SkyAI (SKYA) risk factors, FY2024 10-K

Risks Related to Our Technology, Business, and Industry

1. 01We are an early-stage company with a history of losses
2. 02We have a limited operating history and we may not succeed
3. 03We may not succeed in commercializing Sharps Provensa products or any future product
4. 04In addition, to increase our production capacity, we will need to build inventory, which will require that we purchase certain additional equipment, including molding machines and molds. We have had no revenues to date
5. 05We may encounter significant competition and may not be able to successfully compete
6. 06We are vulnerable to new technologies
7. 07We are subject to product liability risk
8. 08Our business may be affected by changes in the health care regulatory environment
9. 09Ongoing regulation of our products may limit how we market our products, which could materially impair our ability to generate revenue
10. 10We are dependent on our management; without whose services our business operations could cease
11. 11We may not be able to raise capital as needed to develop our products or maintain our operations
12. 12Health care crises could have an adverse effect on our business
13. 13Our business may be adversely affected by uncertainties in obtaining and enforcing intellectual property rights
14. 14Our patent pending applications may not issue as patents, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours
15. 15Illegal distribution and sale by third parties of counterfeit versions of our products could have a negative impact on us

Risks Related to Our Securities

1. 16Our common stock could be subject to extreme volatility
2. 17We have never paid common stock dividends and have no plans to pay dividends in the future, as a result our common stock may be less valuable because a return on an investor’s investment will only occur if our stock price appreciates
3. 18Our shares will be subject to potential delisting if we do not maintain the listing requirements of the Nasdaq Capital Market
4. 19We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to compliance with our public company responsibilities and corporate governance practices
5. 20As a result of being a public company, we are obligated to develop and maintain proper and effective internal controls over financial reporting, and any failure to maintain the adequacy of these internal controls may adversely affect investor confidence in our company and, as a result, the value of our common stock
6. 21A sale of a substantial number of shares of our common stock may cause the price of the common stock to decline
7. 22Our stock price may be volatile, and the value of our common stock may decline
8. 23We do not intend to pay dividends on our common stock for the foreseeable future
9. 24Our articles of incorporation allow for our board to create new series of preferred stock without further approval by our stockholders, which could adversely affect the rights of the holders of our common stock
10. 25Future securities issuances could result in significant dilution to our stockholders and impair the market price of our common stock
11. 26Additional stock offerings in the future may dilute then-existing shareholders’ percentage ownership of the Company
12. 27We are an “emerging growth company,” and we cannot be certain if the reduced reporting and disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors