Investor Presentaiton
Risk Factors (V/VII)
Changes in tax laws of any jurisdiction in which the Company operates, or any failure to comply with applicable tax legislation may have a material adverse effect for the Company
The Company is subject to prevailing tax laws, treaties and regulations in the jurisdictions in which it operates, and the interpretation and enforcement thereof. The Company's income tax
expenses are based upon its interpretation of the tax laws in effect at the time that the expense is incurred. If applicable laws, treaties or regulations change, or if the Company's
interpretation of the tax laws is at variance with the interpretation of the same tax laws by tax authorities, this could have a material adverse effect on the Company's business, results of
operations or financial condition. If any tax authority successfully challenges the Company's operational structure, intercompany pricing policies, the taxable presence of its subsidiaries in
certain countries, or if taxing authorities do not agree with the Company's and/or any subsidiaries' assessment of the effects of applicable laws, treaties and regulations, or the Company
loses a material tax dispute in any country, or any tax challenge of the Company's tax payments is successful, the Company's effective tax rate on its earnings could increase substantially
and the Company's business, earnings and cash flows from operations and financial condition could be materially and adversely affected.
2. Risks associated with the Company's financial position
Risks related to financing of the Company's growth strategy
The Company is in a development stage that has and will continue to incur significant expenditures as it endeavours to commercialize its products. To date, the Company has financed its
operations during this development phase mainly through equity capital raises. The proceeds from the Private Placement is, if successful, expected to provide the Company with sufficient
funds to secure its liquidity needs for the Group's operations in accordance with the contemplated use of proceeds of the Private Placement. However, the Company may in the shorter or
longer term need to raise additional funds through debt or additional equity financings or other strategic arrangements to fund operations, in particular to funds its planned growth activities
(which will not necessarily be fully funded through the Private Placement) or to accelerate its growth, to take advantage of business opportunities or respond to competitive pressures.
Adequate sources of capital funding may not be available when needed or may not be available on favourable terms or at all. The Company's ability to obtain such additional capital or
financing will depend in part upon prevailing market conditions as well as conditions of its business and its operating results, and those factors may affect its efforts to arrange additional
financing on satisfactory terms. If the Company raises additional funds by issuing additional shares or other equity or equity-linked securities, it may result in a dilution of the holdings of
existing shareholders. If funding is insufficient at any time in the future, the Company may not have sufficient funds to support ongoing operations, or be unable to continue its development
strategy and growth initiatives in accordance with the current business plan, take advantage of business opportunities or respond to competitive pressures, any of which could adversely
impact the Company's results of operations, cash flow and financial condition.
Exchange rate fluctuations could affect the Company's cash flow and financial condition
The Company is exposed to exchange rate risk. The Company's strategy is to pursue customers in foreign markets (not Norway). The Company's costs will not necessarily be in the same
currency. The Company is based in Norway and will thus have costs in Norwegian Kroners, but also in other currencies as the Company's suppliers are likely to be based outside Norway. As
the Company will trade in different currencies, this creates a risk that fluctuations in exchange rates could adversely affect the Company's cash flow and financial condition.
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