Aware (AWRE)

Risks

• While we expect the impacts of COVID-19 to have an adverse effect on our business, financial condition and results of operations, we are unable to predict the extent or nature of these impacts at this time.
• Our operating results may fluctuate significantly from period-to-period and are difficult to predict.
• We derive a significant portion of our revenue directly or indirectly from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities.
• A significant commercial market for biometrics technology may not develop, and, even if it does, there can be no assurance our biometrics technology will be successful.
• We derive a significant portion of our revenue from third party channel partners.
• If the biometrics market does not experience significant growth or if our products do not achieve broad acceptance both domestically and internationally, we may not be able to grow our business.
• We face intense competition from other biometrics solutions providers.
• The biometrics industry is characterized by rapid technological change and evolving industry standards, which could render our existing products obsolete.
• Our software products may have errors, defects or bugs, which could result in delayed or lost revenue, expensive correction, liability to our customers, and claims against us.
• Our business may be adversely affected by our use of open source software.
• We rely on third-party software to develop and provide our solutions and significant defects in third-party software could harm our business.
• Part of our future business is dependent on market demand for, and acceptance of, the cloud-based model for the use of software.
• Our operational systems and networks and products may be subject to an increasing risk of continually evolving cybersecurity or other technological risks, which could result in the disclosure of company or customer confidential information, damage to Aware’s reputation, additional costs to Aware, regulatory penalties and financial losses.
• Our intellectual property is subject to limited protection.
• If we are unable to attract and retain key personnel, our business could be harmed.
• Our business may be affected by government laws and regulations.
• Adverse economic conditions could harm our business.
• We may not realize the anticipated benefits of our acquisitions.
• The market price of our common stock has been and may continue to be subject to wide fluctuations, and this may make it difficult for shareholders to resell the common stock when they want or at prices they find attractive.
• If we are unable to maintain effective internal controls over financial reporting, investors could lose confidence in the reliability of our financial statements, which could result in a decline in the price of our common stock.
• We must make judgments in the process of preparing our financial statements.