The "risk factors" section is a required part of an S-1. The applicable SEC rule[1] says that the section should list "the most significant factors that make th

The "risk factors" section is a required part of an S-1. The applicable SEC rule[1] says that the section should list "the most significant factors that make the offering speculative or risky." You do see some really interesting ones from time to time. For example, RSA's annual reports used to include the following math-related risk factor: "Our cryptographic systems depend in part on the application of certain mathematical principles. The security afforded by our encryption products is based on the assumption that the “factoring” of the composite of large prime numbers is difficult. If an “easy factoring method” were developed, then the security of our encryption products would be reduced or eliminated."[2] [1] https://www.law.cornell.edu/cfr/text/17/229.503 https://www.law.cornell.edu/cfr/text/17/229.503 [2] https://www.sec.gov/Archives/edgar/data/932064/000095013501000957/b38172rse10-k.htm https://www.sec.gov/Archives/edgar/data/932064/0000950135010...