Stabilis Solutions (SLNG) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Our ability to implement our business strategy may be materially and adversely affected by many known and unknown factors
2. 02Any failure to perform by our counterparties under agreements may adversely affect our operating results, liquidity and access to financing
3. 03Cyclical or other changes in the demand for and price of LNG and natural gas may adversely affect our business and the performance of our customers which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flows, liquidity and ability to execute our strategy
4. 04imposition of tariffs by other countries on imports of LNG from the United States
5. 05Operation and/or construction of our LNG infrastructure, liquefaction and other facilities involves significant risks
6. 06Our insurance may be insufficient to cover losses that may occur to our property or result from our operations
7. 07Existing and future environmental, health and safety laws and regulations could result in increased compliance costs or additional operating costs or construction costs and restrictions
8. 08The Occupational Safety and Health Act (“OSHA”) and comparable state statutes whose purpose is to protect the health and safety of workers
9. 09Global climate change may in the future increase the frequency and severity of weather events and the losses resulting therefrom, which could have a material adverse effect on the economies in the markets in which we operate or plan to operate in the future and therefore on our business
10. 10Other natural or man-made disasters could result in an interruption of our operations, a delay in the completion of future facilities, higher construction costs or the deferral of the dates on which payments are due under our customer contracts, all of which could adversely affect us
11. 11We expect to be dependent on contractors for the successful completion of our energy-related infrastructure
12. 12maintain their own financial condition, including adequate working capital
13. 13We may not be able to purchase or receive physical delivery of natural gas in sufficient quantities and/or quality or at economically attractive prices to satisfy our delivery obligations under our commercial agreements, which could have a material adverse effect on our business
14. 14We face competition based upon market price for LNG or natural gas
15. 15Technological innovation may render our processes obsolete
16. 16Changes in legislation and regulations could have a material adverse impact on our business, results of operations, financial condition, liquidity and ability to execute our strategy
17. 17Some of our competitors have greater financial, technological and other resources than we currently possess
18. 18Failure of LNG to be a competitive source of energy in the markets in which we operate, and seek to operate, could adversely affect our expansion strategy
19. 19Our risk management strategies cannot eliminate all LNG price and supply risks. In addition, any non-compliance with our risk management strategies could result in significant financial losses
20. 20We may experience increased labor costs, and the unavailability of skilled workers or failure to attract and retain qualified personnel could adversely affect us
21. 21We may incur impairments to goodwill or long-lived assets
22. 22Environmental, social, and governance (“ESG”) goals, programs, and reporting are increasingly being identified by capital providers and investors as a priority for the energy industry, and access to capital and investors for companies not prioritizing ESG may become increasingly limited
23. 23We have operations and investment in foreign countries and we could experience losses from weakening foreign economies as well as unforeseen or unexpected operating, financial, political or cultural factors in these countries
24. 24Investment in us is speculative
25. 25We may require additional funding from various sources, which may not be available or may only be available on unfavorable terms
26. 26We may incur losses over the next several years and may not maintain profitability
27. 27add operational, financial and management information systems and personnel, including personnel to support our business development and planned future commercialization efforts
28. 28The loss of a significant customer or inability of a significant customer to perform under contract could adversely affect our operating results and ability to generate cash flows
29. 29if we fail to commence commercial operations within the agreed timeframes
30. 30Raising additional capital may cause dilution to our stockholders or restrict our operations
31. 31Our common stock is thinly traded with a limited market and volatile
32. 32general and industry-specific economic conditions that may affect our research and development expenditures
33. 33We are a “smaller reporting company” and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors
34. 34J. Casey Crenshaw has voting control over our Company
35. 35This concentration of stock ownership may adversely affect the trading price of our common stock to the extent investors perceive a disadvantage in owning stock of a company with a significant stockholder
36. 36require the approval of the holders of over 50% of the votes that all our stockholders would be entitled to cast to amend our bylaws
37. 37We do not anticipate that we will pay any cash dividends in the foreseeable future
38. 38Our Chinese joint venture, BOMAY, has a limited life and is subject to risk that it may not be renewed
39. 39Weakened global macro-economic and geopolitical conditions may adversely affect our industry, ability to access capital, business and results of operations
40. 40The impact of potential tariffs proposed by the Trump administration is uncertain
41. 41Increased inflation or periods of prolonged inflation may adversely impact the economy, our industry and results of operations
42. 42The spread of a new contagious illness such as COVID-19 or resurgence of a COVID-19 variant, may adversely affect our business, operations and financial condition
43. 43potential deterioration in the financial condition and ability to deliver LNG to our customers or joint venture partners, or attempts by customers or third parties to invoke force majeure contractual clauses as a result of delays or other disruptions
44. 44A cyber incident could result in information theft, data corruption, operational disruption, operational delays and/or financial loss
45. 45From time to time, we may be involved in legal proceedings and may experience unfavorable outcomes
46. 46We will continue to incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies
47. 47If we fail to maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed