7 unchanged sentences
The risks discussed below include forward-looking statements, and our actual results may differ substantially from what is in these forward-looking statements.
−Removed: Risks Related to Our Business
+Added: Risks Related to Our Financial Condition
We have no history of generating meaningful product revenue, and we may never achieve or maintain profitability.
We have a limited operating history upon which investors may rely in evaluating our business and prospects.
−Removed: We have generated limited revenues to date, and as of June 30, 2020, we had an accumulated deficit of approximately $280 million.
+Added: We have generated limited revenues to date, and as of September 30, 2020, we had an accumulated deficit of approximately $287 million.
Our ability to generate revenues and achieve profitability will depend on our ability to execute our business plan, complete the development and approval of our technology, incorporate the technology into products that customers wish to buy, and if necessary, secure additional financing.
12 unchanged sentences
Any inability to raise adequate funds on commercially reasonable terms could have a material adverse effect on our business, results of operations and financial condition, including the possibility that a lack of funds could cause our business to fail and liquidate with little or no return to investors.
+Added: Risks Related to Our T e chnology and Products
We may not be able to develop all the features we seek to include in our technology.
24 unchanged sentences
In addition, COVID-19 has resulted and may continue to result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in a global economic downturn that could affect interest in our products or demand by potential customers.
−Removed: Any of these events could materially and adversely affect our business, results of operations and financial condition.
+Added: Any of these events could materially and
+Added: adversely affect our business, results of operations and financial condition.
The extent of the impact will depend on future developments, which are highly uncertain and cannot be predicted.
−Removed: It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection.
−Removed: Our success depends significantly on our ability to obtain, maintain and protect our proprietary rights to the technologies used in products incorporating our technologies.
−Removed: Patents and other proprietary rights provide uncertain protections, and we may be unable to protect our intellectual property.
−Removed: For example, we may be unsuccessful in defending our patents and other proprietary rights against third party challenges.
−Removed: If we do not have the resources to defend our intellectual property, the value of our intellectual property and our licensed technology will decline.
−Removed: In addition, some companies that integrate our technology into their products may acquire rights in the technology that limit our business or increase our costs.
−Removed: If we are not successful in protecting our intellectual property effectively, our financial results may be adversely affected and the price of our common stock could decline.
−Removed: We depend upon a combination of patent, trade secrets, copyright and trademark laws to protect our intellectual property and technology.
−Removed: We rely on a combination of patents, trade secrets, copyright and trademark laws, nondisclosure agreements and other contractual provisions and technical security measures to protect our intellectual property rights.
−Removed: These measures may not be adequate to safeguard our technology.
−Removed: If they do not protect our rights adequately, third parties could use our technology, and our ability to compete in the market would be reduced.
−Removed: Although we are attempting to obtain patent coverage for our technology where available and where we believe appropriate, there are aspects of the technology for which patent coverage may never be sought or received.
−Removed: We may not possess the resources to or may not choose to pursue patent protection outside the United States or any or every country other than the United States where we may eventually decide to sell our future products.
−Removed: Our ability to prevent others from making or selling duplicate or similar technologies will be impaired in those countries in which we would have no patent protection.
−Removed: Although we have patent applications on file in the United States and elsewhere, the patents might not issue, might issue only with limited coverage, or might issue and be subsequently successfully challenged by others and held invalid or unenforceable.
−Removed: Similarly, even if patents are issued based on our applications or future applications, any issued patents may not provide us with any competitive advantages.
−Removed: Competitors may be able to design around our patents or develop products that provide outcomes comparable or superior to ours.
−Removed: Our patents may be held invalid or unenforceable as a result of legal challenges or claims of prior art by third parties, and others may challenge the inventorship or ownership of our patents and pending patent applications.
−Removed: In addition, if we secure protection in countries outside the United States, the laws of some foreign countries may not protect our intellectual property rights to the same extent as do the laws of the United States.
