Any article that claims to name AI stocks to buy "right now" is out of date the day after it appears, because a public company's disclosures change every quarter. The durable question is how to read what a company has told the SEC about its AI products, and the Form 10-K annual report is where those statements sit, with deadlines of 60, 75, or 90 days after fiscal year-end depending on company size. The SEC's January 14, 2025 order against Presto Automation shows what can go wrong when such statements are false.
Key takeaways
- Form 10-K deadlines are 60 days for large accelerated filers, 75 days for accelerated filers, and 90 days for all other registrants.
- The business description, risk factors, and management's discussion are the main places for statements about AI products and their limits.
- In a settled order dated January 14, 2025, the SEC found that Presto Automation made false and misleading statements about its AI drive-thru product from November 2021 through May 2023.
- The SEC imposed no civil penalty on Presto, citing its cooperation and remedial efforts; the company neither admitted nor denied the findings.
- No company is recommended, and nothing here is a tip.
Why "right now" cannot be answered in an article
Companies file annual reports once a year and update investors through quarterly and event-driven filings. The instructions to Form 10-K set the annual deadline by filer category: 60 days after the end of the fiscal year for large accelerated filers, 75 days for accelerated filers, and 90 days for everyone else. A company with a December 31 year-end and a 60-day deadline files by the end of February or the first days of March. Between filings, facts about AI revenue, partners, and risks can change without the article noticing. A published list therefore has a date on which it stopped being current, and the reader has to supply the update from the filings themselves.
Where AI statements appear in a 10-K
The Form 10-K is organized into numbered items. Three are the usual starting points for a reader checking an AI claim. The illustrative table lists them with a question for each; the questions are a reader framework, not an SEC test.
| 10-K item | What it contains | Illustrative question about an AI claim |
|---|---|---|
| Item 1, Business | What the company sells and how | Is the AI product described by what it does, who supplies it, and how much of it is automated? |
| Item 1A, Risk Factors | Risks the company considers material | Are AI risks specific to this company, or generic text any firm could carry? |
| Item 7, Management's Discussion and Analysis | Management's explanation of results and condition | Does the discussion link AI products to revenue or cost with figures? |
Asset-backed issuers can omit several items, including Items 1, 1A, and 7, under General Instruction J, so the items present vary by company type.
A documented case: Presto Automation
In an administrative order dated January 14, 2025, the SEC described Presto Automation as a restaurant-technology company that was listed on Nasdaq until September 2024. The order found that from November 2021 through May 2023 the company made false and misleading statements in filings and public statements about Presto Voice, an AI speech-recognition product for drive-thru ordering.
Three findings stand out. For a period, the speech-recognition technology in all deployed units was owned and operated by a third party, and the company did not disclose that. Later, Presto deployed units running its own technology and claimed it eliminated the need for human order-taking, while the vast majority of orders on that version required human intervention. The company also misleadingly disclosed its reported rate of orders completed without human intervention. The SEC cited Section 17(a)(2) of the Securities Act and Section 13(a) of the Exchange Act, with related rules. Presto settled without admitting or denying the findings and consented to a cease-and-desist order. The SEC imposed no civil penalty, citing the company's cooperation and remedial efforts.
A private-company contrast: Nate
A different situation arose with a company that was not publicly traded. SEC Litigation Release No. 26282, dated April 11, 2025, says the agency filed a civil complaint on April 9, 2025 against the founder of Nate, Inc., an app described as using AI to complete online purchases. The SEC alleges the founder told investors in the seed and Series A rounds that purchases ran without human involvement, that the company relied largely on contract employees entering orders by hand, and that he raised over USD 42 million. These are allegations in a complaint that sought remedies including injunctions, disgorgement, and penalties; they are not findings of a court.
Reading checklist before trusting an AI claim
- Find the claim in a filing and note the filing date.
- Check whether the AI technology is owned by the company or supplied by a third party.
- Look for how much of the process still involves people.
- Compare statements in press releases with the risk factors; differences deserve a closer look.
- Treat any list that says "right now" as a snapshot with a hidden date.
Public filings and enforcement actions are summarized for information only. The page offers no tip, no ranking, and no price outlook, and anyone weighing an investment may want to consult a licensed adviser.
FAQ
Where can a company's annual report be found?
US public companies file on the SEC's EDGAR database, where 10-K reports are searchable by company name.
How often is a 10-K filed?
Once a year, within 60, 75, or 90 days of fiscal year-end depending on the company's filer category.
Did the SEC fine Presto Automation?
No. The order records that the SEC imposed no civil penalty, citing the company's cooperation and remedial efforts. It did order the company to cease and desist from further violations.
Are the Nate allegations proven?
The SEC release describes allegations in a complaint. The outcome depends on the court proceedings. News and law-firm reports also mention a parallel criminal case brought by federal prosecutors; this article did not follow either case beyond the April 2025 release.
Related reading
- An earlier look at industry-based AI stock lists
- Old stock lists and past performance
- Low share prices and company size
- Jobs and AI over time
More in AI Basics.
Last verified: October 2026
Sources
- Form 10-K, General Instructions, Securities and Exchange Commission, current version
- In the Matter of Presto Automation Inc., administrative order (Release No. 33-11352), SEC, January 14, 2025
- Litigation Release No. 26282, SEC v. Saniger, SEC, April 11, 2025