Ownership and Investments - As of December 31, 2025, the company held 53.16% of LanzaJet's outstanding common stock, which was reduced to approximately 45.6% on a fully diluted basis after the LanzaJet Series A Transaction[32] - The LanzaJet Investment Agreement includes provisions for the issuance of up to 45,000,000 additional shares of LanzaJet common stock in exchange for licensing rights[77] - The company has a right of first refusal regarding all transfers of LanzaJet shares to third parties, ensuring control over its investment[83] - The Series A Transaction with LanzaJet resulted in a decrease of LanzaTech's ownership interest from approximately 53.16% to 45.6%[126] Technology and Production - The first commercial facility utilizing the company's gas fermentation technology produced over 63 million gallons of ethanol, demonstrating significant market impact[36] - The company's technology platform is capable of producing up to 6.5 billion metric tons of gas fermentation products annually, primarily ethanol, from diverse waste feedstocks[48] - The LanzaJet ATJ process can produce sustainable aviation fuel (SAF) with a high potential yield of approximately 90%[66] - The company has accumulated over 100,000 hours of pilot and demonstration-scale operations, critical for refining technology and ensuring scalability[63] - The company has launched multiple commercial plants, including the Ningxia Binze Plant with an annual capacity of 60,000 tons, and the Panipat Refinery Plant with a capacity of 33,500 tons annually[63] Intellectual Property - The company has a robust intellectual property portfolio with over 800 granted patents and pending applications, covering the full spectrum of gas fermentation technology[38] - The intellectual property portfolio includes 118 diverse patent families and over 800 granted patents, covering the full spectrum of gas fermentation technology[73] - The company expects to continue filing additional patent applications and pursuing opportunities to acquire and license more intellectual property assets[74] Financial Performance and Revenue - For the fiscal year ended December 31, 2025, the largest contracting entity accounted for 37% of the company's revenue, up from 25% in the fiscal year ended December 31, 2024[75] - The Shougang Joint Venture will pay a royalty on a graduated scale from 8% to 20% of all sublicensing revenues, but no royalty revenue has been recognized since Q2 2024[97] - The Brookfield Loan Agreement includes a loan of $60 million with an 8% annual interest rate, and an initial principal payment of $12.5 million has been made[103] - The Brookfield Loan maturity date has been extended from October 3, 2027, to December 3, 2029[104] - The company completed a private placement of 4,000,000 shares at $5.00 per share for gross proceeds of $20 million on January 21, 2026[119] Strategic Partnerships and Agreements - Under the Mitsui Alliance Agreement, Mitsui is required to promote the company's gasification and waste-to-ethanol technology in Japan, while the company designates Mitsui as its preferred provider of investment services[90] - The Shougang Joint Venture holds approximately 9.3% of the outstanding shares of Beijing Shougang LanzaTech Technology Co., Ltd, resulting from the contribution of certain intellectual property rights[94] - The Shougang Joint Venture License Agreement grants the joint venture a non-transferable, exclusive license to produce ethanol using by-products from steel manufacturing in China[96] - LanzaTech entered into a framework agreement with Brookfield, requiring equity funding of at least $500 million for projects, with no investments made to date[100] Workforce and Organizational Changes - LanzaTech implemented a workforce reduction, resulting in 192 employees as of December 31, 2025[112] - The company is shifting its focus from R&D to deploying its technology globally and evaluating liquidity-enhancing initiatives[118] Market Position and Future Outlook - The company is positioned to benefit from decreasing renewable electricity prices and increasing capacity, as evidenced by a contract awarded in 2024 for a project in India[57] - The company aims to drive the production of CarbonSmart materials, offering a circular solution to waste management and carbon emissions[55] - The company is developing projects using ferroalloy gases in regions such as China, Norway, and India, highlighting its market expansion strategy[53] - The Brookfield SAFE was terminated, and the rights and obligations were replaced by the Original Brookfield Loan Agreement[102] - The company is classified as a "smaller reporting company" under Rule 12b-2 of the Securities Exchange Act of 1934, thus not required to provide detailed market risk disclosures[420]

