Risks Specific to Rentus.com
1. We rely on Amazon Web Services for the vast majority of our computing, storage, bandwidth, and other services. Any disruption of or interference with our use of the Amazon Web Services operation would negatively affect our operations and seriously harm our business.
2. We are creating and growing a new platform for people and companies to offer items for rent (“Owners”) and people and companies to rent items (“Renters”) from owners. Listing items for rent in our platform is free and we earn a service fee and/or commission for every successful rental transaction taking place in our platform. The failure to attract new owners and renters, and the failure to attract new listings in our catalog could seriously harm our business.
3. We rely heavily on our technology and intellectual property, but we may be unable to adequately or cost-effectively protect or enforce our intellectual property rights, thereby weakening our competitive position and increasing operating costs.We must acquire or develop new services, evolve existing ones, address any defects or errors, and adapt to technology change.Cyclical and seasonal fluctuations in the economy, in internet usage and in traditional retail shopping may have an effect on our business.If we do not respond to technological changes or upgrade our technology systems, our growth prospects and results of operations could be adversely affected.
4. The Company’s success depends on the experience and skill of its executive officers and key employees. We rely on various intellectual property rights, including patents in order to operate our business.From time to time, third parties may claim that one or more of our products or services infringe their intellectual property rights.Although dependent on certain key personnel, the Company does not have any key man life insurance policies on any such people. We are subject to income taxes as well as non-income based taxes, such as payroll, sales, use, value-added, net worth, property and goods and services taxes, in the US.Changes in employment laws or regulation could harm our performance.The Company could be negatively impacted if found to have infringed on intellectual property rights.
5. Our platform connects Owners with Renters. We do not see, touch or otherwise inspect the items that people and companies rent from each other. We rely on each party to act honestly, rent equipment in working conditions and assume all risks and liabilities from the operation of such equipment. Injuries, theft, damage and other occurrences may occur that are beyond our control. We anticipate being named in legal actions when misfortunes happen. Although we carry a general liability insurance policy, damages, accidents, injuries, misunderstandings, errors, omissions and other occurrences may cause distractions to our executives and expenses that may harm our business.
6. Our ecosystem of owners, renters, advertisers, and partners depends on the engagement and growth of our user base and product catalog. We anticipate that the growth rate of our user base will decline once we hit a saturation point and over time. If we fail to retain current users or add new users, or if our users engage less with Rentus.com, our business would be seriously harmed.
7. Rentus.com depends on effectively operating with mobile, and computing devices, operating systems, hardware, networks, regulations, and standards that we do not control. Changes in our products or to those operating systems, hardware, networks, regulations, or standards may seriously harm our user growth, retention, and engagement.
8. Our founder and the A Unit group has control over all unitholder decisions because they control a substantial majority of our voting units. Please see our Company Agreement and Independent Accountants’ Review Report for more information.
9. If we do not develop successful new products or improve existing ones, our business will suffer. We also expect to invest in new lines of business that could fail to attract or retain users or generate revenue. Our business is highly competitive. We face significant competition that we anticipate will continue to intensify. If we are not able to maintain or improve our market share, our business could suffer.
10. If our security is compromised or if our platform is subjected to attacks that frustrate or thwart our users’ ability to access our products and services, our users, advertisers, and partners may cut back on or stop using our products and services altogether, which could seriously harm our business.
11. Management. As of April 2017, both Elias Chavando and Robert Blanchard are working full time for the company. Tomasz Odrobinsky is working part-time for the company. As such, it is likely that the company will not make the same progress as it would if that were not the case.