Bridger Aerospace Group Holdings (BAER) risk factors, FY2024 10-K

Other

1. 01Aviation and Firefighting Risks
2. 02Our operation of aircraft involves a degree of inherent risk, and we could suffer losses and adverse publicity stemming from any accident, whether related to us or not, involving aircraft, helicopters, or commercial drones similar to the assets we use in our operations
3. 03Our business is inherently risky in that it is fighting wildfires which are powerful and unpredictable
4. 04The unavailability of an aircraft due to loss, mechanical failure, lack of pilots or maintenance personnel, especially one of the Viking Air CL-415EAFs, would result in lower operating revenues for us for a period of time that cannot be determined and would likely be prolonged
5. 05The development of superior alternative firefighting tactics or technology that do not rely on our existing and planned capital assets could reduce demand for our services and result in a material reduction in our revenue and results of operations
6. 06We rely on our IT systems to manage numerous aspects of our business. A cyber-based attack of these systems could disrupt our ability to deliver services to our customers and could lead to increased overhead costs, decreased sales and harm to our reputation
7. 07Failure to comply with federal, state and foreign laws and regulations relating to privacy, data protection and consumer protection, or the expansion of current laws and regulations or the enactment of new laws or regulations in these areas, could adversely affect our business and our financial condition
8. 08Our reputation and ability to do business may be impacted by the improper conduct of our employees, agents, or business partners
9. 09Any failure to offer high-quality aerial firefighting services to customers may harm our relationships with our customers and could adversely affect our reputation, brand, business, financial condition and results of operations
10. 10Natural disasters, unusual weather conditions, pandemic or epidemic outbreaks, terrorist acts and political events could disrupt our business
11. 11We are subject to risks associated with climate change, including the potential increased impacts of severe weather events on our operations and infrastructure, and changes in weather patterns may result in lower demand for our services if such changes result in a reduced risk of wildfires
12. 12Our business is dependent on the availability of aircraft fuel. Continued periods of significant disruption in the supply or cost of aircraft fuel could have a significant negative impact on consumer demand, our operating results and liquidity
13. 13System failures, defects, errors or vulnerabilities in our website, applications, backend systems or other technology systems, or those of third-party technology providers could harm our reputation and brand and adversely impact our business, financial condition and results of operations
14. 14If we fail to adequately protect our proprietary intellectual property rights, our competitive position could be impaired and we may lose market share, generate reduced revenue and/or incur costly litigation to protect our rights
15. 15We use open-source software in connection with our platform, which may pose risks to our intellectual property
16. 16Our insurance may become too difficult or expensive for us to obtain or maintain. Increases in insurance costs or reductions in insurance coverage may materially and adversely impact our results of operations and financial position
17. 17Our business may be adversely affected by labor and union activities
18. 18Any delays in the development, design and engineering of our products and services may adversely impact our business, financial condition and results of operations
19. 19Extreme weather, drought and shifting climate patterns have intensified the challenges associated with many of the risks facing the Company, particularly wildfire management
20. 20The substantial majority of our revenue currently is concentrated in the Western United States
21. 21In the future, there may be other businesses who attempt to provide the services that we provide, or our main private competitors could attempt to increase operations. In the future, federal, state and local governments and foreign governments may also decide to directly provide such services
22. 22If we experience harm to our reputation and brand, our business, financial condition and results of operations could be adversely affected
23. 23We may be blocked from or limited in providing or offering our services in certain jurisdictions and may be required to modify our business model in those jurisdictions as a result
24. 24We may enter into firefighting contracts in the future with foreign governments, which may result in increased compliance and oversight risks and expenses
25. 25We may be unable to manage our future growth effectively, which could make it difficult to execute our business strategy
26. 26Our cash flow and profitability could be reduced if expenditures are incurred prior to the final receipt of a contract
27. 27If we are not able to successfully enter into new markets and offer new services and enhance our existing offerings, our business, financial condition and results of operations could be adversely affected
28. 28There is a limited supply of new CL-415EAF aircraft to purchase, and an inability to purchase additional CL-415EAF aircraft could impede our ability to increase our revenue and net income

