Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • The merger with Redbox included the assumption of $359.9 million of debt.
  • Addition of penny stock rules disclosure due to common stock trading below $5, impacting liquidity.
  • Operating results post-acquisition have not met expectations, leading to an increasing number of defaults.
  • The termination, non-renewal, or renegotiation of contracts could negatively impact operations.
  • Series A Preferred Stock dividends suspended due to lack of surplus, reinstatement uncertain.
  • The level of indebtedness assumed in the Redbox acquisition has had a material adverse effect.
  • The company may need to seek protection under applicable bankruptcy laws due to financial challenges.
  • Delisting notice received in March 2024, pending appeal, may harm liquidity and stock value.
  • The inability to service debt has resulted in an accumulated deficit of approximately $247.88 million.
  • The company may not be able to fully realize the value of recent acquisitions.

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=1679063&owner=exclude

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