Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
|
New words:
accuracy, Article, artificial, attrition, ban, bidder, CNC, Correspondingly, CTO, deductible, Defense, deferral, downsizing, EEA, Erroneously, explanatory, firewall, foreclose, fractional, HC, impute, inefficiency, InShape, instruction, intelligence, intrusion, lot, Mitsubishi, Nasdaq, noncurrent, paragraph, precise, proportionately, quantify, Rabo, realignment, recessionary, Recovery, reprioritization, retrospectively, runway, SHPWW, shut, shutdown, tabular, Traffic, unchanged, unified, unsuccessful, Viewer, wrote
Removed:
absolute, advice, aim, Asia, bank, began, broadly, clear, conduct, considerable, cure, executing, fee, footprint, good, initiate, instrument, intent, Lattice, loan, main, operated, owner, pandemic, Patrick, president, profitable, promissory, repaid, requirement, serve, setting, similarly, WS
Financial report summary
?Risks
- We have a history of losses and may not achieve or maintain profitability in the future.
- There is substantial doubt as to our ability to continue as a going concern. We will require substantial additional capital to finance our operations, and this capital might not be available on acceptable terms, if at all. If we are unable to raise substantial additional capital, our financial condition could be adversely affected and we may be forced to curtail our operations or pursue strategic alternatives.
- We face significant competition and expect to face increasing competition in many aspects of our business, which could cause our operating results to suffer.
- The digital manufacturing industry is a relatively new and emerging market and it is uncertain whether it will gain widespread acceptance.
- Our attempts to continue to expand our business into existing and new markets and geographies may not be successful.
- We may be unable to consistently manufacture our customers’ designs to the necessary specifications or in quantities necessary to meet demand at an acceptable cost or at an acceptable performance level and this could adversely affect our service availability, delivery, reliability, and cost.
- Our success depends on our ability to deliver services that meet the needs of customers and to effectively respond to changes in our industry.
- Failure to attract, integrate and retain additional personnel in the future could harm our business.
- Changes in the mix of the offerings we provide may impact our gross margins and financial performance.
- We may experience significant delays in the roll out of our digital manufacturing solutions, and we may be unable to successfully commercialize manufacturing solutions on our planned timelines.
- We may not timely and effectively scale and adapt our platform, processes, and infrastructure across materials, technologies, markets, and software, to expand our business.
- We rely on our collaborations and commercial agreements with third-party additive manufacturing hardware and material providers for many of our manufacturing solutions.
- Our failure to meet our customers’ speed and quality expectations would adversely affect our business and results of operations.
- Our customers are often price sensitive and if our pricing algorithm produces pricing that fails to meet our customers’ price expectations or insufficiently accounts for our costs to deliver our offerings, our business and results of operations may be adversely affected.
- Sales efforts to large customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller organizations.
- We derive a significant portion of our revenue from business conducted outside the U.S. and are subject to the risk of doing business outside the United States.
- As part of our business strategy, we may continue to acquire or make investments in other businesses, patents, technologies, products, or services. We may not realize the anticipated benefits of such investments and integration of these investments may disrupt our business and divert management attention.
- Errors or defects in our software or products we manufacture could cause us to incur additional costs, lose revenue and business opportunities, damage our reputation and expose us to potential liability.
- Workplace accidents or environmental damage could result in substantial remedial obligations and damage to our reputation.
- We have significant customer concentration, with our largest customer accounting for a substantial portion of our revenue.
- If our manufacturing facilities are disrupted, we may be unable to fulfill customer orders, which could have an adverse effect on our results of operations.
- We could experience unforeseen difficulties in building and operating key portions of our manufacturing infrastructure.
- Our business depends in part on our ability to process a large volume of new part designs from a diverse group of customers and successfully identifying significant opportunities for our business based on those submissions.
- Interruptions, delays in service or inability to increase capacity, including internationally, at third-party data center facilities could adversely affect our business and reputation.
- Interruptions to or other problems with our website user interface, information technology systems, manufacturing processes, or other operations could damage our reputation and brand and substantially harm our business and results of operations.
- If we are unable to retain existing customers, sell additional services to our existing customers, or attract new customers, our revenue growth will be adversely affected.