Ownership and Investments - As of December 31, 2025, the company held 53.16% of LanzaJet's outstanding common stock, which was reduced to approximately 45.6% on a fully diluted basis after the LanzaJet Series A Transaction[32] - The LanzaJet Investment Agreement includes provisions for the issuance of up to 45,000,000 additional shares of LanzaJet common stock in exchange for licensing rights[77] - The company has a right of first refusal regarding transfers of LanzaJet shares to third parties, ensuring control over ownership changes[83] - The Series A Transaction resulted in LanzaTech's ownership interest in LanzaJet decreasing from approximately 53.16% to 45.6% on a fully diluted basis as of February 11, 2026[126] Technology and Operations - The first commercial facility utilizing the company's gas fermentation technology produced over 63 million gallons of ethanol, demonstrating significant market impact[36] - The company has accumulated over 100,000 hours of pilot and demonstration-scale operations, critical for refining technology and ensuring scalability[63] - The company has launched multiple commercial plants, including the Ningxia Binze Plant with an annual capacity of 60,000 tons, and the Panipat Refinery Plant with a capacity of 33,500 tons annually[63] - The company’s technology platform is capable of producing up to 6.5 billion metric tons of gas fermentation products annually, primarily ethanol, from diverse waste feedstocks[48] - The LanzaJet ATJ process can produce sustainable aviation fuel (SAF) with a high potential yield of approximately 90%[66] - The company’s technology integrates across the supply chain, allowing industrial emitters to monetize waste carbon, enhancing resource efficiency[35] - LanzaTech is shifting its core operations from R&D to global deployment of its technology, focusing on improving cost structure and exploring liquidity-enhancing initiatives[118] Intellectual Property - The company’s robust intellectual property portfolio includes over 800 granted patents and pending applications, covering the full spectrum of gas fermentation technology[38] - The intellectual property portfolio includes 118 diverse patent families and over 800 granted patents, covering the full spectrum of gas fermentation technology[73] - The company expects to continue filing additional patent applications and pursuing opportunities to acquire and license more intellectual property assets[74] - LanzaTech has secured around 26 approvals for its biocatalysts across various countries, including the USA, China, and India[111] Partnerships and Collaborations - The company has established partnerships with industry leaders, reinforcing its market leadership and validating its technology through collaborations[37] - Under the Mitsui Alliance Agreement, Mitsui is required to promote the company's gasification and waste-to-ethanol technology in Japan, while the company designates Mitsui as the preferred provider of investment services[90] - The Shougang Joint Venture holds approximately 9.3% of the outstanding shares of Beijing Shougang LanzaTech Technology Co., Ltd, resulting from the contribution of certain intellectual property rights[94] - The Shougang Joint Venture License Agreement grants the joint venture a non-transferable, exclusive license to produce ethanol using by-products from steel manufacturing in China[96] Financial Performance - For the fiscal year ended December 31, 2025, the largest contracting entity accounted for 37% of the company's revenue, up from 25% in the fiscal year ended December 31, 2024[75] - The Shougang Joint Venture has agreed to pay a royalty on a graduated scale from 8% to 20% of all sublicensing revenues, but no royalty revenue has been recognized since Q2 2024[97] - The Brookfield Loan Agreement indicates that LanzaTech borrowed $60 million from Brookfield, with an initial principal payment of $12.5 million due by February 21, 2025, which has been paid[103] - The Brookfield Loan maturity date was extended from October 3, 2027, to December 3, 2029[104] - The company has not recognized any revenue from the Shougang Joint Venture since Q2 2024, indicating a potential impact on future earnings[97] Workforce and Corporate Structure - The company implemented a workforce reduction at its Skokie, Illinois location, with 192 employees as of December 31, 2025[112] - The company is classified as a "smaller reporting company" under Rule 12b-2 of the Securities Exchange Act of 1934, thus not required to provide detailed market risk disclosures[420]

