3 ms·

"We have incurred operating losses in the past, expect to incur operating losses in the future, and may never achieve or maintain profitability." haha

6stringmerc 10y ago
"There's a sucker born every minute" didn't enter the American lexicon by accident, mind you.
Etheryte 10y ago
It's not like they could claim anything else. No company can guarantee that it will remain profitable.
_nrvs 10y ago
SEE ALSO: https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory :troll:
rwc 10y ago
This is boilerplate S1 language.
- adtac 10y ago
  May I ask why? What would companies get out of doing that?
  - twinkletwinkle 10y ago
    I imagine it's a legal disclaimer. Same reason every investing prospectus in existence says "Past performance is not a guarantee of future returns"
    - adtac 10y ago
      Are there legal implications if you use language like "we _hope_ to get to a profitable stage within one year"?
      - sib 10y ago
        It's more that there are no upsides (saying "hope to" doesn't sound very certain, so no one is going to increase the price they'll pay for your IPO shares) and there are downsides if you don't become profitable within a year, once you've said you hope / intend to. So, the bottom-line incentives are not to say it.
  - ProblemFactory 10y ago
    There are a lot of laws and regulations around advertising stock for sale to the general public (as opposed to qualified private investors). Companies have to be very conservative but thorough in the "Risk Factors" section, or get sued by investors claiming to have been misled later. For example some of Google's Risk Factors from 2004: > New technologies could block our ads, which would harm our business. > We generate our revenue almost entirely from advertising, and the reduction in spending by or loss of advertisers could seriously harm our business. > We are susceptible to index spammers who could harm the integrity of our web search results.
  - deleted 10y ago
    [deleted]
- elastic_church 10y ago
  Unless I mean, you're profitable I know 'burn the heretic' haha its just a concept

6stringmerc 10y ago

"There's a sucker born every minute" didn't enter the American lexicon by accident, mind you.

Etheryte 10y ago

It's not like they could claim anything else. No company can guarantee that it will remain profitable.

_nrvs 10y ago

SEE ALSO: https://en.wikipedia.org/wiki/Greater_fool_theory https://en.wikipedia.org/wiki/Greater_fool_theory :troll:

rwc 10y ago

This is boilerplate S1 language.

adtac 10y ago
May I ask why? What would companies get out of doing that?
- twinkletwinkle 10y ago
  I imagine it's a legal disclaimer. Same reason every investing prospectus in existence says "Past performance is not a guarantee of future returns"
  - adtac 10y ago
    Are there legal implications if you use language like "we _hope_ to get to a profitable stage within one year"?
    - sib 10y ago
      It's more that there are no upsides (saying "hope to" doesn't sound very certain, so no one is going to increase the price they'll pay for your IPO shares) and there are downsides if you don't become profitable within a year, once you've said you hope / intend to. So, the bottom-line incentives are not to say it.
- ProblemFactory 10y ago
  There are a lot of laws and regulations around advertising stock for sale to the general public (as opposed to qualified private investors). Companies have to be very conservative but thorough in the "Risk Factors" section, or get sued by investors claiming to have been misled later. For example some of Google's Risk Factors from 2004: > New technologies could block our ads, which would harm our business. > We generate our revenue almost entirely from advertising, and the reduction in spending by or loss of advertisers could seriously harm our business. > We are susceptible to index spammers who could harm the integrity of our web search results.
- deleted 10y ago
  [deleted]
elastic_church 10y ago
Unless I mean, you're profitable I know 'burn the heretic' haha its just a concept