Risk factors

New trade tariffs and FDA employment reductions introduce external headwinds to manufacturing and regulatory approvals. The HCR Agreement now imposes a $150 million to $200 million change in control fee. Swiss tax loss carryforwards decreased from $1,059 million to $1,009 million.

Equity dilution figures were updated to reflect lower option and warrant percentages as of December 31, 2025. Macroeconomic risk discussion was updated to incorporate the Federal Reserve's rate cuts in late 2024 and 2025. Consumer demand risk now highlights GLP-1 drugs as a factor affecting discretionary spending and procedure timing.

Arq faces severe capital constraints, construction delays, and design flaws at its GAC facility, leading to a $44.8 million impairment.

Artiva Biotherapeutics highlights a cash runway of $108.0 million into the second quarter of 2027, rising net losses, and new legislative and trade policy hurdles.

AerSale added lessee repossession hurdles and updated international conflict and warehouse fire disclosures. Asset recovery and international stability remain core risks.

Backblaze is managing headcount reductions while expanding its focus on AI model builders and neocloud partners. The company faces new operational constraints from a $20 million credit facility and potential short seller manipulation. Tax legislation like the OBBB Act will affect net operating losses.

The company replaced its credit facility, shifting debt maturities and financial covenants to an ABL Facility maturing May 13, 2028. Operations face new risks from entering the retail market with Shakeology and deploying artificial intelligence technologies. Partner and preferred customer fee streams ceased following a strategic Pivot.

The Trust is entirely exposed to bitcoin, whose price, liquidity and market structure can be highly volatile.

Cadre Holdings added disclosures regarding risks from emerging AI tools, rising minimum wages, and the expiration of its emerging growth company status. The company removed specific references to the Russia-Ukraine and Israel-Palestine military conflicts from its energy risk factor.

Cullinan updated its risk profile to reflect its return to smaller reporting company status and the adoption of AI regulations.

Tenant concentration and California market risks threaten cash flows and preferred stock distributions.

Customer concentration fell slightly with five customers generating 65% of 2025 sales.