← Back to CRNC filing summaryThis is the extracted source text from the SEC filing. Formatting may differ from the original document.
In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, which could materially affect our business, financial condition or future results of operations. The risks described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and those described in this Quarterly Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Other than as updated below, there are no material changes to the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
There can be no assurance that our share repurchase program will be consummated or that we will mitigate dilution posed by share issuances through the repurchase of our common stock.
Our Board of Directors has authorized share repurchase authority of up to $30 million under our share repurchase program. The amount and timing of stock repurchases under this program are subject to capital availability and consideration of many factors, such as our financial condition, earnings, the impact of dilution from employee stock awards, market conditions, stock price, applicable legal and regulatory requirements and other factors that we deem relevant. There can be no assurance that we will repurchase shares of our common stock under our repurchase program at favorable prices or at all, nor can we provide assurance that the share repurchase program will mitigate dilution posed by share issuance pursuant to employee equity compensation awards. Further, our share repurchases could affect the trading price of our common stock, increase its volatility, or reduce our cash reserves, and it may be suspended, modified, or terminated at any time.
Benefits realized by our intellectual property enforcement and licensing activities, which are undertaken to protect and commercialize technology integral to our operating business, may result in unpredictable or variable accounting treatment.
Any agreements reached or damages awarded to us in connection with our intellectual property enforcement and licensing activities are subject to the appropriate application of relevant accounting standards under U.S. GAAP based on the terms and conditions of any future potential agreement to license our IP. Our historical accounting treatment of such receipts and application of the relevant accounting standards may not be indicative of how future benefits may be accounted for. The revenue we may recognize from licenses, settlements or judgments in our favor may have a period-specific impact on reported revenue due to required accounting treatment, which may make comparisons with prior and future periods more difficult, even where the underlying intellectual property forms part of our ongoing technology platform and operating business. For example, we recognized $49.5 million of revenue associated with the settlement of our litigation and IP license with Samsung and a lump-sum payment, which was recognized in accordance with applicable accounting standards, during the first quarter of fiscal year 2026.