{"url_path":"/sec/ivf/10-k/2026/item-1a","section_key":"item-1a","section_title":"Item 1A Risk Factors**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-02","source_url":"https://www.sec.gov/Archives/edgar/data/1417926/0001493152-26-026775-index.html","accession_number":"0001493152-26-026775","cik":"0001417926","ticker":"IVF","issuer_name":"INVO Fertility, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1417926/0001493152-26-026775-index.html","primary_entity_key":"0001417926","primary_entity_name":"INVO Fertility, Inc."},"word_count":13286,"has_tables":true,"body_markdown":"**Item\n1A. Risk Factors**\n\n \n\nYou\nshould carefully consider the following risk factors, in addition to the other information in this report on Form 10-K, including the\nsection of this report titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”\nand our consolidated financial statements and related notes. If any of the events described in the following risk factors and the risks\ndescribed elsewhere in this report on Form 10-K occurs, our business, operating results and financial condition could be seriously harmed.\nThis report on Form 10-K also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ\nmaterially from those anticipated in the forward-looking statements as a result of factors that are described below and elsewhere in\nthis report.\n\n \n\n**Summary\nof Risk Factors**\n\n** **\n\nOur\nbusiness is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely\naffect our business, financial condition, results of operations, cash flows, and prospects. These risks are discussed more fully below\nand include, but are not limited to, risks related to the following:\n\n \n\n**Risks\nRelated to Our Financial Condition and Need for Additional Capital**\n\n** **\n\n \n●\nWe\nhave incurred an accumulated net loss of $91.4 million since inception, which raises substantial doubt about our ability to continue\nas a going concern.\n\n \n●\n\nWe\nhave substantial secured indebtedness outstanding, and if we are unable to service our debt, our secured creditors could seize and\nliquidate our assets.\n\n \n●\n\nWe\ndo not expect our current cash position to be sufficient to fund operations and service our debt for the next 12 months, and additional\ncapital may not be available on acceptable terms, if at all.\n\n \n●\n\nAny\nfuture fundraising may be dilutive to existing stockholders and may impose restrictive covenants that limit our operational flexibility.\n\n \n\n**Risks\nRelated to Our Business and Operations**\n\n** **\n\n \n●\n\nWe\nhave a limited operating history and a history of net operating losses, and we depend on continued access to capital and clinic revenue\ngrowth to fund our operations.\n\n \n●\n\nThe\nfertility and ART services industry is highly competitive, and new providers, technologies, or techniques could erode our market\nshare, patient volume, and pricing power.\n\n \n●\n\nOur\ngrowth strategy depends on identifying and successfully completing and integrating fertility clinic acquisitions, and we may fail\nto realize expected synergies or encounter unanticipated liabilities.\n\n \n●\n\nWe\nare heavily dependent on key executives, physicians, embryologists, and clinical personnel whose loss could materially harm our operations.\n\n \n●\n\nCertain\nof our fertility clinics operate as joint ventures with medical partners who may fail to perform their obligations or seek to terminate\ntheir agreements.\n\n \n●\n\nWe\nface significant litigation exposure from medical malpractice, errors in handling reproductive materials, and product liability claims,\nwhich may exceed our insurance coverage.\n\n \n●\n\nWe\nrely on a single third-party manufacturer for INVOcell production, and any disruption in supply or product quality failure could\nlimit our growth and harm our reputation.\n\n \n●\n\nOur\nintellectual property rights may be challenged or circumvented, and we may be subject to costly third-party infringement claims.\n\n \n\n**Risks\nRelated to Our Industry and Regulation**\n\n** **\n\n \n●\n\nEvolving\nstate and federal laws on abortion and embryo personhood could restrict the availability of IVF services in states where we operate.\n\n \n●\n\nWe\nare subject to extensive federal and state regulation as both a fertility clinic operator and a medical device manufacturer, and\nnoncompliance could result in penalties, product recalls, or cessation of operations.\n\n \n●\n\nThe\nFDA clearance process for the INVOcell and any future device modifications is expensive and uncertain, and we may be unable to obtain\nor maintain required clearances.\n\n \n●\n\nPayor\nconsolidation and managed care trends could result in pricing pressure and reimbursement changes that reduce demand for our services\nand products.\n\n \n●\n\nCybersecurity\nthreats or data breaches involving sensitive patient health information could expose us to HIPAA liability and disrupt our operations.\n\n \n\n**Risks\nRelated to Our Common Stock and Capital Structure**\n\n** **\n\n \n●\n\nOur\nsecured debt instruments contain restrictive covenants that limit our operational and financial flexibility, and a covenant default\ncould trigger acceleration of our indebtedness.\n\n \n●\n\nOur\ncommon stock is thinly traded and highly volatile, and there can be no assurance of an active or liquid trading market.\n\n \n●\n\nOur\nformer shell company status restricts stockholder reliance on Rule 144 for resales of restricted securities, which may impair our\nability to raise capital.\n\n \n●\n\nOur\ndirectors have broad authority to issue preferred stock or additional common stock without stockholder approval, which could dilute\nthe interests of existing holders.\n\n \n●\n\nWe\nhave never paid dividends on our common stock and do not expect to do so in the foreseeable future.\n\n \n●\n\nIf\nwe fail to maintain compliance with Nasdaq listing standards, our common stock could be delisted, reducing liquidity and investor\nconfidence.\n\n \n\n**Risks\nRelated to Market and Macroeconomic Conditions**\n\n** **\n\n \n●\n\nGlobal\neconomic volatility, inflation, rising interest rates, and geopolitical instability could adversely affect our access to capital\nand reduce patient demand for fertility services.\n\n \n●\n\nChanges\nin U.S. tariff and trade policy could increase the cost of medical devices and clinical supplies used in our operations.\n\n \n●\n\nEconomic\ndownturns may reduce consumer spending on fertility treatments, which could adversely affect our revenues and profitability.\n\n \n\n**General\nRisk Factors**\n\n** **\n\n \n●\n\nAs\na Smaller Reporting Company, we are subject to reduced disclosure requirements that may make our common stock less attractive to\ncertain investors.\n\n \n●\n\nWe\nmay need to issue additional equity or convertible securities to fund our operations, which could result in significant dilution\nto existing stockholders.\n\n \n●\n\nCompliance\nwith SEC reporting requirements is time-consuming and costly, and failure to maintain adequate internal controls could result in\nregulatory sanctions and loss of investor confidence.\n\n \n●\n\nWe\nhave identified material weaknesses in our internal control over financial reporting and our internal control was not effective as\nof December 31, 2025; failure to remediate these weaknesses could adversely affect our ability to report financial results accurately\nand on a timely basis.\n\n \n●\n\nIf\nanalysts reduce or cease coverage of our company, our stock price and trading volume could decline.\n\n \n\n16\n\n \n\n \n\nRisks\nRelated to Our Financial Condition and Our Need for Additional Capital\n\n \n\n**Our\nfinancial situation creates doubt whether we will continue as a going concern.**\n\n \n\nFrom\nthe inception of our consolidated subsidiaries on January 5, 2007, through December 31, 2025, we had an accumulated net loss of $91.4\nmillion. There can be no assurances that we will be able to achieve a level of revenues adequate to generate sufficient cash flow from\noperations or additional financing through private placements, public offerings and/or bank financing necessary to support our working\ncapital requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient,\nwe will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available,\nwill be on acceptable terms. These conditions raise substantial doubt about our ability to continue as a going concern. If adequate working\ncapital is not available, we may be forced to discontinue operations, which would cause investors to lose their entire investment.\n\n \n\n**We\nhave substantial indebtedness outstanding, and our operations are significantly leveraged. If we were unable to service our indebtedness,\nour business would be adversely affected.**\n\n \n\nIn\norder to finance our operations we have incurred substantial indebtedness, including our secured obligation to Decathlon. We may not\nbe able to continue to service our debt in the future. If we are unable to service our debt and fail to pay our debt obligations in a\ntimely fashion, we will be in default under one or more of our loan agreements. Upon such a default, our secured creditors could exercise\ntheir rights and remedies under the applicable loan agreements, which could include seizing all of our assets and selling them off under\nthe Uniform Commercial Code and the loan agreements. Any such action would have a material adverse effect on our business and prospects.\n\n \n\n**We\nwill need to raise additional funding, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital\nwhen needed may force us to delay, limit or terminate operations.**\n\n \n\nWe\ndo not expect that our current cash position will be sufficient to fund our current operations and service our current debt obligations\nfor the next 12 months. Our operating plan may change as a result of many factors currently unknown to us, and we may need to seek additional\nfunds sooner than planned, through public or private equity or debt financings, government or other third-party funding or a combination\nof these approaches. Raising funds in the current economic environment may present additional challenges. Even if we believe we have\nraised or generated sufficient funds for our current or future operating plans, we may seek additional capital if market conditions are\nfavorable or if we have specific strategic considerations.