Item 1A. Risk Factors
ITEM
1A. RISK FACTORS
There
have been no material changes from the risk factors previously disclosed in Part I, Item 1A of the Company’s Annual Report on Form
10-K for the year ended December 31, 2023, filed with the SEC on April 22, 2024 (the “Form 10-K”), in each case under the
heading “Risk Factors”, except for the risks inherent in the assets and operations of Scienture that pertain to the Company
after the completion of the merger transaction completed in July 2024 and as set forth below, and investors should review the risks provided
in the Form 10-K, Form 10-Q and below, prior to making an investment in the Company. The business, financial condition and operating
results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those
described in the Form 10-K and the Form 10-Q and below, any one or more of which could, directly or indirectly, cause the Company’s
actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating
results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition,
operating results and stock price.
The
Company’s stockholders may not realize a benefit from the merger commensurate with the ownership dilution they will experience
in connection with the merger.
The
Company and Scienture completed a merger transaction on July 25, 2024 as generally described in this report (and other reports and filings
we have filed with the SEC), and, if the combined company is unable to realize the full strategic and financial benefits currently anticipated
from the merger, the Company’s stockholders will have experienced dilution of their ownership interests in the Company without
receiving any commensurate benefit, or only receiving part of the commensurate benefit to the extent the combined company is able to
realize only part of the strategic and financial benefits currently anticipated from the merger.
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