Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
As a smaller reporting company as defined by Rule
12b-2 of the Exchange Act, and in item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore
are not required to provide the information requested by this item. In any event, please see below for a risk factor in connection with
the Company’s share buyback program.
Our share buyback program that was approved
by the Board in August 2023 could affect our stock price and increase its volatility, and may reduce the market liquidity for our stock.
The share buyback program may also materially impact the Company’s liquidity.
Repurchases pursuant to the share buyback program
entered into in August 2023, or any other share buyback program we adopt in the future, could affect our stock price and increase its
volatility and may reduce the market liquidity for our stock. The existence of a share buyback program could also cause our stock price
to be higher than it would be in the absence of such a program. Additionally, these repurchases will diminish our cash and may subject
us to additional taxes, which could impact our ability to pursue possible future strategic opportunities and acquisitions and would result
in lower overall returns on our cash balances. There can be no assurance that any share repurchases will, in fact, occur, or, if they
occur, that they will enhance stockholder value. Although share buyback programs are intended to enhance long-term stockholder value,
short-term stock price fluctuations could reduce the effectiveness of these repurchases.
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