−Removed: In the event a competitor infringes upon our patent or other intellectual property rights, enforcing those rights may be difficult and time consuming.
−Removed: Even if successful, litigation to enforce our intellectual property rights or to defend our patents against challenge could be expensive and time consuming and could divert our management’s attention.
−Removed: We may not have sufficient resources to enforce our intellectual property rights or to defend our patents against a challenge.
−Removed: Our strategy is to deploy our technology into the market by licensing patent and other proprietary rights to third parties and customers.
−Removed: Disputes with our licensees may arise regarding the scope and content of these licenses.
−Removed: Further, our ability to expand into additional fields with our technologies may be restricted by existing licenses or licenses we may grant to third parties in the future.
−Removed: The policies we use to protect our trade secrets might not be effective in preventing misappropriation of our trade secrets by others.
−Removed: In addition, confidentiality agreements executed by our customers, employees, consultants and advisors might not be enforceable or might not provide meaningful protection for our trade secrets or other proprietary information in the event of unauthorized use or disclosure.
−Removed: Litigating a trade secret claim is expensive and time consuming, and the outcome is unpredictable.
−Removed: Moreover, our competitors may independently develop equivalent knowledge methods and know-how.
−Removed: If we are unable to protect our intellectual property rights, we may be unable to prevent competitors from using our own inventions and intellectual property to compete against us, and our business may be harmed.
−Removed: Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
−Removed: Our charging technology involves power transmission using radio frequency (RF) energy, which is subject to regulation by the Federal Communications Commission in the United States and by comparable regulatory agencies worldwide.
−Removed: It may also be subject to regulation by other agencies.
−Removed: Regulatory concerns include whether human exposure to radio frequency emissions are below specified thresholds.
−Removed: Higher levels of exposure require separate approval.
−Removed: For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.
−Removed: In addition, we design our technology to operate in a RF band
−Removed: that is also used for Wi-Fi routers and other wireless consumer electronics, and we also design it to operate at different frequencies as demanded for some customer applications.
−Removed: Applications at different frequencies may require separate regulatory approvals.
−Removed: Efforts to obtain regulatory approval for devices using our technology is costly and time consuming, and there can be no assurance that requisite regulatory approvals will be forthcoming.
−Removed: If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.
−Removed: In addition, legal or regulatory developments could impose additional restrictions or costs on us that could require us to redesign our technology or future products, or that are difficult or impracticable to comply with, all of which would adversely affect our revenues and financial results.
−Removed: We depend upon our strategic relationship with Dialog Semiconductor, a provider of electronics products, and there can be no assurance that we will achieve the expected benefits of this relationship.
−Removed: We have entered into a strategic alliance agreement with Dialog Semiconductor, a provider of electronics products, pursuant to which we licensed our WattUp technology to Dialog and it became the exclusive provider of our technology.
−Removed: We intend to leverage Dialog’s sales and distribution channels and its operational capabilities to accelerate market adoption of our technology, while we focus our resources on research and development of our technology.
−Removed: There can be no assurance that Dialog will promote our technology successfully, or that it will be successful in producing and distributing related products to our customers’ specifications.
−Removed: Dialog may have other priorities or may encounter difficulties in its own business that interfere with the success of our relationship.
−Removed: If this strategic relationship does not work as we intend, then we may be required to seek an arrangement with another strategic partner, or to develop internal capabilities, which will require a commitment of management time and our financial resources to identify a replacement strategic partner, or to develop our own production and distribution capabilities.
−Removed: As a result, we may be unable without undue expense to replace this agreement with one or more new strategic relationships to promote and provide our technology which could increase our costs and delay revenues.
−Removed: Terms of our existing or new development and license agreements could limit our ability to license our technology in specific markets.
−Removed: The terms of our current development and license agreement with a tier-one consumer electronics company could limit our ability to do business in some industry verticals through December 2020, which could cause some potential customers not to choose, or delay using, our technology in their products, which could have a negative impact on our revenue opportunities and financial results.
Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources.
