Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Exceeding FDIC insurance limits may expose us to increased risk without private insurance. This change highlights potential financial vulnerability.
  • Failure to increase sales through strategic partners and manage associated costs could adversely affect business, financial position, and operating results. This change highlights revenue risk.
  • Revenue dependency on electronic payment transactions highlighted. Future acquisitions, partnerships, and alliances could disrupt business and dilute shareholder value.
  • Integrating the platform with strategic partners' systems and ongoing training for personnel may affect business, financial position, and operating results. This change highlights potential operational challenges.
  • Cybersecurity incident in April 2023 incurred $5.4 million in response costs. Insurance recoveries recorded at $1.7 million.
  • Seeking to mitigate risk by maintaining cash balances at large, well-capitalized financial institutions. This change enhances financial stability.
  • Monitoring financial institutions we conduct business with to mitigate risk. This change emphasizes risk management.
  • Potential insolvency or failure of strategic partners could negatively impact business and financial position. This change emphasizes partner risk.
  • Material weakness identified in internal controls over financial reporting as of December 31, 2022.UT:2023.UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:UT:
  • Closely monitoring the situation with strategic partners to mitigate risks. This change underscores the importance of partner relationships.

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=1858257&owner=exclude

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