LIVE Ventures (LIVE) risk factors, FY2025 10-K

RISKS RELATING TO OUR COMPANY GENERALLY

1. 01Our results of operations could fluctuate due to factors outside of our control
2. 02Our obligations under our consolidated indebtedness are significant73% rewritten
3. 03Total indebtedness $ 117,679New
4. 04Because of our floating rate credit facilities, we may be adversely affected by interest rate changes
5. 05If we do not effectively manage our growth and business, our management, administrative, operational, and financial infrastructure and results of operations may be materially and adversely affected
6. 06If we identify a material weakness in our internal control over financial reporting, fail to remediate a material weaknesses, or fail to establish and maintain effective internal control over financial reporting, our ability to accurately and timely report our financial results could be adversely affected
7. 07Our failure to comply with various applicable federal and state employment and labor laws and regulations could have a material, adverse impact on our business
8. 08We may not be able to protect our intellectual property rights adequately
9. 09We may be subject to intellectual property claims that create uncertainty about ownership or use of technology essential to our business and divert our managerial and other resources41% rewritten
10. 10or defense proceedings could require us to pay substantial compensatory and exemplary damages, could restrain us from using critical technologies, business methods or processes, and could result in us losing, or not gaining, valuable intellectual property rightsNew
11. 11Data breaches or other cybersecurity incidents involving customer or employee data stored by us could adversely affect our reputation and revenues
12. 12We are subject to income and other taxes in the U.S. and our operations, plans, and results are affected by tax and other initiatives
13. 13We are involved in an ongoing SEC investigation, which could divert management’s focus, result in substantial investigation expenses and have an adverse impact on our reputation, financial condition, results of operations and cash flows61% rewritten
14. 14profits, and civil penalties. The foregoing is only a general summary of the SEC Complaint, which may be accessed on the SEC’s website at www.sec.gov/litigation/litreleases/2021/lr25155.htmNew

RISKS RELATED TO OUR BUSINESS STRATEGY

1. 15We may not be able to identify, acquire or establish control of, or effectively integrate previously acquired businesses, which could materially adversely affect our growth
2. 16The acquisition of new businesses is costly and such acquisitions may not enhance our financial condition
3. 17Because we do not intend to use our own employees or members of management to run the daily operations at our acquired companies, business operations might be interrupted if employees at the acquired businesses were to resign, or be terminated

RISKS RELATED TO OUR RETAIL-ENTERTAINMENT AND RETAIL-FLOORING SEGMENTS

1. 18Economic conditions in the U.S. could adversely affect demand for the products we sell
2. 19Technological advances in the delivery and types of video, video games and PC entertainment software, as well as changes in consumer behavior related to these new technologies, could lower sales
3. 20Vintage Stock may not compete effectively as browser, mobile, and social video viewing and gaming becomes more popular
4. 21Sales of video games containing graphic violence may decrease as a result of actual violent events or other reasons, and Vintage Stock’s, and our, financial results may be adversely affected as a result
5. 22As a seller of certain consumer products, we are subject to various federal, state, and local laws, regulations, and statutes related to product safety and consumer protection
6. 23International events could delay or prevent the delivery of products to our suppliers99% rewritten
7. 24If we are unable to renew or enter into new leases on favorable terms, our revenue growth may decline
8. 25An adverse trend in sales during the winter and holiday selling season could impact our financial results
9. 26Results of operations may fluctuate from quarter to quarter
10. 27Failure to manage our new store openings effectively could lower our sales and profitability
11. 28If our management information systems fail to perform or are inadequate, our ability to manage our business could be disrupted
12. 29We may record future goodwill impairment charges or other asset impairment charges which could negatively impact our future results of operations and financial condition
13. 30The floor covering industry may face supply chain restrictions based upon legislation enacted limiting imports from certain global regions

RISKS RELATED TO OUR FLOORING MANUFACTURING SEGMENT

1. 31Marquis may be unable to predict customer preferences or demand accurately, or to respond to technological developments
2. 32Marquis faces intense competition in the flooring industry that could decrease demand for its products or force it to lower its prices, which could have a material adverse effect on its business operations and prospects, financial condition, liquidity, cash flow, profitability, and results of operations generally
3. 33In periods of rising costs, Marquis may be unable to pass raw materials, energy and fuel-related cost increases on to its customers, which could have a material adverse effect on its business operations and prospects, financial condition, liquidity, cash flow, profitability, and results of operations35% rewritten
4. 34Marquis may be subject to disruptions in the global supply chain

RISKS RELATED TO OUR STEEL MANUFACTURING SEGMENT

1. 35The demand for steel manufacturing segment's products may decrease if manufacturing in North America declines or if automakers, who manufacture their products in the U.S., do not introduce new models or their sales decline
2. 36Limited availability, or volatility in prices of raw materials and energy may constrain operating levels and reduce profit margins
3. 37Shortages of qualified and trainable labor, increased labor costs, or our steel manufacturing segment’s failure to attract and retain other highly qualified personnel in the future could disrupt our operations and adversely affect our financial results
4. 38Our operational footprint, unplanned equipment outages, and other unforeseen disruptions may adversely impact our results of operations
5. 39Our production and distribution workforce is unionized, and we may face labor disruptions that would interfere with our operations
6. 40We face risks relating to changes and proposed changes in U.S. and foreign tariffs, trade agreements, laws, and other isolationist policies41% rewritten
7. 41The steel industry is highly cyclical, which may have an adverse effect on our results of operations
8. 42Compliance with existing and new environmental regulations, environmental permitting, and approval requirements may result in delays or other adverse impacts on planned projects, our results of operations and cash flows
9. 43In addition, our steel manufacturing segment outsources all disposal of waste material, non-compliance by third party providers could result in additional costs to defend environmental claims or additional costs to replace the outsourced entities
10. 44Increasing pressure to reduce greenhouse gas (GHG) emissions from steelmaking operations to comply with U.S. and EU regulations as well as societal expectations could increase costs to manufacture future raw materials or reduce the amount of materials being manufactured
11. 45We depend on key persons and the loss of any key person could adversely affect our operations
12. 46Adverse developments in our ongoing legal proceedings or future legal proceedings could have a material adverse effect on our business operations and prospects, reputation, financial condition, results of operations, or stock price
13. 47Due to our concentrated stock ownership, public stockholders may have no effective voice in our management and the trading price of our common stock may be adversely affected
14. 48Because we have no current plans to pay cash dividends on our common stock for the foreseeable future, you may not receive any return on investment unless you sell your shares of common stock for a price greater than your purchase price for your shares
15. 49Certain provisions of Nevada law, in our organizational documents and in contracts to which we are party may prevent or delay a change of control of our company