Solid Power DCRC+ Financial Overview slide image

Solid Power DCRC+ Financial Overview

" " " " Risk Factors (cont'd) RISKS RELATED TO LEGAL AND REGULATORY COMPLIANCE We are subject to regulations regarding the storage and handling of various products. We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims. From time to time, we may be involved in litigation, regulatory actions or government investigations and inquiries, which could have an adverse impact on our profitability and consolidated financial position. We are subject to substantial regulation, including but not limited to export control regulations that govern our technology, and unfavorable changes to, or failure by us to comply with, these regulations could substantially harm our business and operating results. We will incur significant increased expenses and administrative burdens as a public company, which could have an adverse effect on our business, financial condition and results of operations. Our battery technology and our website, systems, and data we maintain may be subject to intentional disruption, other security incidents, or alleged violations of laws, regulations, or other obligations relating to data handling that could result in liability and adversely impact our reputation and future sales. This area of the law develops at a rapid pace and we may not be able to monitor and react to all developments in a timely manner. As legislation continues to develop and security incidents continue to evolve, we may be required to expend significant resources to continue to modify or enhance our protective measures to comply with such legislation and to detect, investigate and remediate vulnerabilities to security incidents. Any future failure by us to comply with applicable cybersecurity or data privacy legislation could have a material adverse effect on our business, reputation, results of operations or financial condition. We are subject to various existing and future environmental health and safety laws, which may result in increased compliance costs or additional operating costs and restrictions. Failure to comply with such laws and regulations may result in substantial fines or other limitations that could adversely impact our financial results or operations. We are subject to multiple environmental permitting processes at the national, sub-national, and/or local level. Failure to obtain key permits and approvals may adversely impact our business. We are subject to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws, and non-compliance with such laws can subject us to administrative, civil and criminal fines and penalties, collateral consequences, remedial measures and legal expenses, all of which could adversely affect our business, results of operations, financial condition and reputation. " " RISKS RELATED TO THE BUSINESS COMBINATION Following the consummation of the Business Combination, DCRC's sole material asset will be its direct equity interest in Solid Power and will be accordingly dependent upon distributions from Solid Power to pay taxes and cover its corporate and other overhead expenses and pay dividends, if any, on its Class A common stock. If the Business Combination's benefits do not meet the expectations of investors or securities analysts, the market price of DCRC's securities or, following the consummation of the Business Combination, the combined company's securities, may decline. There can be no assurance that the combined company's Class A common stock will be approved for listing on Nasdaq or that the combined company will be able to comply with the continued listing standards of Nasdaq. Subsequent to the consummation of the Business Combination, the combined company may be required to take write-downs or write-offs, or the combined company may be subject to restructuring, impairment or other charges that could have a significant negative effect on the combined company's financial condition, results of operations and the price of our Class A common stock, which could cause you to lose some or all of your investment. DCRC and Solid Power will incur significant transaction costs in connection with the Business Combination. The consummation of the Business Combination is subject to a number of conditions and if those conditions are not satisfied or waived, the expected Business Combination may not be completed. Legal proceedings in connection with the Business Combination, the outcomes of which are uncertain, could delay or prevent the completion of the Business Combination. Solid Power DCRC+ 5
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