Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Anticipate incurring additional losses until generating significant revenue increases or reducing operating costs. This may result in continued substantial expenses and doubts about the ability to continue as a going concern. The company had $9.2 million in cash, cash equivalents, and restricted cash as of December 31, 2023.
  • Provisions limit the opportunity for stockholders to receive a premium if a shareholder holds over 85%.
  • Estimate the total project cost for the Ohio farm, including construction, land, insurance, and ancillary costs, to be in the range of $485 million to $495 million, substantially above the previously disclosed estimate. This figure is subject to change as the design is finalized, bids from contractors are confirmed, and construction progresses.
  • The company elected to comply with scaled disclosure requirements. This may impact investor perception.
  • Recent increases in interest rates have raised the borrowing costs for the company, potentially impacting the ability to obtain necessary funds through debt financing. This could lead to delays in construction and financing, affecting the completion date, commercial stocking, and first sale of GE Atlantic salmon.
  • The company relies on exemptions and may continue to do so in the future.
  • Rising inflation rates could negatively impact revenues and profitability, particularly in the United States, due to recent price increases. The company may face challenges in managing production costs and timelines, affecting the harvest, sale, and delivery of salmon at a large commercial scale.
  • The company does not anticipate paying cash dividends, relying on stock appreciation for return.
  • The company may face liquidity concerns, defaults, or non-performance by financial institutions, impacting business, financial condition, or results of operations. Events involving limited liquidity, defaults, or non-performance could lead to market-wide liquidity problems, affecting the ability to finance operations.
  • The company's ability to maintain compliance with Nasdaq listing requirements is crucial. Failure to comply could lead to delisting, impairing liquidity for common stock and subjecting the company to additional trading restrictions.
  • Ineffective internal controls over financial reporting may result in inaccurate financial reporting, loss of credibility, and negative impacts on the trading price of common stock. This could affect the company's ability to raise additional funds and investor confidence.

Full Text Changes in Most Recent 10-K

Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.

To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1603978&owner=exclude

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