Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Regained Nasdaq compliance after bid price closed below $1.00, affecting listing requirements.
  • The company may need to raise additional capital to grow its business and may not be able to do so on favorable terms. This could result in dilution of existing shareholders.
  • The company faces substantial doubt about its ability to continue as a going concern.
  • Issued additional 45,269 shares of Class A common stock in January 2024, totaling 549,285.
  • Registered up to 572,096 shares of Class A common stock for resale under the Equity Purchase Agreement.
  • The company agreed to purchase a parcel of land in Mississippi, providing 32.5 MW in additional mining capacity. This acquisition is crucial for the company's growth strategy.
  • The sale of the South Carolina Facility resulted in a gain of $8.2 million.
  • Entered into Equity Exchange Agreement issuing 180,000 shares of Class A common stock.
  • Registered up to 307,684 shares of Class A common stock for resale under non-qualified stock option grants.
  • The company experienced significant turnover in its senior management team, including the appointment of new executives. This turnover may create instability and impact day-to-day operations.
  • The number of miners deployed decreased from approximately 42,000 to 28,800.
  • Issued 450,300 shares of Class A common stock under the Armistice SPA in February 2024.
  • Registered up to 1,324,532 shares of Class A common stock for future awards under the Equity Incentive Plan.

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=1844971&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.