Old Market Capital (OMCC) Risk Analysis

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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.

Old Market Capital disclosed 10 risk factors in its most recent earnings report. Old Market Capital reported the most risks in the “Finance & Corporate” category.

Risk Overview Q3, 2025

Risk Distribution

40% Finance & Corporate

20% Legal & Regulatory

10% Tech & Innovation

10% Production

10% Ability to Sell

10% Macro & Political

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

This chart displays the stock's most recent risk distribution according to category. TipRanks has identified 6 major categories: Finance & corporate, legal & regulatory, macro & political, production, tech & innovation, and ability to sell.

Risk Change Over Time

2022

S&P500 Average

Sector Average

Risks removed

Risks added

Risks changed

Old Market Capital Risk Factors

New Risk (0)

Risk Changed (0)

Risk Removed (0)

No changes from previous report

The chart shows the number of risks a company has disclosed. You can compare this to the sector average or S&P 500 average.

The quarters shown in the chart are according to the calendar year (January to December). Businesses set their own financial calendar, known as a fiscal year. For example, Walmart ends their financial year at the end of January to accommodate the holiday season.

Risk Highlights Q3, 2025

Main Risk Category

Finance & Corporate

With 4 Risks

Finance & Corporate

With 4 Risks

Number of Disclosed Risks

No changes from last report

S&P 500 Average: 31

No changes from last report

S&P 500 Average: 31

Recent Changes

0Risks added

0Risks removed

0Risks changed

Since Sep 2025

0Risks added

0Risks removed

0Risks changed

Since Sep 2025

Number of Risk Changed

No changes from last report

S&P 500 Average: 1

No changes from last report

S&P 500 Average: 1

See the risk highlights of Old Market Capital in the last period.

Risk Word Cloud

The most common phrases about risk factors from the most recent report. Larger texts indicate more widely used phrases.

Risk Factors Full Breakdown - Total Risks 10

Finance & Corporate

Total Risks: 4/10 (40%)Below Sector Average

Accounting & Financial Operations1 | 10.0%

Accounting & Financial Operations - Risk 1

We may incur losses due to asset impairment charges related to goodwill and other intangible assets.

In addition to reviewing our investment securities for potential impairment, and as a result of the Amplex Acquisition, the addition of goodwill and intangible assets to our balance sheet we plan to conduct an annual goodwill impairment test, to be performed in the Company's fourth fiscal quarter annually. The recent review and subsequent valuation work performed by a third party as part of our purchase price allocation analysis for the Amplex Acquisition did not result in any impairment charges. However, we continue to monitor events or changes in circumstances that could indicate the need for an interim impairment test before our next annual review. For instance, a sustained period during which our market capitalization falls significantly below our book value could be an indicator that the fair value of one or more reporting units is less than its carrying amount. In such cases, we would be required to perform an impairment test under ASC 350, Goodwill and Other Intangible Assets. If impairment is confirmed and the presumption of fair value decline cannot be overcome, we would record a non-cash charge. Any such charge could materially and adversely affect our financial condition and results of operations.

Debt & Financing3 | 30.0%

Debt & Financing - Risk 1

Our ability to access capital may be limited.

Our access to equity and debt capital is influenced by factors largely outside our control, such as: - General economic, market, or industry conditions;- Market perceptions of our asset quality and growth potential;- Our current and projected earnings and shareholder distributions, and;- The market value of our securities. Should access to capital become constrained, we may need to rely more heavily on equity issuances, which could dilute existing shareholders, or on expensive debt financing that consumes a significant share of operating cash flow. We cannot guarantee that capital-whether equity or debt-will be available when needed or on favorable terms, if at all. A lack of access to adequate financing could negatively affect our operations, growth prospects, financial condition, and results of operations.

Debt & Financing - Risk 2

We may incur additional debt financing, which could impose restrictive covenants and materially affect our financial condition.

As of the date of this report, aside from borrowings by Amplex under the RUS loan program, we have not engaged in significant debt financing. However, if our operations expand and we reach higher levels of revenue and cash flow, we may choose to utilize debt to support acquisitions and operational needs. Subject to market conditions and capital availability, we or our subsidiaries could incur substantial debt through various instruments, such as credit facilities (including term loans and revolving credit lines), structured financings, or public or private debt offerings. Future debt arrangements may include restrictive covenants that limit our financial and operational flexibility. Non-compliance with these covenants could materially impact our ability to meet debt obligations and could have a significant adverse effect on our financial condition. Some of these arrangements may occur at the subsidiary level, but could also include parent-level guarantees or require pledging of substantially all assets of the Company or its subsidiaries. The amount of leverage we may use will depend on several factors, including acquisition and investment opportunities, available capital, access to credit markets, and our and our lenders' views on the stability of our cash flows. Our organizational documents impose no cap on the amount of debt we may incur, and we may substantially increase our leverage at any time without shareholder approval. Debt levels may vary across different assets and entities within our structure, with some subsidiaries carrying significantly higher leverage. While leverage can amplify returns, it also increases risk. Incurring substantial debt could expose us to risks that may materially and adversely impact our business, including: - Insufficient cash flow to meet principal and interest obligations or comply with debt covenants, potentially resulting in: oDebt acceleration and cross-defaults under related agreements;oInability to access additional credit, or;oForeclosure or forced sale of assets;- Heightened vulnerability to adverse economic, industry, or market conditions;- Reduced financial flexibility, as a significant portion of operating cash flow may be allocated to debt service rather than to operations, acquisitions, distributions, or other initiatives, or: - Inability to refinance maturing debt on favorable terms, if at all.

