Firefly Aerospace Inc. Common Stock

Customer and revenue · Changing customer preferences and behavior

The cyclical nature of the launch services and spacecraft solutions and services markets could negatively impact our ability to accurately forecast customer demand. The markets that we serve may not grow in the future and we may not be able to maintain adequate gross margins or profits in these markets.

Market position and competition · Competitive pressure and market share loss

We face significant competition. We operate in the highly competitive global space industry, which has been more competitive recently, given the increased focus of the U.S. presidential administration on human missions to space. Many of our current and potential competitors are larger and have substantially greater financial or other resources than we currently have or expect to have in the future.

Innovation and product development · Time to market and commercialization risks

Any inability to finalize the development and delivery of Eclipse could adversely impact our business, financial condition, and results of operations. The success of the development and delivery of Eclipse is dependent on our combined performance with Northrop Grumman.

Core operations · Safety incidents and operational accidents

We routinely conduct hazardous operations in manufacturing, test, and launch of our launch systems, space products and various subsystems, which could result in damage to property or persons. The release, unplanned ignition, explosion, or improper handling of dangerous materials used in our business could disrupt our operations and adversely affect our financial results.

Human capital and workforce · Skills shortage and training requirements

We depend on our ability to recruit and retain employees who have advanced engineering and technical services skills and who work well with our customers. These employees are in great demand and are likely to remain a limited resource in the foreseeable future.

Corporate governance · Internal controls and risk management

We previously identified a material weakness in our internal control over financial reporting related to our controls around the accounting for certain complex transactions that were not effectively designed or maintained. Although we have remediated this material weakness, we may identify additional material weaknesses or other deficiencies in the future or otherwise fail to maintain an effective system of internal control.

Corporate governance · Board composition and independence

We are a controlled company within the meaning of the Nasdaq rules and we rely on exemptions from certain corporate governance requirements. As a result, we may not have a majority of independent directors and our nominating and corporate governance committee and compensation committee may not consist entirely of independent directors.

Organizational and management · Leadership and management changes

A significant portion of our management team has limited experience managing a public company. Most members of our management team have limited experience managing a publicly traded company, interacting with public company investors, and complying with the increasingly complex laws pertaining to public companies.

Stakeholder relations · Customer satisfaction and loyalty

If we fail to deliver software that meets our customers' demands they may not renew or extend their contracts with us. There can be no assurances that we will be able to renew or obtain additional contracts (on the same or better terms, or at all) to replace any revenue lost upon the expiration or completion of any particular contract.

Corporate governance · Ethics and compliance culture

Misconduct of employees, subcontractors, agents, suppliers, business partners, or joint ventures and others working on our behalf could cause us to lose existing contracts or customers and adversely affect our ability to obtain new contracts and customers and could have a material adverse impact on our reputation, business, financial condition, and results of operations.

International and currency · Foreign exchange and currency exposure

As we expand internationally, we are subject to additional risks related to doing international business, including foreign currency fluctuations, which could result in increased operating expenses and reduced revenue.

Credit and liquidity · Liquidity and cash flow constraints

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. Our ability to make scheduled principal and interest payments on or refinance our debt obligations depends on our financial condition and operating performance.

Technology infrastructure · Technology systems and infrastructure failure

Our operations are dependent on our ability to protect our employees, business systems, manufacturing capabilities, information systems, classified information, controlled unclassified information, computer equipment and information databases from system failures or malicious acts. If our main data center were to fail, or if we were to suffer an interruption or degradation of services at our main data center, we could lose important manufacturing and technical data, which could harm our business.

Digital transformation and innovation · Technology obsolescence and evolution

If we do not continue to develop, manufacture, and market innovative technologies or applications that meet customers' requirements, sales may suffer, and our business may not continue to grow in line with historical rates or at all.

Geopolitical and trade · Political instability and government changes

Uncertain global macro-economic and political conditions could materially adversely affect our results of operations and financial condition. The instability in the geopolitical environment in many parts of the world (including as a result of the ongoing Russia and Ukraine war, conflict in the Middle East, China-Taiwan relations, and conditions in Latin America) may continue to put pressure on global economic conditions.

Economic and market conditions · Inflation and deflation pressures

Our results of operations and growth prospects are materially affected by economic and political conditions in the United States and internationally, including inflation, deflation, interest rates, recession or fears of recession, availability of capital, energy and commodity prices.

Geopolitical and trade · Government funding and budget changes

Disruptions in U.S. government operations and funding could have a material adverse effect on our revenues, earnings, and cash flows. A prolonged failure to maintain significant U.S. government operations particularly those pertaining to our business, could have a material adverse effect on our revenues, earnings, and cash flows.

Economic and market conditions · Market volatility and financial crises

Volatility in equity capital markets may adversely affect the market price of our common stock, which may affect our ability to fund our business through the sale of equity securities and retain key employees through our equity compensation plans.

Legal and litigation · Product liability and warranty claims

Our business involves significant risks and uncertainties that may not be covered by insurance. Although there have been and will continue to be technological advances in spaceflight, it is still an inherently dangerous activity. If such incident should occur, we will likely experience a total loss of our systems, products, technologies and services, and our payloads and payloads of our customers.

Industry regulation · Safety and environmental regulations

Environmental matters, including costs associated with compliance and remediation efforts and government and third-party claims, could have a material adverse effect on our reputation and our business, financial condition, and results of operations. Our operations are subject to and affected by various federal, state, local, and foreign environmental laws, and regulations.