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standards.  Tax  authorities  may  take  inconsistent  positions  regarding  the  application  of  the  arm’s-length 
principle, the characterization or valuation of our intellectual property, or the pricing of intercompany services 
and other transactions. If a tax authority successfully challenges our transfer pricing or the allocation of income 
and expenses among jurisdictions, we could be required to reallocate income or pay additional taxes, interest, 
and penalties. If the jurisdiction from which income is reallocated does not agree with the adjustment, we could 
also be subject to double taxation. In addition, certain of our cross-border contracting arrangements, including 
infrastructure-related agreements entered into by U.S. entities pending the formation of local subsidiaries, may 
give  rise  to  non-recoverable  value-added  or  similar  indirect  taxes  or  other  tax  costs,  which  could  be  material 
depending on the jurisdiction.

Although  we  believe  our  tax  positions  are  reasonable,  our  tax  reserves  are  adequate,  and  our  transfer  pricing 
practices  reflect  arm’s-length  terms,  tax  authorities  may  disagree  with  our  assumptions,  judgments,  and 
estimates.  If  a  tax  authority  were  to  prevail  in  asserting  that  our  intercompany  arrangements  do  not  satisfy 
applicable transfer pricing requirements, we could be required to pay additional taxes, interest, and penalties 
that  exceed  our  reserves.  Such  an  outcome  could  increase  our  effective  tax  rate,  reduce  our  cash  flows,  and 
adversely affect our ability to achieve and sustain profitability.

If our judgments or estimates relating to our critical accounting policies prove to be incorrect, 
our results of operations may be adversely affected.

The preparation of financial statements in conformity with GAAP requires management to make judgments in 
applying our accounting policies and to make estimates and assumptions that affect the amounts reported on 
our  consolidated  financial  statements  and  accompanying  notes.  We  base  our  estimates  in  part  on  historical 
experience,  market  observable  inputs,  if  available,  and  various  other  assumptions  that  we  believe  to  be 
reasonable under the circumstances, as provided in the section titled “Management’s Discussion and Analysis 
of  Financial  Condition  and  Results  of  Operations—Critical  Accounting  Estimates.”  Significant  accounting 
policies, estimates, and assumptions used in preparing our consolidated financial statements include, but are 
not  limited  to,  revenue  recognition,  stock-based  compensation,  common  stock  valuations,  fair  value  of 
convertible notes, derivative liabilities, and SAFEs, leases, income taxes, and loss contingencies. In addition, we 
engage in complex and novel transactions and may be required to consolidate certain assets or entities on our 
financial  statements,  which  may  involve  significant  judgment  and  could  result  in  volatility  in  our  reported 
results of operations. Our results of operations may be adversely affected if our assumptions change or if actual 
circumstances differ from those in our assumptions, which may cause our results of operations to fall below the 
expectations of securities analysts and investors and cause a decline in the market price of our Class A common 
stock.

If  we  fail  to  maintain  an  effective  system  of  disclosure  controls  and  internal  control  over 
financial reporting, our ability to produce timely and accurate financial statements or comply 
with  applicable  regulations  may  be  impaired,  which  may  adversely  affect  our  business, 
financial condition, and results of operations.

As a public company, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley 
Act,  and  the  listing  standards  of  the  Nasdaq  Global  Select  Market.  The  Sarbanes-Oxley  Act  and  related 
Exchange Act rules require, among other things, that we maintain effective disclosure controls and procedures 
and internal control over financial reporting. We are continuing to develop and refine our disclosure controls 
and other procedures that are designed to assure that information required to be disclosed by us in the reports 
that  we  will  file  with  the  SEC  is  recorded,  processed,  summarized,  and  reported  within  the  time  periods 
specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange 
Act is accumulated and communicated to management, including our principal executive and financial officers, 
to  allow  timely  decisions  regarding  disclosure.  We  are  also  continuing  to  improve  our  internal  control  over 
financial reporting. We have expended, and anticipate that we will continue to expend, significant resources to 
maintain  and  improve  the  effectiveness  of  our  disclosure  controls  and  procedures  and  internal  control  over 
financial reporting.

Our current controls and any new controls that we develop may become inadequate because of changes in the 
conditions in our business. Further, weaknesses in our disclosure controls, procedures, or internal control over 
financial reporting may be discovered in the future. Any failure to develop or maintain effective controls, or any 
difficulties encountered in their implementation or improvement, may adversely affect our results of operations 

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