NRC Health (NRC) risk factors, FY2024 10-K

Risks Related to our Business

1. 01We depend on contract renewals, including retention of key clients, for a large share of our revenue and our operating results could be adversely affected
2. 02We operate in a highly competitive market and could experience increased price pressure and expenses as a result
3. 03Because our clients are concentrated in the healthcare industry, our revenue and operating results may be adversely affected by changes in regulations, a business downturn or consolidation with respect to the healthcare industry
4. 04We could be negatively impacted by outbreaks or pandemics
5. 05We could be negatively impacted by the global conflicts or similar events
6. 06General economic factors could adversely impact our profitability
7. 07We face several risks relating to our ability to collect the data on which our business relies
8. 08If intellectual property and other proprietary information technology were copied or independently developed by our competitors, our operating results could be negatively affected
9. 09Failures, interruptions or deficiencies in our information technology and communications systems could negatively impact our business and operating results
10. 10New solution offerings involve inherent risk
11. 11Some of our employees work remotely, which may increase the cybersecurity risks to our business, including an increased demand for information technology resources, increased risk of phishing, and other cybersecurity risks
12. 12Reputational harm could have a material adverse effect on our business, financial condition and results of operations
13. 13Our operations are subject to laws and regulations that impose significant compliance costs and create reputational and legal risk
14. 14Ineffective internal controls could have a negative impact on our business, results of operations, and our reputation
15. 15In order to expand services or technologies to existing clients and increase our client base, we have historically, and may in the future, make strategic business acquisitions, partnerships with other organizations and/or investments that we believe complement our business
16. 16If we are unable to achieve a proper revenue to cost ratio our profitability could decrease

Risks Related to our Common Stock

1. 17Our principal shareholders effectively control the Company
2. 18The market price of our common stock may be volatile and shareholders may be unable to resell shares at or above the price at which the shares were acquired
3. 19Variations in general market, economic and political conditions or financial markets
4. 20Our operating results may fluctuate and this may cause our stock price to decline
5. 21Our business and operating results could be adversely affected if we are unable to attract or retain key managers and other personnel
6. 22Increases in income tax rates, changes in income tax laws or regulations, or unfavorable resolutions of tax matters could adversely impact our profitability
7. 23Failure to comply with public company regulations could adversely impact our profitability
8. 24We may change our dividend policy at any time