Advertising Market Trends - The combined US TV ad market is projected to reach $100 billion by 2027, with CTV ad spending expected to surge to $46.9 billion by 2028, surpassing traditional TV for the first time[29]. - The digital advertising landscape is evolving, with small and mid-sized businesses increasingly adopting digital media for targeted engagement and measurable outcomes[32]. - The advertising industry experiences seasonal fluctuations, with the fourth quarter typically seeing the highest revenue due to holiday spending[49]. - The digital advertising industry is highly competitive, with significant risks from existing and new competitors that may have more resources and broader customer bases[93]. - Economic downturns and unstable market conditions could lead advertisers to decrease their advertising budgets, adversely affecting revenue[101]. Company Performance and Financials - Revenue for the year ended December 31, 2023, was $157.1 million, up from $89.4 million in 2022, representing a growth of 75.5%[37]. - Gross profit for the year ended December 31, 2023, was $37.6 million, compared to $29.3 million in 2022, an increase of 28.3%[37]. - Revenues for 2025 were $34.694 million, a decrease of 44.7% from $62.288 million in 2024[200]. - Loss from operations in 2025 was $14.755 million, compared to a loss of $13.233 million in 2024[200]. - Net loss for 2025 was $27.723 million, up from a net loss of $19.907 million in 2024[200]. Client and Market Strategy - The company processed over 170 billion average monthly impressions in 2025, serving approximately 174,000 buyers or advertisers[17]. - The buy-side segment, operated through Orange 142, serves about 195 small-to-mid-sized clients, focusing on enhancing advertising ROI and reducing customer acquisition costs[26]. - The company aims to capitalize on the shift to digital advertising, which allows for more precise targeting and measurable results compared to traditional advertising methods[22]. - The company focuses on providing tailored strategies that enhance visibility and drive quantifiable KPIs for clients across various industries[23]. - The company plans to expand its sales teams in underserved markets across the United States to drive growth[39]. Technology and Innovation - The company's proprietary Colossus SSP platform allows for real-time selling of ad impressions, providing automated inventory management and monetization tools to publishers[17]. - The Colossus SSP platform enables programmatic media buyers to access a wide range of advertising inventory, enhancing efficiency for buyers[38]. - The company aims to innovate and develop audience curation and data targeting capabilities to optimize client campaigns[39]. - The company has invested in reducing processing time for transactions on its platform, enhancing the efficiency of its ad tech ecosystem[17]. Risks and Challenges - The company is exposed to risks related to advertising fraud, which could harm its reputation and business operations[66]. - The company faces risks related to operational and performance issues with its platform, which could lead to negative publicity and financial compensation obligations[71]. - Regulatory changes regarding data privacy could limit the company's ability to collect and process data, adversely affecting revenue and demand for its services[81]. - The company is subject to various data privacy laws, including the GDPR, which could increase compliance costs and limit market expansion[85]. - The company must continually work to attract and retain customers, as existing customers can easily switch to competitors without incurring significant costs[102]. Corporate Governance and Compliance - The company identified a material weakness in its internal control over financial reporting as of December 31, 2025, which could lead to material misstatements in financial statements[154]. - Remediation steps have been implemented, including engaging consultants and enhancing internal controls, but the material weakness was not fully remediated as of December 31, 2025[155]. - The company is subject to a discretionary panel monitor for compliance with Nasdaq listing standards until November 7, 2026, and February 12, 2027, respectively[160]. - The company reported it is not in compliance with the minimum stockholders' equity requirement as of December 31, 2025, which could lead to delisting from Nasdaq[160]. - The company has engaged in significant resource expenditure to maintain and improve the effectiveness of its internal controls and disclosure procedures[159]. Shareholder and Financial Structure - The company has never declared or paid any dividends on its Class A Common Stock and does not anticipate doing so in the foreseeable future[166]. - The trading price of the Class A Common Stock has been volatile, influenced by market fluctuations and changes in investor perception[163]. - The company may need additional financing beyond the $100 million from New Circle to meet future working capital needs, which could involve issuing new equity or debt securities[151]. - If financing is unavailable or prohibitively expensive, it could materially adversely affect the company's business and financial condition[152]. - Payments under the Tax Receivable Agreement require the company to pay 85% of tax benefits realized, which could be significant depending on future redemptions or exchanges of LLC Units[137].

