IBEX (IBEX) risk factors, FY2025 10-K

Business Risks

1. 01Our business is dependent on key clients
2. 02Our profitability largely depends on maintaining efficient asset utilization levels, pricing our solutions appropriately, and managing costs, particularly through our contracts with customers
3. 03are obligated under some of our contracts to deliver productivity benefits to our clients, such as reduction in handle time or speed to answer
4. 04If our solutions do not comply with the quality standards required by our clients under our agreements, our clients may assert claims for reduced payments to us or substantial damages against us
5. 05The consolidation of our clients or potential clients may adversely affect us
6. 06Our clients may decide to enter into or further expand insourcing activities in the future
7. 07We may be unable to continue to anticipate our clients’ needs by adapting to market and technology trends
8. 08We may not be successful in converting visitors to our customer acquisition websites into purchasers or subscribers
9. 09We face substantial competition in our business
10. 10We may acquire other companies in pursuit of growth, which may divert our management’s attention, result in dilution to our shareholders, be unsuccessful, and consume resources that are necessary to sustain our business
11. 11If we fail to adequately protect our intellectual property and proprietary information in the United States and abroad, our competitive position could be impaired, and we may lose valuable assets, experience reduced revenues and incur costly litigation to protect our rights

Financial, Accounting, and Economic Risks

1. 12If we are unable to fund our working capital requirements and new investments, we could be adversely affected
2. 13Our operating results may fluctuate from quarter to quarter due to various factors
3. 14General economic uncertainty in global markets and unfavorable global economic conditions including inflation, rising interest rates, recession, and foreign exchange fluctuations, could adversely affect us
4. 15The inability or unwillingness of clients that represent a large portion of our accounts receivable balance to pay such balances in a timely fashion could adversely affect our business
5. 16Our existing debt covenants may affect our flexibility in operating, developing and expanding our business
6. 17If our goodwill or intangible assets become impaired, we could be required to record a significant charge to earnings
7. 18Our ability to use our net operating loss carry forwards may be subject to limitation

Operational Risks

1. 19Our business relies heavily on technology, telephone and computer systems as well as third-party telecommunications providers, which subjects us to various uncertainties
2. 20The integration of AI and generative AI technology into our offerings, including our use of third-party providers, could result in operational and reputational harm
3. 21Our business is heavily dependent upon our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua and any disruption to those operations would adversely affect us
4. 22We rely on the attraction, retention, and motivation of qualified senior management, employees, and agents to support our success and operations
5. 23Natural events, health epidemics, geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other acts of violence involving any of the countries in which we or our clients have operations could adversely affect our operations and client confidence
6. 24Fluctuations against the U.S. dollar in the local currencies in the countries in which we operate could have a material effect on our results of operations
7. 25We depend upon internet search engines to attract a significant portion of the consumers who visit our customer acquisition websites, and we would be negatively impacted if we are unable to advertise on search engines on a cost-effective basis
8. 26We may face difficulties as we expand our operations into countries in which we have no prior operating experience
9. 27Our facilities operate on leasehold property, and the inability to renew our leases on commercially acceptable terms or at all may adversely affect our results of operations

Legal and Regulatory Risks

1. 28Our global operations and customers expose us to numerous legal and regulatory requirements
2. 29investigations, or enforcement actions, thus causing damage to our reputation and adversely affect our ability to attract or retain customers
3. 30Unauthorized or improper disclosure of personal information, breach of privacy, whether inadvertent or as the result of a cyber-attack or improperly by our employees, has resulted in liability and could harm us
4. 31Others could claim that we infringe on their intellectual property rights or violate contractual protections, which may result in substantial costs, diversion of resources and management attention and harm to our reputation

Risks Related to Being Incorporated in Bermuda

1. 32We may be impacted by tax matters, new legislation and actions by taxing authorities
2. 33percent corporate minimum tax and a one percent excise tax on stock repurchases. We continue to evaluate the Inflation Reduction Act and its requirements, as well as its application to our business
3. 34Although these rules are not currently applicable to the Company, the Company operates in participating countries that are expected to implement or have implemented the OECD’s two-pillar agreement by entering into a multilateral convention and enacting domestic legislation
4. 35We will become subject to corporate income taxes in Bermuda once revenues exceed €750 million
5. 36Bermuda law differs from the laws in effect in the United States and may afford less protection to holders of our common shares
6. 37Any U.S. or other foreign judgments obtained against us may be difficult to enforce against us in Bermuda

Risks Related to Our Common Shares

1. 38We cannot take certain actions without the consent of one of our shareholders, The Resource Group International Limited, which could limit our other shareholders' ability to influence the outcome of key transactions, including any change of control
2. 39We are an “emerging growth company” and a “smaller reporting company”, and certain exemptions from disclosure requirements available to us may make our common shares less attractive to investors
3. 40We incur increased costs and demands upon management as a result of complying with the laws and regulations affecting public companies
4. 41If we are unable to maintain effective internal control over financial reporting, our results of operations and the price of our common shares could be adversely affected
5. 42A significant portion of our total outstanding shares may be sold into the market in the near future. This could cause the market price of our common shares to drop significantly, even if our business is doing well
6. 43Anti-takeover provisions in our bye-laws could make an acquisition of us, which may be beneficial to our shareholders, more difficult and may prevent attempts by our shareholders to replace or remove our current management
7. 44We have the ability to issue preferred shares without shareholder approval
8. 45The market price of our common shares may be volatile
9. 46We may not pay any dividends. Accordingly, investors may only realize future gains on their investments if the price of their common shares increases, which may never occur