Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Anticipate significant costs related to compliance with expanded climate-related disclosures requirements.
  • Changes in state laws and regulations for telehealth services could affect operations significantly.
  • Revenue growth rate has declined, with revenue decreasing from 80% to 72% year-over-year.
  • Revenue growth rate has declined, with a decrease from 80% to 72% in recent periods.
  • Increased oversight obligations on the Board of Directors due to expanded climate-related disclosures.
  • Expected benefits from restructuring efforts added, with a $1.5 million monetary settlement disclosed.
  • Increased oversight obligations on management and Board may impact operations and financial results.
  • The loss of large PBM partners could impact revenue, with the top 3 PBMs accounting for 32% of revenue in 2023.
  • Recent restructuring efforts aim to realize benefits, including workforce reductions and cost savings.
  • Recent workforce reductions and de-prioritization of solutions may lead to unintended consequences.
  • Debt outstanding decreased from $667 million to $661 million under a term credit facility.
  • Increased scrutiny on ESG matters may lead to higher costs and potential activism impacts.
  • Potential impact on business from activism related to ESG matters, leading to increased costs.
  • Historical revenue derived from prescription transactions, representing 73% of revenue in 2023.
  • Reduction in workforce undertaken, affecting employees and de-prioritizing certain solutions under pharma manufacturer solutions.
  • Changes in senior management roles, including the appointment of an Interim CEO, may impact business continuity.
  • Changes in revenue sources, with revenue from prescription transactions representing 73%, 72%, and 80% in 2023, 2022, and 2021, respectively.
  • Transition in senior management roles, with Co-CEOs transitioning and an Interim CEO appointed.
  • Increased focus on AI and machine learning, with potential challenges in managing their use.
  • Regulatory enforcement proceedings and inquiries may lead to litigation, settlements, or enforcement actions.

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=1809519&owner=exclude

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