38 unchanged sentences
A discovery of safety issues relating to our technology could have a material adverse effect on our business and any legal action against us claiming our technology caused harm could be expensive, divert management and adversely affect us or cause our business to fail, whether or not such legal actions were ultimately successful.
−Removed: We are a “smaller reporting company,” and the reduced disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.
−Removed: We are a “smaller reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a “smaller reporting company,” and have either:
−Removed: (i) a public float of less than $250 million or (ii) annual revenues of less than $100 million during the most recently completed fiscal year and (A) no public float or (B) a public float of less than $700 million.
−Removed: As a “smaller reporting company,” we are subject to reduced disclosure obligations in our SEC filings compared to other issuers, including with respect to disclosure obligations regarding executive compensation in our periodic reports and proxy statements.
−Removed: Until such time as we cease to be a “smaller reporting company,” such reduced disclosure in our SEC filings may make it harder for investors to analyze our operating results and financial prospects.
−Removed: If some investors find our common stock less attractive as a result of any choices to reduce future disclosure we may make, there may be a less active trading market for our common stock and our stock price may be more volatile.
−Removed: If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports.
−Removed: As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls.
−Removed: Although our management has determined that our internal control over financial reporting was effective as of June 30, 2020, we cannot assure you that we will not identify any material weakness in our internal control in the future.
−Removed: While we are no longer an emerging growth company and we included an attestation report on the effectiveness of our internal control over financial reporting of our independent registered public accounting firm in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, it is possible that we will qualify as a “smaller reporting company” under new SEC rules such that an auditor attestation report will no longer be required.
−Removed: If we experience a material weakness in our internal controls, we may fail to detect errors in our financial accounting, which may require a financial statement restatement or otherwise harm our operating results, cause us to fail to meet our SEC reporting obligations or Nasdaq listing requirements, adversely affect our reputation, cause our stock price to decline or result in inaccurate financial reporting or material misstatements in our annual or interim financial statements.
−Removed: Further, if there are material weaknesses or failures in our ability to meet any of the requirements related to the maintenance and reporting of our internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and that could cause the price of our common stock to decline.
−Removed: We could become subject to investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional management attention and which could adversely affect our business.
−Removed: In addition, our internal control over financial reporting will not prevent or detect all errors and fraud.
−Removed: Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.
Our industry is subject to intense competition and rapid technological change, which may result in technology that is superior to ours.
7 unchanged sentences
We cannot be certain which other companies may have already decided to or may in the future choose to enter our markets.
−Removed: For example, consumer electronics products companies may invest substantial resources in wireless power
−Removed: or other recharging technologies and may decide to enter our target markets.
+Added: For example, consumer electronics products companies may invest substantial resources in wireless power or other recharging technologies and may decide to enter our target markets.
Successful developments of competitors that result in new approaches for recharging could reduce the attractiveness of our products and technologies or render them obsolete.
16 unchanged sentences
If our technology does not compete well based on these or other factors, our business could be harmed.
+Added: Our business is subject to data security risks, including security breaches.
+Added: We collect, process, store and transmit substantial amounts of information, including information about our customers.
+Added: We take steps to protect the security and integrity of the information we collect, process, store or transmit, but there is no guarantee that inadvertent or unauthorized use or disclosure will not occur or that third parties will not gain unauthorized access to this information despite such efforts.
+Added: Security breaches, computer malware, computer hacking attacks and other compromises of information security measures have become more prevalent in the business world and may occur on our systems or those of our vendors in the future.
+Added: Large Internet companies and websites have from time to time disclosed sophisticated and targeted attacks on portions of their websites, and an increasing number have reported such attacks resulting in breaches of their information security.
+Added: We and our third-party vendors are at risk of suffering from similar attacks and breaches.
+Added: Although we take steps to maintain confidential and proprietary information on our information systems, these measures and technology may not adequately prevent security breaches and we rely on our third-party vendors to take appropriate measures to protect the security and integrity of the information on those information systems.
