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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 September 30, 2022, we had an accumulated deficit of approximately $357 million.
+Added: We have generated limited revenues to date, and as of March 31, 2023, we had an accumulated deficit of approximately $369 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.
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For example, new product development for business partners may require considerable expense in advance of any substantial revenue being earned for such products.
−Removed: Such financings could include equity financing, which may be dilutive to our current stockholders, and debt financing, which could restrict our ability to borrow from other sources.
+Added: Such financings could include equity financing, which may be dilutive to our current stockholders, and debt financing, which could restrict our operations and ability to borrow from other sources.
In addition, such securities may contain rights, preferences or privileges senior to those of current stockholders.
−Removed: As a result of potential worsening global economic conditions and general global economic uncertainty (including as a result of actual or perceived disruption caused by COVID-19 or other infectious diseases, the ongoing conflict between Russia and the Ukraine and the global sanctions imposed in response thereto, increases in inflation, fluctuating interest rates and disruptions to global supply chains), political change, and other factors, we do not know whether additional capital will be available when needed, or that, if available, we will be able to obtain additional capital on reasonable terms.
−Removed: If we are unable to raise additional capital due to the volatile global financial markets, general economic uncertainty or other factors, we may be required to curtail development of our technology or reduce operations as a result, or to sell or dispose of assets.
−Removed: 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: As a result of current macroeconomic conditions and general global economic uncertainty (including as a result of the remaining effects of COVID-19, the ongoing conflict between Russia and the Ukraine and the global response thereto, increases in inflation, fluctuating interest rates, disruptions to global supply chains and recent turmoil in the global banking sector), political change, and other factors, we do not know whether additional capital will be available when needed, or that, if available, we will be able to obtain additional capital on reasonable terms.
+Added: If we are unable to raise additional capital due to the volatile global financial markets, recent turmoil in the global banking sector, general economic uncertainty or any other factor, we may be required to curtail development of our technology or reduce operations as a result, or to sell or dispose of assets.
+Added: Any inability to raise adequate funds on commercially reasonable terms or at all 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.
We may be adversely affected by the effects of inflation.
Inflation has the potential to adversely affect our liquidity, business, financial condition and results of operations by increasing our overall cost structure.
−Removed: The existence of inflation in the economy has resulted in, and may continue to result in, higher interest rates and capital costs, shipping costs, supply shortages, increased costs of labor, weakening exchange rates and other similar effects.
+Added: capital markets have experienced and continue to experience extreme volatility and disruption.
+Added: Inflation rates in the U.S.
+Added: significantly increased in 2022 resulting in federal action to increase interest rates, adversely affecting capital markets activity.
+Added: The existence of inflation in the economy has resulted in, and may continue to result in, higher interest rates and capital costs, shipping costs, supply shortages, increased costs of labor, labor shortages, weakening exchange rates and other similar effects.
As a result of inflation, we have and may continue to experience cost increases, including increases in our supply chain costs.
−Removed: Additionally, because we purchase component parts from our suppliers, we may be adversely impacted by their inability to adequately mitigate inflationary, industry, or economic pressures.
Although we may take measures to mitigate the impact of this inflation, if these measures are not effective, our business, financial condition, results of operations and liquidity could be materially adversely affected.
Even if such measures are effective, there could be a difference between the timing of when these beneficial actions impact our results of operations and when the cost of inflation is incurred.
+Added: Additionally, because we purchase component parts from our suppliers, we may be adversely impacted by their inability to adequately mitigate inflationary, industry, or economic pressures.
Risks Related to Our Technology and Products
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For example, some customer applications may require specific combinations of cost, footprint, efficiencies and capabilities at various frequencies, charging power levels and distances.
−Removed: We believe our research and development efforts will yield additional functionality and capabilities over time.
+Added: We believe our research and development efforts will yield additional functionality and capabilities for our products over time.
However, there can be no assurance that we will be successful in achieving all the features we are targeting, and our inability to do so may limit the appeal of our technology to consumers.
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To date we have operated primarily in the research and development phase of our business.
−Removed: If we are successful, we will need to expand our business operations, which will impose new demands on our financial, technical, operational and management resources.
+Added: If we are successful in commercializing our product offerings, we will need to expand our business operations, which will impose new demands on our financial, technical, operational and management resources.
If we do not upgrade our technical, administrative, operating and financial control systems, or if unexpected expansion difficulties arise, including issues relating to our research and development activities, then retention of experienced scientists, managers and engineers could become more challenging and have a material adverse effect on our business, results of operations and financial condition.
