Item 1A. Risk Factors
Item 1A. Risk Factors
Other than as set for below,
there have been no material changes to the risk factors set forth in the section titled “Risk Factors” included in our Annual
Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 1, 2024 (our “Annual Report”). Our business
involves significant risks. You should carefully consider the risks and uncertainties described in our Annual Report, together with all
of the other information in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related
notes as disclosed in our Annual Report. The risks and uncertainties described in our Annual Report are not the only ones we face, and
additional risk and uncertainties that we are unaware of or that we deem immaterial may also become important factors that adversely affect
our business. The realization of any of these risks and uncertainties could have a material adverse effect on our reputation, business,
financial condition, results of operations, growth and future prospects as well as our ability to accomplish our strategic objectives.
In that event, the market price of our common shares could decline and you could lose part or all of your investment.
If we do not successfully raise additional
capital, improve our operating cash flow, or complete a strategic transaction, our board of directors may decide to pursue a dissolution
and liquidation of our Company. In such an event, the amount of cash available for distribution to our stockholders will depend heavily
on the timing of such liquidation as well as the amount of cash that must be reserved for commitments and contingent liabilities, as
to which we can give you no assurance.
There can be no assurance
that we will successfully raise additional capital, that we will improve our operating cash flow, or that we will be able to complete
a strategic transaction. If none of those occur, our board of directors may decide to pursue a dissolution and liquidation of our Company.
In such an event, the amount of cash available for distribution to our stockholders will depend heavily on the timing of such decision
and, ultimately, such liquidation, since the amount of cash available for distribution continues to decrease as we fund our operations
while pursuing a financing, improved operations, or a strategic transaction. As of June 30, 2024, the Company has not achieved positive
cash flow from operations and is not able to finance day to day activities through operations and as such, there is substantial doubt
as to the Company’s ability to continue as a going concern.
In addition, we may be subject to litigation or other claims related
to a dissolution and liquidation of our Company. If a dissolution and liquidation were to be pursued, our board of directors, in consultation
with our advisors, would need to evaluate these matters and make a determination about a reasonable amount to reserve. Accordingly, holders
of our common stock could lose all or a significant portion of their investment in the event of a liquidation, dissolution or winding
up of our Company. A liquidation would be a lengthy and uncertain process with no assurance of any value ever being returned to our stockholders.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Default Upon Senior Securities
None.
Item 4. Mine Safety Disclosures.
Not applicable.
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