Financial Performance and Challenges - New Horizon has incurred significant losses and expects to continue facing substantial expenses and losses for the foreseeable future, with no assurance of achieving profitability[25]. - The company has a limited operating history, which presents significant challenges in developing, certifying, and manufacturing its aircraft[25]. Product Development and Market Potential - The Cavorite X7 eVTOL aircraft remains in development, with no expected deliveries until 2027 at the earliest[25]. - The Regional Air Mobility market for eVTOL services does not currently exist, and its future growth potential is uncertain[25]. Competition and Market Position - The company faces intense competition in the Regional Air Mobility market, which may hinder its ability to compete effectively[22]. Regulatory and Operational Risks - New Horizon relies on third-party suppliers for key technologies, including lithium-ion batteries, which may pose risks if these suppliers are limited or single-source[30]. - The company is subject to substantial regulation, and any unfavorable changes or non-compliance could significantly harm its business[25]. - New Horizon's operational and financial systems need improvement to support expected growth, and failure to do so may adversely affect billing and reporting[30]. Transition to Public Company - New Horizon's management team may face difficulties in managing the transition to being a public company, which could impact its operations[30]. - New Horizon's financial statements will be prepared on a consolidated basis with Legacy Horizon's financials starting from the Closing Date of the Business Combination[14].
Pono Capital Three(PTHR) - 2023 Q4 - Annual Report