Gevo (GEVO) risk factors, FY2024 10-K

Risk Related to our Business and Strategy

1. 01We have a history of net losses, and we may not achieve or maintain profitability
2. 02Furthermore, we expect to spend significant amounts on the further development and commercial implementation of our strategic plans and technology
3. 03We will require substantial additional financings to achieve our goals, and a failure to obtain this capital when needed or on acceptable terms could force us to delay, limit, reduce or terminate our development and commercialization efforts
4. 04Our proposed growth projects may not be completed or, if completed, may not perform as expected or achieve profitability. Our project development activities may consume a significant portion of our management’s focus, and if not successful, reduce our profitability
5. 05We may be unable to successfully perform under current or future offtake agreements to provide our products, and we may need to renegotiate some of our offtake agreements
6. 06Fluctuations in the price of corn and other feedstocks may affect our cost structure
7. 07Fluctuations in petroleum prices and customer demand patterns may reduce demand for renewable fuels
8. 08Any decline in the value of carbon credits associated with our products could have a material adverse effect on our results of operations, cash flow and financial condition
9. 09We may not be successful in the commercialization of alcohol-to-SAF projects utilizing Axens technology
10. 10The technological and logistical challenges associated with producing, marketing, selling and distributing renewable hydrocarbon products are complex, and we may not be able to resolve any difficulties that arise in a timely or cost-effective manner, or at all
11. 11Our actual costs may be greater than expected in developing our growth projects, causing us to realize significantly lower profits or greater losses on our projects
12. 12An impairment of our long-lived assets or goodwill could reduce our earnings or negatively impact our financial condition and results of operations
13. 13We may be subject to liabilities and losses that may not be covered by insurance
14. 14We may be unable to produce renewable hydrocarbon products in accordance with customer specifications
15. 15Our experience may not be sufficient to operate commercial-scale facilities and we may encounter substantial difficulties operating commercial plants or expanding our business
16. 16Mergers, acquisitions and other strategic investments may not be successful in achieving intended benefits, cost savings and synergies and may disrupt current operations
17. 17other unanticipated issues, expenses and liabilities
18. 18We may face substantial competition from companies with greater resources and financial strength, which could adversely affect our performance and growth
19. 19Our business and operations would suffer in the event of IT system failures or a cyber-attack
20. 20We may engage in hedging transactions, which could adversely impact our business
21. 21As our products have not previously been used as a commercial fuel in significant amounts, their use subjects us to product liability risks
22. 22We may not be able to use some or all of our net operating loss carry-forwards to offset future income
23. 23Competitiveness of our products for fuel use (including RNG) depends in part on government economic incentives for renewable energy projects or other related policies that could change
24. 24In order to benefit from RINs and LCFS credits, our RNG projects are required to be registered and are subject to regulatory audit
25. 25Our RNG operations, and any future digester projects may not be able to achieve the operating results we expect from these projects
26. 26If we fail to maintain an effective system of internal controls, we might not be able to report our financial results accurately or prevent fraud; in that case, our stockholders could lose confidence in our financial reporting, which would harm our business and could negatively impact the price of our stock

Risks Related to Intellectual Property

1. 27Our ability to compete may be adversely affected if we are unsuccessful in defending against any claims by competitors or others that we are infringing upon their intellectual property rights
2. 28Our ability to compete may be adversely affected if we do not adequately protect our proprietary technologies or if we lose some of our intellectual property rights through costly litigation or proceedings
3. 29patent applications are directed to our enabling technologies and to our methods and products which support our business in the advanced renewable fuels and renewable chemicals markets. We intend to continue to apply for patents relating to our technologies, methods and products as we deem appropriate
4. 30We may not be able to enforce our intellectual property rights throughout the world
5. 31Confidentiality agreements with employees and others may not adequately prevent disclosures of trade secrets and other proprietary information
6. 32We have received funding from U.S. government agencies, which could negatively affect our intellectual property rights

Risks Related to Legal and Regulatory

1. 33The U.S. renewable fuels industry is highly dependent upon certain federal and state legislation and regulation and any changes in legislation or regulation could have a material adverse effect on our results of operations, cash flows and financial condition
2. 34Reductions or changes to existing regulations and policies may present technical, regulatory and economic barriers, which may significantly reduce demand for renewable fuels or our ability to supply our products
3. 35Negative attitudes toward renewable energy projects from the U.S. government, other lawmakers and regulators, activists and others could adversely affect our business, financial condition and results of operations
4. 36Any claims relating to improper handling, storage or disposal of hazardous materials or noncompliance with applicable laws and regulations could be time consuming and costly and could adversely affect our business and results of operations
5. 37Our international activities may increase our exposure to potential liability under anti-corruption, trade protection, tax and other laws and regulations

Risks Related to Owning Our Securities

1. 38We may not be able to comply with all applicable listing requirements or standards of The Nasdaq Capital Market and Nasdaq could delist our common stock
2. 39The market price of our common stock may be adversely affected by the future issuance and sale of additional shares of our common stock or by our announcement that such issuances and sales may occur
3. 40Future issuances of our common stock or instruments convertible or exercisable into our common stock may materially and adversely affect the price of our common stock and cause dilution to our existing stockholders
4. 41We may need to raise capital through these public offerings of common stock, warrants and convertible debt in the future
5. 42Raising capital at a subsidiary, or project, level would result in lower revenues attributable back to us
6. 43Our stock price may be volatile, and your investment in our securities could suffer a decline in value
7. 44The estimates and assumptions on which our financial projections are based may prove to be inaccurate
8. 45Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to our technologies
9. 46We do not anticipate paying cash dividends, and accordingly, stockholders must rely on stock appreciation for any return on their investment
10. 47We are subject to anti-takeover provisions in our certificate of incorporation, our bylaws and under Delaware law that could delay or prevent an acquisition of the Company, even if the acquisition would be beneficial to our stockholders