\n\n \n\nAny\nadditional fundraising efforts may divert our management from their day-to-day activities, which may adversely affect our ability to\neffectively manage our clinics. In addition, we cannot guarantee that future financing will be available in sufficient amounts or on\nterms acceptable to us, if at all. Moreover, the terms of any financing may adversely affect the holdings or the rights of our\nstockholders and the issuance of additional securities, whether equity or debt, by us, or the possibility of such issuance, may\ncause the market price of our shares to decline. The sale of additional equity or convertible securities may dilute our existing\nstockholders. The incurrence of additional indebtedness would result in increased fixed payment obligations, and we may be required\nto agree to certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability\nto acquire, sell or license intellectual property rights or clinics and other operating restrictions that could adversely impact our\nability to conduct our business. We could also be required to seek funds through arrangements with collaborative partners or\notherwise at an earlier stage than otherwise would be desirable and we may be required to relinquish rights to some of our\ntechnologies or product candidates or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on\nour business, operating results and prospects.\n\n \n\nIf\nwe are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or be unable to expand our operations\nor otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and\nresults of operations.\n\n \n\n17\n\n \n\n \n\n**Even\nif we can raise additional funding, we may be required to do so on terms that are dilutive to you.**\n\n \n\nThe\ncapital markets have been unpredictable in the past for unprofitable companies such as ours. In addition, it is generally difficult for\ndevelopment stage companies to raise capital under current market conditions. The amount of capital that a company such as ours is able\nto raise often depends on variables that are beyond our control. As a result, we may not be able to secure financing on terms attractive\nto us, or at all. If we are able to consummate a financing arrangement, the amount raised may not be sufficient to meet our future needs.\nIf adequate funds are not available on acceptable terms, or at all, our business, including our results of operations, financial condition\nand our continued viability will be materially adversely affected.\n\n \n\nRisks\nRelating to Our Business\n\n \n\n**Our\nbusiness has posted net operating losses, has a limited operating history, and needs additional capital to grow and finance its operations.**\n\n \n\nFrom\nthe inception of our consolidated subsidiary BioXcell Inc. on January 5, 2007, through December 31, 2025, we had an accumulated net loss\nof $91.4 million. We have a limited operating history and are essentially an early-stage operation. We will continue to be dependent\non having access to additional new capital and/or generating positive operating cash flow primarily through the growth of our clinics,\nthe development of new INVO Centers and the acquisition of additional IVF clinics, in order to finance the growth of our operations.\nContinued net operating losses together with limited working capital make investing in our common stock a high-risk proposal. Our limited\noperating history may make it difficult for management to provide effective insight into future activities, marketing costs, and customer\nacquisition and retention. This could lead to us missing targets for the achievement of profitability, which could negatively affect\nthe value of your investment.\n\n \n\n**Our\nbusiness is subject to significant competition.**\n\n \n\nThe\nfertility industry is highly competitive and characterized by well entrenched and long-standing practices as well as technological improvements\nand advancements. New ART services, devices and techniques may be developed that may render the INVOcell obsolete. Competition in the\nareas of fertility and ART services is largely based on pregnancy rates and other patient outcomes. Accordingly, the ability of our business\nto compete is largely dependent on our ability to achieve adequate pregnancy rates and patient satisfaction levels. Our business operates\nin highly competitive areas that are subject to change. New health care providers and medical technology companies entering the market\nmay reduce our and our fertility clinics market share, patient volume and growth rates, and could force us to alter our planned pricing\nand fertility clinic service offerings. Additionally, increased competitive pressures may require us to commit more resources to our\nand our fertility clinic marketing efforts, thereby increasing our cost structure and affecting our ability to achieve, or the timing\nof achieving, profitability. There can be no assurance that we will not be able to compete effectively, nor can there be any assurance\nthat additional competitors will not enter the market. Such competition may make it more difficult for us to enter into additional contracts\nwith third party fertility clinics or maintain the profitability of our own fertility clinics.\n\n** **\n\n**We\nneed to manage growth in our fertility operations, and we may not be successful in implementing our growth strategy.**\n\n \n\nIn\norder to maximize potential growth in our current and potential markets, we may need to expand the scope of our services in the healthcare\nindustry. As a result, we plan to continue to improve our clinic operations, marketing, and management information systems. We will also\nneed to effectively train, motivate and manage our employees. Our failure to manage our growth could disrupt our operations and ultimately\nprevent us from generating revenues at the levels we expect.\n\n \n\nMany\nfactors including, but not limited to, increased competition from similar businesses, unexpected costs, costs associated with marketing\nefforts and maintaining a strong patient and client base may interfere with our ability to expand successfully. Our inability to implement\nour internal strategy successfully may have a negative impact on our growth, future financial condition, results of operations and/or\ncash flows.\n\n \n\n**We\nmay not be successful at pursuing our acquisition strategy.**\n\n \n\nOur\ncurrent strategy includes acquiring profitable fertility clinics in the United States to accelerate our growth. We have acquired Wisconsin\nFertility Institute and Family Beginnings, and while we believe that there are in excess of 80 other clinics in the United States that\nmay be suitable acquisition targets, we may not have any further success in identifying or pursuing additional acquisition candidates.\nIf suitable acquisition targets are identified, we may not be able to negotiate terms of acquisition or obtain financing to fund such\nacquisitions.\n\n \n\n18\n\n \n\n \n\n**We\nmay not be able to develop or continue our business if we fail to recruit and/or retain key personnel.**\n\n \n\nThe\nsuccess of our business is heavily dependent on our executive management at the corporate level and our clinic personnel including our\nphysicians, lab directors, embryologists, and other clinic and lab staff. We face strong competition to recruit and retain clinic and\nlab staff. The loss of any of our key personnel could potentially have a material adverse effect on our business, operations, revenues\nand/or prospects. If one or more of these persons were to become unable or unwilling to continue in their present positions, we may not\nbe able to replace them readily or timely, if at all. Furthermore, our ability to recruit and employ physicians is closely regulated.\nFor example, the types, amount and duration of compensation and assistance we can provide to recruited physicians are limited by the\nAnti-Kickback Statute and the Stark Law, as well as other applicable antifraud and abuse laws and regulations.\n\n \n\n**We\nmay not be successful at managing clinics.**\n\n \n\nOur\nmanagement team has limited experience in managing fertility clinics. We seek to retain experienced personnel to provide clinical practice\nexpertise, perform recruitment functions, provide necessary training, and provide day-to-day management of our clinics. We may not be\nsuccessful in retaining such personnel, integrating such personnel into our operations, or otherwise successfully manage clinics that\nwe have acquired or may acquire in the future.\n\n** **\n\n**We\nmay not be able to successfully manage current and future acquisitions and to achieve the benefits expected to result from the acquisitions.**\n\n \n\nCurrent\nand future acquisitions may present challenges to management, including the integration of our operations and personnel and that of the\nacquisition, continued management of the clinic and special risks, including possible unanticipated liabilities, unanticipated integration\ncosts and diversion of management attention.\n\n \n\nWe\ncannot assure you that we will successfully integrate or profitably manage an acquisition’s business. Even if we are able to integrate\nand profitably manage an acquisition’s business, we cannot assure you that our business will achieve sales levels, profitability,\nefficiencies or synergies that justify the acquisition or that the acquisition will result in increased earnings for us in any future\nperiod.\n\n \n\n**Some\nof our existing fertility clinics were established as joint ventures with medical partners. These joint ventures are important to our\nbusiness. If we are unable to maintain any of these joint ventures, or if they are not successful, our business could be adversely affected.**\n\n \n\nWe\nhave established, and may enter into additional, joint ventures for the operation of our INVO Centers. Our existing and any future joint\nventures may have a number of risks, including that our joint venture partners:\n\n \n\n \n●\nhave\nsignificant discretion in determining the efforts and resources that they will apply;\n\n \n \n \n\n \n●\nmay\nnot perform their obligations as expected;\n\n \n \n \n\n \n●\nmay\ndispute the amounts of payments owed;\n\n \n \n \n\n \n●\nmay\nfail to comply with applicable legal and regulatory requirements regarding the distribution or marketing of our INVOcell product;\n\n \n \n \n\n \n●\nmay\nnot properly maintain or defend their or our relevant intellectual property rights or may use our proprietary information in such\na way as to invite litigation that could jeopardize or invalidate our intellectual property or proprietary information or expose\nus to potential litigation and liability;\n\n \n \n \n\n \n●\nmay\ninfringe the intellectual property rights of third parties, which may expose us to litigation and potential liability;\n\n \n \n \n\n \n●\ncould\nbecome involved in a business combination or cessation that could cause them to deemphasize or terminate the development or commercialization\nof our INVOcell product; and\n\n \n \n \n\n \n●\nmay\nseek to terminate our joint venture, which could require us to raise additional capital and to develop new joint venture relationships.\n\n \n\n19\n\n \n\n \n\nAdditionally,\nif one of our joint venture partners seeks to terminate its agreement with us, we may find it difficult to attract new joint venture\npartners, and the perception of our INVO Centers in the business and financial communities could be adversely affected.\n\n \n\n**We\nmay be subject to significant liabilities arising from claims brought against our fertility clinics, affiliated physicians, and related\nservice providers.