Business Model and Revenue Generation - Revenue is generated through a combination of printer sales and production services, with a focus on high-performance metal parts [79]. - The business model is asset-light, primarily involving final assembly, testing, and shipment, which allows for rapid scaling without heavy capital expenditures [104]. - The company anticipates incurring negative cash flow in the near term due to significant investments in sales and marketing [154]. - The company expects to require additional capital to fund operations and satisfy substantial debt obligations in the near term, which may not be available on acceptable terms [173]. - The company entered a $10.0 million sale-leaseback transaction in December 2025 for various 3D printers and related equipment [170]. Product Development and Technology - The company focuses on production-scale metal additive manufacturing, enabling customers to manufacture high-value metal parts at scale [59]. - The Sapphire family of systems allows for the production of complex internal geometries, providing a competitive edge in industries such as aerospace and defense [69]. - The Sapphire XC printer system has a larger build module of 600 millimeters in diameter and 550 millimeters in height, with a volume of up to 155 liters, compared to the original Sapphire printer [107]. - The company currently has recipes to print from 16 different metals and is continuously adding new recipes based on customer demand [110]. - The platform supports process validation and repeatable outcomes, enabling customers to transition from early development to sustained production [88]. - The additive manufacturing industry is characterized by rapid technological change, necessitating continuous product development to remain competitive [211]. Intellectual Property and Patents - The company has established 57 issued patents and 34 pending patent applications, reinforcing its intellectual property protections [103]. - As of December 31, 2025, the company owned 57 issued patents, including 45 U.S. patents and 12 foreign patents, with 34 pending patent applications [138]. Market and Customer Engagement - The company plans to increase global customer relationships and expand its sales organization to drive new customer acquisition [92]. - The company has engaged with various Fortune 500 companies across multiple industries, including aerospace, defense, and automotive [119]. - Sales to the top three customers accounted for 33.2% and 47.0% of total revenue for the years ended December 31, 2025 and 2024, respectively [163]. - Over 50% of customers have multiple Sapphire family of systems products as of December 31, 2025, indicating diversification in the customer base [164]. - The company emphasizes a "land-and-expand" strategy, where satisfied customers continue to purchase additional Sapphire printers due to the technology's capabilities [86]. Financial Performance and Challenges - The company reported operating losses of $54.9 million and $78.8 million for the years ended December 31, 2025 and 2024, respectively [154]. - Revenue growth was less than expected due to delayed shipments and customer order delays, impacting annual revenue growth [155]. - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months [156]. - The reliance on a limited number of customers increases credit risk, particularly if those customers face financial difficulties [168]. - Increased dependence on asset monetization transactions could heighten fixed-charge burden and reduce flexibility in responding to market changes [172]. - The company has historically invested in research and development, but such investments may affect operating results and liquidity if returns are lower than expected [175]. - Changes in transaction models and product mix may impact gross margins and financial performance, leading to fluctuations in profitability [192]. Operational Risks and Compliance - The company may face operational risks due to long procurement cycles and regulatory compliance requirements in defense-related contracts [205]. - Compliance with heightened regulatory requirements in defense and government-related programs may lead to increased costs and operational disruptions [209]. - The company may incur significant expenses due to product liability or warranty claims arising from defects in additive manufacturing systems [201]. - Material weaknesses in internal control over financial reporting were identified, which could result in material misstatements of consolidated financial statements [233]. Workforce and Organizational Changes - The company has a strong team of 134 full-time employees as of December 31, 2025, up from 105 in 2024 [139]. - A