BOSTON OMAHA (BOC) risk factors, FY2024 10-K

Risks Related to the Company and Our Business

1. 01We have incurred losses from operations since inception and we anticipate that we will continue to incur losses for the foreseeable future
2. 02Our failure to successfully identify and complete future acquisitions of assets or businesses could reduce future potential earnings, reduce available cash and slow our anticipated growth
3. 03We may have difficulty integrating the operations of companies or businesses that we may acquire and may incur substantial costs in connection therewith
4. 04the need to implement or remediate appropriate controls, procedures and policies at companies that, prior to the acquisition, lacked these controls, procedures and policies
5. 05Increased operating expenses associated with the expansion of our business may negatively impact our operating income
6. 06We could suffer losses due to asset impairment charges for goodwill and other intangible assets
7. 07We may raise additional equity capital through additional public or private placements, and issue equity securities under our 2022 Long-Term Incentive Plan, any of which could substantially dilute your investment
8. 08We may incur potential future impairment charges for holdings in Sky Harbour Group Corporation Class A common stock and other investments and potential volatility in earnings due to our investments in Sky Harbour Group Corporation and other public securities
9. 09announcement of developments and material events by Sky Harbour or its competitors
10. 10Our significant equity ownership in Sky Harbour Group Corporation's Class A common stock and warrants may make it difficult for us to resell a significant portion of our Sky Harbour Group Corporation securities in a short period of time
11. 11Our investments in Sky Harbour Group Corporation's Class A common stock and Sky Warrants and other publicly traded securities involve a substantial degree of risk
12. 12We run the risk of inadvertently being deemed an investment company required to register under the Investment Company Act of 1940
13. 13The occurrence of any of these events could materially adversely affect Link or BOB, which would adversely affect our results of operations and financial condition and adversely affect our stock price
14. 14We may also incur indebtedness under future credit facilities
15. 15Restrictive covenants in Link's indebtedness and BOB's indebtedness may limit management’s discretion with respect to certain business matters
16. 16If we are unable to manage our interest rate risk effectively, our cash flows and operating results may suffer
17. 17We may raise additional capital pursuant to debt financing, and such debt financing arrangements may contain covenants, which, if not complied with, could have a material adverse effect on our financial condition
18. 18We may be unable to access capital
19. 19the value of our securities
20. 20We face intense competition, including competition from companies with significantly greater resources than us, and if we are unable to compete effectively with these companies, our market share may decline and our business could be harmed
21. 21Adverse economic conditions could negatively affect our results of operations and financial condition
22. 22Climate change, severe weather, natural disasters, public health emergencies and other external events could significantly impact our business
23. 23We may be unable to employ a sufficient number of key employees and other experienced or qualified workers
24. 24We are heavily reliant upon our executive management team
25. 25Our executive officers and directors may experience a conflict of interest between their duties to us and to affiliated parties
26. 26Disruptions to our information technology systems and any cybersecurity breaches could disrupt our business operations and have a material adverse effect on our business, prospects, results of operations, financial condition and/or cash flows
27. 27Changes in laws and regulations governing data privacy and data protection could have a material adverse impact on our business
28. 28Governmental regulations could adversely affect our business, financial condition, results of operations and prospects
29. 29We may be unable to obtain reinsurance coverage at reasonable prices or on terms that adequately protect us
30. 30Our insurance employees could take excessive risks, which could negatively affect our financial condition and business
31. 31If actual insurance claims exceed our claims and claim adjustment expense reserves, or if changes in the estimated level of claims and claim adjustment expense reserves are necessary, our financial results could be materially and adversely affected
32. 32varying judgments and viewpoints of the individuals involved in the estimation process, among others
33. 33Our efforts to develop new insurance products or expand in targeted markets may not be successful and may create enhanced risks
34. 34We may focus on geographic markets within or outside of the United States where we have had relatively little or no market share
35. 35Demand for new products or in new markets may not meet our expectations
36. 36If our efforts to develop new products or expand in targeted markets are not successful, our results of operations could be materially and adversely affected
37. 37if A.M. Best alters its capital adequacy assessment methodology in a manner that would adversely affect our rating
38. 38giving any future potential lenders the right to accelerate or call any future debt we may incur
39. 39We lack operational control over certain companies in which we invest and may lack operational control over companies in which we may invest in the future
40. 40We are subject to extensive financial reporting and related requirements for which our accounting and other management systems and resources may not be adequately prepared
41. 41We may fail to maintain effective internal controls over external financial reporting or such controls may fail or be circumvented

Risks Related to Ownership of our Common Stock

1. 42Investors should not rely on the accuracy of forward-looking statements made by us
2. 43The price of our Class A common stock has been, and is likely to continue to be, volatile and may fluctuate substantially, which could result in substantial losses for purchasers of our Class A common stock
3. 44We are a smaller reporting company, and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies will make our Class A common stock less attractive to investors
4. 45An active trading market for our Class A common stock may not be maintained
5. 46We will continue to incur increased costs as a result of operating as a public company in the United States
6. 47If a substantial number of shares of our Class A common stock become available for sale and are sold in a short period of time, the market price of our Class A common stock could decline
7. 48If equity research analysts do not publish research or reports about our business or if they issue unfavorable commentary or downgrade our Class A common stock, the market price of our Class A common stock could decline
8. 49Entities managed by Magnolia currently effectively control 31.1% of the votes needed on all voting matters brought before our stockholders, making it difficult for stockholder proposals not approved by Magnolia to receive stockholder approval
9. 50Certain actions cannot be taken without the approval of MCF due to its ownership of Class B common stock
10. 51Purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of our capital stock
11. 52Make, or permit any subsidiary to make, any loan or advance outside of the ordinary course of business to any employee or director
12. 53Enter into any agreement involving the payment, contribution, or assignment by us or to us of money or assets greater than $10,000
13. 54Provisions in our charter documents and Delaware law could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders
14. 55limiting the rights of stockholders to amend our bylaws, call a special meeting of our stockholders or take action by written consent
15. 56Because we do not intend to pay dividends for the foreseeable future, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it
16. 57You may be diluted by the future issuance of additional Class A common stock in connection with acquisitions, sales of our securities or otherwise
17. 58Our authorized preferred stock exposes holders of our common stock to certain risks
18. 59Our directors have limited liability under Delaware law
19. 60Our ability to use our net operating loss carry forwards may be subject to limitation and may result in increased future tax liability