Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Largest shareholder and senior lender holds 93% of debt instruments and 26% of common stock.
  • Our success and longevity now depend on generating profits from future operations and obtaining sufficient capital through transactions to refinance debt obligations, pay contingent consideration, and meet other business obligations.
  • Received unsolicited proposals from Pegasus Capital Advisors at $0.83 and $2.85 per share.
  • The variable sales cycle of some industries could lead to delays in receiving customer orders, especially during economic downturns.
  • Company effectuated a one-for-three reverse stock split to regain compliance with the Minimum Bid Price Requirement.
  • Sales of a substantial number of shares of our common stock in the public market by certain shareholders could cause our stock price to fall.
  • The costs of hardware products have begun to reduce, with hardware sales and support services revenues fluctuating throughout 2021 and the first half of 2022.
  • We are subject to regulation by various federal agencies, and competition in the digital signage software industry is expected to increase.
  • Our business may be adversely affected by malicious applications, and the market for interactive marketing technologies is highly competitive.
  • Our industry is characterized by frequent technological change, and failure to adapt may result in loss of market share.

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=1356093&owner=exclude

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