**\n\n** **\n\nWe\nface the risk of litigation associated with our clinical and laboratory services, including claims by patients or others alleging medical\nmalpractice, errors in handling reproductive materials, product liability, or other causes of action commonly encountered in the healthcare\nsector. Providers in our industry have also faced class-action lawsuits related to billing practices, record management, informed-consent\nprocedures, and the classification of services for reimbursement purposes. These types of claims can involve substantial monetary demands\nand high defense costs.\n\n \n\nAlthough\ncertain jurisdictions limit recoverable damages, plaintiffs may pursue alternative legal theories or claims that fall outside those caps.\nWe maintain professional liability and general liability insurance in amounts we believe to be appropriate; however, some claims may\nexceed our coverage limits, and certain categories of damages—such as punitive damages—may not be covered or may later be\ndenied by insurers. In addition, the rising cost and fluctuating availability of malpractice insurance for physicians who provide services\nat our clinics increases the risk that we could be held vicariously liable when uninsured or underinsured practitioners are named alongside\nus in legal actions.\n\n \n\nWe\ncannot guarantee that we will be able to obtain continued insurance coverage on acceptable terms, or at all. To the extent we are self-insured\nor required to fund claims that exceed or fall outside our insurance coverage, we may be required to use operating cash flow to satisfy\nsuch liabilities. Any of these events could materially adversely affect our financial condition, results of operations, and liquidity.\n\n \n\n**We\nface potential liability as a provider of a medical device. These risks may be heightened in the area of artificial reproduction.**\n\n \n\nThe\nprovision of medical devices entails the substantial risk of potential tort injury claims. We currently utilize product liability insurance\nto provide coverage against potential tort injury claims, as well as customary insurance protection, such as professional liability insurance,\nfor our fertility clinics. However, there can be no assurance such coverage will provide adequate protection against any potential claims.\nFurthermore, any claim asserted against us could generate costly legal fees, consume management’s time and resources, and adversely\naffect our reputation and business, regardless of the merit or eventual outcome of such claim.\n\n \n\nThere\nare inherent risks specific to the provision of fertility and ART services. For example, the long-term effects on women of the administration\nof fertility medication, integral to most fertility and ART services, are of concern to certain physicians and others who fear the medication\nmay prove to be carcinogenic or cause other medical problems. Additionally, any ban or other limitation imposed by the FDA or other foreign\nregulatory department on fertility medication and services could have a material adverse effect on our business. Any such action would\nlikely adversely affect the value of your investment.\n\n** **\n\n**If\nwe fail to maintain adequate quality standards for our services and products, our reputation and business may be adversely affected and\nharmed.**\n\n \n\nOur\ncustomers are expecting that our products and services will perform as marketed and in accordance with industry standards. For our INVOcell\ndevice, we rely on third-party manufacturing companies and their packaging processes in connection with the production of our products.\nOur key suppliers, which are located in the U.S. and include NextPhase Medical Devices and Casco Bay Molding, and have been steadfast\npartners since our company first began and can provide us with virtually an unlimited capability to support our growth objectives, with\nall manufacturing performed in the New England region of the U.S. However, a failure to maintain product quality standards in accordance\nwith our customers’ expectations could result in the loss of demand for our products. Additionally, delays or quality lapses in\nour production lines could result in substantial economic losses to us. Although we believe that our current quality control procedures\nadequately address these risks, there can be no assurance that we will not experience occasional or systemic quality lapses in our manufacturing\nand service operations. Currently, we have limited manufacturing capabilities as we rely on a single manufacturing provider regarding\nour production process. In the event our manufacturer is unable to produce an adequate supply of products at appropriate quality levels,\nour growth could be limited, and our business may be harmed. If we experience significant or prolonged disturbance in our quality standards,\nour business and reputation may be harmed, which may result in the loss of customers, our inability to participate in future customer\nproduct opportunities and reduced revenue and earnings.\n\n \n\n**We\nheavily rely on third party package delivery services, and a significant disruption in these services or significant increases in prices\nmay disrupt our ability to import or export materials, increase our costs and negatively affect our ability to achieve and maintain profitability.**\n\n \n\nWe\nship our products to our customers through known independent package delivery companies, such as FedEx and UPS. If any third party package\ndelivery providers experience a significant disruption such that any of our products, components or raw materials cannot be delivered\nin a timely fashion or such that we incur additional shipping costs that we are unable to recoup, our costs may increase and our relationships\nwith certain customers may be adversely affected. In particular, if our third-party package delivery providers increase prices and we\nare not able to find comparable alternatives or adjust our delivery network, our profitability could be adversely affected.\n\n \n\n20\n\n \n\n \n\n**Our\nproducts incorporate intellectual property rights developed by us that may be difficult to protect or may be found to infringe on the\nrights of others***.*\n\n \n\nWhile\nwe currently own a U.S. patent, this patent may be challenged, invalidated or circumvented, and will ultimately expire. In addition,\nthe rights granted under this patent may not provide the competitive advantages we currently anticipate. Certain countries, including\nthe United States and in Europe, could place restrictions on the patentability of various medical devices which may materially affect\nour business and competitive position. Additionally, the laws of some foreign countries, in particular China and India, do not protect\nour proprietary rights to the same extent or in the same manner as U.S. laws, and we may encounter significant problems in protecting\nand defending our proprietary rights in these countries. In addition to relying on patent, copyright and trademark laws, we also utilize\na combination of trade secrets, confidentiality policies, non-disclosure and other contractual arrangements to protect our intellectual\nproperty rights. However, these measures may not be adequate to prevent or deter infringement or other misappropriation. Further, our\nintellectual property rights may be found to infringe on intellectual property rights of third parties. Moreover, we may not be able\nto detect unauthorized use or take appropriate and timely steps to establish and enforce our proprietary rights. Existing laws of some\ncountries in which we conduct business offer only limited protection of our intellectual property rights, if at all. As the number of\nmarket entrants as well as the complexity of technology in the fertility marketplace increases, the possibility of functional overlap\nand inadvertent infringement of intellectual property rights also increases.\n\n \n\n**We\nmay be forced to defend our intellectual property rights from infringement through expensive legal action.**\n\n \n\nThird\nparties may in the future assert claims against us alleging infringement on their intellectual property rights. Defending such claims\nmay be expensive, time consuming and divert the efforts of our management and/or technical personnel. Because of litigation, we could\nbe required to pay damages and other compensation, develop non-infringing products or enter into royalty and/or licensing agreements.\nHowever, we cannot be certain that any such licenses will be made available to us on commercially reasonable terms.\n\n \n\nWe\nregard our trade secrets, patents and similar intellectual property as critical to our successful operations. To protect our proprietary\nrights, we rely on intellectual property and trade secret laws, as well as confidentiality and license agreements with certain employees,\ncustomers and third parties. No assurance can be given that our intellectual property will not be challenged, invalidated, infringed\nor circumvented. If necessary, we intend to defend our intellectual property rights from infringement through legal action, which could\nbe very costly and could adversely affect our ability to achieve and maintain profitability. Our limited capital resources could put\nus at a disadvantage if we are required to take legal action to enforce our intellectual property rights.\n\n \n\n21\n\n \n\n \n\n**We\nare subject to risks in connection with changes in international, national, and local economic and market conditions.**\n\n \n\nOur\nbusiness is subject to risks in connection with changes in international, national and local economic and market conditions, including\nthe effects of global financial crises, effects of terrorist acts, war and global pandemics. Such economic changes could negatively impact\ninfertile people’s ability to pay for fertility treatment around the world.\n\nWe\ncould experience additional risks associated with international sales, including:\n\n \n\n \n●\npolitical\nand economic instability;\n\n \n \n \n\n \n●\nexport\ncontrols;\n\n \n \n \n\n \n●\nchanges\nin international legal and regulatory requirements;\n\n \n \n \n\n \n●\nUnited\nStates and foreign government policy changes affecting the product marketability; and\n\n \n \n \n\n \n●\nchanges\nin tax laws, duties and tariffs.\n\n \n\nAny\nof these factors could have a material adverse effect on our business, results of operations and financial condition. From 2011 through\n2023, we sold products in certain international markets mainly through independent distributors. Although we are not actively pursuing\ninternational sales, they could become more meaningful in the future. In the event a distributor fails to meet annual sales goals, we\nmay be required to obtain a replacement distributor, which may be costly and difficult to identify. Additionally, a change in our distributors\nmay increase costs, and create a disruption in our operations resulting in a loss of revenue.\n\n \n\n**If\nwe are unable to effectively adapt to changes in the healthcare industry, our business may be harmed.