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Bespoke Extracts (BSPK) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Bespoke Extracts disclosed 32 risk factors in its most recent earnings report. Bespoke Extracts reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2023

Source: the company's latest filing for the period ended Dec 31, 2023, filed Apr 18, 2024

Risk Distribution
32Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Bespoke Extracts disclosed risks per quarterNo. of Risks32Q4Showing: Q4, 2023
Risks removedRisks addedRisks changedBespoke Extracts Risk Factors
  • Accounting & Financial Operations - Risk 1
    We have a history of operating losses, have a working capital deficit as of December 31, 2023, and we may not achieve or maintain profitability in the future.

    As of December 31, 2023, we have an accumulated deficit of $25,366,641, a stockholders' deficit of $1,724,557, and a working capital deficit of $997,118. We incurred a net loss of $1,482,843 for the year ended December 31, 2023. We may never achieve profitability or generate significant revenues.

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Risk Highlights Q4, 2023

Main Risk Category
Finance & Corporate
With 14 Risks
Number of Disclosed Risks
32
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
2Risks changed
Since Dec 2023
Number of Risk Changed
2
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

we are required to comply concurrently with federal, state and local laws in each jurisdiction where we operate or to which we sell our products.required to comply concurrentlyfailure to achieve and maintain internal controls in accordance with sections 302 and 404 of the sarbanes-oxley act of 2002 could have a material adverse effect on our business and stock price.sarbanes-oxley act of 2002additional stock offerings in the future may dilute then-existing shareholders' percentage ownership of the company.dilute then-existing shareholdersour chief executive officer beneficially owns the majority of the voting power of our shareholders.voting power of our shareholdersthe rights of the holders of common stock may be impaired by the potential issuance of preferred stock.potential issuance of preferred stockbusinesses involved in the cannabis industry, and investments in such businesses, are subject to a variety of laws and regulations related to money laundering, financial recordkeeping and proceeds of crimes.regulations related to money launderingwe may have difficulties managing our company's growth, which could lead to higher operating losses, or we may not grow at all.lead to higher operating lossesour operating results may fluctuate significantly based on customer acceptance of our products. as a result our period-to-period comparisons of our results of operations are unlikely to provide a good indication of our future performance.customer acceptance of our productswe do not intend to pay dividends on our common stock for the foreseeable future.intend to pay dividendswe have a history of operating losses, have a working capital deficit as of december 31, 2023, and we may not achieve or maintain profitability in the future.history of operating losses

Risk Factors Full Breakdown - Total Risks 32

Share Price & Shareholder Rights6 | 18.8%
  • Share Price & Shareholder Rights - Risk 1
    Our common stock is considered a "penny stock" and is subject to additional sale and trading regulations that may make it more difficult to buy or sell.

    Our common stock is considered a "penny stock" and securities broker-dealers participating in sales of our common stock are subject to the "penny stock" regulations set forth in Rules 15g-2 through 15g-9 promulgated under the Exchange Act. Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

  • Share Price & Shareholder Rights - Risk 2
    The market price of our common stock is, and is likely to continue to be, highly volatile and subject to wide fluctuations.

    The market price of our common stock is highly volatile and could be subject to wide fluctuations in response to a number of factors that are beyond our control, including: - variations in our quarterly operating results;- announcements that our revenue or income are below analysts' expectations;- general economic slowdowns;- sales of large blocks of our common stock; and - announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments.

  • Share Price & Shareholder Rights - Risk 3
    There is a limited trading market for our common stock, and investors may find it difficult to buy and sell our shares.

    Our common stock is not listed on any national securities exchange. Accordingly, investors may find it more difficult to buy and sell our shares than if our common stock was traded on an exchange. Although our common stock is quoted on the OTCQB, it is an unorganized, inter-dealer, over-the-counter market which provides significantly less liquidity than the Nasdaq Capital Market or other national securities exchange. Further, any significant trading volume in our common stock may not be sustained. These factors may have an adverse impact on the trading and price of our common stock.

  • Share Price & Shareholder Rights - Risk 4
    The rights of the holders of common stock may be impaired by the potential issuance of preferred stock.

    Our board of directors has the right, without stockholder approval, to issue preferred stock with voting, dividend, conversion, liquidation or other rights which could adversely affect the voting power and equity interest of the holders of common stock, which could be issued with the right to more than one vote per share, and could be utilized as a method of discouraging, delaying or preventing a change of control. The possible negative impact on takeover attempts could adversely affect the price of our common stock.

  • Share Price & Shareholder Rights - Risk 5
    Additional stock offerings in the future may dilute then-existing shareholders' percentage ownership of the Company.

    Given our plans and expectations that we will need additional capital and personnel, we anticipate that will need to issue additional shares of common stock or securities convertible or exercisable for shares of common stock, which may include including convertible notes, preferred stock, stock options or warrants. The issuance of additional securities in the future will dilute the percentage ownership of then-current stockholders.

  • Share Price & Shareholder Rights - Risk 6
    Our chief executive officer beneficially owns the majority of the voting power of our shareholders.

    As the managing member of the holder of our outstanding share of Series C Preferred Stock, our chief executive officer, Michael Feinsod, has 51% of the voting power of the Company's shareholders.  As a result, Mr. Feinsod has the ability to control all matters submitted to shareholders, and his interests may differ from those of other shareholders.

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.