Where Food Comes From (WFCF) risk factors, FY2024 10-K

Other

1. 01We are in a period of increasing inflation and economic uncertainty
2. 02Unfavorable global economic conditions, including any adverse macroeconomic conditions or geopolitical events, including the conflict between Ukraine and Russia, and the conflict between Israel and Hamas could adversely affect our business, financial condition, results of operations or liquidity
3. 03We face risks due to changing weather patterns and other environmental factors
4. 04We operate in a competitive industry with a limited market characterized by changing technology, frequent introductions of new service offerings, service enhancements, and evolving industry standards
5. 05The success of our business model depends on the broad acceptance of our technologies into markets that are continuing to develop as a result of the increasing focus on sustainably produced foods, food safety and assurance
6. 06We face risks of rapidly changing regulations which may negatively impact our programs
7. 07Increased scrutiny and changing expectations from stakeholders with respect to the Company’s ESG practices may result in additional costs or risks
8. 08We face risks that highly contagious diseases or viral outbreaks may negatively impact the source of product we are able to verify and/or impact the efficiency in which we conduct ongoing business operations
9. 09In the event that market demand for third-party verified products declines, our customers may not be able to generate sufficient revenues to justify the purchase of our verification solutions and consulting services
10. 10We look for opportunities to expand our presence in international markets in which we may have limited experience, and inherently international operations are subject to increased risks which could harm our business, operating results and financial condition
11. 11Our business could suffer if we are unsuccessful in making, integrating, and maintaining our acquisitions and investments
12. 12Federal, state or local laws and regulations, or our failure to comply with such laws and regulations, could increase our expenses and expose us to legal risks
13. 13Any changes to the foregoing laws or regulations or any new laws or regulations that are passed or go into effect may make it more difficult for us to operate our business and in turn adversely affect our operating results
14. 14Our future success depends upon our ability to obtain and enforce patents; prevent others from infringing on our patents, trademarks and other intellectual property rights; and operate without infringing upon the patents and proprietary rights of others
15. 15We rely heavily on information technology networks and systems, including the Internet, to manage or support a wide variety of important business processes and activities throughout our operations
16. 16Our future success depends to a significant degree upon the continued service of key senior management personnel, in particular, John and Leann Saunders
17. 17Directors, executive officers, principal stockholders and affiliated entities beneficially own or control a significant amount of our outstanding common stock and together meaningfully influence our activities
18. 18We have not paid any regular cash dividends
19. 19Future sales of our securities in the public or private markets could adversely affect the trading price of our common stock and our ability to continue to raise funds in new stock offerings
20. 20Our common stock has traded in low volumes. We cannot predict whether an active trading market for our common stock will ever develop
21. 21Price and volume volatility of our publicly traded securities could adversely affect investors’ portfolios