Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Recently, significant volatility in financial institutions occurred, with SVB and Signature Bank going into receivership.
  • Net loss increased from $169.9 million in 2021 to $720.2 million in 2023.
  • Potential delisting from NYSE due to non-compliance with Section 802.01C and subsequent volatility.
  • Increases in interest rates from 4.25% to 5% could lead to a decline in mortgage origination activity.
  • Accumulated deficit rose from $442.8 million in 2021 to $1,341.9 million in 2023.
  • Research and development tax credits carryforwards increased from $16.3 million to $21.8 million.
  • Expansion of title insurance regulatory framework to include Florida may expose us to new risks.
  • Mortgage originations declined by 68.0% in 2023, impacting revenue driven by mortgage transactions.
  • Revenue from the Blend Platform segment declined by 10% year-over-year, from $121.6 million to $109 million.
  • Increase in pending trademark applications from the U.S. to Canada and the European Union.
  • Reduction in voting power of Mr. Ghamsari from 65% to 62% as of December 31, 2023.

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=1855747&owner=exclude

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