Vital Farms (VITL) FY2025 10-K Risk Factors: 18 New, 15 Dropped

What the changes say

Vital Farms faces heightened risks from agricultural disease outbreaks like avian influenza impacting its shell egg supply chain.
Fluctuations in commodity egg prices and potential capacity constraints at facilities like Egg Central Station threaten operations.
New tariffs and packaging cost volatility create ongoing margin pressures.

What changed since the prior 10-K

New

New
If our forecasts of future supply capacity or customer and consumer demand are inaccurate, our business and operating results could be harmed
Inaccurate forecasts of consumer demand or supply capacity, or disruptions at the Egg Central Station facility in Missouri, could harm operations.
New
Our planned Vital Crossroads egg washing and packing facility with onsite cold storage in Indiana or other future expansions of our processing capacity may not provide us with the benefits we expect to receive
The planned Vital Crossroads facility in Indiana or other expansions may not deliver expected benefits, and commodity egg price fluctuations could hurt results.
New
If our development and operation of accelerator farms do not result in the benefits we anticipate, our business and financial results may be adversely affected
Agricultural diseases like avian influenza and egg drop syndrome, or failure to effectively price products, could reduce supply or demand.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
If our forecasts of future supply capacity or customer and consumer demand are inaccurate, our business and operating results could be adversely affected
Demand forecasts rely on third-party proprietary scanner data that may prove inaccurate and lead to processing or storage capacity mismatches.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
We are dependent on the market for shell eggs, and fluctuations in this market, including the decline of commodity shell egg prices relative to the price of our shell eggs, could adversely affect our business, financial condition and results of operations
Contractual obligations to buy all egg production from family farms regardless of sales can lead to excess supply sold at reduced prices during market oversupplies.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
our flocks are kept as safe as possible, including the procurement and implementation of newly available vaccinations for EDS. However, we may not be able to obtain enough vaccinations to treat all of the flocks in our network
Outbreaks of HPAI or egg drop syndrome could limit the use of co-packers and cause severe supply disruptions across farms.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
Nevertheless, if our security measures fail, losses exceed our insurance coverage, or we are not able to maintain insurance at a reasonable cost, we could incur significant losses from damage, loss or theft, any of which could substantially harm our business and results of operations
Noncompliance by third-party transportation providers with regulatory requirements could cause logistical difficulties and increase shipping costs.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
market, increased commodity or raw material costs, increased packaging or transportation costs or otherwise, any resulting decline in consumer demand for our products may be exacerbated by the competitiveness of our market
Large multinational conventional food competitors and private label brands possess greater resources to compete aggressively on price and shelf placement.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
effect on our business, financial condition and results of operations until such time as the interruption is resolved or an alternate source of production or distribution is secured, especially in times of low inventory
Increased marketing and advertising spending to maintain brand awareness and shelf placement may not successfully drive revenue or protect market share.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
advance. Once the chicks are hatched, they are delivered to a network of pullet farms, who rear the chicks to approximately 16 to 18 weeks of age, at which time they are delivered to our network of family farms to begin laying eggs
Lack of long-term contracts with pullet hatcheries and independent pullet farms exposes the supply chain to severe disruptions from disease or utility failures.
NewRisks Related to Our Business, Our Brand, Our Products and Our Industry
We rely on independent certification for a number of our products
Loss of independent third-party certifications such as Certified Humane, USDA organic, or Regenified could harm brand reputation and market position.
NewRisks Related to Socioeconomic, Political and Environmental Factors
International trade policies, including tariffs, sanctions and trade barriers, and ongoing changes and uncertainty in the tariff regime, may adversely affect our business, financial condition, results of operations and prospects
New tariffs implemented in fiscal 2025 increased expenses for imported butter, processing equipment, and packaging, reducing margins.
NewRisks Related to Socioeconomic, Political and Environmental Factors
Failure to adequately respond to stakeholder scrutiny related to environmental, social and governance issues or failure to achieve our stated Impact Goals could adversely impact our reputation and brand
NewRisks Related to Cybersecurity, Information Technology and Intellectual Property
cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our services
NewRisks Related to Cybersecurity, Information Technology and Intellectual Property
Further, we have and may in the future experience delays in developing and deploying remedial measures and patches designed to address identified vulnerabilities. Vulnerabilities could be exploited and result in a security incident
NewRisks Related to Cybersecurity, Information Technology and Intellectual Property
Our continued success depends, to a significant degree, upon our ability to protect and preserve our intellectual property, including our trademarks and copyrights
NewRisks Related to Being a Public Company, Ownership of Our Common Stock and Other General Risks
If we fail to maintain an effective system of internal control over financial reporting in the future, we may not be able to accurately report our financial condition, results of operations or cash flows, which may adversely affect investor confidence in us and, as a result, the value of our common stock
NewRisks Related to Being a Public Company, Ownership of Our Common Stock and Other General Risks
We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder value