+Added: Because techniques used to obtain unauthorized access to or to sabotage information systems change frequently and may not be known until launched against us, we may be unable to anticipate or prevent these attacks.
+Added: In addition, a party who is able to illicitly obtain a customer’s identification and password credentials may be able to access the customer’s account and certain account data.
+Added: Any actual or suspected security breach or other compromise of our security measures or those of our third-party vendors, whether as a result of hacking efforts, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering or otherwise, could harm our reputation and business, damage our brand and make it harder to retain existing customers or acquire new ones, require us to expend significant capital and other resources to address the breach, and result in a violation of applicable laws, regulations or other legal obligations.
+Added: Our insurance policies may not be adequate to reimburse us for direct losses caused by any such security breach or indirect losses due to resulting customer attrition.
+Added: We rely on email and other messaging services to connect with our existing and potential customers.
+Added: Our customers may be targeted by parties using fraudulent spoofing and phishing emails to misappropriate passwords, payment information or other personal information or to introduce viruses through Trojan horse programs or otherwise through our customers’ computers, smartphones, tablets or other devices.
+Added: Despite our efforts to mitigate the effectiveness of such malicious email campaigns through product improvements, spoofing and phishing may damage our brand and increase our costs.
+Added: Any of these events or circumstances could materially adversely affect our business, financial condition and operating results.
+Added: We depend upon our strategic relationship with Dialog Semiconductor, a provider of electronics products, and there can be no assurance that we will achieve the expected benefits of this relationship.
+Added: We have entered into a strategic alliance agreement with Dialog Semiconductor, a provider of electronics products, pursuant to which we licensed our WattUp technology to Dialog and it became the exclusive provider of our technology.
+Added: We intend to leverage Dialog’s sales and distribution channels and its operational capabilities to accelerate market adoption of our technology, while we focus our resources on research and development of our technology.
+Added: There can be no assurance that Dialog will promote our technology successfully, or that it will be successful in producing and distributing related products to our customers’ specifications.
+Added: Dialog may have other priorities or may encounter difficulties in its own business that interfere with the success of our relationship.
+Added: If this strategic relationship does not work as we intend, then we may be required to seek an arrangement with another strategic partner, or to develop internal capabilities, which will require a commitment of management time and our
+Added: financial resources to identify a replacement strategic partner, or to develop our own production and distribution capabilities.
+Added: As a result, we may be unable without undue expense to replace this agreement with one or more new strategic relationships to promote and provide our technology which could increase our costs and delay revenues.
+Added: Risks Related to Our Intellectual Property and Other Legal Risks
+Added: It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection.
+Added: Our success depends significantly on our ability to obtain, maintain and protect our proprietary rights to the technologies used in products incorporating our technologies.
+Added: Patents and other proprietary rights provide uncertain protections, and we may be unable to protect our intellectual property.
+Added: For example, we may be unsuccessful in defending our patents and other proprietary rights against third party challenges.
+Added: If we do not have the resources to defend our intellectual property, the value of our intellectual property and our licensed technology will decline.
+Added: In addition, some companies that integrate our technology into their products may acquire rights in the technology that limit our business or increase our costs.
+Added: If we are not successful in protecting our intellectual property effectively, our financial results may be adversely affected and the price of our common stock could decline.
+Added: We depend upon a combination of patent, trade secrets, copyright and trademark laws to protect our intellectual property and technology.
+Added: We rely on a combination of patents, trade secrets, copyright and trademark laws, nondisclosure agreements and other contractual provisions and technical security measures to protect our intellectual property rights.
+Added: These measures may not be adequate to safeguard our technology.
+Added: If they do not protect our rights adequately, third parties could use our technology, and our ability to compete in the market would be reduced.
+Added: Although we are attempting to obtain patent coverage for our technology where available and where we believe appropriate, there are aspects of the technology for which patent coverage may never be sought or received.
