Alkami Technology Inc (ALKT) has disclosed a new risk, in the Accounting & Financial Operations category.
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Alkami Technology Inc. faces a significant financial reporting risk due to the accounting treatment of its 2030 Convertible Notes. The notes are expected to be recorded as liabilities on the balance sheet, with issuance costs amortized as interest expense, potentially inflating reported losses. Moreover, the reclassification of these notes from long-term to current liabilities, triggered by certain conditions, could adversely impact the company’s reported working capital, even if the notes remain unconverted. This accounting approach may thus distort the company’s financial condition and results, posing a challenge for stakeholders assessing its financial health.
The average ALKT stock price target is $34.29, implying 69.00% upside potential.
To learn more about Alkami Technology Inc’s risk factors, click here.