Company: FTSP
Filing Date: 2025-02-14
Form Type: 8-K
Source: 0001199835-25-000044
Chunk: 13

Company: FinTrade Sherpa, Inc.
Filing Date: 2025-02-14
Form: 8-K
Item: Item 2.01
Chunk 13
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 may impose restrictive covenants that limit our ability to take certain actions, such as incurring additional debt,
making capital expenditures, or declaring dividends.

Our
operations and profitability could be adversely affected by government policies and regulations, particularly those affecting the artificial
intelligence and financial services industries.

The
use of AI in FinTradeSherpa may result in enhanced governmental or regulatory scrutiny, litigation, compliance issues, ethical concerns,
confidentiality or security risks, as well as other factors that could adversely affect our business, reputation, and financial results.
For example, AI technologies can “hallucinate,” producing inaccurate or misleading results. Additionally, AI can produce
results with unintended biases and discriminatory outcomes. Such hallucinations or biases could negatively impact our customers, damage
our reputation, and expose us to legal liability. We may be restricted in our ability to use, develop, or deploy AI in our products or
processes due to laws, regulations or industry standards that develop in response to the use of AI, which could hinder the growth of
our business. For example, we may be subject to significant costs to comply with EU’s AI Act, which became effective on August
1, 2024, and governs the development, marketing and use of AI in the EU, or we could receive significant fines for failing to comply.

Moreover,
FinTradeSherpa may rely on third-party data, which introduces risks related to data rights and protection. The legal and regulatory environment
surrounding AI is rapidly changing and remains uncertain, especially regarding intellectual property ownership and license rights, cybersecurity,
and data protection laws, and is yet to be fully addressed by courts or regulators. The development, use, or integration of AI technologies
into our products could expose us to third-party claims of copyright infringement or other intellectual property violations, which may
result in us being required to pay compensation or licensing fees to third parties. The ongoing changes to the legal, regulatory and
compliance landscape of AI may also impact our ability to protect our own data and intellectual property against infringement.

We
are dependent on intellectual property obtained or licensed from third parties, and if we were to fail to comply with our obligations
under our existing and any future intellectual property licenses with third parties, we could lose intellectual property rights that
are important to our business and we may not be able to continue developing or commercializing our product candidates.

We
are party to the License Agreement, pursuant to which Predictive granted the Company an exclusive worldwide license to use certain
AI technology owned