Dropped

Dropped
Failure to introduce successful new products, successfully enter new product categories or successfully pursue growth by other means may adversely affect our ability to continue to grow
Dropped
We currently have a limited number of third-party co-manufacturers and cold storage providers. The loss of one or more of our co-manufacturers or cold storage providers or our failure to timely identify and establish new relationships could harm our business and impede our growth
Failure to introduce successful new products or expand processing capacity.
Dropped
We source substantially all of our shell egg cartons from a sole source supplier, and any disruptions may impact our ability to sell our eggs
Dropped
Our status as a public benefit corporation and a Certified B Corporation may not result in the benefits we anticipate, and we may be unable to maintain our Certified B Corporation status
DroppedRisks Related to Our Growth and Capital Requirements
capacity. We believe that we will continue to expend substantial resources for the foreseeable future as we consider additional markets we may choose to pursue and other growth opportunities
Limited third-party co-manufacturers and cold storage providers.
DroppedRisks Related to Our Business, Our Brand, Our Products and Our Industry
who have previously purchased our products may buy other brands and our retail customers may allocate shelf space to other brands, each of which could adversely affect our business, financial condition and results of operations
DroppedRisks Related to Our Business, Our Brand, Our Products and Our Industry
A substantial amount of our shell egg processing occurs at our existing Egg Central Station processing facility in Missouri. Any damage or disruption at this facility may harm our business
Sole source supplier for egg cartons and seasonal demand fluctuations.
DroppedRisks Related to Our Business, Our Brand, Our Products and Our Industry
We also sell a small percentage of our shell eggs to wholesalers and egg breaking plants at commodity shell egg prices, which fluctuate widely and are outside our control. Small increases in production or small decreases in demand can have a large adverse effect on the prices at which these eggs are sold
DroppedRisks Related to Our Business, Our Brand, Our Products and Our Industry
Our sales and profits are dependent upon our ability to expand existing customer relationships and acquire new customers
DroppedRisks Related to Legal and Government Regulation
be subject to increased challenges by class action plaintiffs. Our inability or failure to obtain consent for these practices could result in adverse consequences, including class action litigation and mass arbitration demands
Material weakness in internal control over financial reporting.
DroppedRisks Related to Being a Public Company
Effective as of December 29, 2024, we are a large accelerated filer, which has increased and will continue to increase our costs and demands on management
DroppedRisks Related to Being a Public Company
the requirement that we hold a non-binding advisory vote on executive compensation and obtain stockholder approval of any golden parachute payments not previously approved
DroppedRisks Related to Cybersecurity, Information Technology and Intellectual Property
The implementation of a new enterprise resource planning system could cause disruption to our business, and we may not be able to effectively realize the benefits of this new system
DroppedRisks Related to Ownership of Our Common Stock and Other General Risks
The market price of our common stock may be highly volatile and may fluctuate or decline substantially as a result of a variety of factors, some of which are beyond our control, including those described elsewhere in this “Risk Factors” section
DroppedRisks Related to Ownership of Our Common Stock and Other General Risks
We may be subject to significant liability that is not covered by insurance

