Risk Factors Update Summary
- The Company granted 50,000 RSUs to each executive officer, effective January 1, 2023.
- Shifts in Ethereum block building landscape could increase competition, erode market share, and revenue potential.
- The Company received shareholder approval to increase authorized common stock shares from 97,000 to 975,000.
- Risk of denial of service attacks on StakeSeeker platform, potentially impacting business operations.
- The Company had accrued expenses of $295,935 for compensation and related expenses as of December 31, 2023.
- Net proceeds from issuance of common stock decreased by $439,537 from $3,014,005 to $2,574,468.
- Change in reporting year from 2023 to 2024 may impact investor expectations and planning.
- StakeSeeker platform development faces substantial doubt, may not generate material revenues. Development requires significant time and capital.
- Loss of revenues possible from excessive removal of delegated crypto assets from validator nodes.
- The Board adopted a clawback policy to recoup excess incentive compensation earned by executive officers.
- The Company had net operating loss carryforwards of $25,753,000 for federal and state tax purposes.
- Cash decreased by $688,456 from $745,916 to $57,460.
- Dependence on successful efforts of employees for StakeSeeker and ChainQ platform development.
- The Company amended its Articles of Incorporation to increase authorized shares of common stock.
- Technical failures, bugs, or vulnerabilities in block builder software could lead to operational disruptions and financial losses.
- Compliance challenges due to pseudonymous nature of crypto assets activities, may increase difficulties.
- Addition of Series V Preferred Stock to risk factors increases complexity of capital structure.
- Beneficial conversion feature of Series C-2 convertible preferred stock decreased by $461,350 from $1,000,000 to $538,650.
- The Board approved an annual performance payout of $705,061 for executives, paid in stock and cash.
- Change in certification date from March 31, 2023, to March 21, 2024, may indicate timing differences.
- Distribution of Series C-2 Preferred Stock increased by 26,343 shares from 6,216 to 32,559.
- Change in certification signatory from Charles Allen to Michael Prevoznik may reflect organizational shifts.
- StakeSeeker platform now offers Staking-as-a-Service (StaaS) business, aiming for scalable revenue growth.
- The Company now operates validator nodes on DPoS and PoS blockchain networks, expanding its blockchain infrastructure.
- The Company introduced "Builder+" for Ethereum block building, aiming to maximize validator earnings.
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=1436229&owner=exclude
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