Investor Presentaiton
Risk Factors (2 of 5)
Operations Risks (continued)
■ System failures, defects, errors, or vulnerabilities in our website, applications, backend systems, or other technology systems or those of third-party technology providers could harm our reputation and brand and adversely impact our
business, financial condition, and results of operations.
■
"
■
◉
■
If we fail to adequately protect our proprietary intellectual property rights, our competitive position could be impaired and we may lose market share, generate reduced revenue, and/or incur costly litigation to protect our rights.
We use open-source software in connection with our platform, which may pose risks to our intellectual property.
Our insurance may become too difficult or expensive for us to obtain or maintain. Increases in insurance costs or reductions in insurance coverage may materially and adversely impact our results of operations and financial position.
We are highly dependent on our senior management team and other highly skilled personnel with unique skills. We will need to be able to continue to grow our workforce with highly skilled workers in the future. If we are not successful in
attracting or retaining highly qualified personnel, we may not be able to successfully implement our business strategy.
Our business may be adversely affected by labor and union activities.
Past performance by our management team or their respective affiliates may not be indicative of future performance of an investment in us.
We have entered into ground leases with terms of twenty (20) and ten (10) years with the Gallatin Airport Authority for each of our hangars. If the Airport Authority declines to renew any of our ground leases, our operations and results of
operations could be materially and adversely impacted.
Our lack of diversification with respect to the aircrafts we use may subject us to negative economic, competitive and regulatory developments that disproportionately impact our aviation assets as compared to other fire suppression
aircraft or alternative fire suppression services, which could adversely affect our ability to market and sell our services and our reputation.
Any delays in the development, design and engineering of our products and services may adversely impact our business, financial condition and results of operations.
Seasonality Risks
◉
☐
☐
There is a seasonal fluctuation in the need to fight forest fires based upon location. A significant portion of our total revenue currently occurs during the second and third quarters of the year due to the North American fire season, and the
intensity of the fire season varies from year to year. As a result, our operating results may fluctuate significantly from quarter to quarter and from year to year.
Extreme weather, drought and shifting climate patterns have intensified the challenges associated with many of the risks facing the Company, particularly wildfire management.
The substantial majority of our revenue currently is concentrated in the Western United States.
Sales and Customer Risks
☐
◉
◉
The aerial firefighting industry is expected to grow in the near future and is volatile, and if it does not develop, if it develops slower than we expect, if it develops in a manner that does not require use of our services, if it encounters
negative publicity or if our solution does not drive commercial or governmental engagement, the growth of our business will be harmed.
In the future, there may be other businesses who attempt to provide the services that we provide, or our main private competitors could attempt to increase operations. In the future, federal, state, and local governments and foreign
governments may also decide to directly provide such services.
If we experience harm to our reputation and brand, our business, financial condition and results of operations could be adversely affected.
We have government customers, which subjects us to risks including early termination, audits, investigations, sanctions and penalties. We are also subject to regulations applicable to government contractors which increase our operating
costs and if we fail to comply, could result in the termination of our contracts with government entities.
44View entire presentation