Harley Davidson SPAC Presentation Deck
Risk Factors (continued)
RISKS RELATED TO LIVEWIRE'S BUSINESS AND INDUSTRY (CONTINUED)
• If our vehicle owners modify our vehicles regardless of whether third-party aftermarket products are used, the vehicle may not operate properly, which may create negative publicity and could harm our
business.
• If we are unable to establish and maintain confidence in our long-term business prospects among customers and analysts and within our industry or are subject to negative publicity, then our financial
condition, operating results, business prospects, and access to capital may suffer materially.
• We may choose to or be compelled to undertake product recalls or take other similar actions, which could adversely affect our brand image, business, and results of operations.
• Our warranty reserves may be insufficient to cover future warranty claims which could adversely affect our financial performance.
• Our financial results may vary significantly from period to period due to fluctuations in our operating costs, product demand, and other factors.
• We retain certain information about our users, which may subject us to user concerns or various privacy and consumer protection laws.
• The battery's range and life will deteriorate with usage and time, which if material could negatively influence potential customers' decisions to purchase our electric vehicles.
• Our industry and its technology are rapidly evolving and may be subject to unforeseen changes. Developments in alternative technologies or improvements in current and future enabling and competitive
technologies may adversely affect the demand for our electric vehicles.
• Our business may suffer if our products or features contain defects or fail to perform as expected.
• We are subject to cybersecurity risks to our various systems and software and any material failure, weakness, interruption, cyber event, incident or breach of security could prevent us from effectively
operating our business.
• Vehicle retail sales depend heavily on affordable interest rates, credit risk, and availability of credit for vehicle financing and a substantial increase in interest rates or decrease in availability of credit could
materially and adversely affect our business, prospects, financial condition, results of operations, and cash flows.
• Our vehicles make use of lithium-ion battery cells. When not properly managed, lithium-ion battery cells have been observed to catch fire or vent smoke and flame on rare occasions. If our vehicles
exhibit those conditions, it could have a negative affect on our reputation and business.
• We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims.
• We may be subject to class actions in the ordinary course of our business. If the outcomes of these proceedings are adverse to us, it could have a material adverse effect on our business, results of
operations, and financial condition.
• Our Company's association to H-D may make it a target in lawsuits and from regulatory agencies, both domestically and internationally, which may have a negative impact on our business.
If LiveWire is not permitted to operate as a brand separate from H-D, it could negatively impact the Company's go-to-market plan and overall business.
• We are subject to substantial regulation and unfavorable changes to, or failure by us to comply with, current or future regulations could substantially harm our business and operating results. Increased
safety, emissions, or other regulations may result in higher costs, cash expenditures, and/or sales restrictions.
• We are subject to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and similar laws, and noncompliance with such laws can subject us to administrative, civil and
criminal fines and penalties, collateral consequences, remedial measures and legal expenses, all of which could adversely affect our business, results of operations, financial condition, and reputation.
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