Financial Viability - The company has a history of net losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern [20]. - The company may incur significant future expenses and capital expenditures to execute its business plan, potentially impacting profitability [22]. Revenue Dependence - Revenue is primarily generated from sales of the b-silk product, indicating high dependency on its market success [23]. - A limited number of customers and distributors account for a significant portion of revenue, making the company vulnerable to the loss of major partners [26]. Supply Chain Risks - The company currently relies on a single manufacturing partner for b-silk production, which poses risks to its supply chain [24]. Competitive Landscape - The company may face substantial competition from existing materials and new entrants, impacting its market share if it fails to innovate [29]. Internal Controls - Material weaknesses in internal control over financial reporting have been identified, which could affect the accuracy of financial reporting [31]. Regulatory and Legal Risks - Government regulations may restrict the marketing and sale of products containing b-silk, posing additional business risks [34]. - Future litigation could have a material adverse effect on the company's business and results of operations [36]. Market Volatility - The market price of the company's common stock has been volatile, which could lead to investment losses [36].
Golden Arrow Merger (GAMC) - 2024 Q3 - Quarterly Report