Risks Specific to Block Chaser, Inc.
1. Block Chaser is a start-up with an inherent risk of failure. It is possible that car owners and enthusiasts will not be interested in our product as projected. It is also possible that the team is not able to execute the planned road map.
2. The majority of our revenue is a subscription model. We have not been selling our product long enough to understand our cancellation and non-renewal rates. Significant cancellations and lack of annual renewals would impede our growth.
3. If Block Chaser is unable to meet revenue projections, additional funding may be required for our company to maintain marketing budgets required to feed new prospects into our automated sales funnel.
4. Block Chaser is heavily dependent on our CEO David O’Hara, who serves as our visionary and leader of execution. Death, severe illness or critical injury of our CEO would be extremely difficult for the company to recover from this loss.
5. The collector car market is a $40 billion market with many technology and media companies. Threats from new and unforeseen competitors could negatively impact our ability to scale the company.
6. The following events may create a scenario where Block Chaser could struggle to maintain successful business operations: economic recession, changes to online advertising and marketing regulations by the FTC, major changes in marketing platforms and social media networks, natural disasters or terrorist attacks, changes in tax laws that negatively impact investment profits or depreciation of automobiles.
7. Many factors could impact the company's ability to continue as a going concern, and it is possible that the SAFE notes will never convert to equity.