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Table of Contents
<br />We have been and may continue to be impacted by macroeconomic conditions such as supply chain challenges, a shortfall of certain products needed for our business, and
<br />inflationary pressures.
<br />Global trade challenges including supply chain delays continue to persist and have been exacerbated by global unrest and wars. These conditions may have long-lasting adverse
<br />impact on us and our industries. These conditions, combined with an increased demand for certain products needed for our business, such as lithium -ion battery cells and solar
<br />panels has created a shortfall of and increased costs for these products and has caused challenges and delays in our projects and may impact the profitability of our projects. We
<br />cannot predict the duration of these global challenges or their impact on our business. If we experience unfavorable global market conditions, our business, prospects, financial
<br />condition, and operating results may be harmed.
<br />For example, we are dependent on the continued supply of lithium -ion battery cells for our energy storage products, and we will require substantially more cells to grow our
<br />battery storage business based on our current plans. Currently, we rely on limited number of suppliers for these cells. Any disruption in the supply of battery cells from our
<br />suppliers could limit our growth for projects involving battery energy storage. In addition, the cost and mass production of battery cells, depends in part upon the prices and
<br />availability of raw materials such as lithium, nickel, cobalt and/or other metals. The prices for these materials fluctuate and their available supply may be unstable, depending on
<br />market conditions, regulation and global demand for these materials. As a result of increased global production of energy storage products and electric vehicles, suppliers of
<br />these raw materials may be unable to meet our volume or timing needs. Any reduced availability of these materials may adversely impact our access to battery cells and our
<br />growth, and any increases in their prices may reduce our profitability if we cannot recoup such costs in our project pricing. Moreover, our inability to meet demand may harm
<br />our brand, growth, prospects and operating results.
<br />Extreme weather events and other natural disasters, particularly those exacerbated by climate change, could materially affect our ability to complete our projects and
<br />develop our assets.
<br />Extreme weather -related incidents and other natural disasters, including wildfires, mudslides, hurricanes, and other storms, can interfere with our ability to complete our projects
<br />and develop our assets. Furthermore, such events can impact the operation of assets we own or have provided energy and other performance commitments for. These risks are
<br />increasing, as climate change has exacerbated some of the conditions that lead to these extreme weather events and natural disasters. Such an event can result in lost revenue and
<br />increased expense thereby having a negative effect on our financial condition and business operations.
<br />A failure of our information technology ("IT") and data security infrastructure or cyber or other security incidents, vulnerabilities or other deficiencies, could adversely
<br />impact our business, reputation or results of operation or could cause us to default under our contractual obligations.
<br />We rely upon the capacity, reliability, and security of our IT and data security infrastructure and our ability to expand and continually update this infrastructure in response to
<br />the changing needs of our business. Our existing systems or any new ones we implement may not perform as expected face the challenge of supporting our older systems and
<br />implementing necessary upgrades. If we experience a problem with the functioning or a security breach of our IT systems, the resulting disruptions could have an adverse effect
<br />on our business. We receive and store personal information in connection with our human resources operations and other aspects of our business. Despite our implementation
<br />of security measures, our IT systems are vulnerable to damages from computer viruses, natural disasters, unauthorized access, cyber-attacks, and other similar disruptions, and
<br />we have experienced such incidents in the past. Any system failure, accident, or security breach could result in disruptions to our operations. A material network breach in the
<br />security of our IT systems could include the theft of our intellectual property, trade secrets, customer information, human resources information, or other confidential matter.
<br />We have been subject to and may in the future experience cybersecurity threats, including advanced and persistent cyberattacks, phishing and social engineering schemes,
<br />particularly on internet applications. Such cyber and other security threats could compromise the assets we own and operate or data in our systems. In addition, cybersecurity
<br />incidents at our vendors, customers and partners may have similar negative impact on our business operations. For example, we engage third -party vendors who receive and
<br />store personal and sensitive information in connection with our operations, including our human resources functions such as background checks. We do not have control over or
<br />access to the IT infrastructure of these vendors. Our vendors have and may in the future experience network breaches and other cyberattacks. In such instances, we may not be
<br />able to fully investigate the incidents and may not be able to implement measures to defend such attacks. Furthermore, third -parry vendors may not notify us of such incidents
<br />timely or at all, making it more difficult for us to identify and mitigate cybersecurity risks. Although we devote resources to our cybersecurity programs and have implemented
<br />security measures to protect our assets, systems and data, there can be no assurance that our efforts will prevent these threats. Because the techniques used to obtain
<br />unauthorized access, to disable or degrade systems, and to generate cyberattacks change frequently, have become increasingly more sophisticated, and may be difficult to detect
<br />for periods of time, we may not anticipate these acts or respond adequately or timely.
<br />As these threats continue to evolve and increase, we may be required to devote significant additional resources in order to protect against these attacks and to identify and
<br />remediate any security vulnerabilities. To the extent that any attacks, disruptions or security breach results in a loss or damage to our data, or an inappropriate disclosure of
<br />information, or adversely impact the
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