Risk Factors Update Summary
- Addition of political uncertainty and sociopolitical unrest risk factors, including current military conflicts in Ukraine and Middle East. This could impact operations and cash flows.
- Increased reliance on the ProFrac Agreement, with revenues representing 65% of total revenues during 2023. If unable to execute, it could have a material adverse impact.
- Loss of key customers risk heightened due to recent entry into long-term supply agreement with ProFrac Services LLC, increasing customer concentration risk.
- Ownership change in 2023 limiting the Company's ability to utilize existing NOLs and tax attribute carryforwards, impacting future taxable income.
- Future issuance of additional shares of common stock through unexercised warrants and convertible debt securities could dilute existing shareholders' ownership.
- Implementation of measures to improve internal controls over financial reporting, including enhancing training and risk control assessment processes, to remediate material weaknesses.
- Continued search for the Company's next Chief Executive Officer may impact operations, financial condition, and cash flows.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=928054&owner=exclude
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