**\n\n \n\nFederal,\nstate, and local legislative bodies frequently pass legislation and promulgate regulations relating to healthcare reform or that affect\nthe healthcare industry. As has been the trend in recent years, it is reasonable to assume that there will continue to be increased government\noversight and regulation of the healthcare industry in the future. We cannot predict the ultimate content, timing, or effect of any new\nhealthcare legislation or regulations, nor is it possible at this time to estimate the impact of potential new legislation or regulations\non our business. It is possible that future legislation enacted by Congress or state legislatures, or regulations promulgated by regulatory\nauthorities at the federal or state level, could adversely affect our business. It is also possible that the changes to federal healthcare\nprogram reimbursements to providers who purchase our products or use our services may serve as precedent to possible changes in other\npayors’ reimbursement policies in a manner adverse to us. Similarly, changes in private payor reimbursements could lead to adverse\nchanges in federal healthcare programs, which could have a material adverse effect on our business, financial condition, cash flows,\nand results of operations.\n\n \n\nThere\ncan be no assurance that we will be able to successfully address changes in the current regulatory environment. Some of the healthcare\nlaws and regulations applicable to us are subject to limited or evolving interpretations, and a review of our business or operations\nby a court, law enforcement, or a regulatory authority might result in a determination that could have a material adverse effect on us.\nFurthermore, the healthcare laws and regulations applicable to us may be amended or interpreted in a manner that could have a material\nadverse effect on our business, financial condition, cash flows and results of operations.\n\n \n\n**Social\nmedia platforms present risks and challenges.**\n\n \n\nThe\nunauthorized use of certain social media vehicles could result in the improper collection and/or dissemination of personally identifiable\ninformation causing brand damage and various legal implications. In addition, negative or inaccurate social media posts or comments about\nus on any social networking site could damage our brand, reputation, and goodwill.\n\n \n\n**We\nare susceptible to cybersecurity breaches and cyber-related fraud.**\n\n \n\nWe\ndepend on information technology (“IT”) systems, networks, and services, encompassing internet sites, data hosting and processing\nfacilities, as well as hardware (including laptops and mobile devices), along with software and technical applications and platforms.\nSome of these are overseen, hosted, supplied, and/or utilized by third parties or their vendors, supporting us in the administration\nof our business.\n\n \n\nThe\nescalation of IT security threats and the increasing sophistication of cyber-crime pose a potential hazard to the security of our IT\nsystems, networks, and services, as well as to the confidentiality, availability, and integrity of our data. Should the IT systems, networks,\nor service providers we rely on encounter malfunctions or if we experience a loss or disclosure of sensitive information due to various\ncauses such as catastrophic events, power outages, or security breaches, and our business continuity plans fail to address these issues\npromptly, we could face disruptions in managing operations. This may result in reputational, competitive, and/or business harm, potentially\nadversely impacting our business operations and financial condition. Furthermore, such incidents could lead to the unauthorized disclosure\nof critical confidential information, causing financial and reputational damage due to the loss or misappropriation of confidential information\nbelonging to us, our partners, employees, customers, suppliers, or consumers. In such scenarios, significant financial and other resources\nmight be required to rectify the damage caused by a security breach or to repair and replace networks and IT systems.\n\n \n\n22\n\n \n\n \n\nIn\naddition, in the ordinary course of our business, we may use, collect, and store sensitive data, including personal health information.\nWe face risks relative to protecting this critical information, including loss of access risk, inappropriate disclosure risk, inappropriate\nmodification risk, and the risk of being unable to adequately monitor our controls. Our information technology and infrastructure may\nbe vulnerable to attacks by hackers or viruses or breached due to employee error, malfeasance, or other disruptions. Any such breach\nor interruption could compromise our networks and the information stored there could be accessed by unauthorized parties, publicly disclosed,\nlost or stolen. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under\nlaws that protect the privacy of personal information, such as HIPAA, and regulatory penalties. There is no guarantee that we can continue\nto protect our systems from breach. Unauthorized access, loss, or dissemination could also disrupt our operations.\n\n \n\n**We are subject to risks\nassociated with doing business globally.**\n\n \n\nOur operations, both inside\nand outside the United States, are subject to risks inherent in conducting business globally and under the laws, regulations and customs\nof various jurisdictions and geographies. Our operations outside the United States are subject to special risks and restrictions, including,\nwithout limitation: fluctuations in currency values and foreign-currency exchange rates; exchange control regulations; changes in local\npolitical or economic conditions; governmental pricing directives; import and trade restrictions; import or export licensing requirements\nand trade policy; restrictions on the ability to repatriate funds; and other potentially detrimental domestic and foreign governmental\npractices or policies affecting U.S. companies doing business abroad, including the U.S. Foreign Corrupt Practices Act and the trade sanctions\nlaws and regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control. Acts of terror or war\nmay impair our ability to operate in particular countries or regions and may impede the flow of goods and services between countries.\nCustomers in weakened economies may be unable to purchase our products, or it could become more expensive for them to purchase imported\nproducts in their local currency, or sell at competitive prices, and we may be unable to collect receivables from such customers. Further,\nchanges in exchange rates may affect our net earnings, the book value of our assets outside the United States and our stockholders’\nequity. Failure to comply with the laws and regulations that affect our global operations could have an adverse effect on our business,\nfinancial condition or results of operations.\n\n \n\n**Currency exchange\nrate fluctuations may affect the results of our operations.**\n\n \n\nWe may distribute our INVOcell\nproduct internationally with all sales, domestic and international, in U.S. dollars. As a result, our operations could be impacted by\nfluctuations in currency exchange rates, although we expect to mitigate such risk by invoicing only in U.S. dollars. In spite of this,\nour operations may still be negatively impacted by foreign currency exchange rates in the event the U.S. dollar strengthens and the local\ncurrency where the product may be sold weakens. In the event such international patients are unable to afford the associated increase\ncosts, international doctors and clinics may not be able to offer the INVOcell and IVC procedure. Additionally, as an international business\nwe may be susceptible to adverse foreign currency fluctuations unconnected to the U.S. dollar.\n\n \n\n**Failure to comply with\nthe United States Foreign Corrupt Practices Act or similar laws could subject us to penalties and other adverse consequences.**\n\n \n\nWe are subject to the United\nStates Foreign Corrupt Practices Act, which generally prohibits United States companies, including their suppliers, distributors and other\ncommercial partners, from engaging in bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining\nbusiness. Corruption, extortion, bribery, pay-offs, theft and other fraudulent practices occur from time to time in the countries in which\nwe distribute products. We have adopted formal policies and procedures designed to facilitate compliance with these laws. If our employees\nor other agents, including our distributors or suppliers, are found to have engaged in such practices, we could suffer severe penalties\nand other consequences that may have a material adverse effect on our business, financial condition and results of operations.\n\n \n\n**We\nwill need additional, qualified personnel in order to expand our fertility business. Without additional personnel, we will not be able\nto expand our fertility business.**\n\n \n\nExpanding\nour fertility business requires increasing the number of persons engaged in activities for the sale, marketing, administration and delivery\nof our products as well as clinical training personnel for proper IVC procedure training. Our ability to attract and hire personnel to\nfulfil these efforts is dependent on our ability to attract and retain potential employees with the proper background and training matching\nthe skills required for the positions. In addition, we may not be able to attract personnel who will be able to successfully implement\nour business operations and growth strategy in the manner that we currently anticipate.\n\n \n\n23\n\n \n\n \n\nRisks\nRelated to Our Industry\n\n \n\n**We may be subject to risks related to changes\nin laws regarding abortion, which can affect how a fertility clinic must treat and handle embryos.**\n\n \n\nIn\nJune 2022, the U.S. Supreme Court in *Dobbs v. Jackson Women’s Health Organization* overturned *Roe v. Wade* by holding\nthat there is no constitutional right to abortion. This ended federal legalization on abortion, bringing the matter back to individual\nstates to determine. Soon after the decision was handed down, several U.S. states adopted laws that drastically limited the availability\nof abortion, with a number of other states working on or proposing similar restrictions. While we believe these actions are more targeted\ntoward abortions during pregnancy, certain laws may also impact embryos and how excess embryos are handled or implicate fertility procedures\nand travel reimbursement programs, which may decrease the demand for, or availability of, certain fertility services.