+Added: We may not possess the resources to or may not choose to pursue patent protection outside the United States or any or every country other than the United States where we may eventually decide to sell our future products.
+Added: Our ability to prevent others from making or selling duplicate or similar technologies will be impaired in those countries in which we would have no patent protection.
+Added: Although we have patent applications on file in the United States and elsewhere, the patents might not issue, might issue only with limited coverage, or might issue and be subsequently successfully challenged by others and held invalid or unenforceable.
+Added: Similarly, even if patents are issued based on our applications or future applications, any issued patents may not provide us with any competitive advantages.
+Added: Competitors may be able to design around our patents or develop products that provide outcomes comparable or superior to ours.
+Added: Our patents may be held invalid or unenforceable as a result of legal challenges or claims of prior art by third parties, and others may challenge the inventorship or ownership of our patents and pending patent applications.
+Added: In addition, if we secure protection in countries outside the United States, the laws of some foreign countries may not protect our intellectual property rights to the same extent as do the laws of the United States.
+Added: In the event a competitor infringes upon our patent or other intellectual property rights, enforcing those rights may be difficult and time consuming.
+Added: Even if successful, litigation to enforce our intellectual property rights or to defend our patents against challenge could be expensive and time consuming and could divert our management’s attention.
+Added: We may not have sufficient resources to enforce our intellectual property rights or to defend our patents against a challenge.
+Added: Our strategy is to deploy our technology into the market by licensing patent and other proprietary rights to third parties and customers.
+Added: Disputes with our licensees may arise regarding the scope and content of these licenses.
+Added: Further, our ability to expand into additional fields with our technologies may be restricted by existing licenses or licenses we may grant to third parties in the future.
+Added: The policies we use to protect our trade secrets might not be effective in preventing misappropriation of our trade secrets by others.
+Added: In addition, confidentiality agreements executed by our customers, employees, consultants and advisors might not be enforceable or might not provide meaningful protection for our trade secrets or other proprietary information in the event of unauthorized use or disclosure.
+Added: Litigating a trade secret claim is expensive and time consuming, and the outcome is unpredictable.
+Added: Moreover, our competitors may independently develop equivalent knowledge methods and know-how.
+Added: If we are unable to protect our intellectual property rights, we may be unable to prevent competitors from using our own inventions and intellectual property to compete against us, and our business may be harmed.
+Added: Terms of our existing or new development and license agreements could limit our ability to license our technology in specific markets.
+Added: The terms of our current development and license agreement with a tier-one consumer electronics company could limit our ability to do business in some industry verticals through December 2020, which could cause some potential customers not to choose, or delay using, our technology in their products, which could have a negative impact on our revenue opportunities and financial results.
We may be subject to patent infringement or other intellectual property lawsuits that could be costly to defend.
23 unchanged sentences
A required notification to a regulatory authority or recall could result in an investigation by regulatory authorities of products incorporating our technology, which could in turn result in required recalls, restrictions on the sale of such products or other penalties.
−Removed: The adverse publicity resulting from any of these actions could adversely affect the perception of our customers and potential customers.
+Added: The adverse publicity
+Added: resulting from any of these actions could adversely affect the perception of our customers and potential customers.
These investigations or recalls, especially if accompanied by unfavorable publicity, could result in our incurring substantial costs, losing revenues and damaging our reputation, each of which would harm our business.
+Added: If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
+Added: We pursue the licensing of our technology as a primary means of revenue generation.
+Added: Creating a licensing business relationship often takes a substantial effort, as we expect to have to convince the counterparty of the efficacy of our technology, meet design and manufacturing requirements, satisfy marketing and product needs, and comply with selection, review and contracting requirements.
+Added: There can be no assurance that we will be able to gain access to potential licensing partners, or that they will ultimately decide to integrate our technology with their products.
+Added: We may not be able to secure license agreements with customers on advantageous terms, and the timing and volume of revenue earned from license agreements will be outside of our control.