If products incorporating our technology are launched commercially but do not achieve widespread market acceptance, we will not be able to generate the revenue necessary to support our business.
−Removed: Market acceptance of a RF-based charging system as a preferred method for charging electronic devices will be crucial to our success.
−Removed: The following factors, among others, may affect the level of market acceptance of products in our industry:
+Added: Market acceptance of an RF-based charging system as a preferred method for charging electronic devices will be crucial to our success.
+Added: The following factors, among others, may affect the level of market acceptance of our products:
the price of products incorporating our technology relative to other products or competing technologies;
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As products incorporating our technology are launched commercially, we may experience seasonality or other unevenness in our financial results in consumer markets or a long and variable sales cycle in enterprise markets.
−Removed: Our strategy depends on our customers developing successful commercial products using our technology and selling them into the consumer, enterprise and commercial markets.
+Added: Our strategy depends on our customers developing successful commercial products using our technology and selling them into the retail, industrial, healthcare and smart/home office markets.
We need to understand procurement and buying cycles to be successful in licensing our technology.
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Future products based on our technology may require the user to purchase additional products to use with existing devices.
−Removed: To the extent these additional purchases are inconvenient, the adoption of our technology under development or other future products could be slowed, which would harm our business.
+Added: To the extent these additional purchases are inconvenient or costly, the adoption of our technology under development or other future products could be slowed, which would harm our business.
For rechargeable devices that utilize our receiver technology, the technology may be embedded in a sleeve, case or other enclosure.
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secure sufficient capital resources to expand both our continued research and development, and sales and marketing efforts.
−Removed: If our technology does not compete well based on these or other factors, our business could be harmed.
−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 and 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 that is able to illicitly obtain a customer’s identification and password credentials may be able to access our customer’s accounts 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 electronic means of communication 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.
−Removed: Our strategic relationship with Dialog, a provider of electronics products, has been terminated, and there can be no assurance that we will find a suitable replacement or be able to conduct the same activities internally.
−Removed: We were historically party to an Alliance Agreement with Dialog, 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: In November 2021, we were informed that Dialog was acquired by the Japanese chipmaker, Renesas Electronics, and that Dialog, under the control of Renesas Electronics would not be continuing our relationship.
−Removed: As we transfer our supply chains away from Dialog, we have been developing our own internal capabilities and are partnering once again with the foundry partner that supported our manufacturing process before we entered into the Alliance Agreement.
−Removed: While we have seen no major impact to-date as a result of the termination of our relationship with Dialog, the process of transferring our supply chains away from Dialog may result in manufacturing delays, increases in manufacturing or sales costs or reduced revenues.
+Added: If our technology does not compete well based on these or other factors, our business could be materially and adversely harmed.
Risks Related to Our Intellectual Property and Other Legal Risks
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Because our industry is characterized by competing intellectual property, we may become involved in litigation based on claims that we have violated the intellectual property rights of others.
−Removed: Determining whether a
−Removed: product infringes a patent involves complex legal and factual issues, and the outcome of patent litigation actions is often uncertain.
+Added: Determining whether a product infringes a patent involves complex legal and factual issues, and the outcome of patent litigation actions is often uncertain.
No assurance can be given that third party patents containing claims covering our products, parts of our products, technology or methods do not exist, have not been filed, or could not be filed or issued.
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If sales of products incorporating our technology increase or we suffer future product liability claims, we may be unable to maintain product liability insurance in the future at satisfactory rates or with adequate amounts.
−Removed: A product liability claim, any product recalls or excessive warranty claims, whether arising from defects in design or manufacture or otherwise, could negatively affect our sales or require a change in the design or manufacturing process, any of which could harm our reputation, harm our relationship with licensors of our products, result in a decline in revenue and harm our business.
+Added: A product liability claim, any product recalls or excessive warranty claims, whether arising from defects in design or manufacture or otherwise, could negatively
+Added: affect our sales or require a change in the design or manufacturing process, any of which could harm our reputation, harm our relationship with licensors of our products, result in a decline in revenue and harm our business.
In addition, if a product that we or a strategic partner design is defective, whether due to design or manufacturing defects, improper use of the product or other reasons, we or our strategic partner may be required to notify regulatory authorities and/or to recall the product.
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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: 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 and 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 that is able to illicitly obtain a customer’s identification and password credentials may be able to access our customer’s accounts and certain account data.
+Added: We rely on email and other electronic means of communication 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 actual, perceived 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: We could also be exposed to a risk of loss or litigation and potential liability under laws, regulations and contracts that protect the privacy and security of personal information.