Reworded

100% rewritten
We must expend resources to maintain consumer awareness of our brand, build brand loyalty and generate interest in our products. Our marketing strategies and channels will evolve, and our programs may or may not be successful
Completely replaced prior marketing cost details with a broad threat regarding consumer preferences and perception shifts in natural and animal-based foods.
100% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Packaging costs are volatile, have recently increased and may continue to increase, which may negatively impact our profitability, and reduced availability of packaging supplies may otherwise impact our business
Swapped a management retention risk with detailed commentary on packaging cost volatility, trade impacts, and unrecoverable price increases continuing into fiscal 2025.
100% rewrittenRisks Related to Being a Public Company, Ownership of Our Common Stock and Other General Risks
Our stock price may be volatile, and the value of our common stock may decline
Added an entirely new risk factor covering common stock volatility, potential stock buyback impacts, and broad macroeconomic and geopolitical uncertainties.
99% rewritten
Our brand and reputation may be diminished due to real or perceived quality or food safety issues with our products, which could have an adverse effect on our business, reputation, operating results and financial condition
Replaced quality and food safety content by shifting text to cover management retention and culture risks, while folding food safety into a different frame.
95% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
If we fail to effectively maintain relationships within our contracted farm network or further expand our farm network, our business, operating results and brand reputation could be harmed
Updated to specifically name the cream sourcing network through butter suppliers and emphasize risks from contracted farmers taking adverse actions.
Was: If we fail to effectively maintain relationships within our existing farm network or further expand our farm network, or if our plans for the purchase, development and potential sale of accelerator farms do not result in the benefits we anticipate, our business, operating results and brand reputation could be harmed
90% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
We are dependent on hatcheries and pullet farms to supply our network of contracted family farms and accelerator farms with laying hens. Any disruption in that supply chain could materially and adversely affect our business, financial condition or results of operations
Added explicit references to accelerator farms alongside contracted family farms regarding laying hen supply chain dependencies.
Was: We are dependent on hatcheries and pullet farms to supply our network of family farms with laying hens. Any disruption in that supply chain could materially and adversely affect our business, financial condition or results of operations
88% rewrittenRisks Related to Our Growth and Capital Requirements
We may require additional financing to achieve our goals, and the failure to obtain this necessary capital when needed on acceptable terms, or at all, may force us to delay, limit, reduce or terminate our product manufacturing and development, and other operations
Integrated forward-looking statements regarding liquidity and the 12-month sufficiency of the Credit Facility directly into the financing risk.
87% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Elevated interest rates could adversely affect our business and the ability of our family farmers to access capital
Retained substantially similar text regarding elevated interest rates impacting the company and family farmers' access to capital.
86% rewrittenRisks Related to Cybersecurity, Information Technology and Intellectual Property
The loss of any registered trademark or other intellectual property could enable other companies to compete more effectively with us
83% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Our business activities are subject to a variety of agricultural risks, including pests and diseases such as HPAI and egg drop syndrome, or EDS, the occurrence of which can materially and adversely affect the quality and quantity of products, including shell eggs, that we distribute
76% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Failure to leverage our brand value propositions to compete against private-label products, especially during an economic downturn, may adversely affect our profitability
72% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
If we fail to effectively expand our processing, manufacturing and production capacity as we continue to grow and scale our business, our business and operating results could be adversely affected
Was: If we fail to effectively expand our processing, manufacturing and production capacity as we continue to grow and scale our business, or if our forecasts of future supply capacity or customer and consumer demand are inaccurate, our business and operating results could be harmed
72% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Our operations are geographically consolidated. A major tornado or other natural disaster or extreme weather event within the regions in which we operate could seriously disrupt our entire business
Was: Our operations are geographically consolidated. A major tornado or other natural disaster within the regions in which we operate could seriously disrupt our entire business
56% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Consolidation of retail customers or the loss of a significant retail customer could negatively impact our sales and profitability
53% rewritten
Increased transportation and freight costs or failure by our transportation providers to pick up raw materials or deliver our products on time, in compliance with applicable governmental regulations or at all, have adversely impacted and are expected to continue to adversely impact our operating results
53% rewrittenRisks Related to Our Growth and Capital Requirements
Sales of shell eggs constitute the vast majority of our net revenue, and a reduction in these sales would have an adverse effect on our financial condition
52% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Increased transportation and freight costs or failure by our transportation providers to pick up raw materials or deliver our products on time, in compliance with applicable governmental regulations or at all, have adversely impact and are expected to continue to adversely impact our operating results
51% rewrittenRisks Related to Socioeconomic, Political and Environmental Factors
Climate change, or legal, regulatory or market efforts to address climate change, may negatively affect our business and operations
50% rewritten
A limited number of distributors represent a substantial portion of our sales, and disruptions affecting our significant distributors or our relationships with such distributors may adversely affect our results of operations
49% rewrittenRisks Related to Our Growth and Capital Requirements
Our recent, rapid growth may not be indicative of our future growth, and if we continue to grow rapidly, we may not be able to effectively manage our growth or evaluate our future prospects. If we fail to effectively manage our growth or evaluate our future prospects, our business could be adversely affected
45% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Fluctuations in commodity prices and in the availability of feed grains could negatively impact our results of operations and financial condition
43% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
Our future business, results of operations and financial condition may be adversely affected by reduced or limited availability of eggs, cream for our butter and other raw materials that meet our standards
39% rewritten
Our operations are subject to FDA and USDA federal regulations, as well as other federal, state and local regulations, and there is no assurance that we will be in compliance with all applicable regulations
32% rewritten
Summary of Selected Risks Associated with Our Business
32% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
If we fail to cost-effectively attract new consumers and customers or retain our existing consumers and customer relationships, our business could be adversely affected
Was: If we fail to cost-effectively attract new consumers or retain our existing consumers, our business could be adversely affected
32% rewrittenRisks Related to Socioeconomic, Political and Environmental Factors
Disruptions in international trade, including disruptions due to global health pandemics, third-party labor disputes or geopolitical tensions, may have a material adverse impact on us, our suppliers and our network of farms, including our ability to expand our operations as planned
30% rewrittenRisks Related to Our Growth and Capital Requirements
We may not be able to maintain or increase our profitability in the future
28% rewrittenRisks Related to Our Business, Our Brand, Our Products and Our Industry
If we fail to retain and motivate members of our management team or other key crew members or fail to attract, train, develop and retain additional qualified crew members to support our operations, our business and future growth prospects may be harmed
27% rewrittenRisks Related to Legal and Government Regulation
Litigation or legal proceedings could expose us to significant liabilities and have a negative impact on our reputation or business
27% rewrittenRisks Related to Our Status as a Certified B Corporation and Public Benefit Corporation
Our status as a public benefit corporation and a Certified B Corporation may not result in the benefits that we anticipate, and we may be unable to maintain our Certified B Corporation status
25% rewrittenRisks Related to Legal and Government Regulation
Food safety and food-borne illness incidents or advertising or product mislabeling may materially and adversely affect our business by exposing us to lawsuits, product recalls or regulatory enforcement actions, increasing our operating costs and reducing demand for our product offerings
25% rewrittenRisks Related to Our Growth and Capital Requirements
The agreements governing our credit facility require us to meet certain covenants, which could restrict our operational and financial flexibility
23% rewrittenRisks Related to Legal and Government Regulation
We are subject to stringent environmental regulation and potentially subject to environmental litigation, proceedings and investigations
21% rewrittenRisks Related to Legal and Government Regulation
Our compliance with these legal requirements and obligations, together with any policies or practices that we have or may implement to further secure and protect sensitive data, could limit our ability to utilize data that may be valuable to our business