strategic decision was made in Q1 2025 to pivot from emphasizing revenue growth to optimizing profitability, which includes reducing expenditures and improving operational efficiency [229]. - The company announced a reduction in force impacting approximately 45% of its workforce and closed three facilities, maintaining only the headquarters in Fremont, California [232]. Economic and Market Conditions - Economic uncertainty, including factors like rising fuel prices and high inflation, could lead to reduced customer spending and longer sales cycles [253]. - A significant downturn in economic activity may cause customers to cut capital expenditures, particularly on additive manufacturing systems [254]. - Demand for additive manufacturing products may stagnate or decline if market adoption does not continue to develop as expected [195]. - The ongoing conflict with Iran may increase demand for the company's products from defense customers, but production capacity limitations could constrain the ability to meet this demand [257]. Risk Management and Insurance - Current insurance levels may not be adequate for potential liabilities, and the company may face challenges in obtaining insurance coverage on commercially reasonable terms [247][248]. - The company relies on information technology systems for various business operations, and any disruption could significantly affect efficiency and financial condition [241]. - The company has engaged third-party auditors to identify risk factors affecting data security and is in the process of remediating vulnerabilities [243].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ____________ Commission file number 001-40272 CN Healthy Food Tech Group Corp. (Exact name of registrant as specified in its charter) | Delaware ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ____________ Commission file number 001-40272 CN Healthy Food Tech Group Corp. (Exact name of registrant as specified in its charter) | Delaware ...

Financial Performance - Total Revenues for Q4 2025 were $50.3 million, a decrease of 14% from $58.6 million in Q4 2024[8] - Operating Loss for Q4 2025 was $1.0 million, compared to Operating Income of $1.5 million in Q4 2024[8] - Net Loss for Q4 2025 was $2.6 million, compared to a Net Loss of $2.2 million in Q4 2024[8] - Full Year 2025 Total Revenue was $203.0 million, down from $210.5 million in 2024[8] - Total revenues for 2025 were $202,988,000, a decrease of 4% from $210,527,000 in 2024[28] - Net income attributable to Reading International, Inc. for 2025 was a loss of $14,140,000, improving from a loss of $35,301,000 in 2024[28] - Basic and diluted earnings per share for 2025 were both $(0.62), compared to $(1.58) in 2024[28] Adjusted EBITDA - Full Year 2025 Adjusted EBITDA was $17.8 million, an improvement of $15.7 million compared to $2.1 million in 2024[8] - Adjusted EBITDA for 2025 was $17,841,000, significantly up from $2,113,000 in 2024[32] - Adjusted EBITDA is calculated by excluding certain external items, such as legal expenses from extraordinary litigation and non-recurring items[40] Operating Income - Cinema Operating Income for the full year 2025 was $3.6 million, an increase of $6.4 million from an Operating Loss of $2.8 million in 2024[13] - Operating income for the cinema segment in the United States improved to $220,000 in 2025 from a loss of $7,251,000 in 2024[30] - The Real Estate Division's Operating Income increased to $5.9 million in 2025, compared to $4.7 million in 2024[13] Revenue by Segment - Cinema segment revenue decreased by 14% in Q4 2025 to $46,863,000 compared to $54,560,000 in Q4 2024[30] - The global Real Estate Division's revenues decreased by 8% to $18.4 million in 2025 from $20.0 million in 2024[13] - Real estate segment revenue for 2025 was $18,421,000, down 8% from $20,006,000 in 2024[30] Assets and Liabilities - Total assets decreased to $434,929,000 in 2025 from $471,011,000 in 2024[29] - Total liabilities decreased to $453,027,000 in 2025 from $475,801,000 in 2024[29] Cash Flow - Cash and cash equivalents decreased to $10,531,000 in 2025 from $12,347,000 in 2024[29] Acquisitions and Sales - The company completed the acquisition of a 25% minority interest in Cinemas 123 in Q4 2025[9] - The company sold two international assets in 2025 for a total of $42.2 million, which helped reduce bank debt by approximately $32.1 million[10] EBITDA Considerations - EBITDA is used as a key measure of financial performance and value in the cinema exhibition and real estate industries, commonly adopted by analysts and financial commentators[36] - EBITDA is not a measurement under generally accepted accounting principles and should not be considered in isolation from net income or cash flow data[37] - The exclusion of interest, taxes, depreciation, and amortization limits the usefulness of EBITDA when assessing financial performance[39]

