SMSI Smith Micro Software Dashboard

Risks

• We derive a significant portion of our revenues from sales to a concentrated number of clients, and a reduction in sales to any of them may adversely impact our revenues and operating results.
• Our growth depends in part on our customers’ ability and willingness to promote our services and attract and retain new end user customers or achieve other goals outside of our control.
• If we are unable to retain key personnel, the loss of their services could materially and adversely affect our business, financial condition and results of operations.
• Security and privacy breaches may harm our business.
• Interruptions or delays in service from data center hosting facilities could impair the delivery of our service and harm our business.
• The success of our products depends upon effective operation with operating systems, devices, networks and standards that we do not control and on our continued relationships with mobile operating system providers and device manufacturers.
• Our products may contain undetected software defects, which could negatively affect our revenues.
• We derive a significant portion of our revenues from only a few core vertical markets, and changes within these vertical markets, or failure to penetrate new markets, could adversely impact our revenues and operating results.
• Our results of operations and financial condition may be adversely affected by public health epidemics, including the ongoing COVID-19 global health pandemic.
• Technology and customer needs change rapidly in our market, which could render our products obsolete and negatively affect our business, financial condition, and results of operations.
• Competition within our target markets is intense and includes numerous established competitors and new entrants, which could negatively affect our revenues and results of operations.
• Our business, financial condition and operating results could be adversely affected as a result of legal, business, and economic risks specific to international operations.
• Evolving information security and data privacy laws and regulations may result in increased compliance costs, impediments to the development or performance of our offerings, and monetary or other penalties.
• Regulations affecting our customers and us and future regulations, to which they or we may become subject to, may harm our business.
• We may be unable to adequately protect our intellectual property and other proprietary rights, and we may be subject to claims for intellectual property infringement, which could negatively impact our business and financial results.
• If we fail to meet the requirements for continued listing on the NASDAQ Stock Market, our common stock could be delisted from trading on NASDAQ, which would likely reduce the liquidity of our common stock and could cause our trading price to decline.
• We may raise additional capital through the issuance of equity or convertible debt securities or by borrowing money in order to meet our capital needs. Additional funds to allow us to meet our capital needs may not be available on terms acceptable to us or at all.
• The Company has a history of net losses, may incur substantial net losses in the future, and may not maintain profitability.
• If we are unable to meet our obligations as they become due over the next twelve months, the Company may not be able to continue as a going concern.
• Our operating income or loss may continue to change due to shifts in our sales mix and variability in our operating expenses.
• Our acquisitions of companies or technologies may disrupt our business and divert management attention and cause our other operations to suffer.
• We rely directly and indirectly on third-party intellectual property and licenses, which may not be available on commercially reasonable terms or at all.
• Our quarterly revenues and operating results are difficult to predict and could fall below analyst or investor expectations, which could cause the price of our common stock to fall.