Question
please determine if this risk can impact the Budgeting and Standard Cost Systems and/or the Capital Investment Analysis, please describe what management could do to
please determine if this risk can impact the Budgeting and Standard Cost Systems and/or the Capital Investment Analysis, please describe what management could do to minimize the stated risk.
Risks Related to Our Common Stock 1. The market price of our common stock could be negatively affected by sales of substantial amounts of our common stock in the public markets. As of March 4, 2022, approximately 45% of our outstanding common stock is held by an affiliate of JAB and can be resold into the public markets in the future in accordance with the requirements of Rule 144. The sale by JABs affiliate of a substantial number of our shares, or a perception that such sales could occur, could significantly reduce the market price of our common stock. A decline in the price of our common stock might impede our ability to raise capital through the issuance of additional common stock or other equity securities.
2. We may be unable to pay dividends on our common stock. We intend to pay cash dividends on our common stock on a quarterly basis, subject to the discretion of our Board of Directors and our compliance with applicable law, and depending on our results of operations, capital requirements, financial condition, business prospects, contractual restrictions, restrictions imposed by applicable laws and other factors that our Board of Directors deems relevant. Our ability to pay dividends may also be restricted by the terms of our existing debt agreements, or any future debt or preferred equity securities. Our dividend policy entails certain risks and limitations, particularly with respect to our liquidity. By paying cash dividends rather than investing that cash in our business or repaying any outstanding debt, we risk, among other things, slowing the expansion of our business, having insufficient cash to fund our operations or make capital expenditures or limiting our ability to incur borrowings. Our Board of Directors will periodically review the cash generated from our business and the capital expenditures required to finance our growth plans and determine whether to modify the amount of regular dividends and/or declare any periodic special dividends. There can be no assurance that our Board of Directors will not adjust the amount or timing of regular cash dividends or cause us to cease paying dividends altogether.
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