There is a risk with regard to the beef market and the supply of other ingredients. Beef prices fluctuate, and may have an impact on profitability. We plan to minimize this risk with proper forecasting. However, market factors that are beyond our control may lead to increased volatility and unpredictability.
The meat snack segment, in which Van Cleave Dry Goods currently operates, is a highly competitive market, where competition risks are significant. To succeed, Van Cleave Dry Goods must be able to respond quickly to changes in consumer preferences. Van Cleave Dry Goods will work to create products that anticipate market shifts and consumer demand.
Projections provided by Van Cleave Dry Goods, while based upon existing or expected relationships, are wholly speculative. Van Cleave Dry Goods does not warrant and makes no assurances or guarantees that projections will be realized either in timing, magnitude or duration. Actual events will influence management's financial decisions regarding allocation of monies raised in this offering.
Van Cleave Dry Goods maintains a significant amount of product liability insurance. While no claims have been made or currently exists against the company, Van Cleave Dry Goods is at risk of product liability suits being levied. Such suits could have a materially negative impact on the future viability of Van Cleave Dry Goods.
Van Cleave Dry Goods' revenue is highly dependent on direct consumer sales and sales to retailers. Global and/or national economic disruptions such as a recession, terrorist attack, natural disaster, etc. may severely impact Van Cleave Dry Goods' revenue.
Beef diseases that could cause panic in consumers, like mad cow disease in the 90s and early 2000s. Such an outbreak in the beef market would cause sales to drop out of consumer fear.
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.
Carmen Van Cleave, Laura Jimenez, and John Van Cleave are part-time officers. As such, it is likely that the company will not make the same progress as it would if that were not the case.
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.
The company currently has more liabilities than assets. If the company closes down now, it is unlikely that any capital will be returned to investors.