MemGPT/example-sec-filings · Datasets at Hugging Face

text stringlengths 0 1.41k
experience ownership changes in the future because of shifts in our
stock ownership, many of which are outside of our control. As a result,
our ability to use our net operating loss carryforwards and other tax
attributes to offset future U.S. federal taxable income or income tax
liabilities may be, or may become, subject to limitations, which could
result in increased future tax liability to us.

*We have adopted a Live and Work Anywhere policy. The increase in remote
working could subject us to certain operational challenges and have
adverse tax implications, which could materially adversely affect our
business, results of operations, and financial condition.*

As a result of the COVID-19 pandemic, most of our employees and
third-party vendors and service providers began working remotely. In
2022, we formally adopted our Live and Work Anywhere policy, which
permits the majority of our employees to work remotely. Remote working
may subject us to operational challenges and risks. For example, a
natural disaster, power outage, connectivity issue, or other event may
impact our employees'ability to work remotely. In addition, members of
our workforce who work remotely may not have access to technology that
is as robust as that in our offices, which could cause the networks,
information systems, applications, and other tools available to those
remote workers to be more limited or less reliable than in our offices.
We may also be exposed to risks associated with the locations of remote
workers, including compliance with local laws and regulations or
exposure to compromised internet infrastructure. Allowing members of our
workforce to work remotely may create intellectual property risk if
employees create intellectual property on our behalf while residing in a
jurisdiction with unenforced or uncertain intellectual property laws.
Further, if employees fail to inform us of changes in their work
location, we may be exposed to additional risks without our knowledge.
Remote working may also result in consumer, privacy, information
technology and cybersecurity, and fraud risks.

Additionally, our reduction in workforce in May 2020 and remote work
arrangements resulting from the COVID-19 pandemic caused us to recognize
an impairment of certain of our real property lease arrangements, and
depending on the duration and extent of the remote work arrangements
under our Live and Work Anywhere working model, we may incur additional
impairment charges related to our real property lease agreements.

Our transition to full or predominantly remote work environments also
presents significant challenges to maintaining compliance with country
and state requirements such as employee income tax withholding, the
recording of reserves to cover withholding corrections or penalties,
remittance and reporting, payroll registration, and workers'compensation
insurance. Additionally, foreign tax authorities may assert that certain
of our entities have created permanent establishment in their countries
which could result in additional corporate income taxes and employee
payroll withholding obligations. Any of these operational challenges or
tax implications resulting from our Live and Work Anywhere policy may
materially adversely affect our business, results of operations, and
financial condition.

*Our business depends on attracting and retaining capable management and
employees, and the loss of any key personnel could materially adversely
affect our business, results of operations, and financial condition.*

Our success depends in large part on our ability to attract and retain
high-quality management and employees. Our founders and other members of
our senior management team, as well as other employees, may terminate
their employment with us at any time, which could materially adversely
affect our business, results of operations, and financial condition.

As we continue to grow, we cannot guarantee that we will be able to
attract and retain the personnel we need. Our business requires highly
skilled technical, engineering, design, product, data analytics,
marketing, business development, and community support personnel,
including executive-level employees, who are in high demand and are
often subject to competing offers. Competition for qualified employees
and executive-level employees is intense in our industry and
jurisdictions where we operate. The loss of qualified employees, or an
inability to attract, retain, and motivate employees required for the
planned expansion of our business would materially adversely affect our
business, results of operations, and financial condition and impair our
ability to grow.

To attract and retain key personnel, we use various measures, including
an equity incentive program. As we continue to mature, the incentives to
attract, retain, and motivate employees provided by our programs or by
future arrangements may not be as effective as in the past. We have a
number of current employees, including our founders, who hold equity in
our company. As a result, it may be difficult for us to continue to
retain and motivate these employees, and the value of their holdings
could affect their decisions about whether or not they continue to work
for us. Our ability to attract, retain, and motivate employees may be
adversely affected by declines in our stock price. If we

34

issue significant equity to attract employees or to retain our existing
employees, we would incur substantial additional stock-based
compensation expense and the ownership of our existing stockholders
would be further diluted.

