8 unchanged sentences
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 26, 2021, using criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and concluded that the Company maintained effective internal control over financial reporting as of December 26, 2021.
−Removed: As previously disclosed in our Form 10-Q for the quarter ended June 28, 2020, management had identified a deficiency in our internal control over financial reporting, which was related to the quantitative assessment of impairment of goodwill and intangible assets.
−Removed: Our management had concluded that we did not maintain effective controls related to the technical aspects of GAAP for testing goodwill and other intangible assets for impairment.
−Removed: Management had determined that the aggregate impact of this deficiency resulted in a material weakness.
−Removed: The material weakness did not result in any identified misstatements in the current period consolidated financial statements, nor in any restatements of consolidated financial statements previously reported by us, and there were no changes in previously released financial results.
−Removed: As described below, our management believes this material weakness has since been effectively remediated.
−Removed: A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
1 unchanged sentence
The effectiveness of our internal control over financial reporting as of December 26, 2021, has been audited by Whitley Penn LLP, an independent registered public accounting firm, as stated in their report which is included herein.
−Removed: Remediation Steps to Address the Material Weakness
−Removed: Since identifying the material weakness related to our process of impairment assessment of goodwill and intangible assets, we have taken steps to strengthen the control function related to the financial closing process.
−Removed: These steps included retaining external expert resources, enhancing the design of certain management review controls and providing training regarding internal control processes.
−Removed: Management believes that these efforts have effectively remediated the material weaknesses.
−Removed: We will continue to monitor the effectiveness of these and other processes, procedures, and controls and will make any further changes that management determines to be appropriate.
−Removed: Management's assessment and conclusion on the effectiveness of internal control over financial reporting did not include an assessment of the internal controls of the Company's fiscal year 2020 acquisition of EdgeRock Technology Holding, Inc.
−Removed: as further described in Note 3 in the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K, which is incorporated by reference.
−Removed: This entity constituted approximately 6.0% of the Company's total assets as of December 27, 2020 and 12.5% of revenues for the fiscal year then ended.
−Removed: Management did not assess the effectiveness of internal control over financial reporting for this entity because of the timing of the acquisition during the fiscal year.
Changes in Internal Control Over Financial Reporting
−Removed: Other than as described above, there have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during the fourth quarter of Fiscal 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
+Added: There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act) during the fourth quarter of Fiscal 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
2 unchanged sentences
Opinion on Internal Control Over Financial Reporting
−Removed: We have audited BGSF, Inc.
−Removed: (the “Company”) internal control over financial reporting as of December 27, 2020, based on criteria established in 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
+Added: We have audited BGSF, Inc.'s (the “Company”) internal control over financial reporting as of December 26, 2021, based on criteria established in 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 26, 2021, based on criteria established in 2013 Internal Control— Integrated Framework issued by COSO.
10 unchanged sentences
We believe that our audit provides a reasonable basis for our opinion.
−Removed: Our audit of and opinion on the Company’s internal control over financial reporting does not include the internal control over financial reporting related to the acquired business, EdgeRock Technology Holding, Inc.
−Removed: As disclosed in Note 3 to the consolidated financial statements, this business was acquired by the Company during the year ended December 27, 2020, and whose total assets and revenues were 6.0 and 12.5 percent, respectively, of the Company’s related consolidated financial statement amounts as of and for the year ended December 27, 2020.
−Removed: Managements assertion on the effectiveness of the Company’s internal control over financial reporting excluded internal control over financial reporting of the acquired business.
Definition and Limitations of Internal Control Over Financial Reporting
9 unchanged sentences
Other Information.
+Added: Disclosure Regarding Foreign Jurisdictions That Prevent Inspections
Directors, Executive Officers and Corporate Governance.
−Removed: Board Composition
−Removed: Our board of directors consists of seven directors.
−Removed: Our board of directors has determined that the following directors are “independent” as defined under the rules of the NYSE:
−Removed: David Allen, Jr., Richard L.
