Comment by atdrummond

While I agree with your general sentiment, I should caution that every S-1 (as well as 10-K) contains such horrifying language; if not regarding the firm’s present losses, then regarding the many ways the firm could begin losing money and/or value. The entire purpose of these statements, and the sections in which they reside, is to provide appropriate cover for the firm when potentially desperate investors begin to think about legal action against the company. This way, the business can point to their compliance with their legal obligation to disclose potential deleterious outcomes as well as to the fact that the equity holder was aware of any associated risks at the time of their investment.