Investor Presentaiton
Risk Factors (III/VII)
Thermal energy storage is a fairly new industry and, as such, experience with thermal energy storage has been developing rapidly due to practical implementation of research taking place in
several different companies simultaneously. The Company's ability to stay on top of and contribute to this development will impact the success of the Company as well as the development
of the whole industry. In addition to the inherent risks involved due to the Company being in a development phase in a new industry, such as risks related to faults in maintenance and the
Company's technology etc., there is also a risk that the Company's commercialisation strategy is found inefficient or unattractive, and that other competitors in the industry are able to
commercialise at a more rapid pace than the Company, which may in turn have material adverse effects on the Company's results, financial condition, cash flows and prospects.
Risks related to the novelty of the Company's business model and product
The thermal energy storage systems developed by the Company represents new technology in the market, which means that customers and potential customers have little to no experience
with the Company's products. In this phase, there is a risk that any defaults or unsuccessful projects, which could be due to factors within and outside of the Company's control, could have a
proportionate material impact on the reception of the technology in the market and be decisive in respect of whether customers are willing to invest in the technology and buy the Company's
products and services, and which in turn can have a significant severe impact on the Company's ability to successfully establish itself in the market and implement the Company's business
plan.
The Company's success will depend on its ability to employ and retain skilled personnel
The Company currently has a limited number of employees. All such employees are considered important for the Company's success and ability to implement its business model.
Consequently, any loss of current key employees may be detrimental to the Company and its business. The Company must have access to skilled and motivated employees to continue to
run its operations successfully and to reach its strategic and operational objectives. The Company's future development is therefore to a large extent dependent on the Company's success in
attracting, developing and retaining employees with appropriate skills in the future. If any key person resigns, a suitable replacement with requisite skills, contacts and experience may not
be immediately found and the Company may experience negative market or industry perception, which could have a material adverse effect on its business, financial condition, prospects
and results of operations. The Company's ability to continue to identify and develop opportunities depends on the management's knowledge of, and expertise in, the industry in and such
local jurisdictions and on their external business relationships. Further, any failure to effectively integrate new personnel could prevent the Company from successfully growing.
The lack of restrictive clauses on non-competition and non-solicitation in employment and consultancy agreements may also expose the Company of risks related to such personnel
exploiting knowledge and information to take up employment in competitors of the Company or take part in establishing competitors of the Company. Should the Company fail to achieve its
objectives of commercializing and developing a profitable business, the incentive scheme that the Company has in place to motivate and retain key personnel, may not serve to counter the
risks associated with competition from former employees.
The Company's ability to implement its strategy and achieve its business and financial objectives is subject to a variety of factors, many of which are beyond the Company's control
The success of executing its strategy will depend on several factors, including the Company's ability to: ensure presence on the market;
⚫provide a competitive product in the local market;
⚫ attract customers; and
⚫deliver on its obligations.
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