Investor Presentaiton
Risk Factors (I/VII)
1. Risks related to the business of the Company
The Company has no operating history and the commercialization of its business model is uncertain
The Company is currently in a development stage and has only entered into certain commercial contracts for the Heatcube thermal energy storage solution. The Company has to date
financed its operations by raising capital from new and existing stakeholders as well as receiving public funding. There can be no assurance that the Company is successful in attracting
further customers that are willing to make the necessary adjustments to their existing facilities to be able to utilize the HeatCube Thermal Battery and associated services. To proceed in its
development, the Company must continue to succeed in attracting customers for commercial projects and such projects must prove successful and motivate the customers to enter more
comprehensive agreements as well as proving the viability of the HeatCube Thermal Battery to other prospective customers. No assurances can be given that the Company will be successful
in recruiting and retaining the customers it needs to become a profitable enterprise.
The Company is a growth company, is not fully financed (nor following the Private Placement) and has made certain assumptions about the costs and funding requirements to grow and
optimize its operations. If the Company's estimates are incorrect, it could lead to the need for additional financing sooner than expected, failing which the Company may not be able to
achieve profitability. Furthermore, the contracts, rights and obligations of the Company are likely to carry a higher degree of uncertainty and risk than more mature businesses.
The Company's business is dependent on its ability to scale its technical infrastructure and organization
The Company is a start-up and has only carried out a limited number of demonstration projects and has limited operational history. The Company is targeting rapid growth over the next few
years, which may require additional managerial, operational, sales, marketing, financial and other resources. There can be no assurance that the Company will be successful in achieving and
realizing its development and commercialization plans, and its contemplated upscaling of operations. The Company's business, results of operations and financial position and the
development and commercialization of its services will depend, in part, on its ability to manage future growth effectively for which no assurances can be given.
The Company is in a development stage and has only carried-out pilot projects
To date, the Company has only carried out a limited number of demonstration projects. The Company is currently in the process of carrying out its first commercial project for a paying
customer which has reached key milestones but which is not yet completed. The Company's business model, technology and partner network have therefore not operated on an ordinary
course basis. There is consequently a risk that such ordinary course projects never will take place or that the Company's products or business model is considered inefficient or inadequate
for the customers the Company targets.
The Company depends on protecting its proprietary technology and intellectual property rights
The Company's business is based on its proprietary technology, particularly its HeatCube Thermal Battery technology, the method of assembling and installing the HeatCube Thermal
Batteries, as well as the Kyotopia control system. The Company's IPR consists primarily of a combination of trade secrets, know-how and confidential procedures. The Company has also
filed a patent application in Norway related to the HeatCube Thermal Battery (in addition to a second pending patent application pertains to Butterfly z-axis, which is not currently utilized in
the Company's business), but with no certainty of issuance. Further, the Company has or is in the process of applying for four trademarks in Norway. The Company is exposed to risk that
others may use the Company's technology or business model. The Company's main product HeatCube consists of known components and may be replicated by competitors. The Company
currently only has exclusive rights to trade secrets and know-how and are exposed to information leakage. The Company cannot assure that its know-how and trade secrets will provide the
Company with competitive advantage, as the know-how and trade secrets may become known to or be independently developed by others including the Company's competitors, regardless
of measures the Company may take to try to preserve the confidentiality. The Company cannot give assurance that its measures for preserving the secrecy of its trade secrets and
confidential information are sufficient to prevent others from obtaining such information.
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