness of our technology investments, the failure of which could materially impact our business and financial results
7. 07We may be subject to intellectual property rights claims by third parties, which are extremely costly to defend, could require us to pay significant damages and could limit our ability to use certain technologies
8. 08Artificial intelligence-based platforms present new risks and challenges to our business
9. 09Increased accessibility of free or relatively inexpensive information sources may reduce demand for our products and services
10. 10We depend on the services of key personnel, and may not be able to operate and grow our business effectively if we lose their services or are unable to attract qualified personnel in the future
11. 11We rely on our proprietary software systems, and our websites and online networks, and a disruption, failure or security compromise of these systems would disrupt our business, damage our reputation and adversely affect our revenue and profitability
12. 12Breaches of our data security systems or unintended disclosure of our customer data could result in large expenditures to repair or replace such systems, to remedy any security breaches and to protect us from similar events in the future74% rewritten
13. 13Disruptions and other damages to our information technology and breaches in data security or cybersecurity attacks could have a negative financial impact and damage our reputation
14. 14We are exposed to risks associated with PCI compliance
15. 15Our failure to comply with the covenants contained in our loan agreement could result in an event of default that could adversely affect our financial condition and ability to operate our business as planned
16. 16Government regulations related to the Internet could increase our cost of doing business, affect our ability to grow or may otherwise negatively affect our business
17. 17We may be adversely affected by changes in legislation and regulation
18. 18Our growth strategy may require significant additional resources, and such additional resources might not be available on terms acceptable to us, if at all, which may in turn hamper our growth and adversely affect our business
19. 19Acquisitions, joint ventures or similar strategic relationships may disrupt or otherwise have a material adverse effect on our business and financial results
20. 20We are subject to risks related to our foreign operations which could adversely affect our operations and financial performance
21. 21Unfavorable global economic conditions could have a material adverse effect on our business, financial condition, results of operations, prospects and market price of our common stock28% rewritten

Risks Relating to Ownership of Our Common Stock

1. 22We cannot predict the extent to which an active public trading market for our common stock will develop or be sustained. If an active public trading market does not develop or cannot be sustained, you may be unable to liquidate your investment in our common stock
2. 23Our common stock may be subject to significant price volatility which may have an adverse effect on your ability to liquidate your investment in our common stock
3. 24We have not paid cash dividends in the past and do not expect to pay cash dividends in the foreseeable future. Any return on your investment may be limited to increases in the market price of our common stock25% rewritten
4. 25Under the terms of our outstanding options to purchase our common stock issued to employees and others, the holders are given an opportunity to profit from a rise in the market price of our common stock that, upon the exercise of the options, could result in dilution in the interests of our other stockholdersNew
5. 26Our board of directors has broad discretion to issue additional securities
6. 27Our articles of incorporation, bylaws and Nevada law have anti-takeover provisions that could discourage, delay or prevent a change in control, which may cause our stock price to decline