Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 13

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 13
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 2025, the Company had committed to purchasing approximately $15 million of tulip bulbs to be paid for between September and December 2025. We are currently seeking potential sources of financing to support our working capital needs. The Company may not be able to finance the full commitment. Any combination of re-selling bulbs to competitors at lower prices or ultimately purchasing fewer bulbs could lead to a reduction in sales and/or lower profits and a corresponding loss of customer and supplier confidence, market share, and reduced demand in future seasons, any of which would have a material adverse effect on our results of operations and financial condition.

STRATEGIC RISKS

Our company’s results are highly dependent on Bloomia’s success.

Although we intend to continue to develop our specialty ag business, we have committed a substantial portion of our capital to the acquisition and growth of Bloomia’s business. With this lack of diversification, for at least the near term, our cash flow and ability to service our debt is highly dependent on the performance of the Bloomia business. Risks inherent in the Bloomia business are discussed in this section.

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Failure to successfully manage the recently acquired Bloomia business and other future acquisitions could adversely affect our business. As part of our strategy to develop our specialty ag strategy, we may make additional acquisitions in the future. We cannot be certain that the businesses we acquire will become profitable or remain so. Our management and integration of the operations of acquired businesses requires significant efforts, including the coordination of information technologies and finance. These efforts result in additional expenses and involve significant amounts of management’s time that cannot then be dedicated to other projects. Factors that will affect the success of our acquisitions include:

| ● | the presence or absence of adequate internal controls and/or significant fraud in the financial systems of acquired companies, |

| ● | our ability or inability to integrate information technology systems of acquired companies in a secure and reliable manner, |

| ● | any decrease in customer loyalty and product orders caused by dissatisfaction with the Company’s product lines and sales and marketing practices, including price increases, |

| ● | our ability to retain key employees, and |

| ● | ability to generate adequate cash flow to service the debt incurred for the acquisitions. |

These effects, individually or in the aggregate, could cause a deterioration of our credit and result in increased borrowing costs and interest expense. We may not generate enough cash or secure enough capital to execute our business plans. As we develop and grow our business, we may be required to finance this