Put For more information, contact: Gilbert Avanes – EVP, CFO, and Treasurer (213) 235-2240 Reading International Reports Fourth Quarter and Full Year 2025 Results Earnings Call Webcast to Discuss 2025 Fourth Quarter and Full Year Financial Results Scheduled to Post to Corporate Website by Thursday, April 02, 2026 New York, New York - March 31, 2026: Reading International, Inc. (NASDAQ: RDI) ("Reading" or our "Company"), an internationally diversified cinema and real estate company with operations and assets ...

Corporate Actions - The company executed a reverse stock split on June 23, 2025, converting every eight pre-split shares into one post-split share[8]. Risks and Challenges - The company reported significant risks including increased operating costs and competition from new technologies[14]. - The company acknowledged potential supply chain disruptions and geopolitical instability as factors that could impact operations[14]. Business Strategy - The company emphasized the importance of maintaining a diverse customer base to mitigate revenue concentration risks[14]. - The company is focused on implementing its bitcoin treasury strategy amidst regulatory uncertainties and price volatility[14]. - The company highlighted the need to scale manufacturing operations to meet customer demand effectively[14]. - The company plans to continue monitoring market acceptance and demand for its products and services[15]. Human Resources - The company is actively seeking to attract and retain qualified personnel to support its business strategy[14]. Intellectual Property - The company is committed to protecting its intellectual property through various legal means[14]. Data Verification - The company has not independently verified third-party industry data included in its reports[16].

Business Model and Technology - Skillz's platform enables game developers to monetize their content through multi-player competitions, allowing for real-money tournaments and virtual prizes [37]. - Skillz's proprietary platform ensures fair player matching, which is critical for maintaining trust and integrity in skill-based gaming [29]. - Skillz's technology platform enhances user engagement and retention by monetizing through competitions rather than traditional in-game advertisements [41]. - The company aims to transition from a turnaround phase to sustainable growth, focusing on high-integrity, data-driven digital businesses [34]. - The company utilizes advanced data science technologies for anti-cheat and anti-fraud measures, enhancing the overall gaming experience [52]. - Skillz's LiveOps system automates user experience management across games, optimizing engagement and retention with minimal resources [48]. - The company launched the $75 million Skillz Developer Program in February 2025, aiming to support approximately 25 games over the next three years [59]. - The company’s games initially go live with free-to-play capabilities before applying for prize competitions, ensuring quality through proprietary algorithms [60]. - The company’s distribution includes direct app downloads and third-party platforms, with Apple not taking a share of end-user deposits on their system [65]. Legal and Regulatory Challenges - The company is involved in ongoing litigation regarding bot misuse, which may impact its competitive position and financial condition [94]. - The company is currently disputing Tether's termination of agreements, which could have a material adverse effect on its business and results of operations [107]. - The company faces risks from using third-party open-source software and AI technologies, which could lead to legal claims and compliance issues [144]. - The company is subject to scrutiny from media, investors, and regulators, which could impact its brand and financial condition [123]. - The company anticipates increased scrutiny and regulation in the online gaming industry, necessitating the allocation of legal resources to address compliance [183]. - Non-compliance with applicable laws could expose the company to claims, litigation, and substantial fines, adversely affecting its reputation and financial condition [186]. - The company may incur fines of up to 4% of global annual revenue under GDPR for certain violations, highlighting the financial risks associated with data protection compliance [170]. - The company is subject to various state-level AI regulations, creating a complex compliance landscape that could affect operations and financial results [174]. Financial Performance