Risks & Risk Management

Gapwaves is influenced by a number of factors that can have a negative impact on the operations. It is therefore of great importance to consider relevant risks in parallel with the Company’s growth opportunities. Risk factors are described below, in no particular order and without claims to be comprehensive. For obvious reasons, risk factors should not be assessed without first conducting an overall evaluation of the Company’s operations, together with a general assessment of the environment.

Market and Customers

Gapwaves’ business areas have relatively few, but large, existing and potential customers. If any collaboration with these existing or potential customers were to cease, there is a risk that this could have a negative impact on our operations, financial position, and results. We are actively working to nurture and maintain our existing customer relationships and our focus is always on ensuring customer satisfaction. In addition, we are constantly seeking out relationships with new companies as well as new application areas where Gapwaves’ knowledge and technology can be applied.

Subcontractors

Gapwaves has an efficient organization, where parts of the production are outsourced and carried out against customer orders. This entails a dependence on subcontractors fulfilling their commitments. We work actively and long-term with several partners and reduce our supplier dependency through contact with multiple suppliers in important areas and in different geographies. High quality is always a priority in our supplier assessment.

Competition and IP

Gapwaves may be exposed to competition from several other companies with ventures in the same segment. A number of these companies may have greater financial resources than Gapwaves. We have a strong patent portfolio and continually work to advance this further in order to prevent IP infringement. Furthermore, we strive to quickly commercialize our products, gaining a competitive advantage by being early on the market.

Key personnel and Recruitment

Gapwaves is in an expansive phase, which means that the company is dependent on the ability to recruit, develop, and retain qualified employees. If the company cannot recruit the expertise needed, or at the rate required, there is a risk that development will not continue at the desired rate. We work actively to market Gapwaves as an attractive employer, where employees are given the opportunity to work with antenna technology at the forefront. In addition, we are collaborating with several Technical Universities.

Financing and capital needs

Gapwaves is financed through equity. Even if the company generates income, capital needs may arise as the company grows. In such a case, the company is also exposed to financing risks. If Gapwaves, in whole or in part, fails to raise sufficient capital, it could have a negative impact on the company’s operations and financial position. We continuously monitor our liquidity situation. Following the private placement carried out in 2021, Gapwaves has had a stable cash flow, and the management team therefore does not see any immediate liquidity needs.