EVI Industries (EVI) risk factors, FY2024 10-K

Risks Related to the Company’s Business and Operations

1. 01Acquisitions and the Company’s pursuit of acquisitions and other strategic transactions subject the Company to a number of risks
2. 02Conditions beyond the Company’s control can interrupt the Company’s supplies, increase its product costs and impair its ability to deliver products and services to its customers
3. 03Labor shortages and increases in labor costs may have a material adverse impact on the Company’s business and results of operations
4. 04The Company’s business and results may be adversely affected if the Company does not maintain its relationships with its significant suppliers or customers
5. 05The products the Company distributes could fail to perform according to specifications or prove to be unreliable, which could damage the Company’s customer relationships and industry reputation and result in lawsuits and loss of sales
6. 06The Company faces substantial competition
7. 07The Company faces risks associated with environmental and other regulation
8. 08Unexpected events, such as public health issues, natural disasters, geopolitical conflicts, civil unrest, severe weather and terrorist activities, may disrupt the Company’s operations and increase its costs
9. 09The Company faces risks related to its foreign sales
10. 10Damages to, or disruptions at, the Company’s facilities or the facilities of a supplier or customer could adversely impact the Company’s business, operating results and financial condition
11. 11The Company’s assets may suffer uninsured losses
12. 12The Company’s ability to manage its business and monitor results is highly dependent upon information and communication systems, and a failure of these systems or the Company’s ERP implementation could disrupt its business
13. 13The Company could be negatively affected by cyber or other security threats or other disruptions or failures to maintain the integrity of internal or customer, employee or vendor data
14. 14Climate change, or legal, regulatory or market measures to address climate change, could have an adverse impact on the Company’s business and results of operations

Risks Related to the Company’s Indebtedness

1. 15The Company’s indebtedness may impact its financial condition and results of operations, and the terms of the Company’s indebtedness may place restrictions on the Company

Risks Related to Ownership of the Company’s Common Stock

1. 16The Company’s management may be deemed to control the Company
2. 17of the Company’s other stockholders to receive a premium for their shares in connection with any sale of the Company
3. 18As a “smaller reporting company,” the Company may avail itself of reduced disclosure requirements, which may make the Company’s common stock less attractive to investors
4. 19The issuance of preferred stock and common stock, and the authority of the Company’s Board of Directors to approve issuances of preferred stock and common stock, could adversely affect the rights of the Company’s stockholders and have an anti-takeover effect

General Risks

1. 20The Company’s success depends on key personnel, the loss of whom could harm the Company’s business, operating results and financial condition
2. 21Litigation and legal and regulatory proceedings, the costs of defending the same and the impact of any finding of liability or damages could adversely impact the Company and its financial condition and operating results