Item 8.01 Other Events.
The Company is relying on the SEC Order to delay the filing of our Quarterly Report due to circumstances related to the COVID-19 pandemic.
Disruptions and changes to our business caused by COVID-19 have required that we perform additional analyses relating to COVID-19's potential impact on our consolidated financial statements; moreover, the Company's operations and business have experienced disruptions due to the unprecedented conditions surrounding COVID-19. These disruptions include, but are not limited to, office closures due to mandated social quarantining and work from home orders. The disruptions in staffing, communications and access to personnel have resulted in delays in getting information from some of our operating subsidiaries necessary for the preparation and review of our consolidated financial statements.
Considering the impact of these factors, the Company will be unable to compile
and review certain information required to file the Quarterly Report by
In addition, in light of ongoing developments related to COVID-19, we are
supplementing the risk factors previously disclosed under Part I, Item 1A, "Risk
Factors" of our Annual Report on Form 10-K for the fiscal year ended
The extent to which the COVID-19 outbreak will adversely impact the global economy, the entertainment industry, our business, financial condition and results of operations is highly uncertain and cannot be predicted.
The global spread of COVID-19 has created significant operational volatility, uncertainty and disruption, both in the global economy, in general, and in the entertainment industry, in particular. The extent to which COVID-19 will adversely impact our business, financial condition and results of operations will depend on numerous evolving factors, which are highly uncertain, rapidly changing and cannot be predicted, including:
· the duration and scope of the outbreak; · governmental, business and individual actions that have been and continue to be taken in response to the outbreak, including travel restrictions, quarantines, social distancing, work-at-home, stay-at-home and shelter-in-place orders and shut-downs; · the impact of the outbreak on the financial markets and economic activity generally; · the effect of the outbreak on our clients and other business partners; · our ability to access the capital markets and sources of liquidity on reasonable terms; · potential goodwill or other impairment charges; · increased cybersecurity risks as a result of remote working conditions; · our ability during the outbreak to provide our services, including the health and wellbeing of our employees; and · the ability of our clients to pay for our services during and following the outbreak.
A continued slowdown in the economy has begun to have, and we expect will
continue to have, a negative impact on many of our clients. Some clients have
begun responding to weak economic and financial conditions by reducing their
marketing budgets, thereby decreasing the market and demand for some of our
services. All of the foregoing has and will continue to impact our business,
financial condition, results of operations and forward-looking expectations. The
potential effects of COVID-19 could also heighten the risks disclosed in many of
our risk factors that are included in Part I, Item 1A, Risk Factors, in our
Annual Report on Form 10-K for the fiscal year ended
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Cautionary Note Regarding Forward-Looking Statements
Statements in this Form 8-K regarding the potential future impact of the
COVID-19 outbreak are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and are provided under the
protection of the safe harbor for forward-looking statements provided by that
Act. These statements involve risks and uncertainties that could cause results
to differ materially from those projected, including, but not limited to, the
pendency and impact of the COVID-19 outbreak, government actions taken in
response to or in connection with COVID-19, shelter in place orders and
third-party business closures related to COVID-19, delayed spending on marketing
by our clients related to COVID-19, and other factors detailed from time to time
in the Company's
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