Debt & Financing - Risk 3

We may seek to raise additional equity capital through public or private offerings, which could significantly dilute your investment.

Future sales of our equity securities, whether through follow-on offerings, private placements, or equity awards under management's compensation plan, could result in material dilution to existing stockholders. We may require substantial additional capital to support our acquisition strategy and ongoing operations. There is no assurance that we will be able to raise such funds on favorable terms, or at all. Failure to secure needed capital on a timely basis could have a material adverse effect on our business. If we issue equity or convertible securities, including preferred stock, these securities may include voting rights, dividend and liquidation preferences, conversion or redemption features, and antidilution protections. Such issuances may reduce the ownership percentage of existing stockholders, negatively affect the market value of our stock, and potentially alter the rights of current holders. Additionally, the issuance or anticipated conversion of such securities could impair our ability to raise future capital on favorable terms, as holders may choose to convert when it is least advantageous for us to seek new financing.

Legal & Regulatory

Total Risks: 2/10 (20%)Above Sector Average

Regulation2 | 20.0%

Regulation - Risk 1

Amplex is subject to various federal, state and local laws and regulations.

Amplex is subject to various federal, state and local laws and regulations. In particular, the Communications Act of 1934, as amended (the "Communications Act") and Federal Communications Commission ("FCC") regulations and policies affect significant aspects of Amplex. Federal agencies are considering adopting new regulations for communications services, including broadband. States and localities are also increasingly proposing new regulations impacting communications services, including broader regulation of broadband networks. Any of these regulations could significantly affect the business, legal and compliance costs of Amplex. In addition, United States regulators and courts could adopt new interpretations of existing competition or antitrust laws or enact new competition or antitrust laws or regulatory tools that could negatively impact Amplex. Any future legislative, judicial, regulatory or administrative actions may adversely impact the Amplex business by increasing Amplex costs, increasing competition, or imposing additional restrictions on Amplex, some of which may be significant and/or limiting the ability of Amplex to offer services in a manner that would maximize its revenue potential. Legislative and regulatory changes have in the past, and could in the future, include, for example, the reclassification of Internet services as regulated telecommunications services or other utility-style regulation of Internet services; restrictions on how Amplex manages its Internet access services and networks; the adoption of new customer service or service quality requirements for Amplex Internet access services; the adoption of new privacy restrictions on the collection, use and disclosure of certain customer information by Amplex; new data security and cybersecurity mandates that could result in additional network and information security and cyber incident reporting requirements for Amplex; new restraints on the discretion of Amplex over programming decisions; new restrictions on the rates Amplex charges to consumers for one or more of the services or equipment options offered by Amplex; and increases in government-administered broadband subsidies to rural areas that could result in subsidized overbuilding of Amplex facilities. The broadband services of Amplex are subject to a number of regulations and commitments. The FCC frequently considers imposing new broadband-related regulations. States and localities also periodically consider new broadband-related regulations, including those regarding broadband affordability. New broadband regulations, if adopted, may have adverse effects on Amplex. Amplex may also become subject to additional broadband-related commitments as a condition of receiving federal or state broadband funding. The Company is unable to predict the outcome or effects of any of these potential actions or any other legislative or regulatory proposals on Amplex. Radio spectrum, both unlicensed and licensed, is critical to the operation of Amplex's fixed wireless network. FCC or Congressionally mandated changes to the operating regulations, forced relocations of existing licensed spectrum, and other regulatory changes may result in significant cost and/or loss of customers.

Regulation - Risk 2

Operating as a U.S. public company exposes us to increased costs and regulatory burdens.

As a publicly traded company in the United States, we face ongoing and significant expenses related to legal, accounting, insurance, and compliance obligations. These include costs associated with SEC reporting requirements, NASDAQ listing standards, and the Sarbanes-Oxley Act, as well as other corporate governance and regulatory frameworks. These requirements have increased steadily over time and are expected to continue doing so, resulting in higher compliance costs and more time-consuming administrative processes. Although the exact impact is difficult to quantify, we anticipate elevated spending in areas such as legal counsel, audit services, director and officer liability insurance, and internal controls. In some cases, obtaining adequate insurance coverage may become more difficult or costly, potentially requiring us to accept lower policy limits or pay higher premiums. These regulatory demands may also hinder our ability to attract and retain qualified directors, executive officers, and committee members.