\n\n \n\nIn\nFebruary 2024, the Alabama Supreme Court issued a landmark ruling holding that stored embryos are afforded the same legal protections\nas children under the state’s Wrongful Death of a Minor Act, causing IVF clinics in Alabama to temporarily pause services. Although\nthe Alabama legislature subsequently passed a law providing limited civil and criminal liability protection for IVF providers, the underlying\nruling has not been overturned, and similar challenges may arise in other states. As of 2025, personhood bills with potential implications\nfor IVF and embryo handling have been introduced or are being tracked in multiple states. While Indiana law currently exempts IVF from its abortion restrictions, and the Indiana Court\nof Appeals has held that frozen embryos do not have the rights of persons under Indiana law, the legal landscape remains unsettled and\nfuture legislative or judicial developments in Indiana or other states where we operate could adversely affect our business.\n\n \n\nThe\nenactment of certain state laws restricting abortion care and other changes in laws, or in interpretation of laws through court decisions,\naffecting fertility benefits may conflict with, and ultimately limit, the covered benefits offered by a company to its employees and\nthe types of fertility treatment services available at provider clinics. While the Trump administration has expressed general support\nfor IVF access, no federal legislation has been enacted to protect IVF services, and executive positions and priorities are subject to\nchange. We cannot predict the timing or impact of any future rulemaking, executive orders, court decisions or other changes in the law,\nor in how such laws, once enacted, would be interpreted and enforced. This may negatively impact fertility clinics and their patients\noperating in those states with more restrictive laws.\n\n \n\n**We\nare subject to significant domestic and international governmental regulation and if we fail to comply we could suffer penalties or be\nrequired to make significant changes to our operations.**\n\n \n\nOur\nbusiness is heavily regulated, both as a fertility clinic operator and as a medical device manufacturer. We are subject to complex laws\nand regulations from the FDA and other federal, state and local authorities that subject us to civil and criminal penalties, including\ncessation of operations and recall of products distributed, in the event we fail to comply. Any such actions could severely curtail our\nrevenue and business reputation.\n\n \n\nThese\nlaws relate to among other things: billing practices and prices for services; relationships with physicians and other referral sources;\nnecessity and quality of medical care; condition and adequacy of facilities; qualifications of medical and support personnel; confidentiality,\nprivacy and security issues associated with health-related information and PHI; handling of controlled substances; and certification,\nlicensure and accreditation of our facilities.\n\n \n\nIn\naddition, restrictive laws, regulations or interpretations could be adopted, making compliance with such regulations more difficult or\nexpensive. While we devote substantial resources to ensure our compliance with laws and regulations, we cannot completely eliminate the\nrisk that we may be found non-compliant with applicable legal and regulatory requirements.\n\n \n\nWe\nbelieve that the healthcare industry will continue to be subject to increased regulation as well as political and legal action, as future\nproposals to reform the health care system are considered by the U.S. Congress and state legislatures. We do not know of, nor do we have\nany control over, future changes to healthcare laws and regulations which may have a significant impact on our business.\n\n \n\n24\n\n \n\n \n\n**The\nFDA regulatory review process for medical devices is expensive, time-consuming and uncertain, and the failure to obtain and maintain\nrequired regulatory clearances and approvals could prevent us from commercializing our products.**\n\n \n\nUnless\nan exemption applies, each medical device commercially distributed in the United States requires either FDA clearance of a 510(k) premarket\nnotification, approval of a premarket approval, or issuance of a de novo classification order. The FDA clearance, de novo classification,\nand approval processes for medical devices are expensive, uncertain and time-consuming.\n\n \n\nFuture\nmodifications to the INVOcell that was classified through de novo may require a 510(k) clearance. We may make minor changes to the INVOcell\nwithout seeking clearance for the modifications if we determine such clearances are not necessary and document the basis for that conclusion.\nHowever, the FDA may disagree with our determination or may require additional information, including clinical data, to be submitted\nbefore a determination is made, in which case we may be required to delay the introduction and marketing of our modified products, redesign\nour products, conduct clinical trials to support any modifications, or we may be subject to enforcement actions. In addition, the FDA\nmay not clear such modified INVOcell for the indications that are necessary or desirable for successful commercialization.\n\n \n\nThere\nis no assurance that we will be able to obtain the necessary clearances on a timely basis or at all. Further, the FDA may change its\npolicies, adopt additional regulations or revise existing regulations, or take other actions which may impact our ability to modify the\nINVOcell on a timely basis, and may prevent or delay clearance of future products. Delays in receipt of, or failure to obtain clearances\nfor any product modifications or future products we may develop would result in delayed or no realization of revenue from such products\nand the viability of our INVO Centers, and in substantial additional costs, which could decrease our profitability.\n\n \n\nIn\naddition, we are required to continue to comply with applicable FDA and other regulatory requirements following de novo classification\nor clearance. The failure to comply with existing or future regulatory requirements could have a material adverse effect on our business.\n\n \n\n**Improper\nmarketing and promotion or off-label use of our product could lead to investigations and enforcement by governmental bodies including\nproduct recalls or market withdrawal, may harm our reputation and business, and could result in product liability suits.**\n\n \n\nIf\nthe FDA or any foreign regulatory entity determines that our promotional materials or training constitute promotion of off-label use,\nit could request that we modify our training or promotional materials or subject us to regulatory or enforcement actions. These enforcement\nactions could include, for example, a warning letter or untitled letter, injunction, seizure, civil fine or criminal penalties. We cannot,\nhowever, prevent a physician from using the INVOcell off-label, when in the physician’s independent professional medical judgement,\nhe or she deems it appropriate. There may be increased risk of injury to patients if physicians attempt to use the INVOcell off-label,\nor the INVOcell may not be as effective, which could harm our reputation.\n\n \n\n**If\nwe fail to comply with the FDA***’**s Quality System Regulation (“QSR”), the FDA could take various enforcement\nactions, including suspending our FDA clearance to market, or halting our manufacturing operations, and our business would suffer.***\n\n \n\nIn\nthe United States, as a manufacturer of a medical device, we are required to demonstrate and maintain compliance with the FDA’s\nQSR. The QSR covers the methods and documentation of the design, testing, control, manufacturing, labeling, quality assurance, packaging,\nstorage and distribution of medical devices. The FDA enforces the QSR through periodic inspections and unannounced “for cause”\ninspections. Outside the United States, our products and operations are also required to comply with national requirements where the\nproduct is sold and also standards set by industrial standards bodies, such as the International Organization for Standardization. Foreign\nregulatory bodies may evaluate our products or the testing that our products undergo against these standards. The specific standards,\ntypes of evaluation and scope of review differ among foreign regulatory bodies. Our failure to comply with FDA or foreign regulatory\nagency requirements, or failure to take satisfactory and prompt corrective action in response to an adverse inspection, could result\nin enforcement actions, including a warning letter, adverse publicity, a shutdown of or restrictions on our manufacturing operations,\na recall or seizure of our products, fines, injunctions, civil or criminal penalties, or other sanctions, any of which could cause our\nbusiness and operating results to suffer.\n\n \n\n25\n\n \n\n \n\n**We\nare subject to continuing regulation by the FDA, and failure to comply may materially harm our business.**\n\n \n\nWe\nare subject to Medical Device Reporting (“MDR”)  regulations, which require us to report to the FDA if we become aware\nof information that reasonably suggests our product may have caused or contributed to a death or serious injury or has malfunctioned\nand the device or a similar device we market would likely cause or contribute to a death or serious injury if the malfunction were to\nrecur. We may fail to report adverse events of which we become aware within the prescribed timeframe. We may also fail to recognize that\nwe have become aware of a reportable adverse event. If we fail to comply with our medical device reporting obligations, the FDA could\nissue warning letters or untitled letters, take administrative actions, commence criminal prosecution, impose civil monetary penalties,\nrequest or require a product recall, seize our products, or delay the clearance of our future products. We must report corrections and\nremovals to the FDA where the correction or removal was initiated to reduce a risk to health posed by the device or to remedy a violation\nof the Federal Food, Drug, and Cosmetic Act, or FDCA, caused by the device that may present a risk to health.\n\n \n\nOur\nfailure to comply with these or other applicable regulatory requirements could result in enforcement actions by the FDA which may include\nuntitled letters, warning letters, fines, injunctions, consent decrees and civil penalties; customer notifications or repair, replacement\nor refunds; and criminal prosecution.\n\n \n\n**Changes\nin the healthcare industry may require us to decrease the selling price for our services or products or could result in a reduction in\nthe available market size.**\n\n \n\nGovernmental\nand private sector initiatives in the U.S. and abroad involving trends toward managed healthcare and cost containment could place an\nemphasis on our ability to deliver more cost-effective medical therapies. The development of other cost-effective devices could eventually\nadversely affect the prices and/or sales of our services or products. Companies in the healthcare industry are subject to various existing\nand proposed laws and regulations, in both domestic and international markets, regulating healthcare pricing and profitability. Additionally,\nthere have been third-party payer initiatives to challenge the prices associated with medical products, which if successful, could affect\nour ability to sell services or products on a competitive basis in the future.