Saga Communications (SGA) risk factors, FY2024 10-K

Other

1. 01We May be Adversely Affected by the Effects of Inflation
2. 02The Success of Our Business is Dependent Upon Advertising Revenues, which are Seasonal and Cyclical, and also Fluctuate as a Result of a Number of Factors, Some of Which are Beyond Our Control
3. 03We Depend on Key Stations
4. 04Local, National and Global Economic Conditions May Affect our Advertising Revenue
5. 05The ongoing supply chain and labor shortage issues could result in an adverse impact on our business due to our customer’s reduction in advertising spending as their businesses are negatively impacted by low inventories, product delays, and labor shortages resulting in reduced revenue

Risks Related to Our Financing

1. 06We May Have Substantial Indebtedness and Debt Service Requirements
2. 07Variable-Rate Indebtedness Exposes us to Interest Rate Risk, which could Cause Our Debt Service Obligations to Increase Significantly
3. 08Our Debt Covenants Restrict our Financial and Operational Flexibility

Risks Related to the Radio Broadcasting Industry

1. 09Our Stations Must Compete for Advertising Revenues in Their Respective Markets
2. 10We Depend on Key Personnel
3. 11Our Success Depends on our Ability to Identify and Integrate Acquired Stations

Risks Related to Regulation of Our Business

1. 12Future Impairment of our FCC Broadcasting Licenses Could Affect our Operating Results
2. 13Our Business is Subject to Extensive Federal Regulation
3. 14New Federal Regulations or Fees Could Affect our Broadcasting Operations
4. 15The FCC’s Vigorous Enforcement of Indecency Rules Could Affect our Broadcasting Operations
5. 16We are Subject to a Series of Risks Regarding Scrutiny of Environmental, Social and Governance Matters

Risks Related to Technology and Cybersecurity

1. 17New Technologies May Affect our Broadcasting Operations
2. 18Information Technology and Cybersecurity Failures or Data Security Breaches Could Harm Our Business
3. 19In September 2021, one of our third-party service providers of a critical application used in our business, was the victim of a ransomware cyberattack. However, the Company’s data was not breached in connection with this incident and the incident did not have a material impact on the Company’s business or operations

Risks Related to the Ownership of Our Stock

1. 20The Company is No Longer Controlled by our President, Chief Executive Officer and Chairman
2. 21We May Experience Volatility in the Market Price of our Common Stock
3. 22These ineffective controls, individually or in the aggregate, could result in misstatements of accounts or disclosures that would results in a material misstatement of the interim or annual Consolidated Financial Statements that would not be prevented or detected
4. 23Our business could be negatively affected as a result of shareholder activism
5. 24We are a Smaller Reporting Company and Intend to Avail Ourselves of Certain Reduced Disclosure Requirements Applicable to Smaller Reporting Companies, which could make our Common Stock Less Attractive to Investors