SEQLL(SQL) - 2023 Q4 - Annual Report

Financial Concerns - The company has incurred recurring losses and negative cash flows since inception, raising concerns about its ability to continue as a going concern without additional financing[18] - The company has a limited operating history as an early commercial-stage entity, which presents inherent risks and uncertainties[18] - The company is assessing its expenses, ongoing losses, future revenue, and capital requirements to ensure financial stability[12] Merger and Business Strategy - The proposed merger with Lyneer Investments LLC will result in the business of Lyneer becoming the principal business of the company, with current operations sold for nominal consideration[17] - The company is focused on developing its tSMS sequencing instruments and services, which are critical for generating expected revenue and achieving market acceptance[18] - The company is seeking to maintain its intellectual property position for its technology, which is critical for competitive advantage[12] Product Development and Market Potential - There is uncertainty regarding the success, cost, and timing of the company's current product development activities, including next-generation sequencing technologies[12] - The company anticipates that the market size and growth potential for its business will be significant, although specific figures are not provided[12] - The company is exploring next-generation sequencing technologies and anticipates growth potential in the market[12] Operational Challenges - The sales cycle for the company's products is unpredictable and lengthy, complicating revenue forecasting and increasing quarterly or annual fluctuations in operating results[18] - The company must manage new product introductions related to tSMS technology, which may incur significant costs and may not yield anticipated benefits[18] - The company relies on third parties for certain components and materials, which may impact its ability to manufacture products at scale[18] - The company is subject to governmental regulations that could impose operational burdens and narrow the markets for its products[18] - There are significant risks associated with the company's research and development efforts, which may not yield anticipated benefits or successful commercialization[18]