\n\n \n\nIn\nthe United States, there has been a trend of consolidation among healthcare facilities and purchasers of medical devices, allowing such\npurchasers to limit the number of suppliers from whom they purchase medical products. As result, it is unknown whether such purchasers\nwill decide to stop purchasing our products or demand discounts on our prices. Any pressure to reduce our product prices in response\nto these industry trends and the decrease in market size could adversely affect our anticipated revenue and profitability of our sales,\ncreating a material adverse effect on our business.\n\n \n\n26\n\n \n\n \n\n**If\nwe are unable to effectively adapt to changes in the healthcare industry, our business may be harmed.**\n\n \n\nFederal,\nstate, and local legislative bodies frequently pass legislation and promulgate regulations relating to healthcare reform or that affect\nthe healthcare industry. As has been the trend in recent years, it is reasonable to assume that there will continue to be increased government\noversight and regulation of the healthcare industry in the future. We cannot predict the ultimate content, timing, or effect of any new\nhealthcare legislation or regulations, nor is it possible at this time to estimate the impact of potential new legislation or regulations\non our business. It is possible that future legislation enacted by Congress or state legislatures, or regulations promulgated by regulatory\nauthorities at the federal or state level, could adversely affect our business. It is also possible that the changes to federal healthcare\nprogram reimbursements to providers who purchase our products or use our services may serve as precedent to possible changes in other\npayors’ reimbursement policies in a manner adverse to us. Similarly, changes in private payor reimbursements could lead to adverse\nchanges in federal healthcare programs, which could have a material adverse effect on our business, financial condition, cash flows,\nand results of operations.\n\n \n\nThere\ncan be no assurance that we will be able to successfully address changes in the current regulatory environment. Some of the healthcare\nlaws and regulations applicable to us are subject to limited or evolving interpretations, and a review of our business or operations\nby a court, law enforcement, or a regulatory authority might result in a determination that could have a material adverse effect on us.\nFurthermore, the healthcare laws and regulations applicable to us may be amended or interpreted in a manner that could have a material\nadverse effect on our business, financial condition, cash flows and results of operations.\n\n \n\n**Recent\neconomic trends could adversely affect our financial performance.**\n\n \n\nEconomic\ndownturns and declines in consumption in the healthcare market may affect the levels of both our sales and profitability. If a downturn\nin economic conditions occurs, or if there is deterioration in financial markets and major economies, our financial performance could\nbe adversely affected. The tightening of credit in financial markets may adversely affect the ability of our customers and suppliers\nto obtain financing, which could result in a decrease in, or deferrals or cancellations of, the sale of our products and services. In\naddition, weakening economic conditions may result in a decline in spending for ART and fertility assistance that could adversely affect\nour business operations and liquidity. We are unable to predict the likely duration and severity of any disruption in the domestic and\nglobal financial markets.\n\n \n\nRisks\nRelated to Our Common Stock\n\n \n\n**Our\nsecured debt instruments contain numerous restrictive covenants that limit management’s discretion to operate\nour business.** \n\n \n\nIn our secured debt instruments, we agreed to certain covenants\nthat place significant restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances,\nto make certain payments and investments, and to sell or otherwise dispose of assets and merge or consolidate with other entities. Any\nfailure to comply with the covenants included in the secured debt instruments could result in an event of default, which could trigger\nan acceleration of the related debt. If we were unable to repay the debt upon any such acceleration, our senior lenders could seek to\nforeclose on our assets in an effort to seek repayment under the loans. If our lenders were successful, we would be unable to conduct\nour business as it is presently conducted and our ability to generate revenues and fund our ongoing operations would be materially adversely\naffected.\n\n \n\n**If\nwe are unable to maintain compliance with all applicable continued listing requirements and standards of Nasdaq, our common stock will\nbe delisted from Nasdaq.** \n\n \n\nOur\ncommon stock is currently listed on Nasdaq. In order to maintain that listing, we must satisfy minimum financial and other continued\nlisting requirements and standards, including those regarding director independence and independent committee requirements, minimum stockholders’\nequity, minimum share price, and certain corporate governance requirements.\n\n \n\n27\n\n \n\n \n\nIf\nwe were to be delisted, we would expect our common stock to be traded in the over-the-counter market which could adversely affect the\nliquidity of our common stock. Additionally, we could face significant material adverse consequences, including:\n\n \n\n●\na\nlimited availability of market quotations for our common stock;\n\n \n \n\n●\na\ndecreased ability to issue additional securities or obtain additional financing in the future;\n\n \n \n\n●\nreduced\nliquidity for our stockholders;\n\n \n \n\n●\npotential\nloss of confidence by customers, collaboration partners and employees; and\n\n \n \n\n●\nloss\nof institutional investor interest.\n\n \n\nIn\nthe event of a delisting, we can provide no assurance that any action taken by us to restore compliance with listing requirements would\nallow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common\nstock from dropping below the Nasdaq minimum bid price requirement, or prevent future non-compliance with Nasdaq’s listing requirements.\n\n \n\n**Our\ncommon stock is subject to risks arising from restrictions on reliance on Rule 144 by shell companies or former shell companies.**\n\n \n\nUnder\na SEC rule known as “Rule 144”, a person who has beneficially owned restricted securities of an issuer and who is not an\naffiliate of that issuer may sell them without registration under the Securities Act provided that certain conditions have been met.\nHowever, Rule 144 is unavailable for the resale of securities issued by an issuer that is a shell company or that has been at any time\npreviously a shell company. The SEC defines a shell company as a company that has no or nominal operations and either (i) no or nominal\nassets, (ii) assets consisting solely of cash and cash equivalents, or (iii) assets consisting of any amount of cash and cash equivalents\nand nominal other assets. We are a former shell company.\n\n \n\nThe\nSEC has provided an exception to this unavailability if and for as long as the following conditions are met: (a) the issuer of the securities\nthat was formerly a shell company has ceased to be a shell company; (b) the issuer of the securities is subject to the reporting requirements\nof Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended; (c) the issuer of the securities has filed all Exchange Act\nreports and materials required to be filed, as applicable during the preceding 12 months, other than certain Current Reports on Form\n8-K; and (d) at least one (1) year has elapsed form the time the issuer filed current comprehensive disclosure with the SEC reflecting\nits status as an entity that it is not a shell company.\n\n \n\nBecause\nof our prior history as a shell company, stockholders who receive our restricted securities will only be able to sell them pursuant to\nRule 144 without registration for only as long as we continue to meet the requirements set forth above. No assurance can be given that\nwe will meet these requirements going forward. Furthermore, any non-registered securities we sell in the future or issue will have limited\nor no liquidity until and unless such securities are registered with the SEC and/or until we comply with the foregoing requirements.\n\n \n\n28\n\n \n\n \n\nAs\na result, it may be harder for us to raise funding through the sale of debt or equity securities unless we agree to register such securities\nwith the SEC, which could require us to deploy additional resources. In addition, if we are unable to attract additional capital, it\ncould have an adverse impact on our ability to implement our business plan and/or sustain our operations. Our status as a former “shell\ncompany” could prevent us from raising additional funds to develop additional technological advancements, which could cause the\nvalue of our securities to decline in value.\n\n \n\n**Our\ndirectors have the right to authorize the issuance of shares of our preferred stock and additional shares of our common stock.**\n\n \n\nOur\ndirectors, within the limitations and restrictions contained in our articles of incorporation and without further action by our shareholders,\nhave the authority to issue shares of preferred stock from time to time in one or more series and to fix the number of shares and the\nrelative conversion and voting rights, and terms of redemption, liquidation preferences and any other preferences, special rights and\nqualifications of any such series. While we have no intention of issuing shares of preferred stock at the present time, we may seek to\nraise capital through the sale of our securities and may issue shares of preferred stock in connection with a particular investment.\nAny issuance of shares of preferred stock could adversely affect the rights of holders of our common stock.\n\n \n\nShould\nwe issue additional shares of our common stock, each investor’s ownership interest in our stock would be proportionally reduced.\n\n \n\n**The\nindemnification rights provided to our directors, officers and employees may result in substantial expenditures by us and may discourage\nlawsuits against its directors, officers and employees.**\n\n \n\nOur\narticles of incorporation and applicable Nevada law provide for the indemnification of our directors, officers, employees. The foregoing\nindemnification obligations could result in us incurring substantial expenditures to cover the costs of settlement or damage awards against\ndirectors, officers, and employees, which we may be unable to recoup. These provisions and resultant costs may also discourage us from\nbringing a lawsuit against our directors and officers for breaches of their fiduciary duties and may similarly discourage the filing\nof derivative litigation by our stockholders against our directors or officers even though such actions, if successful, might otherwise\nbenefit us and our stockholders.