Thursday, April 19, 2018 11:45:04 AM
ANY FAILURE TO MAINTAIN ADEQUATE GENERAL LIABILITY, COMMERCIAL, AND SERVICE LIABILITY INSURANCE COULD SUBJECT US TO SIGNIFICANT LOSSES OF INCOME.
Any general, commercial and/or service liability claims could have a material adverse effect on our financial condition.
COMPETITORS WITH MORE RESOURCES MAY FORCE US OUT OF BUSINESS.
We will compete with many well-established companies. Aggressive pricing by our competitors or the entrance of new competitors into our markets could reduce our revenue and profit margins.
LIMITED OPERATING HISTORY, INITIAL OPERATING LOSSES.
The Company is presently a development stage Company with limited operating history and only nominal capital. Although the Management Team has varied and extensive business and industry specific backgrounds and technical expertise, they have little substantive prior working history in running cannabis products or energy chew operations. Because of the limited operating history, it is very difficult to evaluate the business and its prospects, and the Company might encounter unexpected risks and difficulties. If objectives are not achieved, the Company may not realize sufficient revenues or net income to succeed.
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THE COMPANY MAY USE MORE CASH THAN GENERATED.
The Company may experience negative operating cash flows for the foreseeable future, anticipates using standard financing models and credit facilities and may need to raise additional capital in the future to meet the operating and investing cash requirements. The Company may not be able to find additional financing, if required, on favorable terms or at all. If additional funds are raised through the issuance of equity, equity-related or debt securities, these securities may have rights, preferences or privileges senior to those of the rights of the common stock holders who may experience additional dilution to their equity ownership.
NO ASSURANCE OF PROFITABILITY.
The Company has not generated significant revenues from operations but expects to do so during fiscal 2018. There can be no assurance that the Company will actually do so and will be profitable.
DEPENDENCE ON MANAGEMENT.
The Company is planning to significantly expand its operations and anticipates that this expansion will continue to be required to address potential market opportunities. The rapid growth will place, and is expected to continue to place, a significant strain on the Company’s management, operational, and financial resources. The Company's success is principally dependent on its current management personnel and the Company’s capability to attract additional qualified personnel for the operation of its business.
THE COMPANY MUST HIRE EXPERIENCED PERSONNEL, ACQUIRE EQUIPMENT AND EXPAND FACILITIES IN ANTICIPATION OF INCREASED BUSINESS.
The Company may not be able to hire or retain qualified staff. If qualified and skilled staff are not attracted and retained, growth of the business may be limited. The ability to provide high quality service will depend on attracting and retaining educated staff, as well as professional experiences that is relevant to our market, including for research, marketing, technology, distribution, cannabis cultivation, nursery and clone operation and manufacturing of food supplements. There will be competition for personnel with these skill sets. Some technical job categories may experience severe shortages in the United States job market.
FAILURE TO MANAGE THE GROWTH COULD REDUCE REVENUES OR NET INCOME.
Rapid expansion strains infrastructure, management, internal controls and financial systems. The Company may not be able to effectively manage the growth or expansion. To support growth, the Company plans to hire new employees. This growth may also strain the Company’s ability to integrate and properly train these new employees. Inadequate integration and training of employees may result in under-utilization of the workforce and may reduce revenues or net income.
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