Investing in our Series Seed-2 Preferred Stock financing involves a high degree of risk. You should carefully consider the risks described below, as well as other information in this Form C, including our financial statements and the related notes. The occurrence of any of the events or developments described below could have a material adverse effect on our business, results of operations, financial condition, prospectus and the value of shares. In such an event, the value of your shares could decline, and you may lose all or part of your investment. Additional risks and uncertainties not presently known to the Company or that we currently deem immaterial may also impair our business operations.
Our stock price may be volatile and you may not be able to resell shares of our Series Seed-2 Preferred Stock at or above the price that you paid. Purchasers in this offering will experience immediate and substantial dilution in the book value of their investment.
If we sell shares of our common or preferred stock in future financings, stockholders may experience immediate dilution.
We have broad discretion to determine how to use the funds raised in this offering, and may use them in ways that may not enhance our operating results or the price of the Series Seed-2 Preferred Stock.
Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against the Company and may reduce the amount of money available to us.
We do not currently intend to pay dividends on the Series Seed-2 Preferred Stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of the Series Seed-2 Preferred Stock.
Manufacturing hardware is capital intensive and time consuming, and we may never achieve or maintain profitability. This means that expansion efforts and building our network of dog parkers will take time, which will have an impact on how quickly we can increase our revenue. In addition, we will likely require additional funding to continue growing rapidly. There is a risk that if we are unable to secure additional funding in the future on a timely basis or at all, our expansion efforts and ability to continue to grow this business will be restricted, which could materially affect our business, financial condition and results of operations.
Our business is dependent on the successful and timeline development and manufacturing of our dog parkers, and we have encountered delays and cost overruns in the development and manufacturing of our dog parkers. There can be no assurance as to the timing of production of our dog parkers or whether we will be successful in manufacturing them at scale as we continue to expand. In such an event, you may lose all or part of your investment.
We are a first-of-its-kind business and will need to pave the way for this brand new kind of pet care service, building trust and learning how to acquire customers. There aren't any identical businesses in the market, and therefore much of our strategy will have to be developed from the ground up. There is a risk that we may need to change strategies during our growth phase if our current approach is not as successful as desired or at all, which may impact our projected growth trajectories, and you may lose all or part of your investment.
We work on city sidewalks and regulations are different in every municipality. As a result, it's important that prior to expanding to a new city, we must have a thorough understanding of the relevant regulations to ensure that our activities are legally compliant, and what is considered legally compliant may change from time to time. Regulatory or legislative changes changes may disrupt our operations and cause delays to our growth, which could in turn have a negative impact on our revenue trajectory. Further, if we misinterpret any regulations or are unintentionally non-compliant with any regulations, or if a new city does not permit our activities, this may lead to fines or other disciplinary action, or may prevent our ability to expand into different cities and to grow, which could materially affect our business, financial condition and results of operations. Specific to our current operations in The City of New York, discussions between local government and the company are ongoing; the outcome of those discussions may materially impact the ways we can operate on public portions of New York City sidewalks.
Our core business involves the care of animals which are incredibly important to their owners. Because of the importance of the work we are doing, we must be extremely diligent with our operations and ensure that there are no mistakes. Our equipment incorporates advanced technology, and therefore it is critical that there are no flaws in our systems. Should any core elements of our product be flawed, this could have very negative consequences, which could materially affect our business, financial condition and results of operations. In addition, if product liability or other lawsuits are brought against the Company, we may incur substantial liabilities and may be required to limit the commercialization of our dog parkers.
In the event of any technology related issues with our product, we may need to see external advisors and resources, or alternatively hire additional employees that are able to resolve these issues within the company. This means that any technical issues may be expensive to resolve, and may cause delays to our expansion plans.
Our business model is based on a subscription service. Revenue is primarily driven by high uptake from pet owners, who see the value of our product. In the event that we do not have sufficient growth in subscribers to our platform, there is a risk that our revenue will be insufficient to fund continued expansion of our product to more cities. In addition, we currently rely on storefronts and other businesses to put our product in front of their stores. The loss of these storefronts, or our inability to establish relationships with additional third-party store owners or establishments, would materially and adversely affect our business.
We currently rely on third-party manufacturers and suppliers to develop and manufacture our dog parkers, and we expect to continue to rely on third parties to manufacture our Dog Parkers. The loss of these suppliers or manufacturers, or our inability to establish relationships with additional third-party manufacturers, or their failure to comply with applicable regulatory requirements or design specifications or to provide us with sufficient quantities of Dog Parkers at acceptable quality levels or prices on a timely basis, or at all, would materially and adversely affect our business.
We are highly dependent on the services of Chelsea Brownridge, our CEO, and Todd Schechter, our COO. If for any reason either of them is unwilling or unable to continue in their current rules for the Company, it would materially and adversely affect our business.
We may not be able to protect our intellectual property rights. If our pending utility patent is not issued, or if our trademarks and trade names are not adequately protected, then we may be subject to claims challenging our inventorship or may not be able to build name recognition in our markets of interest, and our business may be affected.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.