Stabilis Solutions (SLNG) risk factors, FY2025 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 factors28% rewritten
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 of our LNG infrastructure, liquefaction and other facilities involves significant risks37% rewritten
6. 06Construction of new LNG infrastructure including new liquefaction and other facilities involves significant risksNew
7. 07we may be unable to secure financing sufficient to commence or complete construction, or the financing terms may be uneconomicNew
8. 08We expect to be dependent on contractors for the successful completion of our energy-related infrastructure
9. 09maintain their own financial condition, including adequate working capital
10. 10We may be unable to integrate additions of new equipment and personnel to successfully deliver to our customersNew
11. 11Our insurance may be insufficient to cover losses that may occur to our property or result from our operations
12. 12Existing and future environmental, health and safety laws and regulations could result in increased compliance costs or additional operating costs or construction costs and restrictions
13. 13The Occupational Safety and Health Act (“OSHA”) and comparable state statutes whose purpose is to protect the health and safety of workers
14. 14Changes 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
15. 15Global 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 business28% rewritten
16. 16Other 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
17. 17We 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
18. 18We face competition based upon market price for LNG or natural gas
19. 19Technological innovation may render our liquefaction processes obsolete or significantly decrease the demand of LNG as a fuel source for our customersNew
20. 20Some of our competitors have greater financial, technological and other resources than we currently possess
21. 21Failure 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
22. 22Our 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
23. 23We may experience increased labor costs, and the unavailability of skilled workers or failure to attract and retain qualified personnel could adversely affect us
24. 24We may incur impairments to goodwill or long-lived assets
25. 25Environmental, social, and governance (“ESG”) goals, programs, and reporting are 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 limited
26. 26We 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
27. 27Investment in us is speculative
28. 28We may require additional funding from various sources, which may not be available or may only be available on unfavorable terms20% rewritten
29. 29We may incur losses over the next several years and may not maintain profitability
30. 30add operational, financial and management information systems and personnel, including personnel to support our business development and planned future commercialization efforts
31. 31Failure to maintain compliance with debt covenants could give our lenders the right to accelerate payment which could adversely affect our liquidity, our ability to continue expansion efforts and continue normal operationsNew
32. 32The 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 flows29% rewritten
33. 33Raising additional capital may cause dilution to our stockholders or restrict our operations
34. 34Our common stock is thinly traded with a limited market and volatile
35. 35general and industry-specific economic conditions that may affect our research and development expenditures
36. 36We 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
37. 37J. Casey Crenshaw has voting control over our Company
38. 38This 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
39. 39require the proposal of our Board of Directors and the approval of the holders of over 50% of the votes that all our stockholders would be entitled to cast to amend our charter
40. 40We do not anticipate that we will pay any cash dividends in the foreseeable future
41. 41Our Chinese joint venture, BOMAY, has a limited life and is subject to risk that it may not be renewed
42. 42Weakened global macro-economic and geopolitical conditions may adversely affect our industry, ability to access capital, business and results of operations
43. 43Changes in U.S. trade policy including tariffs may have a material adverse effect on our business and results of operationsNew
44. 44Increased inflation or periods of prolonged inflation may adversely impact the economy, our industry and results of operations
45. 45The 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
46. 46potential 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
47. 47A cyber incident could result in information theft, data corruption, operational disruption, operational delays and/or financial loss
48. 48From time to time, we may be involved in legal proceedings and may experience unfavorable outcomes
49. 49We will continue to incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies
50. 50If 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