Abundia Global Impact Group (AGIG) risk factors, FY2024 10-K

Other

1. 01Company and Organization Risks
2. 02We have experienced recurring operating losses and may not attain profitability; attainment of profitability will require successful drilling and development operations to support substantial increases in production and revenues
3. 03Supply chain challenges, such as those arising in the wake of the COVID-19 pandemic, may adversely affect our operations
4. 04Competition in the oil and natural gas industry is intense, which may adversely affect our ability to compete
5. 05Our ability to acquire additional mineral acreage and to drill and develop our existing acreage as well as other acreage that may be acquired is subject to availability of financing on satisfactory terms
6. 06As of February 2025, we had authority to issue a total of 20 million shares of common stock, of which approximately 16 million shares had been issued and 1 million shares were reserved for issuance pursuant to outstanding stock options and warrants
7. 07We may be unable to make attractive acquisitions and any acquisitions may be subject to substantial risks that could adversely affects our business
8. 08Our success depends on our staff, which is small in size and limited in technical capabilities, and third party consultants, the loss of any of whom could disrupt our business operations
9. 09Our charter and bylaws, as well as provisions of Delaware law, could make it difficult for a third party to acquire our company and also could limit the price that investors are willing to pay in the future for shares of our common stock
10. 10Drilling for and producing oil and natural gas are high risk activities with many uncertainties that could adversely affect our business, financial condition or results of operations
11. 11We are dependent upon third party operators of our oil and gas properties
12. 12Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities
13. 13Our operations are expected to involve use of horizontal drilling and completion techniques, which involve risks and uncertainties in their application
14. 14The unavailability or high cost of drilling rigs, equipment, supplies, personnel, water disposal and oil field services could adversely affect our ability to execute on a timely basis our exploration and development plans within our budget and operate profitably
15. 15We may not be able to obtain access on commercially reasonable terms or otherwise to pipelines and storage facilities, gathering systems and other transportation, processing, fractionation and refining facilities to market our oil and gas production; we rely on a limited number of purchasers of our products
16. 16Our oil and gas holdings and operations are concentrated, and we are dependent upon the results of drilling and production operations on a small number of prospects and wells. If those properties and wells perform below expectations, we may experience production, revenues and profitability below expectations
17. 17Unless we replace our oil and natural gas reserves, our reserves and production will decline, which would adversely affect our cash flows and income
18. 18A substantial percentage of our properties are unproven and undeveloped; therefore, the cost of proving and developing our properties and risk associated with our success is greater than would be the case if the majority of our properties were categorized as proved developed producing
19. 19We may incur substantial uninsured losses and be subject to substantial liability claims as a result of our oil and natural gas operations
20. 20If oil and natural gas prices decrease, we may be required to take write-downs of the carrying values of our oil and natural gas properties
21. 21Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves
22. 22Our operations will be subject to environmental and other government laws, regulations and policies that are costly, could potentially subject us to substantial liabilities and potentially result in decreased demand for products
23. 23We are unable to predict the effect of additional environmental laws and regulations that may be adopted in the future, including whether any such laws or regulations would materially adversely increase our cost of doing business or affect operations in any area
24. 24Increased regulation, or limitations on the use, of hydraulic fracturing could increase our cost of operations and reduce profitability

International Operations Risks

1. 25Our operations in Colombia are controlled by operators which may carry out transactions affecting our Colombian assets and operations without our consent
2. 26We may be exposed to additional expenses and losses arising from the financial position of our joint interest partners in Colombia

Stock Related Risks

1. 27The price of our common stock constantly changes. We expect that the market price of our common stock will continue to fluctuate
2. 28The sale of a substantial number of shares of our common stock may affect our stock price