Yes. If your company doesn’t comply with foreign states’ requirements regarding foreign qualification, you can lose rights or suffer penalties. If you aren’t compliant with foreign qualification requirements, you lose the right to bring a lawsuit in the foreign state’s courts. That means you can’t sue to enforce contracts or recover damages in that state.
You’re also likely to incur fines and penalties for failure to qualify. You’ll probably owe back taxes for income earned while doing business in the state illegally, as well as penalties and interest on those taxes. In some states, your company’s officers may also be subject to fines.