Beyond Meat (0Q30) Risk Analysis

Since our inception, substantially all of our resources have been dedicated to the development of our three core plant-based product platforms of beef, pork and poultry, including purchases of property, plant and equipment, principally to support the development and production of our products, the build-out and equipping of our former Manhattan Beach Project Innovation Center and our Innovation Center within our Campus Headquarters, and the purchase, build-out and equipping of manufacturing facilities in the U.S. and abroad. We have and believe that we will continue to expend resources as we expand into additional markets we may choose to pursue. These expenditures are expected to include costs associated with research and development, manufacturing and supply, as well as marketing and selling existing and new products. In addition, other unanticipated costs may arise. As of September 28, 2024, we had cash and cash equivalents and restricted cash of $134.9 million. In the near term, subject to our compliance with applicable laws, the applicable requirements of the New Equity Distribution Agreement and market conditions, we expect to raise additional capital through the issuance of equity securities under our New ATM Program by the end of 2024, which will result in additional dilution to our stockholders and may negatively impact the market price of our common stock. In addition, we continue to pursue alternatives to further bolster and restructure our balance sheet in 2025, through public or private equity or debt financings or other sources, including strategic collaborations. For example, on March 18, 2024, we filed the 2024 Shelf Registration Statement, which the SEC declared effective on April 12, 2024 and which replaced the 2023 Shelf Registration Statement. The 2024 Shelf Registration Statement allows us to sell, from time to time and at our discretion, Company securities having an aggregate offering price of up to $250.0 million including up to $200.0 million in shares of common stock that may be sold. Any issuance of equity or debt securities may be for cash or in exchange for our outstanding Notes, which could have a highly dilutive effect on current stockholders and could negatively affect the trading price of our common stock. In addition to resulting in additional dilution to our existing stockholders or negatively affecting the trading price of our common stock, any such potential financings may result in the imposition of debt covenants and repayment obligations, or other restrictions that may adversely affect our business. Furthermore, any such securities issued pursuant to potential financings may include rights that are senior to our shares of common stock. In addition, the capital markets may experience extreme volatility and disruption, including high interest rates in certain geographic regions and higher borrowing costs, which could adversely affect our liquidity and financial condition, including our ability to access the capital markets to raise capital and meet liquidity needs. We may be unable to raise additional capital for reasons including, without limitation, our operational and/or financial performance, investor confidence in us and the plant-based meat industry, credit availability from banks and other financial institutions and the status of current projects. If we cannot access the capital markets upon favorable terms or at all, it could adversely affect our business and financial position. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including, among others: demand in the plant-based meat category and for our products;our rate of revenue generation;the results of our review of our global operations and the successful implementation of our ongoing cost-reduction initiatives including our continued review of our operations in China, which may include scaling back or discontinuing some or all of our operations in China;timing to adjust our supply chain and cost structure in response to material fluctuations in product demand;the number and characteristics of any additional products or manufacturing processes we develop or acquire to serve new or existing markets;our investment in and build out of our Campus Headquarters, including the timing and success of subleasing, assigning or otherwise transferring excess space or negotiating a partial lease termination at our Campus Headquarters on terms advantageous to us or at all;the success of, and expenses associated with, our marketing initiatives;our investment in manufacturing and facilities to optimize our manufacturing and production capacity, including underutilization fees, termination fees and exit costs;our investments in real property and joint ventures;the costs required to fund domestic and international operations and growth;the scope, progress, results and costs of researching and developing future products or improvements to existing products or manufacturing processes;any lawsuits related to our products or commenced against us, including the class actions brought against us or the derivative actions brought against certain of our current and former directors and officers;the expenses needed to attract and retain skilled personnel;variations in product selling prices and costs;the timing and success of changes to our pricing architecture within certain channels including price increases of certain of our products in our U.S. retail and foodservice channels, and the mix of products sold;the level of trade and promotional spending to support our products appropriately;the expenses associated with our sales force; our management of accounts receivable, inventory, accounts payable and other working capital accounts;the impact of foreign currency exchange rate fluctuations on our cash balances;the costs associated with being a public company;the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing intellectual property claims, including litigation costs and the outcome of such litigation; and the timing, receipt and amount of sales of, or royalties on, any future approved products, if any. Additional funds may not be available when we need them, on terms that are favorable or acceptable to us, or at all. If adequate funds are not available to us on a timely basis, we may be required to: delay, limit, reduce or terminate our manufacturing, research and development activities; or delay, limit, reduce or terminate our establishment of sales and marketing capabilities or other activities that may be necessary to generate revenue and achieve profitability. There can be no assurance that we will be able to achieve our business plan objectives or be able to achieve or maintain cash-flow positive operating results. If we are unable to generate adequate funds from operations and/or raise sufficient additional funds, we may not be able to repay our existing debt, including the Notes, continue to operate our business, respond to competitive pressures or fund our operations. As a result, we may be required to significantly reduce, reorganize, discontinue or shut down our operations.