Company: IWSH
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001214659-25-004885
Chunk: 53

Company: Wright Investors Service Holdings, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 53
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Item 1A. Risk Factors.

RISK FACTORS

You should carefully consider the following risk factors relating to
our business and the additional information in our other reports that we file with the SEC.

The Company may be classified as an inadvertent investment company
if we acquire investment securities in excess of 40% of our total assets.

The Company is not engaged in the business of
investing, reinvesting, or trading in securities, and we do not hold ourselves out as being engaged in those activities. However, under
the Investment Company Act, a company may fall within the scope of being an “inadvertent investment company” under section
3(a)(1)(C) of such Act if the value of its investment securities (as defined in the Investment Company Act) is more than 40% of its total
assets (exclusive of government securities, and cash and certain cash equivalents).

If the Company was required to register as
an “investment company” under the Investment Company Act, applicable restrictions could make it impractical for the Company
to continue its business as contemplated and could have a material adverse effect on us.

The Investment Company Act and the rules thereunder
contain detailed requirements for the organization and operation of investment companies. If we were required to register under the Investment
Company Act, applicable restrictions and other requirements could have a material adverse effect on us. In the event that we were to be
required to register as an investment company under the Investment Company Act, we would be forced to comply with substantive requirements
under the Act, including:

    ●
    limitations on our ability to borrow;

    ●
    limitations on our capital structure;

    ●
    limitations on the issuance of debt and equity securities,

    ●
    restrictions on acquisitions of interests in partner companies;

    ●
    prohibitions on transactions with affiliates;

    ●
    prohibitions on the issuance of options and other limitations on our ability to compensate key employees;

    ●
    certain governance requirements,

    ●
    restrictions on specific investments; and

    ●
    reporting, record-keeping, voting and proxy disclosure requirements.

In the event that we were to be deemed to be an
investment company subject to registration as such under the Investment Company Act, compliance costs and burdens upon us may increase
and the additional requirements may constrain our ability to conduct business, which may adversely affect our business, results of operations
or financial condition.

The Company is a shell company under the federal securities laws.

The Company has no