{"url_path":"/sec/exoz/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A Risk Factors**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/2010788/0001493152-26-023035-index.html","accession_number":"0001493152-26-023035","cik":"0002010788","ticker":"EXOZ","issuer_name":"EXOZYMES INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2010788/0001493152-26-023035-index.html","primary_entity_key":"0002010788","primary_entity_name":"EXOZYMES INC."},"word_count":643,"has_tables":true,"body_markdown":"**Item\n1A. Risk Factors** \n\n \n\nIn\naddition to the information set forth in this Form 10-Q, you should also carefully review and consider the risk factors contained in\nour other registration statements, reports and periodic filings with the SEC that could materially and adversely affect our business,\nfinancial condition, and results of operations. The risk factors we have identified and discussed, however, do not identify all risks\nthat we face because our business operations could also be affected by additional factors that are not known to us or that we currently\nconsider to be immaterial to our operations.\n\n \n\n*Additional\nRisk Factors*\n\n \n\n**Changes\nto United States tariff and import/export regulations may have an adverse effect on our business, financial condition and results of\noperations.**\n\n \n\nThe\nUnited States has enacted and continues to enact significant new tariffs, and President Trump has directed various federal agencies to\nfurther evaluate key aspects of U.S. trade policy. There has been and are ongoing discussions and commentaries regarding potential significant\nchanges to U.S. trade policies, treaties and tariffs. There exists significant uncertainty about the future relationship between the\nU.S. and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of\nthem could occur, may have a material adverse effect on global and domestic economic conditions, whether or not there will be a recession,\nand the stability of global and domestic financial markets, and may significantly reduce global trade and, in particular, trade between\nthe impacted nations and the U.S. These actions and policies may adversely affect the ability of the Company and our subsidiaries to\nfund their operations, affect our ability to develop products and work with partner companies and generally carry on our respective businesses.\nAlthough it is not yet possible to assess their impact, any of these factors could depress economic activity and restrict access to suppliers\nor customers, hinder our ability to obtain funding from the government through grants and from investors, and have a material adverse\neffect on our overall business, financial condition and results of operations.\n\n \n\n28\n\n \n\n \n\n**Government\nAction on tariffs and research grants and other funding may impede our ability to conduct our research and to raise capital by and for\nour partner companies and other clients.**\n\n \n\nEarly\n2025 federal government actions to impose tariffs, to change trade policies, to change immigration policies, and to limit research grants\nand other forms of federal government funding, including direct government grants and the funding of universities and research enterprises.\nThese government actions separately or together may cause disruption to our consolidated business activities based on their direct and\nindirect effect on our partner companies and our clients for our product solutions. Many of these government actions have been only recently\nimplemented, others are being threatened, and many will be ongoing, changed or abandoned. Therefore, the full impact has yet to be realized\nby the Company and its partner companies and clients. Nonetheless, (i) tariffs are likely to increase the cost of doing business in the\ngeneral economy and to make it more difficult to obtain items where imported equipment is required by our own activities and the activities\nof our partner companies and clients, (ii) ending or reducing research funding is likely to make it more difficult to find collaborative\nresearch partners to work with us and our partner companies as government funding is an indirect support for research and product development\nactivities, and (iii) the curtailment of direct funding will have an immediate adverse impact on our partner companies and clients and\ntheir ability to continue their development work based on our solutions. We also believe that as these policies are implemented, it will\nmake raising capital from private investors far more difficult, as they will want to know if the Company will be able to use the proceeds\neffectively and will be of sufficient amount."}