All 69 risk factors

Headings as the filing states them, in filing order.

Other

01Summary of Selected Risks Associated with Our Business32% rewritten
02If our forecasts of future supply capacity or customer and consumer demand are inaccurate, our business and operating results could be harmedNew
03Our planned Vital Crossroads egg washing and packing facility with onsite cold storage in Indiana or other future expansions of our processing capacity may not provide us with the benefits we expect to receiveNew
04If our development and operation of accelerator farms do not result in the benefits we anticipate, our business and financial results may be adversely affectedNew
05Increased transportation and freight costs or failure by our transportation providers to pick up raw materials or deliver our products on time, in compliance with applicable governmental regulations or at all, have adversely impacted and are expected to continue to adversely impact our operating results53% rewritten
06We must expend resources to maintain consumer awareness of our brand, build brand loyalty and generate interest in our products. Our marketing strategies and channels will evolve, and our programs may or may not be successful100% rewritten
07A limited number of distributors represent a substantial portion of our sales, and disruptions affecting our significant distributors or our relationships with such distributors may adversely affect our results of operations50% rewritten
08Our brand and reputation may be diminished due to real or perceived quality or food safety issues with our products, which could have an adverse effect on our business, reputation, operating results and financial condition99% rewritten
09Our operations are subject to FDA and USDA federal regulations, as well as other federal, state and local regulations, and there is no assurance that we will be in compliance with all applicable regulations39% rewritten

