Content analysis
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Legalese | ||
Litigous | ||
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H.S. junior Avg
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New words:
absence, adjourned, Armistice, authoritative, breach, call, cancelled, Collateral, combined, concurrently, confirmation, consummated, Consummation, corporation, COVID, criteria, customary, Delaware, deposited, directly, East, Eastern, employee, encourage, escrow, European, expend, facilitate, federal, fee, fourth, fractional, free, furnish, Guarantee, half, heavily, hold, indirectly, inflow, introduce, introduction, knowingly, knowledge, LAPBAND, lessen, lieu, listing, meeting, merge, Middle, mix, modification, modify, NASDAQ, Neuromodulation, nonpublic, Notice, Obalon, OBLN, official, participate, person, power, practicable, premier, procuring, promote, promptly, proposal, proposed, proven, proxy, quorum, ratio, recommend, removal, renamed, reorganization, represented, retention, simplify, Simplifying, solicit, standstill, stockholder, subsidiary, surviving, symbol, ticker, traded, trading, type, vi, virtual, volume, voted, voting, waive
Removed:
accreted, acquired, advance, allocate, analyzed, arrangement, ASC, August, bariatric, belief, bifurcated, bifurcation, borrow, capitalizing, Carlo, classification, close, Cloud, CODM, collection, Computing, contract, conversion, currency, Customer, determine, developer, direct, eligibility, embedded, entirety, evaluate, examine, exceed, exchanged, face, feature, foreign, foreseeable, Framework, front, hosting, implementation, improve, incremental, ineligible, initial, internally, issuable, issue, license, long, longer, Maker, marketability, Master, Monte, newly, noncash, noncurrent, occurred, par, profitable, qualifying, reflecting, repaid, repay, repayment, retroactively, reverse, Sabby, satisfied, segment, service, shut, software, split, strategic, subordinated, Subtopic, surgery, transaction, VestTM, violated
Financial report summary
?Risks
- The Merger may not be consummated unless important conditions are satisfied or waived and there can be no assurance that the Merger will be consummated.
- The Merger Agreement contains provisions that could discourage a potential competing acquirer of either ReShape or Obalon.
- The pendency of the Merger could materially adversely affect the business, financial condition, results of operations or cash flows of ReShape or Obalon.
- ReShape directors and executive officers and Obalon directors and executive officers have interests in the Merger that may be different from, or in addition to, the interests of ReShape stockholders and Obalon stockholders.
- Failure to consummate the Merger could negatively impact respective future stock prices, operations and financial results of ReShape and Obalon.
- Financial projections regarding ReShape may not prove accurate.
- The Merger may disrupt attention of ReShape management and Obalon management from ongoing business operations.
- The market price for Obalon Shares following completion of the Merger will continue to fluctuate and may be affected by factors different from those that historically have affected Obalon Shares and ReShape Shares.
- We may be unable to attract and retain management and other personnel we need to succeed.
- Our ReShape Vest product is in the early stages of clinical evaluation. If the clinical trial is not successfully completed or any required regulatory approvals are not obtained, the ReShape Vest may not be commercialized and our business prospects may suffer.
- The shares of series C convertible preferred stock issued in connection with our acquisition of ReShape Medical have certain rights and preferences senior to our common stock, including a liquidation preference that is senior to our common stock.
- We are a medical device company with a limited history of operations and sales, and we cannot assure you that we will ever generate substantial revenue or be profitable.
- During the second quarter of 2019 we recorded a non-cash indefinite-lived intangible assets impairment loss, which significantly impacted our results of operations, and we may be exposed to additional impairment losses that could be material.
- We will need substantial additional funding and may be unable to raise capital when needed, which would force us to delay, reduce or eliminate our product development programs or liquidate some or all of our assets.
- We incur significant costs as a result of operating as a public company, and our management is required to devote substantial time to compliance initiatives.
- General economic and political conditions could have a material adverse effect on our business.
- We face significant uncertainty in the industry due to government healthcare reform.
- We are subject, directly or indirectly, to United States federal and state healthcare fraud and abuse and false claims laws and regulations. Prosecutions under such laws have increased in recent years and we may become subject to such litigation. If we are unable to, or have not fully complied with such laws, we could face substantial penalties.
- Failure to protect our information technology information technology infrastructure against cyber-based attacks, network security breaches, service interruptions or data corruption could materially disrupt our operations and adversely affect our business.
- We may not be able to obtain required regulatory approvals for our ReShape Vest and/or Diabetes Bloc-Stim Neuromodulation in a cost-effective manner or at all, which could adversely affect our business and operating results.
- We depend on clinical investigators and clinical sites to enroll patients in our clinical trials, and on other third parties to manage the trials and to perform related data collection and analysis, and, as a result, we may face costs and delays that are outside of our control.
- We may be unable to manage our growth effectively.
- We face the risk of product liability claims that could be expensive, divert management’s attention and harm our reputation and business. We may not be able to obtain adequate product liability insurance.
- If we are unable to obtain or maintain intellectual property rights relating to our technology and neuroblocking therapy, the commercial value of our technology and any future products will be adversely affected and our competitive position will be harmed.
- Many of our competitors have significant resources and incentives to apply for and obtain intellectual property rights that could limit or prevent our ability to commercialize our current or future products in the United States or abroad.
- If we are unable to protect the confidentiality of our proprietary information and know-how, the value of our technology and products could be adversely affected.
- Intellectual property litigation is a common tactic in the medical device industry to gain competitive advantage. If we become subject to a lawsuit, we may be required to expend significant financial and other resources and our management’s attention may be diverted from our business.
- Our common stock trades on an over-the-counter market.
- Our common stock may be deemed to be a “penny stock” and broker-dealers who make a market in our stock may be subject to additional compliance requirements.
- The trading price of our common stock has been volatile and is likely to be volatile in the future.
- Sales of a substantial number of shares of our common stock in the public market by existing stockholders, or the perception that they may occur, could cause our stock price to decline.
- We have a significant number of outstanding warrants, which may cause significant dilution to our stockholders, have a material adverse impact on the market price of our common stock and make it more difficult for us to raise funds through future equity offerings.
- You may experience future dilution as a result of future equity offerings.
- Since our securities are quoted on the OTCQB market, our stockholders may face significant restrictions on the resale of our securities due to state “blue sky” laws.
- Our organizational documents and Delaware law make a takeover of our company more difficult, which may prevent certain changes in control and limit the market price of our common stock.
- Our ability to use net operating losses (“NOL”) carryforwards may be limited.
- We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our common stock.