+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: Any of these events or circumstances could materially adversely affect our business, financial condition and operating results.
If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
We pursue the licensing of our technology as a primary means of revenue generation.
−Removed: Creating a licensing business relationship often takes 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
−Removed: with selection, review, and contracting requirements.
+Added: Creating a licensing business relationship often takes 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.
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.
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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 RF energy, which is subject to regulation by the Federal Communications Commission in the United States and by comparable regulatory agencies worldwide.
+Added: Our charging technology involves power transmission using RF energy, which is subject to regulation by the Federal Communications Commission (the “FCC”) in the United States and by comparable regulatory agencies worldwide.
It may also be subject to regulation by other agencies.
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Competition for such personnel is intense because we compete for talent against many large profitable companies and our inability to adequately staff our operations with highly qualified and well-trained engineers could render us less efficient and impede our ability to develop and deliver a commercial product.
+Added: Further, in recent years, the increased availability of hybrid or remote working arrangements has expanded the pool of companies that can compete for our employees and employment candidates.
Such a competitive market could put upward pressure on labor costs for engineering talent.
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We are subject to risks associated with our utilization of engineering consultants.
−Removed: To improve productivity and accelerate our development efforts while we build out our own engineering team, we may use experienced consultants to assist in selected development projects.
+Added: To improve productivity and accelerate our development efforts while we build out our own engineering team, we use experienced consultants to assist in selected development projects.
We take steps to monitor and regulate the performance of these independent third parties.
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Effective management of our consultants is important to our business and strategy.
−Removed: The failure of our consultants to
−Removed: perform as anticipated could result in substantial costs, divert management’s attention from other strategic activities, or create other operational or financial problems for us.
+Added: The failure of our consultants to perform as anticipated could result in substantial costs, divert management’s attention from other strategic activities, or create other operational or financial problems for us.
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.
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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 September 30, 2022, we cannot assure you that we will not identify any material weakness in our internal control in the future.
+Added: Although our management has determined that our internal control over financial reporting was effective as of March 31, 2023, we cannot assure you that we will not identify any material weakness in our internal control in the future.
We qualify as a “smaller reporting company” and are therefore not required to file an auditor attestation report.
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actual or anticipated variations in our operating results;
−Removed: general economic, industry and market conditions, including increases in inflation or fluctuating interest rates and disruptions to global supply chains, and perceptions of future economic growth prospects in the economy at large;
−Removed: terrorist acts, acts of war or periods of widespread civil unrest, such as the ongoing conflict between Russia and the Ukraine and the global sanctions imposed in response thereto;
+Added: general macroeconomic, industry and market conditions, including increases in inflation or fluctuating interest rates and disruptions to global supply chains, and perceptions of future economic growth prospects in the economy at large;
+Added: • recent turmoil in the global banking sector ;
+Added: terrorist acts, acts of war or periods of widespread civil unrest, such as the ongoing conflict between Russia and the Ukraine and the response thereto;
natural disasters and other calamities, including global pandemics such as the COVID-19 pandemic;
−Removed: the limited number of holders of our common stock;
changes in the economic performance and/or market valuations of other technology companies;
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Our management and other personnel are expected to devote a substantial amount of time to compliance initiatives associated with our public reporting company status.
−Removed: Those costs can be expected to increase as we emerged from emerging growth company status and will increase significantly if we no longer qualify as a smaller reporting company.
+Added: Those costs will increase significantly if we cease to qualify as a smaller reporting company.
We may be subject to securities litigation, which is expensive and could divert management attention.
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Our ability to use Federal net operating loss carry forwards to reduce future tax payments may be limited if our taxable income does not reach sufficient levels.
−Removed: As of December 31, 2021, we had a Federal net operating loss (“NOL”) carry forwards of approximately $241,988,000.
+Added: As of December 31, 2022, we had Federal net operating loss (“NOL”) carry forwards of approximately $273,056,000.
Under the Internal Revenue Code of 1986, as amended, NOLs arising in tax years ending on or before December 31, 2017 can generally be carried forward to offset future taxable income for a period of 20 years, and NOLs arising in tax years ending after December 31, 2017 can generally be carried forward indefinitely.
Our ability to use our NOLs will be dependent on our ability to generate taxable income, and the NOLs that arose in tax years ending on or before December 31, 2017 could expire before we generate sufficient taxable income to take advantage of the NOLs.
−Removed: As of December 31, 2021, based on our history of operating losses it is possible that a portion of our NOLs will not be fully realizable.
+Added: As of March 31, 2023, based on our history of operating losses it is possible that a portion of our NOLs will not be fully realizable.
Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable.
−Removed: Provisions of our certificate of incorporation and bylaws, and applicable Delaware law, may delay or discourage transactions involving an actual or potential change in control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests.
+Added: Provisions of our certificate of incorporation and bylaws, and applicable Delaware law, may delay or discourage transactions involving an actual or potential change in control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares, or transactions that our
+Added: stockholders might otherwise deem to be in their best interests.
The provisions in our certificate of incorporation and bylaws:
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This potential inability to obtain a control premium could reduce the price of our common stock.
+Added: Our warrants that are accounted for as liabilities and the changes in value of our warrants could have a material effect on the market price of our common stock or our financial results.
+Added: We account for the 2023 Warrants in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.
+Added: Such guidance provides that, because the 2023 Warrants do not meet the criteria for equity treatment thereunder, each 2023 Warrants must be recorded as a liability.
+Added: Accordingly, we classify each 2023 Warrants as a liability at its fair value.
+Added: This liability is subject to re-measurement at each balance sheet date, with a resulting non-cash gain or loss related to the change in the fair value being recognized in earnings in the statements of operations.
+Added: With each such remeasurement, the warrant liability is adjusted to fair value, with the change in fair value recognized in our statement of operations and therefore our reported earnings.
+Added: As a result of the recurring fair value measurement, our consolidated financial statements and results of operations may fluctuate quarterly based on factors which are outside of our control.
+Added: Due to the recurring fair value measurement, we expect that we will recognize non-cash gains or losses on the 2023 Warrants each reporting period and that the amount of such gains or losses could be material.
+Added: The impact of changes in fair value on earnings may have an adverse effect on the market price of our common stock.
General Risk Factors
+Added: The price of our common stock may not meet the requirements for continued listing on Nasdaq.
+Added: If we fail to regain compliance with the minimum listing requirements, our common stock will be subject to delisting.
+Added: Our ability to publicly or privately sell equity securities and the liquidity of our common stock could be adversely affected if our common stock is delisted.
+Added: The continued listing standards of Nasdaq require, among other things, that the minimum bid price of a listed company’s stock be at or above $1.00.
+Added: If the closing minimum bid price is below $1.00 for a period of more than 30 consecutive trading days, the listed company will fail to be in compliance with Nasdaq’s listing rules and, if it does not regain compliance within the grace period, will be subject to delisting.
+Added: As previously reported, on January 20, 2023, we received a notice from the Nasdaq Listing Qualifications Department notifying us that for 30 consecutive trading days, the bid price of our common stock had closed below the minimum $1.00 per share requirement.
+Added: In accordance with Nasdaq’s listing rules, we were afforded a grace period of 180 calendar days, or until July 19, 2023, to regain compliance with the bid price requirement.
+Added: In order to regain compliance, the bid price of our common stock must close at a price of at least $1.00 per share for a minimum of 10 consecutive trading days.
+Added: If we fail to regain compliance by July 19, 2023, we may be eligible for a second 180 day compliance period, provided that we, among other things, meet the continued listing requirement for market value of publicly held shares as well as all other standards for initial listing on The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and provide written notice of our intention to cure the bid price deficiency during the second compliance period by effecting a reverse stock split, if necessary.
+Added: Such extension of the grace period would be subject to Nasdaq’s discretion, and there can be no guarantee that we would be granted an extension.
+Added: We cannot provide any guarantee that we will regain compliance during the grace period or be able to maintain compliance with Nasdaq’s listing requirements in the future.
+Added: If we are not able to regain compliance during the grace period, or any extension of the grace period for which we may be eligible, our common stock will be subject to delisting and “penny stock” rules.
+Added: Delisting from Nasdaq could adversely affect our ability to raise additional financing through the public or private sale of equity securities, would significantly affect the ability of investors to trade our securities and would negatively affect the value and liquidity of our common stock.
+Added: Delisting could also have other negative results, including the potential loss of confidence by employees, the loss of institutional investor interest and fewer business development opportunities.
+Added: Adverse macroeconomic conditions, natural disasters or reduced technology spending could adversely affect our business, operating results, and financial condition.
+Added: Our business depends on the overall demand for our technology and on the economic health of our current and prospective customers.
+Added: In addition, the purchase of our products is often discretionary and may involve a significant commitment of capital and other resources.
