SPAR Group (SGRP) risk factors, FY2024 10-K

Other

1. 01You should carefully review and consider the following Risks, but you should not place undue reliance on any of them. All forward-looking statements and other information attributable to the Company or persons acting on its behalf are expressly subject to and qualified by all such Risks
2. 02Our potential going private transaction poses various risks
3. 03The buyer may not be able to consummate the Proposed Acquisition pursuant to the Merger Agreement, and failure to complete the Proposed Acquisition could negatively impact our stock price and our business, financial condition and results of operations
4. 04The markets we operate in are cyclical and subject to the effects of economic downturns
5. 05The Company relies on independent contractors as well as other third-party providers to perform work. There is risk that any government legislation that restricts travel, changes labor laws, impacts wages or otherwise incentivizes behavior that negatively impacts our business or our clients could impact our business
6. 06Our business depends on variable client projects that can shift from period to period, be delayed, be canceled or otherwise require us to assume higher costs to perform the work
7. 07Our business could be adversely affected if retailers and manufacturers elect to perform merchandising and marketing services with their own resources or if they have less stores that need our services
8. 08We do work with furniture and other related assembly services at stores, in homes and in offices
9. 09We depend upon third-party independent contractors and the services they provide
10. 10We rely on our systems and third-party vendors
11. 11Our stock is subject to volatility and general market risk
12. 12If the Corporation issues (other than at fair market value for cash) or the Majority Stockholders sell a large number of shares of SGRP Common Stock, or if the market perceives such an issuance or sale is likely or imminent, the market price of SGRP Common Stock could decline
13. 13As a small company with stock price volatility, our stock may be de-listed from NASDAQ
14. 14We have inherent risk of failure to maintain effective internal controls
15. 15Our business is dependent on client payments, business performance and broad economic shifts, and we may be at risk of liquidity constraints and not satisfying all of our credit facility covenants
16. 16Our business and stock liquidity and market value could be adversely affected if we settle outstanding litigation by making payments or issuing stock
17. 17Our business performance is connected to the experience and retention of key executives
18. 18Our significant stockholders may take actions, subject to the restrictions of the Change of Control, Voting and Restricted Stock Agreement ("CIC Agreement") and our By-Laws