*Consumer use of devices and platforms other than desktop computers
creates challenges. If we are unable to operate effectively on these
platforms, our business, results of operations, and financial condition
could be materially adversely affected.*

experience ownership changes in the future because of shifts in our

stock ownership, many of which are outside of our control. As a result,

our ability to use our net operating loss carryforwards and other tax

attributes to offset future U.S. federal taxable income or income tax

liabilities may be, or may become, subject to limitations, which could

result in increased future tax liability to us.

*We have adopted a Live and Work Anywhere policy. The increase in remote

working could subject us to certain operational challenges and have

adverse tax implications, which could materially adversely affect our

business, results of operations, and financial condition.*

As a result of the COVID-19 pandemic, most of our employees and

third-party vendors and service providers began working remotely. In

2022, we formally adopted our Live and Work Anywhere policy, which

permits the majority of our employees to work remotely. Remote working

may subject us to operational challenges and risks. For example, a

natural disaster, power outage, connectivity issue, or other event may

impact our employees'ability to work remotely. In addition, members of

our workforce who work remotely may not have access to technology that

is as robust as that in our offices, which could cause the networks,

information systems, applications, and other tools available to those

remote workers to be more limited or less reliable than in our offices.

We may also be exposed to risks associated with the locations of remote

workers, including compliance with local laws and regulations or

exposure to compromised internet infrastructure. Allowing members of our

workforce to work remotely may create intellectual property risk if

employees create intellectual property on our behalf while residing in a

jurisdiction with unenforced or uncertain intellectual property laws.

Further, if employees fail to inform us of changes in their work

location, we may be exposed to additional risks without our knowledge.

Remote working may also result in consumer, privacy, information

technology and cybersecurity, and fraud risks.

Additionally, our reduction in workforce in May 2020 and remote work

arrangements resulting from the COVID-19 pandemic caused us to recognize

an impairment of certain of our real property lease arrangements, and

depending on the duration and extent of the remote work arrangements

under our Live and Work Anywhere working model, we may incur additional

impairment charges related to our real property lease agreements.

Our transition to full or predominantly remote work environments also

presents significant challenges to maintaining compliance with country

and state requirements such as employee income tax withholding, the

recording of reserves to cover withholding corrections or penalties,

remittance and reporting, payroll registration, and workers'compensation

insurance. Additionally, foreign tax authorities may assert that certain

of our entities have created permanent establishment in their countries

which could result in additional corporate income taxes and employee

payroll withholding obligations. Any of these operational challenges or

tax implications resulting from our Live and Work Anywhere policy may

materially adversely affect our business, results of operations, and

financial condition.

*Our business depends on attracting and retaining capable management and

employees, and the loss of any key personnel could materially adversely

affect our business, results of operations, and financial condition.*

Our success depends in large part on our ability to attract and retain

high-quality management and employees. Our founders and other members of

our senior management team, as well as other employees, may terminate

their employment with us at any time, which could materially adversely

affect our business, results of operations, and financial condition.

As we continue to grow, we cannot guarantee that we will be able to

attract and retain the personnel we need. Our business requires highly

skilled technical, engineering, design, product, data analytics,

marketing, business development, and community support personnel,

including executive-level employees, who are in high demand and are

often subject to competing offers. Competition for qualified employees

and executive-level employees is intense in our industry and

jurisdictions where we operate. The loss of qualified employees, or an

inability to attract, retain, and motivate employees required for the

planned expansion of our business would materially adversely affect our

business, results of operations, and financial condition and impair our

ability to grow.

To attract and retain key personnel, we use various measures, including

an equity incentive program. As we continue to mature, the incentives to

attract, retain, and motivate employees provided by our programs or by

future arrangements may not be as effective as in the past. We have a

number of current employees, including our founders, who hold equity in

our company. As a result, it may be difficult for us to continue to

retain and motivate these employees, and the value of their holdings

could affect their decisions about whether or not they continue to work

for us. Our ability to attract, retain, and motivate employees may be

adversely affected by declines in our stock price. If we

34

issue significant equity to attract employees or to retain our existing

employees, we would incur substantial additional stock-based

compensation expense and the ownership of our existing stockholders

would be further diluted.

*Consumer use of devices and platforms other than desktop computers

creates challenges. If we are unable to operate effectively on these

platforms, our business, results of operations, and financial condition

could be materially adversely affected.*