+Added: Weak global and regional macroeconomic conditions, including labor shortages, supply chain disruptions, rising interest rates and inflation, low spending environments, geopolitical instability, warfare and uncertainty, weak economic conditions in certain regions or a reduction in technology spending regardless of macroeconomic conditions, including as a result of the remaining effects of COVID-19 and the ongoing conflict between Russia and the Ukraine and the global response thereto, could adversely affect our business, operating results, and financial condition, including resulting in longer sales cycles, a negative impact on our ability to attract and retain new customers or expand our platform or sell additional products and services to our existing customers, lower prices for our products, higher default rates among our current suppliers and customers and reduced sales to new or existing customers.
+Added: There has been recent turmoil in the global banking system.
+Added: For example, on March 10, 2023, Silicon Valley Bank (“SVB”), was closed by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (“FDIC”), as receiver for SVB.
+Added: Additionally, in May 2023, the FDIC took control of First Republic Bank (“First Republic”).
+Added: While the FDIC has since stated that all depositors of SVB will be made whole and JPMorgan Chase & Co.
+Added: (“JPMorgan”) has since acquired a substantial amount of assets and certain liabilities of First Republic, there is no guarantee that the federal government would similarly guarantee all depositors in the event of future bank closures.
+Added: While the Company does not have a banking relationship with SVB or First Republic, continued instability and turmoil in the global banking system may negatively impact us or our customers, including our customers’ ability to pay for our products, and adversely impact our business and financial condition.
+Added: Moreover, such events, in addition to the global macroeconomic conditions discussed above, may cause further turbulence and uncertainty in the capital markets.
+Added: Further deterioration of the global macroeconomic environment and any regulatory action taken in response thereto may adversely affect our business, operating results, and financial condition.
+Added: Further, natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce, and the global economy, and thus could have an adverse effect on us.
+Added: Our business operations are also subject to interruption by fire, power shortages, flooding, and other events beyond our control.
+Added: In the event of a natural disaster, including a major earthquake, blizzard, or hurricane, or a catastrophic event such as a fire, power loss, cyberattack, or telecommunications failure, we may be unable to continue our operations and may endure system interruptions, reputational harm, delays in development of our platform, lengthy interruptions in service, breaches of data security, and loss of critical data, all of which could have an adverse effect on our future operating results.
+Added: Climate change could result in an increase in the frequency or severity of such natural disasters.
+Added: For example, our corporate offices are located in California, a state that frequently experiences earthquakes, wildfires, heatwaves and droughts.
The outbreak of health epidemics, such as COVID-19, has and may further adversely affect our business, results of operations and financial condition.
2 unchanged sentences
A majority of our potential customers have a significant dependence on the Chinese manufacturing and supply chain infrastructure.
−Removed: We believe the COVID-19 pandemic delayed adoption of our technology by potential customers who temporarily shut down their workforces and supply chains based in China and elsewhere around the world.
+Added: We believe the COVID-19 pandemic delayed adoption of our technology by potential customers who temporarily shut down their workforces
+Added: and supply chains based in China and elsewhere around the world.
At times, certain of our outsourcing partners, component suppliers and logistical service providers have experienced disruptions, resulting in supply shortages that have affected and may continue to affect our sales .
Similar disruptions could occur in the future.
−Removed: In the United States, COVID-19 resulted in travel and other restrictions in order to reduce the spread of the disease.
−Removed: As a result of these developments, we have implemented work-from-home policies for our employees that will likely remain in effect in some form through the end of 2022 and possibly longer.
−Removed: Several vaccines have been approved for use since the fourth quarter of 2020, with vaccination rates increasing through 2022.
−Removed: Several new variants of COVID-19 have emerged and may be more transmissible than other variants.
−Removed: Vaccines approved to date have lower efficacy in combating the transmission of some of these new variants, though vaccines appear to protect against severe illness.
−Removed: Due to the continuing developments and fluidity of this situation, the magnitude and duration of the pandemic and its impact on our operations and liquidity are still uncertain as of the date of this report.
In addition, COVID-19 has resulted and may continue to result in a widespread health crisis that could contribute to increased market volatility and 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.
1 unchanged sentence
The extent of the impact will depend on future developments, which are highly uncertain and cannot be predicted.
−Removed: An active trading market for our common stock may not be maintained.
−Removed: Our stock is currently traded on Nasdaq, but we can provide no assurance that we will be able to maintain an active trading market on Nasdaq or any other exchange in the future, including if we no longer meet the applicable listing standards of Nasdaq.
−Removed: If an active market for our common stock is not maintained, or if we no longer qualify to be listed on Nasdaq, it may be difficult for our stockholders to sell or purchase shares on such a national securities exchange, or otherwise.
−Removed: An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and impair our ability to acquire other companies or technologies by using our shares as consideration.
If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline.
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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.