+Added: If the license agreements we enter into do not prove to be advantageous to us, our business and results of operations will be adversely affected.
+Added: Risks Related to Regulation of Our Business
+Added: Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
+Added: Our charging technology involves power transmission using radio frequency (RF) energy, which is subject to regulation by the Federal Communications Commission in the United States and by comparable regulatory agencies worldwide.
+Added: It may also be subject to regulation by other agencies.
+Added: Regulatory concerns include whether human exposure to radio frequency emissions are below specified thresholds.
+Added: Higher levels of exposure require separate approval.
+Added: For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.
+Added: In addition, we design our technology to operate in a RF band that is also used for Wi-Fi routers and other wireless consumer electronics, and we also design it to operate at different frequencies as demanded for some customer applications.
+Added: Applications at different frequencies may require separate regulatory approvals.
+Added: Efforts to obtain regulatory approval for devices using our technology is costly and time consuming, and there can be no assurance that requisite regulatory approvals will be forthcoming.
+Added: If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.
+Added: In addition, legal or regulatory developments could impose additional restrictions or costs on us that could require us to redesign our technology or future products, or that are difficult or impracticable to comply with, all of which would adversely affect our revenues and financial results.
+Added: Risks Related to Personnel
We are subject to risks associated with our utilization of engineering consultants.
5 unchanged sentences
Terminating or transitioning arrangements with key consultants could result in additional costs and a risk of operational delays, potential errors and possible control issues as a result of the termination or during the transition.
−Removed: If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
−Removed: We pursue the licensing of our technology as a primary means of revenue generation.
−Removed: Creating a licensing business relationship often takes a substantial effort, as we expect to have to convince the counterparty of the efficacy of our technology, meet design and manufacturing requirements, satisfy marketing and product needs, and comply with selection, review and contracting requirements.
−Removed: There can be no assurance that we will be able to gain access to potential licensing partners, or that they will ultimately decide to integrate our technology with their products.
−Removed: We may not be able to secure license agreements with customers on advantageous terms, and the timing and volume of revenue earned from license agreements will be outside of our control.
−Removed: If the license agreements we enter into do not prove to be advantageous to us, our business and results of operations will be adversely affected.
−Removed: Our business is subject to data security risks, including security breaches.
−Removed: We collect, process, store and transmit substantial amounts of information, including information about our customers.
−Removed: We take steps to protect the security and integrity of the information we collect, process, store or transmit, but there is no guarantee that inadvertent or unauthorized use or disclosure will not occur or that third parties will not gain unauthorized access to this information despite such efforts.
−Removed: Security breaches, computer malware, computer hacking attacks and other compromises of information security measures have become more prevalent in the business world and may occur on our systems or those of our vendors in the future.
−Removed: Large Internet companies and websites have from time to time disclosed sophisticated and targeted attacks on portions of their websites, and an increasing number have reported such attacks resulting in breaches of their information security.
−Removed: We and our third-party vendors are at risk of suffering from similar attacks and breaches.
−Removed: Although we take steps to maintain confidential and proprietary information on our information systems, these measures and technology may not adequately prevent security breaches and we rely on our third-party vendors to take appropriate measures to protect the security and integrity of the information on those information systems.
−Removed: Because techniques used to obtain unauthorized access to or to sabotage information systems change frequently and may not be known until launched against us, we may be unable to anticipate or prevent these attacks.
−Removed: In addition, a party who is able to illicitly obtain a customer’s identification and password credentials may be able to access the customer’s account and certain account data.
−Removed: Any actual or suspected security breach or other compromise of our security measures or those of our third-party vendors, whether as a result of hacking efforts, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering or otherwise, could harm our reputation and business, damage our brand and make it harder to retain existing customers or acquire new ones, require us to expend significant capital and other resources to address the breach, and result in a violation of applicable laws, regulations or other legal obligations.
−Removed: Our insurance policies may not be adequate to reimburse us for direct losses caused by any such security breach or indirect losses due to resulting customer attrition.
