Investor Presentaiton
Risk Factors (IV/VII)
The Company's failure to execute its business strategy or to manage its growth effectively could adversely affect the Company's business, prospects, financial condition and results of
operations. In addition, there can be no guarantee that even if the Company successfully implements its business strategy, it would result in the Company achieving its business and financial
objectives. The Company's Executive Management targets to review and evaluate the business strategy with the Board of Directors on a regular basis and the Company may decide to alter or
discontinue elements of the Company's business strategy and may adopt alternative or additional business strategies in response to the Company's operating environment or competitive
situation or other factors or events beyond the Company's control.
The Company competes in markets that are competitive and rapidly changing. The Company expects to continue to experience competition from current and potential competitors, many of
which are or may be better established and have significantly greater financial, technical and marketing resources.
The Company anticipates that the number of companies seeking to develop energy storage or other products that aim to increase the consumption of renewable energy will increase in the
future. The Company's competitors range in size from small, single product companies to large, diversified corporations, which may have greater financial, technical, marketing and other
resources. For instance, there is a risk that the Company will be unable to compete with competitors with stronger balance sheet and/or funding capabilities that may enable them to use
more resources on inter alia product offering, R&D, marketing, ramp-up, continue with limited profits and on other basis. Given the Company being in a development and growth phase in a
new industry, the Company sees this risk more apparent compared to more established markets.
Risk relating to the regulatory environment
The Company's business model involves energy storage and sale of heat and power, which are subject to extensive regulations. Given that the Company has no operational history apart from
demonstration projects in Norway, and with the Company primarily targeting markets other than Norway, the Company will have to navigate in complex regulatory landscapes which it
currently has little to no experience in. Navigating in, and adapting to, laws and regulations in foreign markets, inter alia on production and sale of heat and power, may be time and cost
consuming. Future changes in the domestic and international laws and regulations applicable to the Company, can be unpredictable and are beyond the control of the Company, and such
changes could imply the need to materially alter the Company's operations and set-up and may prompt the need to apply for permits, concessions, local subsidiaries and organizations to be
established in order for the Company's operations to commence, all of which could in turn have a material adverse effect on the business, financial condition, results of operations or cash
flow of the Company.
Further, as the Company aims to trade the HeatCube thermal batteries and other ancillary services in energy markets on a merchant basis, the Company is also subject to the regulatory
environment surrounding such services. The markets for such services in in Northern Europe have to a certain degree been deregulated, however, there can be no assurance that such
deregulation will continue and that the markets in other parts of the world will follow. Thus, the Company may experience difficulties in trading ancillary services in foreign energy markets
due to the regulatory environment, which in turn will affect the Company's ability to expand its business.
Litigation risk
The Company may from time to time be subject to legal claims, including those arising out of normal course of business. Any litigation may have a material adverse effect on the Company
because of potential negative outcomes, the costs associated with defending the lawsuits, the diversion of the Company's management's resources and other factors.
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