Company: IWSH
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001214659-25-004885
Chunk: 54

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 54
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 or nominal operations. Pursuant
to Rule 405 of the Securities Act and Exchange Act Rule 12b-2, a shell company is defined as a registrant that has no or nominal
operations, and either:

    ●
    no or nominal assets;

    ●
    assets consisting solely of cash and cash equivalents; or

    ●
    assets consisting of any amount of cash and cash equivalents and nominal other assets.

Our Consolidated Balance Sheet reflects that our
assets consist primarily of cash and cash equivalents and investments in U.S. Treasury Bills and mutual funds. Accordingly, we are a shell
company. Applicable securities rules prohibit shell companies from using a Form S-8 registration statement to register securities pursuant
to employee compensation plans and from utilizing Form S-3 for the registration of securities for so long as the Company is a shell company
and for 12 months thereafter.

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Additionally, Form 8-K requires shell companies
to provide more detailed disclosure upon completion of a transaction that causes it to cease being a shell company. To the extent that
we acquire a business in the future, we must file a current report on Form 8-K containing the financial and other information required
in a registration statement on Form 10 within four business days following completion of such a transaction.

To assist the SEC in the identification of shell
companies, we are required to check a box on our quarterly reports on Form 10-Q and our annual reports on Form 10-K indicating that we
are a shell company.

Since we are required to comply with additional
disclosure because we are a shell company, we may be delayed in executing any mergers or acquiring other assets that would cause us to
cease being a shell company. In addition, under Rule 144 of the Securities Act, a holder of restricted securities of a “shell
company” is not allowed to resell their securities in reliance upon Rule 144. Preclusion from any prospective purchase using
the exemptions from registration afforded by Rule 144 may make it more difficult for us to sell equity securities in the future and
the inability to utilize registration statements on Forms S-8 and S-3 would likely increase our cost to register securities in the future.
Additionally, the loss of the use of Rule 144 and Forms S-3 and S-8 may make investments in our securities less attractive to investors
and may make the offering and sale of our securities to employees, directors and others under compensatory arrangements more