Volato (SOAR) Financial Report Summaries

Risks

• We have a limited operating history and history of net losses, and may continue to experience net losses in the future.
• Significant reliance on HondaJet and Gulfstream aircraft and parts poses risks to our business and prospects.
• We may not be able to successfully implement our growth strategies.
• If we are not able to successfully enter into new markets and services and enhance our existing products and services, our business, financial condition, and results of operations could be adversely affected.
• We are exposed to the risk of a decrease in demand for private aviation services.
• The private aviation industry is subject to competition.
• We may require substantial additional funding to finance our operations, but adequate additional financing may not be available when we need it, on commercially acceptable terms, or at all.
• The loss of key personnel upon whom we depend on to operate our business or the inability to attract additional qualified personnel could adversely affect our business.
• The supply of pilots to the aviation industry is limited and may negatively affect our operations and financial condition. Increases in our labor costs, which constitute a substantial portion of our total operating costs, may adversely affect our business, results of operations, and financial condition.
• We may be subject to unionization, work stoppages, slowdowns or increased labor costs, and the unionization of our employees could result in increased labor costs.
• We are exposed to operational disruptions due to maintenance.
• Federal, state, and local tax rules can adversely impact our results of operations and financial position.
• We may not realize the tax benefits from our aircraft ownership program.
• Significant increases in fuel costs could have a material adverse effect on our business, financial condition and results of operations.
• Some of our business may become dependent on third-party operators to provide flights for our customers. If third-party operators’ flights, which are required to serve a substantial portion of our business, are not available or do not perform
• adequately, our costs may increase and our business, financial condition, and results of operations could be adversely affected.
• If we face problems with any of our third-party service providers, our operations could be adversely affected.
• Our insurance may become too difficult or expensive for us to obtain. Increases in insurance costs or reductions in insurance coverage may materially and adversely impact our results of operations and financial position.
• If our efforts to continue to build our strong brand identity and achieve high member satisfaction and loyalty are not successful, we may not be able to attract or retain customers, and our operating results may be adversely affected.
• Any failure to offer high-quality customer support may harm our relationships with our customers and could adversely affect our reputation, brand, business, financial condition, and results of operations.
• Our business is affected by factors beyond our control including: air traffic congestion at airports; airport slot restrictions; air traffic control inefficiencies; natural disasters; adverse weather conditions, such as hurricanes or blizzards; increased and changing security measures; changing regulatory and governmental requirements; new or changing travel-related taxes; or the outbreak of disease; any of which could have a material adverse effect on our business, results of operations, and financial condition.
• Our business is primarily focused on certain targeted geographic markets, making us vulnerable to risks associated with having geographically concentrated operations.
• The operation of aircraft is subject to various risks, and failure to maintain an acceptable safety record may have an adverse impact on our ability to obtain and retain customers.
• We could suffer losses and adverse publicity stemming from any accident involving aircraft models operated by third parties.
• A delay or failure to identify and devise, invest in, and implement certain important technology, business, and other initiatives could have a material impact on our business, financial condition and results of operations.
• We rely on our information technology 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 revenues, and harm to our reputation.
• System 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.
• We will rely on third parties maintaining open marketplaces to distribute our mobile and web applications and we currently rely on third parties to provide the software we use in certain of our products and services, including the provision of our flight management system. If these third parties interfere with the distribution of our products or services, with our use of the software, or with the interoperability of our platform with the software, our business would be adversely affected.
• If we are unable to adequately protect our intellectual property interests or are found to be infringing on the intellectual property interests of others, we may incur significant expense and our business may be adversely affected.
• Any damage to our reputation or brand image could adversely affect our business or financial results.
• As part of our growth strategy, we may engage in future acquisitions that could disrupt our business and have an adverse impact on our financial condition.
• We are subject to risks associated with climate change, including the potential increased impacts of severe weather events on our operations and infrastructure.
• Terrorist activities or warnings have dramatically impacted the aviation industry and will likely continue to do so.
• Our operations in the private aviation sector may be subject to risks associated with protests targeting private aviation services.
• We are subject to significant governmental regulation.
• Because our software could be used to collect and store personal information, privacy concerns in the territories in which we operate could result in additional costs and liabilities to us or inhibit sales of our software.
• We may become involved in litigation that may materially adversely affect us.
• We are subject to various environmental and noise laws and regulations, which could have a material adverse effect on our business, results of operations, and financial condition.
• We may incur substantial maintenance costs as part of our leased aircraft return obligations.
• Environmental regulation and liabilities, including new or developing laws and regulations, or our initiatives in response to pressure from our stakeholders may increase our costs of operations and adversely affect us.
• The issuance of operating restrictions applicable to one of the fleet types we operate could have a material adverse effect on our business, results of operations, and financial condition.
• Agreements governing our debt obligations include financial and other covenants that provide limitations on our business and operations under certain circumstances, and failure to comply with any of the covenants in such agreements could adversely impact us.
• Future sales, or the perception of future sales, by us or our stockholders in the public market could cause the market price for our common stock to decline.
• Our Certificate of Incorporation designates specific courts as the exclusive forum for substantially all stockholder litigation matters, which could limit the ability of our Stockholders to obtain a favorable forum for disputes with us or our directors, officers or employees.
• Because there are no current plans to pay cash dividends on the Common Stock for the foreseeable future, you may not receive any return on investment unless you sell the Common Stock at a price greater than what you paid for it.
• The market price of the Common Stock may be volatile, which could cause the value of your investment to decline.
• The requirements of being a public company may strain our resources, divert our management’s attention, and affect our ability to attract and retain qualified board members.
• We may never realize the full value of our intangible assets or our long-lived assets, causing us to record impairments that may materially adversely affect our financial conditions and results of operations.
• We may be subject to securities litigation, which is expensive and could divert our management’s attention.
• An active market for our securities may not develop, which would adversely affect the liquidity and price of our securities.
• If securities or industry analysts do not publish research or reports about our business, if they change their recommendations regarding our Common Stock, or if our operating results do not meet their expectations, our Common Stock price and trading volume could decline.