\n\n \n\n**Our\nshares of common stock are thinly traded, and the price may not reflect our value; there can be no assurance that there will be an active\nmarket for our shares now or in the future.**\n\n \n\nWe\nhave a trading symbol for our common stock (“IVF”) and our common stock is currently listed on the Nasdaq Capital Market.\n\n \n\nOur\nshares of common stock are thinly traded, and as such the price, if traded, may not reflect our value. There can be no assurance that\nthere will be an active market for our shares of common stock either now or in the future. The market liquidity will be dependent on,\namong other things, the perception of our operating business and any steps that our management might take to bring us to the awareness\nof investors. There can be no assurance given that there will be any awareness generated or, if given, that it will be positive.\n\n \n\n29\n\n \n\n \n\nConsequently,\ninvestors may not be able to liquidate their investment or may be able to liquidate it only at a price that does not reflect the value\nof the business. If a more active market should develop, the price may be highly volatile. Due to the possibility of our common stock\nbeing priced lower than its actual value, many brokerage firms may not be willing to effect transactions in the securities. Even if an\ninvestor finds a broker willing to effect a transaction in the shares of our common stock, the combination of brokerage commissions,\ntransfer fees, taxes, if any, and any other selling costs may exceed the selling price.\n\n \n\n**We\ndo not expect to pay any dividends to shareholders.**\n\n \n\nTo\ndate, we have never declared or paid any dividends to our stockholders. Our Board does not intend to distribute dividends in the near\nfuture. The declaration, payment and amount of any future dividends will be made at the discretion of the Board, and will depend upon,\namong other things, the results of our operations, cash flows and financial conditions, operating and capital requirements, and other\nfactors as the Board considers relevant. There is no assurance that future dividends will be paid to stockholders. In the event dividends\nare paid to stockholders, there is no assurance with respect to the amount of any such dividend.\n\n \n\n**Our\nrevenue and operating results could fluctuate from quarter to quarter, which may cause our stock price to decline.**\n\n \n\nOur\nresults from year-to-year and from quarter-to-quarter may vary significantly based on individual clinic performance, the addition of\nnew acquisitions, and ordering cycles for our INVOcell device from distributors and our partners. As a result, we expect period-to-period\ncomparisons of our operating results may not be meaningful as an indication of our future performance for any future period.\n\n \n\n**We\nmay have difficulty raising the necessary capital to fund operations because of the thin market and market price volatility for our shares\nof common stock.**\n\n \n\nThroughout\n2025, there has been a thin market for our shares, and the market price for our shares has been volatile. In recent years, the securities\nmarkets in the U.S. and around the world have experienced a high level of price and volume volatility, and the market price of securities\nof many companies have experienced wide fluctuations that have not necessarily been related to the operations, performances, underlying\nasset values or prospects of such companies. For these reasons, we expect our shares of common stock may also be subject to volatility\nresulting from market forces over which we will have no control. The success of our growth strategy may be dependent upon our ability\nto obtain additional financing through debt and equity or other means. The thin market for our shares, and the volatility in the market\nprice for our shares, may adversely affect our ability to raise needed additional capital.\n\n \n\n**An\nactive trading market for our common stock may not be sustained. If an active trading market is not sustained, our ability to raise capital\nin the future may be impaired.**\n\n \n\nThere\nis limited history of trading for our common stock. Given the lack of trading history of our common stock, there is a risk that an active\ntrading market for our shares may not be sustained, which could put downward pressure on the market price of our common stock and thereby\naffect your ability to sell shares you purchased. An inactive trading market for our common stock may also impair our ability to raise\ncapital to continue to fund the operations of the combined companies by selling shares and impair our ability to acquire other companies\nor technologies by using our shares as consideration.\n\n \n\n30\n\n \n\n \n\n**The\ntrading price of our common stock is highly volatile, which could result in substantial losses for purchasers of our common stock. Securities\nclass action or other litigation involving our company or members of our management team could also substantially harm our business,\nfinancial condition and results of operations.**\n\n \n\nOur stock price is highly volatile. The stock market\nin general and the market for smaller healthcare and fertility services companies in particular have experienced extreme volatility that\nhas often been unrelated to the operating performance of particular companies. In addition, if the market for healthcare and fertility\nservices stocks or the broader stock market continues to experience a loss of investor confidence, the trading price of our common stock\ncould decline for reasons unrelated to our business, financial condition or results of operations. As a result of this volatility, you\nmay not be able to sell your common stock at or above the purchase price and you may lose some or all of your investment. The market price\nfor our common stock may be influenced by many factors, including the following:\n\n \n\n●\nthe success of existing or new competitive products or technologies;\n\n \n\n●\nannouncements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures, collaborations or capital\ncommitments;\n\n \n\n●\nregulatory or legal developments in the United States, including those affecting reproductive healthcare, fertility services,\nand embryo handling;\n\n \n\n●\nthe recruitment or departure of key personnel;\n\n \n\n●\nactual or anticipated changes in estimates as to financial results, clinical performance, or development timelines;\n\n \n\n●\nannouncement or expectation of additional financing efforts;\n\n \n\n●\nsales of our common stock by us, our insiders or other stockholders;\n\n \n\n●\nvariations in our financial results or those of companies that are perceived to be similar to us;\n\n \n\n●\nchanges in estimates or recommendations by securities analysts, if any, that cover us;\n\n \n\n●\nchanges in the structure of healthcare payment systems;\n\n \n\n●\nmarket conditions in the healthcare and fertility services sectors;\n\n \n\n● our ability to successfully identify,\nacquire, and integrate fertility clinic acquisitions;\n\n \n\n● patient volume trends and seasonal\nfluctuations in demand for fertility services;\n\n \n\n●\ngeneral economic, industry and market conditions; and\n\n \n\n●\nthe other factors described in this “Risk Factors” section.\n\n \n\nIn\nthe past, securities class action litigation has often been brought against a company following a decline in the market price of its\nsecurities. This risk is especially relevant for healthcare and fertility services companies, which have experienced significant\nstock price volatility in recent years.\n\n \n\n31\n\n \n\n \n\nRelated\nto Market Uncertainties\n\n \n\n**Unstable\nmarket and economic conditions may have serious adverse consequences on our business, financial condition and stock price.**\n\n \n\nThe\nglobal credit and financial markets have experienced extreme volatility and disruptions in the past several years, including severe volatility\nresulting from U.S. trade policy and the threatened or actual implementation of tariffs, severely diminished liquidity and credit availability,\nvolatile interest rates, rising and fluctuating inflation rates, reduced corporate profitability, declines in consumer confidence, declines\nin economic growth, increases in unemployment rates and uncertainty about economic stability. U.S. debt ceiling and budget deficit concerns\nhave increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although\nU.S. lawmakers passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have lowered or threatened\nto lower the long-term sovereign credit rating on the United States. The impact of this or any further downgrades to the U.S. government’s\nsovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions.\nIn addition, inflation rates in the U.S. have recently increased to levels not seen in decades.\n\n \n\nWe\nbelieve that the state of global economic conditions are particularly volatile and uncertain due to ongoing global tensions and unexpected\nshifts in political, legislative and regulatory conditions concerning, among other matters, international trade and taxation, and that\nan uneven recovery or a renewed global downturn may negatively impact our business and operations. There can be no assurance that further\ndeterioration in credit and financial markets and confidence in economic conditions will not occur. Our general business strategy may\nbe adversely affected by any such economic downturn, volatile business or political environment or continued unpredictable and unstable\nmarket conditions. If the current equity and credit markets deteriorate, it may make obtaining any necessary debt or equity financing\nmore difficult, more costly and more dilutive. For example, as a result of political, social, and economic instability abroad, including\nas a result of armed conflict, war or threat of war, in particular, the ongoing conflicts in Ukraine and the Middle East, including resulting\nsanctions and supply chain disruptions, terrorist activity and other security concerns in general, there could be a significant disruption\nof global financial markets, impairing our ability to raise capital when needed on acceptable terms, if at all. Failure to secure any\nnecessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial\nperformance and stock price and could require us to delay or abandon our acquisition and expansion strategy. In addition, there is a\nrisk that one or more of our current service providers and other partners may not survive an economic downturn, which could directly\naffect our ability to attain our operating goals on schedule and on budget. To the extent that our profitability and strategies are negatively\naffected by downturns or volatility in general economic conditions, our business and results of operations may be materially adversely\naffected.\n\n \n\n**Changes\nin U.S. trade policy and the imposition of tariffs could increase our operating costs and adversely affect our business.**\n\n \n\nThe\nU.S. government has imposed broad tariffs on a wide range of imported goods, and further escalation of trade restrictions remains possible.