Company: MSTR
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0000950170-25-063536
Chunk: 3

Company: Strategy Inc
Filing Date: 2025-05-05
Form: 10-Q
Item: Item 1A
Chunk 3
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 deferred tax balances and net income for the period in which any adjustment to our net deferred tax asset valuation allowance may be made; and

•increases or decreases in our unrecognized tax benefits. 

Limited Ability to Adjust Expenses. We base our operating expense budgets on expected revenue trends and strategic objectives. Many of our expenses, such as interest expense on our debt, dividend obligations on our preferred stock, tax liabilities, office leases and certain personnel costs, are relatively fixed. We may be unable to adjust spending quickly enough to offset any unexpected shortfall in our cash flow. Accordingly, we may be required to take actions to pay expenses, such as selling bitcoin or using proceeds from equity or debt financings, some of which could cause significant variation in operating results in any quarter.

Based on the above factors, we believe quarter-to-quarter comparisons of our operating results are not a good indication of our future performance. It is possible that in one or more future quarters, our operating results may be below the expectations of public market analysts and investors. In that event, the market price of our listed securities may fall.