Item 1A. Risk Factors
ITEM 1A.
RISK FACTORS
Our
business, financial condition, results of operations, and cash flows may be impacted by a number of factors, many of which are beyond
our control, including those set forth in our most recent Annual Report on Form 10-K and in our other filings with the SEC, the
occurrence of any one of which could have a material adverse effect on our actual results. There have been no material changes to the
Risk Factors previously disclosed in our Annual Report on Form 10-K and our other filings with the SEC, except as follows:
We
are in the process of moving an RPC from Vernal, Utah to Kuwait. If we are unable to complete this move or unable to properly refurbish
the RPC to operate in Kuwait we could incur substantial losses.
In
connection with our Services Agreement with Al Dali International for Gen. Trading & Cont. Co. (“DIC”), we are in the
process of relocating, refurbishing, and installing an RPC from Vernal, Utah to DIC’s location in Kuwait. The installation of this
RPC in Kuwait will allow us to perform our obligations under the Services Agreement. In the event we are unable to successfully transfer
the RPC to Kuwait and/or refurbish the RPC to operate in Kuwait we could incur substantial losses related to our loan with DIC and in
potentially moving the RPC to another location.
We
are building a new facility near Houston, Texas to place an RPC and perform wash plant services. If we are not successful in installing
our RPC and/or building out the wash plant facility we could incur substantial losses.
Under
our agreement with Maxus Capital Group, LLC (“Maxus”), we are building out a facility on land we lease near Houston, Texas
and are obligated to pay Maxus approximately $58,000 per month for four years In the event we are not able to place on RPC at the facility
and/or are unable to build out the facility to perform wash plant services, we could default on our obligation to Maxus, which could
cause us substantial losses
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4.
MINE SAFETY DISCLOSURES
Not
Applicable.
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