−Removed: Baum, Jr., Douglas E.
−Removed: Hailey, Cynthia Marshall, and Paul A.
−Removed: The authorized number of directors may be changed by resolution of our board of directors.
−Removed: Vacancies on our board of directors can be filled by resolution of our board of directors.
−Removed: Our board of directors is divided into three classes, each serving staggered, three-year terms:
−Removed: • Our Class I directors are L.
−Removed: Allen Baker, Jr.
−Removed: and Beth Garvey, and the term of each director will expire at the 2021 annual meeting of stockholders;
−Removed: • Our Class II directors are Richard L.
−Removed: Baum, Jr., Cynthia Marshall, and Paul A.
−Removed: Seid, and the term of each director will expire at the 2022 annual meeting of stockholders;
−Removed: • Our Class III directors are C.
−Removed: David Allen, Jr.
−Removed: and Douglas E.
−Removed: Hailey the term of each director will expire at the 2023 annual meeting of stockholders.
−Removed: As a result, only one class of directors will be elected at each annual meeting of stockholders, with the other classes continuing for the remainder of their respective terms.
−Removed: Board Leadership and Role in Risk Oversight
−Removed: Meetings of our board of directors (including executive sessions other than executive sessions consisting only of independent directors) are presided over by our chairman of the board, L.
−Removed: Allen Baker, Jr.
−Removed: Our board of directors does not have a formal policy addressing whether or not the roles of chairman and chief executive officer should be separate or combined.
−Removed: The directors serving on the board of directors possess considerable professional and industry experience, significant experience as directors of both public and private companies and a unique knowledge of the challenges and opportunities that the Company faces.
−Removed: As such, the board of directors believes that it is in the best position to evaluate the needs of the Company and to determine how best to organize the Company’s leadership structure to meet those needs.
−Removed: At present, the board of directors has chosen to separate the positions of chairman and chief executive officer.
−Removed: While the board of directors believes it is important to retain the flexibility to determine whether the roles of chairman and chief executive officer should be separated or combined in one individual, the board of directors believes that this structure represents the appropriate allocation of roles and responsibilities at this time.
−Removed: Our board of directors believes that Mr.
−Removed: Baker is currently best situated to preside over meetings of our board of directors because of his familiarity with our business and ability to effectively identify strategic priorities and lead the discussion and execution of strategy.
−Removed: This allows Ms.
−Removed: Garvey to focus on our day-to-day business and strategy, meet with investors, and convey management’s perspective to other members of the board of directors.
−Removed: Garvey works closely with Mr.
−Removed: Baker to identify appropriate topics of consideration for the board of directors and to plan effective and informative board of directors meetings.
−Removed: Our board of directors oversees the risk management activities designed and implemented by our management and executes its oversight responsibility for risk management both directly and through its committees.
−Removed: The full board of directors also considers specific risk topics, including risks associated with our strategic plan, our whistle blower program, business operations and capital structure.
−Removed: In addition, our board of directors receives detailed regular reports from members of our senior management and other personnel that include assessments and potential mitigation of the risks and exposures involved with their respective areas of responsibility.
−Removed: Our board of directors delegates to the Audit Committee oversight of our risk management process.
−Removed: Our other board of directors committees also consider and address risk as they perform their respective committee responsibilities.
−Removed: All committees report to the full board of directors as appropriate, including when a matter rises to the level of a material or enterprise level risk.
−Removed: Committees of the Board of Directors
−Removed: The standing committees of our board of directors consist of an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee.
−Removed: Each of the committees reports to our board of directors as they deem appropriate and as our board may request.
−Removed: The composition, duties and responsibilities of these committees are set forth below.
