Item 8.01 Other Events.
Due to the outbreak of a novel strain of coronavirus disease ("COVID-19"),
In
The Company derives its revenues from multiple industries deemed non-essential services under current definition including, but not limited to, cinematic releases, automobile offerings, and other discretionary products and services. As such and in response to the rapidly changing market, SITO has been focusing on providing its services to a number of new markets deemed essential and include take-out and delivery service staples. This urgent transition has strained the Company's resources and caused delays in its operations.
Moreover, SITO's customers and vendors have operations dependent on or located
in many of the worldwide affected areas where COVID-19 originated or where the
disease is prevalent. The Company's sales and customer interactions often are
conducted in person and COVID-19 is causing multiple disruptions to the conduct
of normal operations, including placing strain on the Company's workforce and
resources due to the restraints placed on
Based on the foregoing, the Company expects to file its Annual Report on or
around
The Company is supplementing its risk factors previously disclosed in the
Company's Annual Report on Form 10-K for the year ended
We face business disruption and related risks resulting from the recent outbreak of the novel coronavirus 2019 ("COVID-19"), which could have a material adverse effect on our business and results of operations.
Our business has experienced disruptions and been materially adversely affected
by the recent outbreak of COVID-19. An overall decline in the current domestic
economic outlook caused by COVID-19 has caused the Company to seek to capitalize
on potential markets to which it previously has not provided services. Our
actions are in response to a decrease in and postponement of certain in process
and pending sales orders. We can provide no assurance that we will succeed in
our efforts to replace fully a decrease in revenues caused by COVID-19 and its
impact on
Our business is dependent on our customers' planned marketing expenditures,
based on a demand perceived by and potential market for our customers' products
and services, many of which are discretionary in nature. Therefore, the spending
power and disposable income of
In addition, the continued spread of COVID-19 has led to severe disruption and volatility in the global capital markets, which could increase our cost of capital and adversely affect our ability to access the capital markets.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this report should be considered
forward-looking statements. These forward-looking statements may be identified
by words such as "may," "will," "expect," "intend," "anticipate," "believe,"
"estimate," "plan," "project," "could," "should," "would," "continue," "seek,"
"target," "guidance," "outlook," "if current trends continue," "optimistic,"
"forecast" and other similar words. Such statements include, but are not limited
to, statements about the Company's plans, objectives, expectations, intentions,
estimates and strategies for the future, and other statements that are not
historical facts. These forward-looking statements are based on the Company's
current objectives, beliefs and expectations, and they are subject to
significant risks and uncertainties that may cause actual results and financial
position and timing of certain events to differ materially from the information
in the forward-looking statements. These risks and uncertainties include, but
are not limited to, those set forth in the Company's Annual Report on Form 10-K
for the year ended
© Edgar Online, source