Climate Change Data

Environmental Metrics

Social Achievements

• Implemented plans to address and mitigate the impact of the COVID-19 pandemic on the safety of our employees and our business, including adding work from home flexibility; adjusting attendance policies; increasing cleaning protocols; and initiating regular communication regarding impacts of the COVID-19 pandemic.

Climate Goals & Targets

Environmental Challenges

• Losses for the years ended December 31, 2023 and 2022 and potential for continued losses.
• Difficulty meeting manufacturing workforce needs.
• Limited public information on operating history.
• Large fixed cost base affecting profitability if sales decrease.
• Interest rates and energy prices affecting product sales.
• Fluctuations in annual and quarterly financial results.
• Dependence on independent dealers with limited control over their activities.
• Dependence on dealers' financial health and access to financing.
• Adverse effects of unfavorable weather conditions.
• Potential adverse effects of natural disasters, climate change, or manufacturing facility disruptions.
• Challenges in managing manufacturing levels to address seasonal retail patterns.
• Potential need to repurchase inventory from dealers.
• Potential for termination or interruption of informal supply arrangements.
• Potential material effects of product liability, warranty, and recall claims.
• Intense competition in the powerboat industry.
• Volatility in demand in the powerboat industry.
• Effects of general economic conditions on industry demand.
• Risks related to electric boats (development, consumer adoption, manufacturing capacity, intellectual property).
• Weaknesses in internal controls.
• Exemptions from certain reporting requirements as an emerging growth company.
• Volatility in common stock price.
• Broad discretion in the use of IPO proceeds.
• Provisions in corporate charter documents potentially making acquisition more difficult.
• Cybersecurity threats.
• Dependence on third-party suppliers.
• Potential for product defects and recalls.
• Potential for non-compliance with environmental and regulatory requirements.
• Competition for employees.
• Risks associated with growth through acquisitions or strategic alliances.
• Dependence on information technology systems.
• Potential for uninsured losses.
• Need to raise additional capital.
• Potential for failure to manage future growth effectively.
• Potential loss of key personnel.
• Concentration of shareholder voting power.
• Potential for negative publicity affecting brand and sales.
• Potential for failure to execute manufacturing strategy successfully.
• Risks associated with complex machinery and production processes.
• Potential for insufficient insurance coverage.
• Potential for lithium-ion battery cell issues in electric boats.
• Rapid evolution of the electric vehicle industry.
• Potential for failure to commence production of electric boats as planned.
• Potential for failure to receive anticipated grant funding.
• Potential for defects in electric boat design and manufacture.
• Potential for errors, bugs, vulnerabilities, or design defects in software and hardware.
• Potential for patent applications not issuing as patents.
• Potential for unauthorized use of intellectual property.
• Potential for infringement claims.
• Potential for inadequate protection of intellectual property.
• Potential for claims related to wrongful use or disclosure of trade secrets.
• Potential for risks associated with the use of open-source software.
• Potential for failure to maintain effective internal control over financial reporting.

Mitigation Strategies

• Continuous evaluation of alternative and secondary source suppliers.
• Active monitoring of the effects of supply chain disruptions and inflation.
• Implementation of measures designed to improve internal control over financial reporting.
• Active recruitment of a Chief Financial Officer, a full-time Controller, and a full-time Staff Accountant.
• Selection and implementation of a robust operating system.
• Utilization of outside advisors where appropriate.
• Development of a risk mitigation plan to address cybersecurity risks.
• Maintenance of various insurance policies.
• Plans to expand manufacturing capacity.
• Development of a vertically integrated direct-to-consumer distribution system for electric boats.
• Continuous improvement efforts to enhance product quality and productivity while reducing costs.
• Implementation of quality control procedures.
• Use of confidentiality agreements with employees and others.
• Monitoring of the use of open-source software.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters affecting manufacturing facility.

Transition Risks

• Increased demand for sustainable, environmentally friendly electric and alternative fuel commercial and recreational vehicles.

Opportunities

• Development of energy-efficient products.

Sustainable Products & Innovation

• Electric-powered boats.