Risks Related to Our Growth and Capital Requirements

10Our recent, rapid growth may not be indicative of our future growth, and if we continue to grow rapidly, we may not be able to effectively manage our growth or evaluate our future prospects. If we fail to effectively manage our growth or evaluate our future prospects, our business could be adversely affected49% rewritten
11maintain quality control over our product offerings
12We may not be able to maintain or increase our profitability in the future30% rewritten
13Sales of shell eggs constitute the vast majority of our net revenue, and a reduction in these sales would have an adverse effect on our financial condition53% rewritten
14Failure to introduce successful new products, successfully enter into new product categories or successfully pursue growth by other means may adversely affect our ability to continue to grow
15We estimate market opportunity and forecast market growth that may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business could fail to grow at similar rates, if at all
16We may require additional financing to achieve our goals, and the failure to obtain this necessary capital when needed on acceptable terms, or at all, may force us to delay, limit, reduce or terminate our product manufacturing and development, and other operations88% rewritten
17The agreements governing our credit facility require us to meet certain covenants, which could restrict our operational and financial flexibility25% rewritten

Risks Related to Our Business, Our Brand, Our Products and Our Industry

18If we fail to effectively expand our processing, manufacturing and production capacity as we continue to grow and scale our business, our business and operating results could be adversely affected72% rewritten
19If our forecasts of future supply capacity or customer and consumer demand are inaccurate, our business and operating results could be adversely affectedNew
20We are dependent on the market for shell eggs, and fluctuations in this market, including the decline of commodity shell egg prices relative to the price of our shell eggs, could adversely affect our business, financial condition and results of operationsNew
21If we fail to effectively maintain relationships within our contracted farm network or further expand our farm network, our business, operating results and brand reputation could be harmed95% rewritten
22Our business activities are subject to a variety of agricultural risks, including pests and diseases such as HPAI and egg drop syndrome, or EDS, the occurrence of which can materially and adversely affect the quality and quantity of products, including shell eggs, that we distribute83% rewritten
23our flocks are kept as safe as possible, including the procurement and implementation of newly available vaccinations for EDS. However, we may not be able to obtain enough vaccinations to treat all of the flocks in our networkNew
24Increased transportation and freight costs or failure by our transportation providers to pick up raw materials or deliver our products on time, in compliance with applicable governmental regulations or at all, have adversely impact and are expected to continue to adversely impact our operating results52% rewritten
25Nevertheless, if our security measures fail, losses exceed our insurance coverage, or we are not able to maintain insurance at a reasonable cost, we could incur significant losses from damage, loss or theft, any of which could substantially harm our business and results of operationsNew
26Our future business, results of operations and financial condition may be adversely affected by reduced or limited availability of eggs, cream for our butter and other raw materials that meet our standards43% rewritten
27market, increased commodity or raw material costs, increased packaging or transportation costs or otherwise, any resulting decline in consumer demand for our products may be exacerbated by the competitiveness of our marketNew
28Failure to leverage our brand value propositions to compete against private-label products, especially during an economic downturn, may adversely affect our profitability76% rewritten
29effect on our business, financial condition and results of operations until such time as the interruption is resolved or an alternate source of production or distribution is secured, especially in times of low inventoryNew
30Fluctuations in commodity prices and in the availability of feed grains could negatively impact our results of operations and financial condition45% rewritten
31We are dependent on hatcheries and pullet farms to supply our network of contracted family farms and accelerator farms with laying hens. Any disruption in that supply chain could materially and adversely affect our business, financial condition or results of operations90% rewritten
32advance. Once the chicks are hatched, they are delivered to a network of pullet farms, who rear the chicks to approximately 16 to 18 weeks of age, at which time they are delivered to our network of family farms to begin laying eggsNew
33Consolidation of retail customers or the loss of a significant retail customer could negatively impact our sales and profitability56% rewritten
34Elevated interest rates could adversely affect our business and the ability of our family farmers to access capital87% rewritten
35If we fail to develop and maintain our brand, our business could suffer
36If we fail to cost-effectively attract new consumers and customers or retain our existing consumers and customer relationships, our business could be adversely affected32% rewritten
37If we fail to retain and motivate members of our management team or other key crew members or fail to attract, train, develop and retain additional qualified crew members to support our operations, our business and future growth prospects may be harmed28% rewritten
38If we cannot maintain our company culture or focus on our purpose as we grow, our business and competitive position may be harmed
39Our operations are geographically consolidated. A major tornado or other natural disaster or extreme weather event within the regions in which we operate could seriously disrupt our entire business72% rewritten
40Packaging costs are volatile, have recently increased and may continue to increase, which may negatively impact our profitability, and reduced availability of packaging supplies may otherwise impact our business100% rewritten
41Our net revenue and earnings may fluctuate as a result of price actions, promotional activities and chargebacks
42We rely on independent certification for a number of our productsNew
43Our inability to maintain our GFSI and SQF Select Site certifications may negatively affect our reputation

