Nova Eye USA Sales Growth Opportunity
Key Risks –
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- Specific
Specific Risks (cont.)
Insurance Coverage
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Nova Eye has adequate levels of insurance to protect Nova Eye from potential losses and liabilities. There is a possibility that events may arise which are not
adequately covered by existing insurance policies. In this case the Company may suffer adverse effects to its financial results as well as to the value of its brands.
The Company cannot guarantee that its existing insurance will be available or offered in the future. An inability of the Company to secure such cover in the future
could restrict the ability of the Company to conduct its business, and this could have a negative impact on the financial results of the Company.
Unforeseen Expenditure Risk
Nova Eye's future growth requires access to capital to fund its business strategy. Nova Eye expects that the proceeds from this Capital Raising will provide sufficient
capital resources to enable Nova Eye to achieve its stated business strategy.
In the event Nova Eye requires additional funding, there is no assurance that additional funding will be available on acceptable terms, if at all.
Increased Input Costs
Cost blow outs including but not limited to, labour, raw materials, freight, energy and key consumables could have a material impact on Nova Eye's operation and
financial performance if these costs cannot offset.
Foreign Exchange Rate Fluctuations
Fluctuations in currency exchange rates may positively or negatively impact Nova Eye's financial position and operating results.
Exchange rate fluctuations may affect Nova Eye's the input costs. The main currencies to which Nova Eye is exposed are the US Dollar, the Euro and the Australian
Dollar. The exchange rates between these currencies in recent years have fluctuated significantly and may continue to do so in the future.
A declining Australian Dollar will negatively affect Nova Eye's ongoing and future capital expenditure programs and may increase the costs of input materials. An
appreciating Australian dollar may lead to a lower Australian dollar value for sales denominated in foreign currencies.
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