FiscalNote Earnings and Growth Projections slide image

FiscalNote Earnings and Growth Projections

56 Risk Factors (Cont'd) Fiscal Note's projections and key performance metrics are subject to significant risks, assumptions, estimates and uncertainties. As a result, FiscalNote's financial and operating results may differ materially from its expectations. Fiscal Note's use of any "open source" software under restrictive licenses could: (i) adversely affect Fiscal Note's ability to license and commercialize certain elements of its proprietary code base on the commercial terms of its choosing; (ii) result in a loss of Fiscal Note's trade secrets or other intellectual property rights with respect to certain portions of its proprietary code; and (iii) subject Fiscal Note to litigation and other disputes. Fiscal Note may not be able to adequately obtain, maintain, protect and enforce its proprietary and intellectual property rights in its data or technology. Fiscal Note may in the future be sued by third parties for various claims including alleged infringement, misappropriation or other violation of proprietary intellectual property rights. Fiscal Note is subject to sanctions, anti-corruption, anti-bribery, and similar laws, and non-compliance with such laws can subject Fiscal Note to criminal penalties or significant fines and harm its business and reputation. The COVID-19 pandemic has materially impacted Fiscal Note's operations, is still ongoing, and it or other pandemics or public health threats could adversely affect FiscalNote's business, financial condition, results of operations and prospects. Fiscal Note may be exposed to fluctuations in foreign currency exchange rates that could adversely impact its results of operations. Fiscal Note has entered into certain licensing agreements and other strategic relationships with third parties. These agreements and relationships may not continue and Fiscal Note may not be successful in entering into other similar agreements and relationships. If FiscalNote fails to maintain its current licensing agreements or establish new relationships, it could result in loss of revenue and harm Fiscal Note's business and financial condition or inability for Fiscal Note to use the intellectual property licensed to it by the applicable third party. Fiscal Note has identified material weaknesses in its internal control over financial reporting, and its management has concluded that its disclosure controls and procedures are not effective. While it is working to remediate any material weakness in its internal controls over financial reporting, it cannot assure you that additional material weaknesses will not occur in the future. If its internal control over financial reporting or its disclosure controls and procedures are not effective, it may not be able to accurately report its financial results or prevent fraud, which may cause investors to lose confidence in its reported financial information and may lead to a decline in its stock price. • As a private company, Fiscal Note has not endeavored to establish and/or maintain public company-quality internal control over financial reporting. If it fails to establish and maintain proper and effective internal control over financial reporting as a public company, its ability to produce accurate and timely financial statements could be impaired, investors may lose confidence in its financial reporting and the trading price of its shares may decline. FiscalNote's risk management processes and procedures may not be effective. • Fiscal Note operates in competitive markets and may be adversely affected by this competition. Changes in tax laws or regulations in the various tax jurisdictions to which Fiscal Note is subject that are applied adversely to Fiscal Note or its customers could increase the costs of Fiscal Note's products and services and harm its business. FiscalNote
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