Risks Related to Socioeconomic, Political and Environmental Factors

44Disruptions in the worldwide economy may adversely affect our business, results of operations and financial condition
45Disruptions in international trade, including disruptions due to global health pandemics, third-party labor disputes or geopolitical tensions, may have a material adverse impact on us, our suppliers and our network of farms, including our ability to expand our operations as planned32% rewritten
46International trade policies, including tariffs, sanctions and trade barriers, and ongoing changes and uncertainty in the tariff regime, may adversely affect our business, financial condition, results of operations and prospectsNew
47Climate change, or legal, regulatory or market efforts to address climate change, may negatively affect our business and operations51% rewritten
48Failure to adequately respond to stakeholder scrutiny related to environmental, social and governance issues or failure to achieve our stated Impact Goals could adversely impact our reputation and brandNew

Risks Related to Legal and Government Regulation

49Food safety and food-borne illness incidents or advertising or product mislabeling may materially and adversely affect our business by exposing us to lawsuits, product recalls or regulatory enforcement actions, increasing our operating costs and reducing demand for our product offerings25% rewritten
50Our operations are subject to FDA and USDA federal regulations, as well as other state and local regulations, and there is no assurance that we will be in compliance with all applicable regulations
51Changes in existing laws or regulations, or the adoption of new laws or regulations may increase our costs and otherwise adversely affect our business, results of operations and financial condition
52Failure by us, our network of small farms, suppliers of raw materials or co-manufacturers to comply with food safety, environmental or other laws and regulations, or with the specifications and requirements of our products, may disrupt our supply of products and adversely affect our business
53We are subject to stringent environmental regulation and potentially subject to environmental litigation, proceedings and investigations23% rewritten
54Legal claims, government investigations or other regulatory enforcement actions could subject us to civil and criminal penalties
55Litigation or legal proceedings could expose us to significant liabilities and have a negative impact on our reputation or business27% rewritten
56Our compliance with these legal requirements and obligations, together with any policies or practices that we have or may implement to further secure and protect sensitive data, could limit our ability to utilize data that may be valuable to our business21% rewritten

Risks Related to Our Status as a Certified B Corporation and Public Benefit Corporation

57Our status as a public benefit corporation and a Certified B Corporation may not result in the benefits that we anticipate, and we may be unable to maintain our Certified B Corporation status27% rewritten
58As a public benefit corporation, our directors’ fiduciary duty to balance a variety of interests may result in actions that do not maximize stockholder value
59As a public benefit corporation, we may be subject to increased derivative litigation concerning our duty to balance stockholder and public benefit interests, the occurrence of which may have an adverse impact on our financial condition and results of operations

Risks Related to Cybersecurity, Information Technology and Intellectual Property

60cyber-attacks, that could materially disrupt our systems and operations, supply chain, and ability to produce, sell and distribute our servicesNew
61Further, we have and may in the future experience delays in developing and deploying remedial measures and patches designed to address identified vulnerabilities. Vulnerabilities could be exploited and result in a security incidentNew
62The loss of any registered trademark or other intellectual property could enable other companies to compete more effectively with us86% rewritten
63Our continued success depends, to a significant degree, upon our ability to protect and preserve our intellectual property, including our trademarks and copyrightsNew

Risks Related to Being a Public Company, Ownership of Our Common Stock and Other General Risks

64If we fail to maintain an effective system of internal control over financial reporting in the future, we may not be able to accurately report our financial condition, results of operations or cash flows, which may adversely affect investor confidence in us and, as a result, the value of our common stockNew
65Our stock price may be volatile, and the value of our common stock may decline100% rewritten
66Sales of our common stock in the public market could cause the market price of our common stock to decline
67We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder valueNew
68Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock
69provide that vacancies on our Board of Directors may be filled only by a majority of directors then in office, even though less than a quorum

Other Vital Farms 10-Ks

FY2024 10-K risk factors
66 risks
Rapid growth to $606.3 million net revenue in fiscal 2024 heavily strains operations, supply chains, and management resources.
Filed Feb 27, 2025

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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.