Financial Performance and Profitability - The company reported a significant loss, indicating ongoing challenges in achieving profitability[18] - The company has generally incurred losses and may never become profitable[18] - The company has never paid dividends and does not anticipate doing so in the foreseeable future[23] Market and Industry Challenges - The digital marketing business is evolving in a rapidly changing market, impacting long-term operational success[18] - The company anticipates continued consolidation in the industry, which could affect access to financing and customers[18] - Uncertain global macro-economic conditions could materially adversely affect results of operations[23] Operational Risks - The company lacks sufficient capital for material research and development, which may hinder long-term growth[18] - There is a variable sales cycle for some products, complicating the prediction of operating results[18] - The lengthy sales cycle, especially during economic downturns, makes it difficult to predict operating results[20] - Most contracts are terminable by customers with limited notice, posing risks to financial stability[20] Technological and Cybersecurity Risks - The company faces risks related to technological changes and competition, particularly in AI and ML[20] - Cybersecurity risks are a concern, with potential impacts on operational disruption and financial loss[20] - The company is subject to cyber security risks that could lead to operational disruptions and financial loss[20] Human Resources and Management - The reliance on key personnel is critical for future success and growth[20]
Creative Realities(CREX) - 2024 Q4 - Annual Report