- The loss of one or more key members of our management team or personnel could harm our business.
- Our current levels of insurance may not be adequate for our potential liabilities.
- Our actual results may be significantly different from our projections, estimates, targets or forecasts.
- If demand for our services does not grow as expected, or if market adoption of digital manufacturing does not continue to develop, or develops more slowly than expected, our revenues may stagnate or decline, and our business may be adversely affected.
- We could face liability if our digital manufacturing solutions are used by our customers to print dangerous objects.
- We may incur substantial costs enforcing or acquiring intellectual property rights and defending against third-party claims as a result of litigation or other proceedings. Our failure to expand our intellectual property portfolio could adversely affect the growth of our business and results of operations.
- We may not be able to adequately protect or enforce our intellectual property rights, which could impair our competitive position.
- Our digital manufacturing software contains third-party open-source software components. Our use of such open- source software may expose us to additional risks and harm our intellectual property and failure to comply with the terms of the underlying open-source software licenses could restrict our ability to sell our offerings.
- We store confidential customer information in our systems that, if breached or otherwise subjected to unauthorized access, may harm our reputation or brand or expose us to liability.
- A real or perceived defect, security vulnerability, error, or performance failure in our software or technical problems or disruptions caused by our third-party service providers could cause us to lose revenue, damage our reputation, and expose us to liability.
- We are subject to environmental, health, and safety laws and regulations related to our operations and the use of our digital manufacturing systems and consumable materials, which could subject us to compliance costs and/or potential liability in the event of non-compliance.
- Our business involves the use of hazardous materials, and we must comply with environmental, health, and safety laws and regulations, which can be expensive and restrict how we do business.
- Regulation in the areas of privacy, data protection, and information security could increase our costs and affect or limit our business opportunities and how we collect and/or use personal information.
- We are subject to U.S. and foreign anti-corruption laws, trade controls, economic sanctions, and similar laws and regulations. Our failure to comply with these laws and regulations could subject us to civil, criminal, and administrative penalties and harm our reputation.
- The requirements of being a public company may strain our resources, divert management’s attention, and affect our ability to attract and retain qualified board members.
- If our internal control over financial reporting or our disclosure controls and procedures are not effective, we may be unable to accurately report our financial results, prevent fraud, or file our periodic reports in a timely manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price.
- We are an “emerging growth company” and a “smaller reporting company” and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common stock less attractive to investors.
- An active, liquid trading market for our common stock may not be sustained.
- Our issuance of additional shares of common stock or convertible securities may dilute your ownership of us and could adversely affect our stock price.
- Future sales, or the perception of future sales, of our common stock by us or our existing stockholders in the public market could cause the market price for our common stock to decline.
- Our operating results and financial condition may fluctuate on a quarterly and annual basis.
- Our stock price has been and may continue to be volatile or may decline regardless of our operating performance. You may lose some or all of your investment.
- If securities or industry analysts publish inaccurate or unfavorable research or reports about our business, our stock price and trading volume could decline.
- We do not expect to pay any cash dividends for the foreseeable future.
- We may be subject to securities litigation, which is expensive and could divert management attention.
- Delaware law and provisions in our charter and bylaws could make a merger, tender offer, or proxy contest difficult, thereby depressing the trading price of our common stock.
- Our charter provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States will be the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
- Revenue for the years ended December 31, 2023 and 2022 was $34.5 million and $33.2 million, respectively, representing an increase of $1.3 million, or 4% from the prior year period. The increase in revenue was primarily due to a 14% increase in customer count due to growth in software and enterprise sales partially offset by a 10% decrease in average revenue per customer during the period.
- Cost of revenue for the years ended December 31, 2023 and 2022 was $20.0 million and $18.9 million, respectively, representing an increase of $1.1 million, or 6%. The increase in cost of revenue was primarily due to a 3% combined increase in costs of materials and labor and 3% increase in shipping costs.
- Gross profit for the years ended December 31, 2023 and 2022 was $14.5 million, and $14.3 million, respectively, representing an increase of $0.2 million, or 1%. The increase in gross profit was driven by an increase in revenue partially offset by an increase in cost of revenue due to a more varied product mix and inflationary impacts.