1. Our success depends on our ability to successfully develop, introduce, manufacture, market and deliver new electric vehicle models of high quality on schedule and on a large scale, which may expose us to new and increased challenges and risks.
2. Our business is operating under various laws which require us to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and our inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for our business operations could materially and adversely affect our business, prospects, results of operations and financial condition.
3. We depend on third parties for the supply of raw materials and do not have firm commitments for supply or exclusive arrangements with any of our suppliers. Loss of suppliers may have an adverse effect on our business, results of operations and financial condition.
4. Pricing pressure from our distributor may adversely affect our gross margin and profitability. Inability to increase our prices, which may have a material adverse effect on our results of operations and financial condition.
5. We could experience defects, quality issues or disruptions in the supply or increase in prices of components used in our electric vehicles thus increasing material costs and the price of our electric vehicles and impacting our projected manufacturing, delivery timelines and profitability.
6. Our Company is dependent on few numbers of suppliers for purchase of raw material. Loss of any of this large Suppliers may affect our business operations.
7. We have entered into related party transactions in the past and may continue to do so in the future.
8. We have certain outstanding litigation against us, an adverse outcome of which may adversely affect our business, reputation and results of operations.
9. Our Company's logo is not registered with the Registrar of Trademark; any infringement of our brand name or failure to get it registered may adversely affect our business.
10. Inventories and trade receivables form a major part of our current assets. Failure to manage our inventory and trade receivables could have an adverse effect on our net sales, profitability, cash flow and liquidity.