Tech & Innovation

Total Risks: 1/10 (10%)Above Sector Average

Cyber Security1 | 10.0%

Cyber Security - Risk 1

Cybersecurity threats and IT system disruptions could significantly impact our business, financial condition, and operations.

OMCC and Amplex rely heavily on information technology systems to manage essential functions, including data management, communications, supply chain logistics, inventory, customer transactions, financial reporting, regulatory compliance, and human resources. Any disruption to these systems, whether due to internal failures, system upgrades, or transitions to new platforms could result in operational delays, transaction errors, data loss, and customer dissatisfaction. These disruptions could materially and adversely affect our business, prospects, financial results, condition, and cash flows as well as Amplex's. Our systems and Amplex's systems are also vulnerable to damage or interruption from events beyond our control, such as natural disasters, power outages, system failures, cyberattacks, security breaches, human error, and other unforeseen incidents. The shift to remote work has further increased exposure to these risks. In the event of serious disruption, we may be forced to invest heavily in system repairs or replacements and could face prolonged service outages. Additionally, OMCC and Amplex collect, store, and transmit confidential and personal information, including customer, employee, and vendor data. The secure transmission of this data, particularly through public networks and digital payment systems, is critical to our operations. A breach in our own systems, or those of third-party vendors who handle this data on our behalf, could result in: - Business disruptions;- Regulatory fines and penalties;- Legal liabilities and litigation;- Loss of customer trust and brand reputation; and/or - Substantial costs to investigate, remediate, and enhance cybersecurity infrastructure. These risks are compounded by the increasing frequency, sophistication, and evolving nature of cyber threats-including ransomware, phishing, password theft, social engineering, and malware. Attacks may go undetected for extended periods and lead to unauthorized access, disclosure, theft, or destruction of sensitive information. Despite our efforts to maintain robust cybersecurity measures, we cannot guarantee the security of our or Amplex's IT systems or those of our service providers. A successful cyberattack or data breach could have a material adverse effect on our operations, financial condition, and overall business performance.

Production

Total Risks: 1/10 (10%)Above Sector Average

Employment / Personnel1 | 10.0%

Employment / Personnel - Risk 1

We rely significantly on our executive leadership, and the loss or limited availability of key personnel could negatively impact our business.

Our success is highly dependent on the expertise, leadership, and continued service of our executive officers and senior management team, including our Chief Executive Officer (CEO), Chief Financial Officer (CFO), and the senior leadership of Amplex as our sole operating subsidiary. The unexpected departure, unavailability, or reduced involvement of any of these individuals could materially and adversely affect our operations, financial condition, and future prospects. The Company is focused on maximizing shareholder value and intentionally keeps corporate headcounts low and as efficient as possible to keep overhead costs down.

Ability to Sell

Total Risks: 1/10 (10%)Above Sector Average

Competition1 | 10.0%

Competition - Risk 1

Amplex operates in a highly competitive market, often against companies with significantly greater resources, and its inability to compete effectively could harm its business and reduce its market share.

Amplex's broadband services face strong competition from a range of technologies, including traditional cable and satellite services. Many of its competitors, particularly established cable and wireless providers possess substantially greater financial, marketing, and human resources than Amplex or we do. These advantages may enable such competitors to offer a broader array of products and services, invest more aggressively in customer acquisition, and retain existing customers more effectively. Additionally, emerging technologies could introduce new alternatives to the FTTH services Amplex currently offers, further intensifying competition. As Amplex pursues growth and expansion into new markets, Amplex may encounter entrenched incumbent providers with strong brand recognition and loyal customer bases. These incumbents may present significant barriers to entry, making it difficult for Amplex to gain the market share necessary to operate profitably in those areas. Failure of Amplex to compete successfully could adversely affect our business, financial performance, and long-term prospects.

Macro & Political

Total Risks: 1/10 (10%)Above Sector Average

Economy & Political Environment1 | 10.0%

Economy & Political Environment - Risk 1

Weak economic conditions may have a negative impact on Amplex.

Weak economic conditions may have a negative impact on Amplex. A substantial portion of Amplex's revenue comes from customers whose spending patterns may be affected by prevailing economic conditions. Weak economic conditions in the United States may affect demand for Amplex products and services and have a negative impact on its results of operations. For example, weak economic conditions will likely impact Amplex customers' discretionary spending and as a result, they may reduce the level of services to which they subscribe or may discontinue subscribing to one or more of the Amplex services altogether. This risk may be increased by the expanded availability of free or lower cost competitive services, such as certain streaming services, or substitute services for broadband and voice services, such as wireless and public Wi-Fi networks.

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.