Risk Factors

Global Sports Inc.

Effective May 18, 2017.

The following Risk Factors are not intended as a substitute for professional legal, tax or financial advice. These Risks Factors are non-exhaustive and are intended to highlight certain risks that may be associated with funding Campaigns. Fundee Campaigns can be highly speculative and Funders should only Contribute what they can comfortably afford. In addition to these risks, Funders should carefully consider the specific Campaign they are considering Contributing to and associated risks disclosed by (the “Fundee”).

Funding startups and early stage concepts, prototypes and products is classified as high risk.

The Fundees management may be inexperienced and Funders may not be able to evaluate the Fundees operating history. Fundees may depend heavily upon a single customer, supplier, or employee whose departure would seriously damage their ability to produce or launch their product to market. The demand for the Fundees product may be seasonal or be impacted by the economy, or the Fundee could face other risks that are specific to the sector or product. The Fundee may struggle to compete against larger competitors who can negotiate for better prices from suppliers, produce goods quicker and on a large scale more economically, or take advantage of bigger budgets. Furthermore, a Fundee could face risks from lawsuits, governmental regulations, copyright infringement, and other potential impediments to manufacture and deliver their product to the Funder.

www.globalsportsfunds.com (the “Site“) has not been reviewed by any governmental agency and no state or federal agency has passed upon either the adequacy of the disclosure contained herein or the fairness of the terms of any Campaign. The exemptions relied upon for such Campaigns are significantly dependent upon the accuracy of the representations of the Fundees to be made to the Funders in connection with the Campaign.

The Fundee may have limited operating history.

The Fundees product may still be in an early concept or prototype phase. The likelihood of the success should be considered in light of the problems, expenses, difficulties, complications and delays usually encountered by Fundees in the early stages of development and manufacture, with low barriers to entry. The Fundee may not be successful in attaining the objectives necessary for it to overcome these risks and uncertainties.

The Fundee may need additional capital, which may not be available.

The Fundee may require additional capital in excess of Contributions from the Campaign to fund the development, manufacture and launch of the product.

If the Fundee is unable to obtain additional capital, they may not be able to manufacture the prototype or product. If the Fundee is unable to obtain additional capital, they could be forced to delay the development, manufacture and delivery of the product to the Funder and potentially cease operations.

The Fundee may have broad discretion in how they use the net Contributions of the Campaign. Unless the Fundee has agreed to a specific use of the Contributions from the Campaign. Funders may not have the opportunity, to assess whether the Contributions are being used appropriately.

The Fundee may face significant competition.

The Fundee may face competition from other companies, some of which might have received more funding. One or more of the Fundees competitors could offer products similar to those offered by the Fundee at significantly lower prices, which would cause downward pressure on the prices the Fundee would be able to charge for the product. If the Fundee is not able to charge the prices it anticipates charging for the product the Fundee may not be able to manufacture and deliver the product to the Funder as stated in the Campaign.

The Fundees success relies on market acceptance.

While the Fundee believes that there will be significant customer demand for its products, there is no assurance that there will be broad market acceptance of the Fundees product. There also may not be broad market acceptance of the Fundees product if its competitors offer a product which is preferred by prospective customers. In such event, the Fundee may not be able to manufacture and deliver the product to the Funder.

The Fundee is not subject to Sarbanes-Oxley Act (“SOX”) and may lack the financial controls and procedures of public companies.

The Fundee may not have the internal control infrastructure that would meet the standards of a public Company, including the requirements of the SOX Act of 2002. As a privately-held (non-public) Company, the Fundee is currently not subject to the SOX Act of 2002, and it’s financial and disclosure controls and procedures reflect its status as a development stage, non-public Company. There can be no guarantee that there are no significant deficiencies or material weaknesses in the quality of the Fundees financial and disclosure controls and procedures. If it were necessary to implement such financial and disclosure controls and procedures, the cost to the Fundee of such compliance could be substantial and could have a material adverse effect on the Fundees operating results.

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