−Removed: We rely on email and other messaging services to connect with our existing and potential customers.
−Removed: Our customers may be targeted by parties using fraudulent spoofing and phishing emails to misappropriate passwords, payment information or other personal information or to introduce viruses through Trojan horse programs or otherwise through our customers’ computers, smartphones, tablets or other devices.
−Removed: Despite our efforts to mitigate the effectiveness of such malicious email campaigns through product improvements, spoofing and phishing may damage our brand and increase our costs.
−Removed: Any of these events or circumstances could materially adversely affect our business, financial condition and operating results.
We are highly dependent on key members of our executive management team.
11 unchanged sentences
Risks Related to Ownership of Our Common Stock
+Added: We are a “smaller reporting company,” and the reduced disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors.
+Added: We are a “smaller reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a “smaller reporting company,” and have either:
+Added: (i) a public float of less than $250 million or (ii) annual revenues of less than $100 million during the most recently completed fiscal year anda public float of less than $700 million.
+Added: As a “smaller reporting company,” we are subject to reduced disclosure obligations in our SEC filings compared to other issuers, including with respect to disclosure obligations regarding executive compensation in our periodic reports and proxy statements.
+Added: Until such time as we cease to be a “smaller reporting company,” such reduced disclosure in our SEC filings may make it harder for investors to analyze our operating results and financial prospects.
+Added: If some investors find our common stock less attractive as a result of any choices to reduce future disclosure we may make, there may be a less active trading market for our common stock and our stock price may be more volatile.
+Added: If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports.
+Added: As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls.
+Added: Although our management has determined that our internal control over financial reporting was effective as of September 30, 2020, we cannot assure you that we will not identify any material weakness in our internal control in the future.
+Added: While we are no longer an emerging growth company and we included an attestation report on the effectiveness of our internal control over financial reporting of our independent registered public accounting firm in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, it is possible that we will qualify as a “smaller reporting company” under new SEC rules such that an auditor attestation report will no longer be required.
+Added: If we experience a material weakness in our internal controls, we may fail to detect errors in our financial accounting, which may require a financial statement restatement or otherwise harm our operating results, cause us to fail to meet our SEC reporting obligations or Nasdaq listing requirements, adversely affect our reputation, cause our stock price to decline or result in inaccurate financial reporting or material misstatements in our annual or interim financial statements.
+Added: Further, if there are material weaknesses or failures in our ability to meet any of the requirements related to the maintenance and reporting of our internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and that could cause the price of our common stock to decline.
+Added: We could become subject to investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional management attention and which could adversely affect our business.
+Added: In addition, our internal control over financial reporting will not prevent or detect all errors and fraud.
+Added: Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.
You might lose all of your investment.
4 unchanged sentences
The market price of our common stock has fluctuated significantly since our initial public offering in 2014.
−Removed: Our common stock has experienced an intra-day trading high of $4.29 per share and a low of $0.61 per share on The Nasdaq Stock Market over the last 52 weeks, as of August 6, 2020.
+Added: Our common stock has experienced an intra-day trading high of $4.58 per share and a low of $0.61 per share on The Nasdaq Stock Market over the last 52 weeks, as of November 2, 2020.
The price of our common stock is likely to continue to fluctuate significantly in response to many factors that are beyond our control, including:
19 unchanged sentences
Concentration of ownership among our existing executive officers, directors and significant stockholders may prevent new investors from influencing significant corporate decisions.
−Removed: All decisions with respect to the management of our company are made by our board of directors and our officers, who beneficially own approximately 5.5% of our common stock collectively as of July 29, 2020.
+Added: All decisions with respect to the management of our company are made by our board of directors and our officers, who beneficially own approximately 5.4% of our common stock collectively as of October 30, 2020.
As a result, these stockholders will be able to exercise a significant level of control over all matters requiring stockholder approval, including the election of directors, amendment of our certificate of incorporation and approval of significant corporate transactions.
41 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.