Critical Risk Factors in XTPL's Business Landscape
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Risk factors
1. Failure in industrial deployment projects of Ultra Precise Deposition (UPD) technology, or a significantly lower number of industrial deployments than expected, may significantly affect the results generated by the company in the future and the achievement of its revenue target. It should be borne in mind that in industrial deployment projects, XTPL's technology is subject to continuous evaluation and there is no guarantee of successful completion of such projects.
2. The appreciation of the PLN against other currencies may negatively affect the amount of recognizable revenue. The company incurs a large portion of its costs in PLN, while most of its sales are generated in foreign currencies (mainly EUR and USD).
3. Risks related to the macroeconomic environment. XTPL plans to start selling products and providing services primarily in the United States, Asia and Western Europe. Deterioration of the macroeconomic environment may reduce the propensity for consumption and investment. This may affect the company's performance and the implementation of its growth strategy.
4. Risk associated with the development of new technologies. There is a risk that, in the event of a change in current market trends, XTPL will be forced to look for new applications of technology outside the area considered core business or to make additional expenditures on existing solutions to increase their competitiveness. XTPL also cannot exclude the possibility that a new technology will be developed in the future, in the face of which the solutions proposed by XTPL will no longer be attractive to potential customers.
5. Risks related to the competitive environment. XTPL operates in the rapidly growing high-tech market. A number of entities with much more experience and capital resources than XTPL operate in this market. Due to the high dynamics of the market, there is a risk of the emergence of a new entity whose offer will be more innovative than XTPL's. At present, XTPL is not aware of a solution that would technically offer better parameters for ultra-precision printing of nanomaterials.
