Tempo SPAC Presentation Deck
Risk Factors (continued)
RISKS RELATING TO TEMPO'S BUSINESS AND INDUSTRY (CONTINUED)
We are subject to taxes in numerous jurisdictions. The Company's future effective tax rates could be affected by changes in the mix of earnings in jurisdictions with differing statutory rates and changes in tax laws or their
interpretation.
Our industry routinely experiences cyclical market patterns and our products are used across different end markets. A significant downturn in the industry or in any of these end markets could cause a meaningful reduction
in demand for our products and harm our operating results.
Third-party lawsuits and assertions to which we are subject alleging our infringement of patents, trade secrets or other intellectual property rights may have a significant adverse effect on our financial condition.
We may incur substantial costs enforcing and defending our intellectual property rights.
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If we are unable to adequately protect or enforce our intellectual property rights, such information may be used by others to compete against us.
Our internal controls over financial reporting currently do not meet all of the standards contemplated by Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), and failure to achieve and maintain
effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could impair our ability to produce timely and accurate financial statements or comply with applicable
regulations and have a material adverse effect on our business.
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Fluctuations in the cost and availability of raw materials, equipment, labor, and transportation could cause manufacturing delays or increase our costs.
Certain software we use is from open source code sources, which, under certain circumstances could materially adversely affect our business, financial condition, and operating results.
RISKS RELATED TO BECOMING A PUBLIC COMPANY
We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance and investor relations initiatives.
Members of our management team and board of directors have limited experience managing a public company.
We are an "emerging growth company" and a "smaller reporting company" and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our common
stock less attractive to investors, and may make it more difficult to compare our performance with other public companies.
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If we are unable to meet expectations and projections in any research or reports published by securities or industry analysts, or if securities or industry analysts do not publish research or reports or publish unfavorable
research or reports about our business, our stock price and trading volume could decline, or there may be a depressed market price and limited liquidity for our securities.
If we fail to maintain proper and effective internal controls over financial reporting, our ability to produce accurate and timely financial statements could be impaired, investors may lose confidence in our financial
reporting and the trading price of our common stock may decline.
Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.
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OCTOBER 2021 54
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