Company: ILLRW
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001213900-25-006210
Chunk: 110

Company: Triller Group Inc.
Filing Date: 2025-01-24
Form: S-1
Chunk 110
---
 draw into question Triller’s ability to
treat performers and athletes as independent contractors in those states. The impact of these initiatives on Triller is unknown. If Triller
is required to reclassify independent contractors as employees, Triller may incur additional costs and taxes which could adversely affect
Triller’s business, financial condition, and results of operations.

Regulations that govern
the status and classification of independent contractors are subject to changes and divergent interpretations by various authorities,
which can create uncertainty and unpredictability for Triller. For example, in 2020 California passed a worker classification statute
(“AB 5”), which effectively narrowed the definition of an independent contractor by requiring hiring entities to use
a stricter test to determine a given worker’s classification. In addition, AB 5 places the burden of proof for classifying workers
as independent contractors on hiring entities and provides enforcement powers to the state and certain cities. Legislative proposals concerning
worker classification are being considered by various other states, including New York and New Jersey. Additionally, any requirement to
reclassify independent contractors as employees may require Triller to significantly alter Triller’s existing business model or
operations, including suspending or ceasing operations in impacted jurisdictions, increase Triller’s costs and impact Triller’s
ability to add new talent and grow Triller’s business. For instance, existing talent may decide not to partner with Triller and
new talent may not join given the loss of flexibility under an employment model. Any of the foregoing could have an adverse impact on
Triller’s business, financial condition, and results of operations and Triller’s ability to achieve or maintain profitability.
If ultimately required, worker’s compensation insurance for Triller’s talent or other aspects of their treatment as employees
in those states could add expense to, or otherwise alter, Triller’s operations, which could affect Triller’s business, financial
condition and/or results of operations. Liability to Triller resulting from any death or serious injury sustained by one of Triller’s
performers or athletes while performing could adversely affect Triller’s business, financial condition and operating results.

The Company’s insurance may not be adequate.

Triller plans to hold numerous live Events each year. This schedule
exposes Triller’s performers and Triller’s employees who are involved in the production of those Events to the risk of travel
and performance-related accidents, the consequences of which may not be fully covered by insurance. The physical nature of the Company’s
Events exposes the Company’s performers to the