Mistras Group (MG) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01Due to our dependency on customers in the oil and gas industry, we are susceptible to prolonged negative trends relating to this industry that could adversely affect our operating results
2. 02We may be affected by climate change and market or regulatory responses to climate change
3. 03Our international operations are subject to risks relating to non-U.S. operations
4. 04Our operating results could be adversely affected by a reduction in business with our significant customers
5. 05Our business, and the industries we currently serve, are currently subject to governmental regulation, and may become subject to modified or new government regulation that may negatively impact our ability to market our asset protection solutions
6. 06An accident or incident involving our asset protection solutions could expose us to claims, harm our reputation and adversely affect our ability to compete for business and, as a result, harm our operating performance
7. 07Many of the sites at which we work are inherently dangerous workplaces. If we fail to maintain a safe work environment, we may incur losses and lose business
8. 08make us unable to successfully provide our solutions, it could lead to a loss of revenues and customers
9. 09If we are unable to attract and retain a sufficient number of trained certified technicians, engineers and scientists at competitive wages, changes in laws and other labor issues could materially affect our financial performance
10. 10We have undertaken strategies to transform our business so that we may operate more effectively, streamline and rationalize our cost structures, and look for strategic opportunities to expand our revenue and become more profitable. The extent of our future success depends on how successful we are in these endeavors
11. 11We operate in competitive markets and if we are unable to compete successfully, we could lose market share and revenues and our margins could decline
12. 12The success of our businesses depends, in part, on our ability to develop new asset protection solutions, increase the functionality of our current offerings and meet the needs and demands of our customers
13. 13The seasonal nature of our business reduces our revenues and profitability in the winter and summer and related cash flows
14. 14or at all. We believe that it is probable, based on the Credit Agreement (as defined herein), that we will be able to comply
15. 15Currency exchange rate fluctuations in various currencies in which we do business, especially the Euro and the U.S. dollar, could have a material adverse effect on our business, results of operations and financial condition
16. 16independent vendor relationships with third parties who may or could have access to our confidential information. The size and
17. 17may include events like epidemics, pandemics and other health crises, severe weather conditions, industrial accidents, and acts
18. 18operations in the Gulf of Mexico, which is subject to hurricanes and tropical storms. Hurricane-related disruptions to our

Risks Related to Our Common Stock

1. 19The family of our late founder and Chairman Emeritus has significant influence over the direction of our business. The concentrated ownership of our common stock may prevent other stockholders from influencing significant corporate decisions
2. 20We currently have no plans to pay dividends on our common stock
3. 21Shares eligible for future sale may cause the market price for our common stock to decline even if our business is doing well
4. 22Provisions of our certificate of incorporation, bylaws and of Delaware law could discourage, delay or prevent a change of control of our company, which may adversely affect the market price of our common stock
5. 23Secretary upon the written request of stockholders entitled to cast not less than 35% of all the votes entitled to be cast at such meeting
6. 24period-to-period comparisons of our results of operations may be the best indicators of our business. You should not rely upon
7. 25Deteriorations in economic conditions in certain markets or other factors may cause us to recognize additional impairment charges for our goodwill
8. 26We are subject to privacy and data security/protection laws in the jurisdictions in which we operate and may be exposed to substantial costs and liabilities associated with such laws and regulations
9. 27If we lose key members of our senior management team upon whom we are dependent, we may be less effective in managing our operations and may have more difficulty achieving our strategic objectives
10. 28Intellectual property may impact our business and results of operations
11. 29Social, political and economic changes or instability, or other circumstances beyond our control could affect our business operations
12. 30We may require additional capital to support business growth, which might not be available