Company: MYND
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001628280-25-014832
Chunk: 8

Company: Mynd.ai, Inc.
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 8
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 these potential risks, we are actively monitoring developments in trade policies and exploring strategies to mitigate the impact of increased tariffs and reciprocal tariffs on our business. However, there can be no assurance that we will be able to fully offset the adverse effects of such tariffs, which could have a material adverse effect on our business, financial condition, and results of operations.

The current administration has expressed an intention to potentially dismantle the U. S. Federal Department of Education. If these efforts are successful, it could lead to substantial changes in the allocation and availability of federal funds for public education.

Our U. S. business relies significantly on public K-12 schools, which in turn depend heavily on funding from the Federal Department of Education. The current administration has expressed an intention to potentially dismantle the Federal Department of Education. If these efforts are successful, it could lead to substantial changes in the allocation and availability of federal funds as follows:

•Reduction in Federal Funding: Programs such as Title I, which support high-poverty schools, and the Individuals with Disabilities Education Act ("IDEA"), which funds special education, may face significant cuts or be eliminated. This could lead to decreased financial resources for our customers, impacting their ability to purchase our products and services;

•Increased Funding Disparities: Without federal oversight, funding disparities between affluent and disadvantaged school districts may widen. Schools in lower-income areas might struggle to maintain operations, further reducing demand for our offerings;

•Regulatory Uncertainty: The absence of federal regulations and oversight could lead to a fragmented education system with varying standards and requirements across states. This inconsistency could complicate our business operations and strategic planning; and

•Impact on Educational Equity: The dismantling of the Department of Education could weaken protections against discrimination and reduce support for students with special needs. This could affect the overall quality of education and the stability of our customer base.

Given these potential risks, any significant reduction or elimination of federal funding for public K-12 schools could materially and adversely affect our business, financial condition, and results of operations.

Impairment charges may have a material adverse effect our business, financial condition and operating results.

We have a substantial amount of long-lived assets on our balance sheet, including finite-lived tangible and intangible assets, goodwill, and indefinite-lived intangible assets. Goodwill and our indefinite-lived tradenames asset must be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset is impaired. Long‑lived assets, other than goodwill and indefinite‑lived intangible assets, are