Company: SRFM
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0000950170-25-043326
Chunk: 64

Company: SURF AIR MOBILITY INC.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 64
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 and market our fully-electric and hybrid-electric powertrains before the end of 2027. Moreover, unlike the market for electric automobiles, the commercialization of electric and hybrid-electric aircraft remains unproven. Although we believe that the component technology to electrify small aircraft exists today, there is currently no other producer of fully-electric or hybrid-electric aircraft in the industry. 

26

Any delay in the development, manufacture and launch of electrification technology could adversely affect our brand, operations and the delivery of our growth strategy, particularly if it results in a failure to expand our market share in the regional air mobility market as anticipated. Any such delays could require us to incur additional costs. Even if we and our third-party partners are successful in developing our fully-electric and hybrid-electric powertrains and reliably sourcing our component supply, we do not know whether we will be able to do so in a manner that avoids significant delays and cost overruns, including as a result of factors beyond our control such as problems with suppliers and vendors, force majeure events, delays in meeting commercialization schedules, or failure to satisfy the requirements of customers and potential customers. Any such failure could have a material adverse effect on our business, financial condition and results of operations. 

As a new entrant into the nascent market of hybrid-electric and battery electric aircraft, we anticipate that we will face risks and significant challenges that would impact our ability to, among other things: 

•design and produce safe, reliable and quality fully-electric and hybrid-electric powertrains on an ongoing basis; 

•obtain necessary regulatory approvals in a timely manner, or at all; 

•build a well-recognized and respected brand; 

•attract and maintain core commercial partnerships; 

•establish and expand our customer base; 

•successfully service our aircraft after sales and maintain a good flow of spare parts and customer goodwill; 

•improve and maintain our operational efficiency; 

•predict our future revenues and appropriately budget for our expenses; 

•attract, retain and motivate talented employees; 

•anticipate trends that may emerge and affect our business; 

•anticipate and adapt to changing market conditions, including technological developments and changes in our competitive landscape; and 

•navigate an evolving and complex regulatory environment. 

If we fail to adequately address any or all of these risks and challenges, our business, financial condition and results of operations may be materially and adversely affected.

Our competitors may commercialize their technology before us