Financial Performance and Risks - 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 [12]. - The company may incur significant future expenses and capital expenditures to execute its business plan, potentially impacting profitability [22]. - Future litigation or legal proceedings could adversely affect the company's business and results of operations [36]. Revenue Dependence and Customer Base - 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 clients [26]. Manufacturing and Supply Chain Risks - The company currently relies on a single manufacturing partner for b-silk production, which poses risks if this partnership is disrupted [24]. Competition and Market Position - The company faces substantial competition from existing materials and new entrants, which could impact market share if innovative products are not developed [29]. - The company may not be able to adequately protect its patents and intellectual property, which could harm its competitive position [32]. Internal Controls and Reporting - Material weaknesses in internal control over financial reporting have been identified, which could affect the accuracy of financial reporting [31]. Stock Market and Investment Risks - The market price of the company's common stock has been volatile, which could lead to investment losses [36].
Bolt Projects Holdings, Inc.(BSLK) - 2024 Q3 - Quarterly Report