and Risks - As of December 31, 2025, the company had an accumulated deficit of $1,091.7 million, indicating ongoing financial challenges [205]. - The company has experienced net losses in each period since inception, highlighting difficulties in achieving profitability [205]. - The aggregate indebtedness under the company's senior secured notes was $129.7 million, maturing in December 2026, which may impact financial flexibility [214]. - The company expects to continue to expend substantial financial resources on expanding its developer and consumer base, technology, and marketing efforts [206]. - Operating margins may face downward pressure due to increasing competition and rising user acquisition costs [206]. - The company may require additional capital to support growth plans, which may not be available on acceptable terms, potentially hampering business expansion [211]. - The company’s ability to generate cash flow from operations is uncertain, which may affect its ability to service or repay debt obligations [216]. - Fluctuations in financial results may occur due to seasonality and other unpredictable factors, impacting overall business performance [208]. Market and Economic Conditions - Economic downturns and geopolitical conflicts may adversely impact consumer spending on the company's platform [161]. - The company faces risks from global economic weakness and geopolitical instability, which could adversely affect user engagement and revenue [163]. - General economic, political, and market conditions, such as recessions and interest rate changes, may negatively impact stock prices [219]. - The trading price of the Class A common stock has been volatile and may continue to fluctuate widely due to various uncontrollable factors [219]. Employee and Workforce Management - The company is focused on maintaining a diverse and engaged workforce, as misalignment with employee expectations could harm productivity and retention [158]. - The company is facing challenges in attracting and retaining skilled employees in a competitive labor market, which could impair its strategic objectives [160]. - Customer service levels must be maintained as the paying user base grows, requiring more complex management systems [139]. Intellectual Property and Innovation - The company has 90 patents granted and 112 patents pending worldwide as of December 31, 2025, focusing on various categories of innovation [78]. - The company has filed for various intellectual property protections, but the outcomes of these applications are uncertain and could affect its competitive position [196]. - The company may face challenges in protecting its AI-related intellectual property due to ongoing legal uncertainties in this field [197]. - Use of AI technologies in software development may lead to potential intellectual property infringement claims if generated code is too similar to proprietary or open-source code [198]. User Acquisition and Marketing - The company utilizes digital ad networks and affiliate partners for user acquisition, optimizing marketing investments across channels [66]. - The company has significant opportunities to extend marketing channels to offline media and engage in brand marketing to increase awareness [68]. - The company aims to achieve viral organic growth and gain user interest in featured games through both free and paid channels [119]. - Monthly Active Users (MAUs) and Paying Monthly Active Users (Paying MAUs) are key metrics tracked, with MAUs defined as users entering contests at least once a month [125]. - Average Revenue Per Monthly Active User (ARPU) and Average Revenue Per Paying Monthly Active User (ARPPU) are calculated to assess revenue generation efficiency [125]. Cybersecurity and Operational Risks - Cybersecurity incidents pose a significant risk, with potential impacts on business operations and brand reputation [131]. - The company relies heavily on Amazon Web Services (AWS) for game traffic, data storage, and processing, which poses risks if there are service interruptions [140]. - The company does not maintain insurance policies for system-related losses, increasing vulnerability to service disruptions and data loss [142]. - A significant portion of the company's operations is dependent on third-party service providers, and any termination of agreements could lead to substantial costs and downtime [143]. - The company relies on third-party payment processors for transactions, and any failure in these relationships could damage user trust and operational capabilities [149]. - Nearly all payments are processed through credit and debit cards, exposing the company to regulatory risks and potential penalties for non-compliance [151].