{"url_path":"/sec/cyab/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A RISK FACTORS.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2032341/0001213900-26-057819-index.html","accession_number":"0001213900-26-057819","cik":"0002032341","ticker":"CYAB","issuer_name":"CYABRA, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2032341/0001213900-26-057819-index.html","primary_entity_key":"0002032341","primary_entity_name":"CYABRA, INC."},"word_count":1217,"has_tables":true,"body_markdown":"ITEM 1A. RISK FACTORS.\n\n \n\nOur business is subject to substantial risks and\nuncertainties. An investment in our securities involves a high degree of risk. The information presented below supplements the risk factors\npreviously disclosed in “Part I, Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended December\n31, 2025, as filed with the SEC on March 26, 2026 (our “Annual Report”) and in “Form 10 Information – Risk Factors”\nin our Current Report on Form 8-K, as filed with the SEC on March 31, 2026 (the “Form 8-K”). In addition to the other information\nset forth in this report and in our other SEC filings from time to time, you should carefully consider the factors discussed in “Part\nI, Item 1A. Risk Factors” in our Annual Report and in “Form 10 Information – Risk Factors” in Form 8-K, as supplemented\nby the information below, which could materially affect our business, financial condition or future results. The risks described in our\nAnnual Report and Form 8-K, as supplemented by the information below, may not be the only risks facing us. Additional risks and uncertainties\nnot currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition\nand/or operating results. Except as required by the federal securities law, we undertake no obligation to update or revise any risk factor,\nwhether as a result of new information, future events or otherwise.\n\n \n\nRisks Relating to the Ownership of the Common\nStock\n\n \n\n*We may not be able to maintain the listing\nof our securities on Nasdaq.*\n\n \n\nOur securities are listed on the Nasdaq Global\nMarket. If we violate Nasdaq listing requirements, our securities may be delisted. On May 13, 2026, we received a written notice (the\n“Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying us that\nwe are not currently in compliance with Nasdaq Listing Rule 5450(b)(2)(A), which requires listed securities to maintain a minimum market\nvalue of listed securities (“MVLS”) of $50 million. According to the Notice, our MVLS had been below $50 million for 30 consecutive\nbusiness days from March 27, 2026 through May 12, 2026. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), we have been provided with\na compliance period of 180 calendar days, or until November 9, 2026, to regain compliance with the minimum MVLS requirement.\n\n \n\nThe Notice has no immediate effect on the listing\nor trading of our common stock on the Nasdaq Global Market. If at any time during the compliance period our MVLS closes at $50 million\nor more for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation that we have regained compliance with\nthe applicable requirement, and the matter will be closed.\n\n \n\nWe intend to actively monitor our MVLS and evaluate\navailable options to regain compliance with Nasdaq’s continued listing requirements. However, there can be no assurance that we\nwill be able to regain compliance with Nasdaq Listing Rule 5450(b)(2)(A) or maintain compliance with the other continued listing requirements\nof the Nasdaq Global Market.\n\n \n\nIf we fail to regain compliance with the minimum\nMVLS requirement for continued listing on the Nasdaq Global Market, but satisfy the initial or continued listing requirements of the Nasdaq\nCapital Market, Nasdaq may permit our securities to remain listed by transferring the listing of our securities from the Nasdaq Global\nMarket to the Nasdaq Capital Market. However, there can be no assurance that we would qualify for such transfer or that Nasdaq would approve\nsuch transfer. If our securities are delisted from Nasdaq, or if investors perceive that such delisting may occur, it could materially\nimpair stockholders’ ability to buy and sell our securities and could adversely affect the market price of, and the efficiency of\nthe trading market for, our securities. Any such delisting could also significantly impair our ability to raise capital and the value\nof your investment.\n\n \n\n*We may not be able to successfully integrate\nour operations following the Business Combination, which could adversely affect our business, financial condition and results of operations.*\n\n* *\n\nThe Business Combination, which was completed\non March 27, 2026, represents a significant and transformational transaction for the Company. As a result of the Business Combination,\nthe Company transitioned from a private company to a publicly traded company and assumed new operational, financial reporting, internal\ncontrol, compliance and governance obligations.\n\n \n\nFollowing the Closing, we must integrate and continue\nto operate our financial reporting systems, internal controls over financial reporting, disclosure controls and procedures, and compliance\nprocesses in a manner that satisfies the requirements applicable to a public company. These integration efforts are complex, time-consuming\nand costly and may divert the attention of management and key employees away from the day-to-day operation of our business.\n\n \n\nIf we are unable to effectively integrate and\nmaintain these systems and processes, or if such systems and controls do not operate as intended, we may experience delays in financial\nreporting, increased compliance costs, material weaknesses in internal control over financial reporting, or failures to comply with applicable\nsecurities laws and stock exchange requirements. Any of these outcomes could harm our reputation, subject us to regulatory scrutiny, adversely\naffect investor confidence and negatively impact the trading price of our Common Stock.\n\n \n\nIn addition, the Business Combination may result\nin operational challenges, including difficulties coordinating activities across the combined organization, retaining key personnel, and\nachieving anticipated efficiencies. There can be no assurance that the Company will realize the expected benefits of the Business Combination\nor that the combined business will perform as expected following the Closing.\n\n* *\n\n**\n\n11\n\n \n\n* *\n\n*We are dependent on financing arrangements\nrelated to the Business Combination and may require additional capital in the future, which may not be available on acceptable terms or\nat all and could result in significant dilution to our stockholders.*\n\n* *\n\nIn connection with the Business Combination, the\nCompany obtained financing through a PIPE, and the proceeds from such financing were an important source of liquidity during the three\nmonths ended March 31, 2026. The Company has incurred operating losses and expects to continue to incur significant expenses as it seeks\nto grow its business and operate as a public company. Our ability to continue operations and execute our business plan depends on our\nability to maintain sufficient liquidity. There can be no assurance that additional financing will be available to us when needed, on\nacceptable terms or at all. If we are unable to obtain additional capital through equity financings, debt financings or other arrangements,\nwe may be required to delay, reduce or curtail our operations, product development efforts or commercialization initiatives.\n\n \n\nAny future equity or equity-linked financings,\nincluding issuances of Common Stock, preferred stock, warrants or other convertible securities, could result in significant dilution to\nexisting stockholders and may involve terms that are unfavorable to holders of our Common Stock. In addition, the perception that we may\nneed to raise additional capital, or that such financings may occur, could adversely affect the trading price of our Common Stock. Given\nour current liquidity position and history of operating losses, investors should consider the risk that financing obtained in connection\nwith the Business Combination, including the PIPE financing, may not be sufficient to support our operations for the long term and that\nadditional capital raises may be necessary."}