Risks Specific to Ganaz Inc.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
The Company may never gain sufficient trust with their target users. Farm owners may worry about participating in a wage war causing operating costs to go up. And farm workers my not trust an app to truly serve their needs.
All software development is currently contracted out to a small development team in Serbia. While the Company owns all the software and retains possession of the code, should the contractor ever choose to pursue other work, finding a new developer could delay future development and may require a re-writing of some code.
The Company may not raise enough equity to fund its losses while trying to get to breakeven. Achieving breakeven requires having enough farm owners being willing to pay for the service provided, and that revenue being earned in sufficient quantities before cash reserves run out.
Workers may not find enough value in keeping an app on their phone that they only use a few times a year, particularly given that they often have limited storage on their phones.
Given that farm owners are the ones most likely to provide revenue to The Company, it's possible that The Company will serve the needs of farm owners over that of workers in an effort to gain financial viability, but in the process not provide enough value to farm workers limiting their use of the app.
A sophisticated competitor, like Zip Recruiter or Glassdoor, may choose to use their existing technology and infrastructure to enter the farm labor marketplace and better serve the needs of our target customers.
The Company may not be able to develop features fast enough to keep up with the many features desired by farm owners (e.g., the ability to segment workers into crews, the ability to administer surveys, and the ability to integrate with existing HR systems).
Farm workers may be too difficult to reach using traditional marketing approaches, making adoption of the app slow, and therefore not making it sufficiently useful to farm owners, our primary source of revenue.
Mechanization of harvesting and other on-farm activities may accelerate, reducing the need for manual farm labor on farms in the U.S.
New smartphone platforms may emerge, beyond iOS and Android, further complicating our software development process and requiring a more sophisticated and better-resourced software development team.