Item 1A. Risk Factors
ITEM 1A.
RISK FACTORS
Other than set forth below,
there have been no material changes in our risk factors set forth in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K.
The risk factor set forth below and risk factors disclosed in Part I, “Item 1A. Risk Factors” in our 2023 Form 10-K could
materially adversely affect our business, financial condition, or results of operations. This Quarterly Report on Form 10-Q also contains
forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in
these forward-looking statements as a result of certain factors, including these risks. Additional risks not currently known or currently
material to us may also harm our business.
We may not be able to maintain compliance
with the continued listing requirements of The Nasdaq Capital Market.
Nasdaq Listing Rule 5550(b)(1)
requires companies listed on the Nasdaq Capital Market to maintain stockholders’ equity of at least $2.5 million for continued listing.
As of September 30, 2024, our stockholders’ equity was $4.9 million and there can be no assurance that we will be able to maintain
or increase our stockholders’ equity in the future. If our stockholders’ equity falls below $2.5 million, as a result of operating
losses or for other reasons, or if we are unable to demonstrate to Nasdaq’s satisfaction that we subsequently regained compliance
with this requirement, Nasdaq will notify us of such non-compliance. If we receive such notice from Nasdaq, in accordance with the Nasdaq
Listing Rules, we will have 45 calendar days from the date of the notification to submit a plan to regain compliance with Nasdaq Listing
Rule 5550(b)(1). If our compliance plan is accepted, we may be granted up to 180 calendar days from the date of the initial notification
to evidence compliance. If our compliance plan is not accepted or we are otherwise unable to evidence compliance within Nasdaq’s
allotted timeframe, Nasdaq may take steps to delist our common stock.
Such a delisting would have
an adverse effect on the market liquidity of our securities, decrease the market price of our securities, result in the potential loss
of confidence by investors, suppliers, customers and employees and fewer business development opportunities, and adversely affect our
ability to obtain financing for the continuation of our operations. We are actively monitoring our stockholders’ equity and will
consider any and all options available to us to maintain compliance with Nasdaq Listing Rule 5550(b)(1).
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
No sales or issuances of unregistered
securities occurred that have not previously been disclosed in a Current Report on Form 8-K.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not applicable.
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