Business description of Cactus-Inc

demand for our products and services, which is affected by, among other things, changes in the price of, and demand for, crude oil and natural gas in domestic and international markets;

the level of growth in number of rigs, pad sizes, well spacings and associated well count and lack of takeaway capacity in areas such as the Permian Basin;

the level of fracturing activity;

the size and timing of orders;

availability of raw materials;

transportation differentials associated with reduced capacity in and out of the storage hub in Cushing, Oklahoma;

expectations regarding raw materials, overhead and operating costs and margins;

availability of skilled and qualified workers;

potential liabilities such as warranty and product liability claims arising out of the installation, use or misuse of our products;

the possibility of cancellation of orders;

our business strategy;

our financial strategy, operating cash flows, liquidity and capital required for our business;

our future revenue, income and operating performance;

the termination of relationships with major customers or suppliers;

laws and regulations, including environmental regulations, that may increase our costs, limit the demand for our products and services or restrict our operations;

disruptions in the political, regulatory, economic and social conditions domestically or internationally;

increased import tariffs assessed on products from China or imported raw materials used in the manufacture of our goods in the United States;

the significance of future liabilities under the Tax Receivable Agreement (the “TRA”) we entered into with certain current or past direct and indirect owners of Cactus LLC (the “TRA Holders”) in connection with our IPO;

a failure of our information technology infrastructure or any significant breach of security;

potential uninsured claims and litigation against us;

our dependence on the continuing services of certain of our key managers and employees; and

plans, objectives, expectations and intentions contained in this Annual Report that are not historical.

iii

provide an auditor’s attestation report on management’s assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes‑Oxley Act of 2002;

comply with any new requirements adopted by the Public Company Accounting Oversight Board (the “PCAOB”) requiring mandatory audit firm rotation or a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer;

provide certain disclosure regarding executive compensation required of larger public companies or hold shareholder advisory votes on the executive compensation required by the Dodd‑Frank Wall Street Reform and Consumer Protection Act (the “Dodd‑Frank Act”); or

obtain shareholder approval of any golden parachute payments not previously approved.

last day of the fiscal year in which we have $1.07 billion or more in annual revenues;

date (after being subject to Section 13(a) or Section 15(d) of the Exchange Act for a period of at least twelve calendar months) on which we become a “large accelerated filer” (the fiscal year‑end on which the total market value of our common equity securities held by non‑affiliates is $700 million or more as of June 30);

date on which we issue more than $1.0 billion of non‑convertible debt over a three‑year period; or

last day of the fiscal year following the fifth anniversary of our initial public offering.

Business description of Cactus-Inc from last 10-k form