Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
Factors
that could cause or contribute to differences in our future
financial and operating results include those discussed in the risk
factors set forth in Item 1A of our Annual Report on Form 10-K for
the year ended March 31, 2020. The risks described in our Form 10-K
and this Report are not the only risks that we face. Additional
risks not presently known to us or that we do not currently
consider significant may also have an adverse effect on the
Company. If any of the risks actually occur, our business, results
of operations, cash flows or financial condition could
suffer.
 
There
have been no material changes to the risk factors set forth in Item
1A of our Annual Report on Form 10-K for the year ended March 31,
2020, filed with SEC on June 26, 2020, other than the
following:
 
Our
purchase of the assets from VeroBlue Farms USA will require us to
devote a significant amount of attention to that operation and will
require further investment to develop such assets.
 
On
December 15, 2020, we entered into an Asset Purchase Agreement
(“APA”) between VeroBlue Farms USA, Inc., a Nevada
corporation (“VBF”), VBF Transport, Inc., a Delaware
corporation (“Transport”), and Iowa’s First,
Inc., an Iowa corporation (“Iowa’s First”) (each
a “Seller” and collectively, “Sellers”).
The agreement called for us to purchase all of the tangible assets
of VBF, the motor vehicles of Transport and the real property
(together with all plants, buildings, structures, fixtures,
fittings, systems and other improvements located on such real
property) of Iowa’s First. The facility was originally
designed for the growth of barramundi fish, but the company never
began production and declared bankruptcy on September 21, 2018. Our
plan is to begin a modification process to convert the plant to
produce shrimp. The three Iowa facilities contain the tanks and
infrastructure that will be used to support the production of
shrimp with the incorporation of the Company's patented EC platform
technology. The Company also plans to convert additional square
footage currently used as storage to a shrimp processing plant.
Final plans and decisions related to this project continue to be
developed and we can provide no assurance that we will be able to
provide the time and additional resources to further such
development.
 
We
face risks related to Novel Coronavirus (COVID-19) which could
significantly disrupt our research and development, operations,
sales, and financial results.
 
Our
business could be adversely impacted by the effects of the Novel
Coronavirus (COVID-19). In addition to global macroeconomic
effects, the COVID-19 outbreak and any other related adverse public
health developments could cause disruption to our operations and
manufacturing activities. Our third-party equipment manufacturers,
third-party raw material suppliers, and consultants have been and
will be disrupted by worker absenteeism, quarantines and
restrictions on employees’ ability to work, office and
factory closures, disruptions to ports and other shipping
infrastructure, border closures, or other travel or health-related
restrictions which could adversely affect our business and
operations. In addition, we have experienced and will experience
disruptions to our business operations resulting from quarantines,
self-isolations, or other movement and restrictions on the ability
of our employees to perform their jobs that may impact our ability
to develop and design our products and services in a timely manner
or meet required milestones.
 
 
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