Financial Gravity Terminates Material Agreement
Ticker: FGCO · Form: 8-K · Filed: Aug 26, 2024 · CIK: 1377167
| Field | Detail |
|---|---|
| Company | Financial Gravity Companies, Inc. (FGCO) |
| Form Type | 8-K |
| Filed Date | Aug 26, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $350,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: termination, agreement
Related Tickers: FGRA
TL;DR
FGRA terminated a major deal, details TBD.
AI Summary
Financial Gravity Companies, Inc. announced on August 20, 2024, the termination of a material definitive agreement. The filing does not specify the counterparty or the nature of the agreement, but it is a significant event for the company.
Why It Matters
The termination of a material definitive agreement can significantly impact a company's operations, financial standing, and future strategic direction.
Risk Assessment
Risk Level: medium — Termination of a material agreement introduces uncertainty regarding the company's business relationships and financial stability.
Key Players & Entities
- Financial Gravity Companies, Inc. (company) — Registrant
- August 20, 2024 (date) — Date of earliest event reported
- Nevada (jurisdiction) — State of incorporation
- 2501 Ranch Road 620 South, Suite 110, Lakeway, Texas 78734 (address) — Principal executive offices
FAQ
What was the specific material definitive agreement that was terminated?
The filing states that a material definitive agreement was terminated, but does not specify which agreement.
Who was the counterparty to the terminated agreement?
The filing does not disclose the identity of the other party involved in the terminated agreement.
What is the effective date of the termination?
The earliest event reported is August 20, 2024, which is the date of the report and likely the effective date of the termination.
What are the potential financial implications of this termination for Financial Gravity Companies, Inc.?
The filing does not provide details on the financial implications of the termination.
Does this termination affect any ongoing business operations or future plans of Financial Gravity Companies, Inc.?
The filing indicates the termination of a material agreement, suggesting a potential impact on operations or plans, but does not elaborate.
Filing Stats: 596 words · 2 min read · ~2 pages · Grade level 13.1 · Accepted 2024-08-26 11:41:16
Key Financial Figures
- $350,000 — hese services contributed approximately $350,000 annually to the Company's cash flow and
Filing Documents
- fingravity_8k.htm (8-K) — 25KB
- 0001683168-24-006022.txt ( ) — 190KB
- fgco-20240820.xsd (EX-101.SCH) — 3KB
- fgco-20240820_lab.xml (EX-101.LAB) — 33KB
- fgco-20240820_pre.xml (EX-101.PRE) — 22KB
- fingravity_8k_htm.xml (XML) — 3KB
02 Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement. On August 20, 2024, the Company became aware that Marathon Financial Group, LLC ("Marathon") had initiated actions to terminate certain long-term agreements (the "Agreements") between Marathon and the Company's registered investment advisor subsidiaries. Under these Agreements, the Company had previously acquired Marathon's client accounts and earned fees for investment advisory services based upon assets under management ("AUM"). The revenue generated from these services contributed approximately $350,000 annually to the Company's cash flow and operating results. As of August 22, 2024, Marathon began taking steps to reclaim the AUM associated with these client accounts. If Marathon successfully reclaims all of the AUM, the Company's cash flow for this fiscal year will not be affected, but cash flow fiscal year 2025 could potentially decrease by approximately $350,000, which may result in a net loss unless the Company is able to replace this revenue. Company's plans will include a focus on revenue growth during the next fiscal year. Marathon claims that it has the right to compete for client AUM despite the Company's previous acquisition of the client accounts. The Company disputes Marathon's position and intends to seek enforcement of the Agreements through appropriate legal channels. The Company is currently evaluating the potential impact of this event on its financial condition and results of operations. The Company will provide updates in subsequent periodic reports or through the filing of additional current reports as material developments occur. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FINANCIAL GRAVITY COMPANIES, INC. (Registrant) By: /s/ Scott Winters Name: Scott Winters Title: Chief Executive Officer 3