\nTo the extent that medical devices, consumables, or other supplies used in our clinic operations are sourced from foreign manufacturers,\nthese tariffs could increase our operating costs. If we are unable to offset such cost increases, our margins and results of operations\ncould be adversely affected. We cannot predict the scope or duration of current tariff measures or the extent to which retaliatory trade\nactions by other countries could further disrupt our supply chain or increase our costs.\n\n \n\n**Our\nbusiness is affected by macroeconomic conditions, including rising inflation, interest rates and supply chain constraints.**\n\n \n\nVarious\nmacroeconomic factors could adversely affect our business and the results of our operations and financial condition, including changes\nin inflation, interest rates and overall economic conditions and uncertainties such as those resulting from the current and future conditions\nin the global financial markets. For instance, rising interest rates have impacted our net income. Recent supply chain constraints have\nled to higher inflation, which, if sustained, could have a negative impact on our product development and operations. If inflation or\nother factors were to significantly increase our business costs, our ability to develop our current pipeline and new therapeutic products\nmay be negatively affected. Current capital market conditions, including the impact of inflation, have increased borrowing rates and\ncan be expected to significantly increase our cost of capital as compared to prior periods and could also affect our ability to raise\ncapital on favorable terms, or at all, in order to fund our operations. Similarly, these macroeconomic factors could affect the ability\nof our third-party suppliers and manufacturers to manufacture clinical trial materials for our product candidates.\n\n \n\n32\n\n \n\n \n\n**General\nRisk Factors**\n\n \n\n**We\nare a Smaller Reporting Company, or SRC, and the reduced disclosure requirements applicable to SRCs may make our common stock less attractive\nto investors.**\n\n \n\nWe\nare considered a SRC under Rule 12b-2 of the Exchange Act. We are therefore entitled to rely on certain reduced disclosure requirements,\nsuch as an exemption from providing selected financial data and executive compensation information. These exemptions and reduced disclosures\nin our SEC filings due to our status as a smaller reporting company also mean our auditors are not required to review our internal control\nover financial reporting and may make it harder for investors to analyze our results of operations and financial prospects. We cannot\npredict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common\nstock less attractive as a result, there may be a less active trading market for our common stock and our common stock prices may be\nmore volatile. We will remain a smaller reporting company until our public float exceeds $250 million or our annual revenues exceed $100\nmillion with a public float greater than $700 million.\n\n \n\n**We\nhave broad discretion over the use of our cash and cash equivalents and may not use them effectively.**\n\n \n\nOur\nmanagement has broad discretion to use our cash and cash equivalents to fund our operations and could spend these funds in ways that\ndo not improve our results of operations or enhance the value of our common stock. The failure by our management to apply these funds\neffectively could result in financial losses that could have a material adverse effect on our business, cause the price of our common\nstock to decline and delay the development of our product candidates. Pending our use to fund operations, we may invest our cash and\ncash equivalents in a manner that does not produce income or that loses value.\n\n \n\n**We\nhave identified material weaknesses in our internal control over financial reporting, and our internal control over financial reporting\nwas not effective. If we are unable to remediate these material weaknesses, or if we identify additional material weaknesses in the future,\nwe may be unable to accurately or timely report our financial results, which could have a material adverse effect on our business and\nthe trading price of our common stock.**\n\n \n\nA\nmaterial weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a\nreasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on\na timely basis. As disclosed in Item 9A of this Annual Report on Form 10-K, our management concluded that, as of December 31, 2025, our\ninternal control over financial reporting was not effective due to the existence of material weaknesses.\n\n \n\nThe\nmaterial weaknesses identified relate to (1) a limited segregation of duties due to our lack of formal control documentation, limited\nresources, and the small number of employees, and (2) a lack of adequate accounting resources to properly account for complex accounting\ntransactions. We are in the process of implementing remediation measures designed to address these material weaknesses, which include\nseeking to improve our formal control documentation, increase our resources, and additional accounting personnel to further segregate\nduties, improve supervision and increase training of our accounting staff with respect to generally accepted accounting principles, provide\nadditional training to our management regarding use of estimates in accordance with generally accepted accounting principles, increase\nthe use of contract accounting assistance, and increase the frequency of internal financial statement review. We cannot assure you, however,\nthat our remediation efforts will be successful, that additional material weaknesses will not be identified in the future, or that our\nindependent registered public accounting firm will not identify material weaknesses in connection with future audits.\n\n \n\nIf\nwe fail to remediate the identified material weaknesses, or if additional material weaknesses or significant deficiencies in our internal\ncontrol over financial reporting are identified, we could be required to restate our historical financial statements, we may be unable\nto accurately or timely report our financial condition or results of operations, and investor confidence in the accuracy and completeness\nof our financial reports may be undermined. Any of these outcomes could result in regulatory scrutiny or enforcement action by the SEC,\ncivil litigation, delisting of our common stock from Nasdaq, and a decline in the trading price of our common stock. In addition, our\nability to raise capital could be materially impaired if investors and lenders lose confidence in our financial reporting.\n\n \n\n**If\nsecurities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price\nand trading volume could decline.**\n\n \n\nThe\ntrading market for our common stock will be influenced by the research and reports that industry or securities analysts publish about\nus or our business. If one or more of the analysts who cover us issues an adverse opinion about our company, our stock price would likely\ndecline. If one or more of these analysts ceases research coverage of us or fails to regularly publish reports on us, we could lose visibility\nin the financial markets, which in turn could cause our stock price or trading volume to decline.\n\n \n\n**Stockholders\nmay be diluted significantly through our efforts to obtain financing and from issuance of additional shares of our common stock, including\nsuch issuances of shares for services.**\n\n \n\nTo\nsatisfy certain financial obligations, we have issued and may continue to issue shares of our common stock and we have incurred and may\ncontinue to incur debt, which may be convertible into shares of our common stock. We may attempt to raise capital by selling shares of\nour common stock, possibly with warrants, which may be issued or exercised at a discount to the market price for our common stock. These\nactions would result in dilution of the ownership interests of existing shareholders, and may further dilute the common stock book value,\nand that dilution may be material. Such issuances may also serve to enhance existing management’s ability to control us as the\nshares may be issued to our officers, directors, new employees, or other related parties.\n\n \n\n**We\nare subject to the reporting requirements of U.S. federal securities laws, which can be time consuming and expensive.**\n\n \n\nWe\nare a public reporting company and accordingly subject to the information and reporting requirements of the Exchange Act, and other federal\nsecurities laws, including compliance with the Sarbanes-Oxley Act of 2002. We are required to prepare and file annual and quarterly reports,\nproxy statements and other information with the SEC and furnish audited reports. Compliance with such reporting requirements is both\ntime-consuming and costly for us. We may need to hire additional financial reporting, internal control, and other finance personnel in\norder to develop and implement appropriate internal controls and reporting procedures.\n\n \n\nIn\naddition, the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as rules implemented\nby the SEC and the securities exchanges, require certain corporate governance practices for public companies. Our management and other\npersonnel have devoted and expect to continue to devote a substantial amount of time to public reporting requirements and corporate governance.\nThese rules and regulations have significantly increased our legal and financial compliance costs and made some activities more time-consuming\nand costly. If these costs are not offset by increased revenues and improved financial performance, our financial condition and results\nof operations may be materially adversely affected. These rules and regulations also make it more difficult and more expensive for us\nto obtain director and officer liability insurance in the future. Additionally, we may be required to accept reduced policy limits and\ncoverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to\nattract and retain qualified personnel to serve on our Board or as executive officers.\n\n \n\n33\n\n \n\n \n\n**Failure\nto comply with internal control attestation requirements could lead to loss of public confidence in our financial statements and negatively\nimpact our stock price.**\n\n \n\nPursuant\nto Section 404 of the Sarbanes-Oxley Act of 2002, we are required to conduct an annual management assessment of the effectiveness of\nour internal controls over financial reporting. If we fail to timely develop our internal controls, and management is unable to make\nthis assessment, or, once required, if the independent registered public accounting firm cannot timely attest to this assessment, we\ncould be subject to regulatory sanctions. As a result, a loss of public confidence in our financial controls and the reliability of our\nconsolidated financial statements may develop ultimately negatively impacting our stock price and our ability to raise additional capital\nwhen and as needed."}