Legal and Regulatory Risks

1. 29Our business is subject to a wide variety of additional extensive and evolving government laws and regulations. Failure to comply with such laws and regulations could have a material adverse effect on our business
2. 30Our operations are subject to various federal, state and local laws and regulations governing health and the environment

Financial and Capital Strategy Risks

1. 31We may require substantial additional funding to finance our operations and growth strategy, but adequate additional financing may not be available when we need it, on acceptable terms, or at all, and our ability to pursue equity financings may depend in part, on the market price of our Common Stock
2. 32Our systems, aircraft, technologies and services and related equipment may have shorter useful lives than we anticipate
3. 33Subject to the limits contained in some of the agreements governing our outstanding debt, we may incur additional debt in the future. Our maintenance of higher levels of indebtedness could have adverse consequences including impairing our ability to obtain additional debt and/or equity financing in the future
4. 34We do not expect to declare any dividends in the foreseeable future
5. 35We may in the future invest significant resources in developing new offerings and exploring the application of our technologies for other uses and those opportunities may never materialize
6. 36We have incurred significant losses since inception, and we may not be able to achieve, maintain or increase profitability or positive cash flow
7. 37The requirements of being a public company may strain our resources, divert our management’s attention and affect our ability to attract and retain additional executive management and qualified board members
8. 38If we do not develop and implement all required accounting practices and policies, we may be unable to provide the financial information required of a U.S. publicly traded company in a timely and reliable manner
9. 39The Series 2022 Bonds were marketed on the basis of our compliance with certain green and social bond principles. We may not continue to satisfy such principles and we may be unable to market bonds under such principles in the future
10. 40A material weakness is a deficiency or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis

Risks Related to the Ownership of Our Securities

1. 41The price of our Common Stock and Warrants are likely to be highly volatile, and you may lose some or all of your investment
2. 42These market and industry factors may materially reduce the market price of our Common Stock and our Warrants regardless of our operating performance
3. 43We may issue additional shares of our Common Stock or other equity securities, which would dilute your ownership interest in us and may depress the market price of our Common Stock
4. 44Provisions in our Amended and Restated Charter, our Amended and Restated Bylaws and Delaware law could discourage a takeover that stockholders may consider favorable which could limit the price investors might be willing to pay in the future for our Common Stock and may lead to entrenchment of management
5. 45There can be no assurance that we will be able to comply with the continued listing standards of Nasdaq. Nasdaq may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions
6. 46A small number of Bridger’s stockholders could significantly influence its business
7. 47If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards change, our results of operations could be adversely affected
8. 48If securities or industry analysts do not publish research or reports about us or publish negative reports, then the price of our securities and trading volumes could decline
9. 49on your investment will depend on appreciation, if any, in the price of our Common Stock
10. 50Future sales, or the perception of future sales, of a substantial number of shares of our Common Stock and Warrants, by us or our stockholders in the public market may cause the price of our Common Stock and Warrants to decline
11. 51Warrants are exercisable for our Common Stock and if exercised will increase the number of shares eligible for future resale in the public market and result in dilution to our stockholders
12. 52We may redeem your unexpired Warrants prior to their exercise at a time that is disadvantageous to you, thereby making your Warrants worthless
13. 53The exclusive forum clause set forth in the Warrant Agreement may have the effect of limiting an investor’s rights to bring legal action against us and could limit the investor’s ability to obtain a favorable judicial forum for disputes with us
14. 54Net earnings and net assets could be materially affected by an impairment of goodwill
15. 55Changes in tax laws or regulations may increase tax uncertainty and adversely affect results of our operations and our effective tax rate
16. 56Certain U.S. state tax authorities may assert that we have a state nexus and seek to impose state and local income taxes which could harm our results of operations
17. 57We may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and the price of our securities, which could cause you to lose some or all of your investment