Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Cost of goods sold for vehicle sales increased from $6,852,852 to $17,375,714, a significant rise.
  • Laws, rules, and regulations are evolving, posing risks to operations and business. This could lead to costly modifications and legal actions.
  • Gross profit increased by $2.8 million, from $1.5 million to $4.3 million.
  • Breaches in data security, cyberattacks, and privacy incidents could harm reputation and brand.
  • Selling and marketing expenses rose by $5.1 million, from $1.6 million to $6.7 million.
  • Noncompliance with anti-corruption, anti-bribery, and anti-money laundering laws may result in legal or regulatory actions.
  • General and administrative expenses increased by $17.9 million, from $15.8 million to $33.7 million.
  • Cybersecurity incidents may lead to financial losses, operational disruptions, and regulatory investigations.
  • Research and development expenses increased by $4.2 million, from $1.6 million to $6.8 million.
  • Changes in economic sanctions laws could impact business, investments, and cash flows.
  • Interest income rose by $5.3 million, from $0.8 million to $6.1 million.
  • Market perception, customer confidence, and investor trust could be negatively affected by security breaches.
  • Change in fair value of convertible promissory notes and derivative liability shifted from a loss of $37.8 million to an income of $0.08 million.
  • Changes in stock prices, dilution from additional shares, and analyst reports may impact shareholder value.

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=1707919&owner=exclude

Click here to download the PDF

This content requires a 'Free' membership to view. Please create one here.
This content requires a 'Free' membership to view. Please create one here.