Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Incurred a net loss due to impairments of assets in 2023, totaling $1.3 billion.
  • Incurred net costs related to an incident of approximately $15 million for the year ended December 31, 2023.
  • Identified a ransomware event in February 2023, subject to ongoing cybersecurity threats.
  • Expects a negative impact on revenue for the future, with a minimum impact of at least $200 million.
  • Semiconductor revenue decreased by 28% in 2023, with a sequential decrease of 12% in 2022.
  • Previously identified material weakness in internal controls, now may discover additional weaknesses.
  • Sales to top ten customers decreased from 46% in 2020 to 42% in 2021.
  • Estimated net revenues reduced by approximately $200 to $250 million in 2023 due to BIS Rules.
  • The enactment of the Tax Cuts and Jobs Act significantly affected U.S. tax law.
  • Experienced a 28% decrease in semiconductor market revenue in 2023, following a 12% increase in 2022.
  • Ongoing geopolitical tensions and economic uncertainty could negatively affect business conditions and disrupt operations.
  • Net revenues from top ten customers decreased from 42% in 2022 to 30% in 2023.
  • Increased the USD Tranche B by $490 million and Euro Tranche B by €250 million in January 2024.
  • Recorded goodwill and intangible asset impairments of $1.8 billion in June 2023.

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=1049502&owner=exclude

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