The Company may never achieve sufficient revenue to reach the payback target. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
The Company has a very limited history of revenue producing operations having commenced operations in June 2014. The Company’s prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets. To address these risks, the Company must, among other things, respond to competitive developments, continue to attract, retain and motivate qualified management and other employees, continue to upgrade its technologies and commercialize products and services that incorporate such technologies and achieve market acceptance for its products and services. There can be no assurance that the Company will be successful in addressing such risks.
The Company may not raise enough capital to fund its losses while trying to get to profitability. Achieving profitability requires having enough subscribers being willing to pay for the service provided, and that revenue being earned in sufficient quantities before cash reserves run out.
A large competitor, like YogaWorks, may choose to use their existing studio infrastructure to enter the live streaming space and better serve the needs of our target customers.
The Company may experience service delivery issues that could damage client relations and expose it to liability. The Company’s core business depends heavily on real time live streaming video conferencing. A major internet outage could have amaterial adverse effect on the Company’s business, financial condition, and results of operations.
There are a number of competitors and potential competitors in the market. If the Company is unable to differentiate itself from its competitors, drive value for its clients and/or effectively align its resources with its goals and objectives, it may not be able to compete effectively. The Company’s competitors may introduce their own value-added solutions more effectively than the Company, which could adversely impact the Company’s growth. The Company also competes against new entrants as live streaming becomes more commonplace. Failure to compete effectively against any of these competitive threats could have a material adverse effect on the Company. In addition, the highly competitive nature of our industry could lead to increased pricing pressure which could have a material impact on the Company’s overall business and results of operations.
The company has limited cash reserves and its ability to obtain additional funding is limited.
The company is controlled by its only shareholder, who is the only officer of the company.
The company has indemnified the officers, directors, employees, and agents of the company and has the associated liabilities.
The future economic and investment environment is unknown and as a small company is highly susceptible to economic downturns and its future ability to raise additional investment funds and make sales.
New smartphone platforms may emerge, beyond iOS and Android, further complicating our development process and requiring a more sophisticated and better-resourced development team.