Company – Scrape Financial
Risk Factors Summary

Risk Factors Update Summary

  • Identified a material weakness in internal controls related to fair value calculation errors.
  • Need additional financing for business development, with a material weakness in internal controls.
  • Potential delisting from Nasdaq due to non-compliance with minimum bid price requirement.
  • Increased inflation by 3-5% affecting cultivation costs and financial performance.
  • Inventory write-down of $11,038 due to lower potency bulk flower inventory valuation.
  • Dependence on labor availability, particularly documented workers from Mexico, for operations.
  • Uncertainty in FDA regulations impacting CBD sales and potential negative impact on business.

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=1584549&owner=exclude

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