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Our operations and financial results are subject to various risks and uncertainties, including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025. The following risk factor supplements the risk factors previously disclosed in our Annual Report on Form 10-K and should be read together.
Failure to maintain effective internal controls could adversely affect our ability to meet our reporting requirements.
We are required to establish and maintain appropriate internal control over financial reporting. As an emerging growth company, we are currently not required to comply with the independent registered public accounting firm attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002. However, we are still required to maintain effective disclosure controls and procedures and internal control over financial reporting. Effective internal controls are necessary for us to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in accordance with U.S. generally accepted accounting principles, as well as to help prevent fraud.
Maintaining effective internal control over financial reporting is complex, time-consuming and costly. Our internal controls may become inadequate because of changes in conditions, the growth of our business, the expansion of our operations or for other reasons. As described in Item 4 - Controls and Procedures in our previously filed Quarterly Report on Form 10-Q filed on May 15, 2026, we identified a material weakness in our internal control over financial reporting. In addition, management’s assessment of our internal control over financial reporting may identify additional material weaknesses or significant deficiencies that could require remediation. We may not be able to remediate any identified material weaknesses or significant deficiencies in a timely manner, or at all.
If we fail to maintain effective internal control over financial reporting or are unable to remediate identified deficiencies in a timely manner, our ability to accurately and timely report our financial condition and results of operations could be adversely affected. This could result in errors in our financial statements, cause us to fail to meet our public reporting obligations, negatively affect investor confidence in our company and materially adversely affect the market price of our common stock.