Socket Mobile (SCKT) risk factors, FY2024 10-K

Other

1. 01We may not return to profitability
2. 02We may require additional capital in the future, but that capital may not be available on reasonable terms, if at all, or on terms that would not cause substantial dilution to investors’ stock holdings
3. 03In order to maintain the availability of our bank lines of credit we must remain in compliance with the covenants as specified under the terms of the credit agreements and the bank may exercise discretion in making advances to us
4. 04If app providers are not successful in their efforts to develop, market and sell the applications into which our software and products are incorporated, we may not achieve our sales projections
5. 05A deterioration in global economic conditions may have adverse impacts on our business and financial condition in ways that we currently cannot predict and may limit our ability to raise additional funds
6. 06Failure to maintain effective internal controls could have a material adverse effect on our business, operating results, and stock price
7. 07Despite security protections, our business records and information could be hacked by unauthorized personnel
8. 08Deferred tax assets comprise a significant portion of our assets and are dependent upon future tax profitability to realize the benefits
9. 09We may be unable to manufacture our products because we are dependent on a limited number of qualified suppliers for our components
10. 10If we fail to develop and introduce new products rapidly and successfully, we will not be able to compete effectively, and our ability to generate sufficient revenues will be negatively affected
11. 11We may not be able to collect receivables from customers who experience financial difficulties
12. 12We could face increased competition in the future, which would adversely affect our financial performance
13. 13If we do not correctly anticipate demand for our products, our operating results will suffer
14. 14We rely primarily on distributors to distribute our products, and our sales would suffer if any of these distributors stopped distributing our products effectively
15. 15We depend on alliances and other business relationships with third parties, and a disruption in these relationships would hinder our ability to develop and sell our products
16. 16Our intellectual property and proprietary rights may be insufficient to protect our competitive position
17. 17We may become subject to claims of intellectual property rights infringement, which could result in substantial liability
18. 18New industry standards may require us to redesign our products, which could substantially increase our operating expenses
19. 19Undetected flaws and defects in our products may disrupt product sales and result in expensive and time-consuming remedial action
20. 20The loss of one or more of our senior personnel could harm our existing business
21. 21The expensing of stock options and restricted stocks will continue to reduce our operating results such that we may find it necessary to change our business practices to attract and retain employees
22. 22If we are unable to attract and retain highly skilled sales and marketing and product development personnel, our ability to develop and market new products and product enhancements will be adversely affected
23. 23Our operating results could be harmed by economic, political, regulatory and other risks associated with export sales
24. 24Our facilities or operations could be adversely affected by events outside our control, such as natural disasters or health epidemics
25. 25Our quarterly operating results may fluctuate in future periods, which could cause our stock price to decline
26. 26The sale of a substantial number of shares of our common stock could cause the market price of our common stock to decline
27. 27Volatility in the trading price of our common stock could negatively impact the price of our common stock