−Removed: Audit Committee
−Removed: The Audit Committee is responsible for, among other matters:
−Removed: (1) appointing, retaining and evaluating our independent registered public accounting firm and approving all services to be performed by them;
−Removed: (2) overseeing our independent registered public accounting firm’s qualifications, independence and performance;
−Removed: (3) overseeing the financial reporting process and discussing with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;
−Removed: (4) reviewing and monitoring our accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements;
−Removed: (5) establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters;
−Removed: (6) reviewing and approving related person transactions;
−Removed: and (7) overseeing the risk management process.
−Removed: Our Audit Committee consists of C.
−Removed: David Allen, Jr., Richard L.
−Removed: and Douglas E.
−Removed: We believe that each qualifies as independent directors according to the rules and regulations of the SEC and NYSE with respect to audit committee membership.
−Removed: We also believe that Mr.
−Removed: Hailey and Mr.
−Removed: Allen qualify as our “audit committee financial expert,” as such term is defined in Item 407(d)(5)(ii) of Regulation S-K.
−Removed: Our board of directors has adopted a written charter for the Audit Committee, which is available on our home office website under the investor relations tab at www.bgsf.com.
−Removed: The information on our website is not part of this Annual Report on Form 10-K.
−Removed: Compensation Committee
−Removed: The Compensation Committee is responsible for, among other matters:
−Removed: (1) reviewing key team members compensation goals, policies, plans and programs;
−Removed: (2) reviewing and approving the compensation of our directors and executive officers;
−Removed: (3) reviewing and approving employment agreements and other similar arrangements between us and our executive officers;
−Removed: and (4) administering our stock plans and other incentive compensation plans, including our 2013 Long-Term Incentive Plan and our 2020 Employee Stock Purchase Plan.
−Removed: The Committee shall have the authority to delegate any of its responsibilities, along with the authority to take action in relation to such responsibilities, to one or more subcommittees as the committee may deem appropriate in its sole discretion.
−Removed: The Compensation Committee may invite such members of management to its meetings as it deems appropriate.
−Removed: However, the Compensation Committee meets regularly without such members present, and in all cases no officer may be present at meetings at which such officer’s compensation or performance is discussed or determined.
−Removed: The Committee has the authority, in its sole discretion, to select, retain and obtain the advice of a compensation consultant as necessary to assist with the execution of its duties and responsibilities.
−Removed: Neither the Compensation Committee nor management engaged a compensation consultant with respect to Fiscal 2020.
−Removed: Our Compensation Committee consists of C.
−Removed: David Allen, Jr., Richard L.
−Removed: Baum, Jr., Cynthia Marshall, and Paul A.
−Removed: Our board of directors has adopted a written charter for the Compensation Committee, which is available on our home office website under the investor relations tab at www.bgsf.com.
−Removed: The information on our website is not part of this Annual Report on Form 10-K.
−Removed: Nominating and Corporate Governance Committee
−Removed: We have a Nominating and Corporate Governance Committee, which identifies, evaluates and recommends qualified nominees to serve on our board of directors, develops and oversees our internal corporate governance processes and maintains a management succession plan.
−Removed: Our Nominating and Corporate Governance Committee charter defines the committee’s primary duties.
−Removed: The Nominating and Corporate Governance Committee will evaluate nominees for director, including nominees recommended by stockholders, using all relevant criteria, including diversity of experience and background.
−Removed: The Nominating and Corporate Governance Committee will consider any director candidates recommended by the Company’s stockholders provided that the notice and information requirements specified by Section 2.06(b)–(c) of the Bylaws (relating to direct stockholder nominations) are complied with.
−Removed: Our Nominating and Corporate Governance Committee consists of Richard L.
−Removed: Baum, Jr., Douglas E.
−Removed: Hailey, Cynthia Marshall, and Paul A.
−Removed: A copy of the Nominating and Corporate Governance Committee’s charter is posted on our website at www.bgsf.com.
−Removed: The information on our website is not part of this Annual Report on Form 10-K.
−Removed: Other Committees
−Removed: Our board of directors may establish other committees as it deems necessary or appropriate from time to time.
−Removed: Family Relationships
−Removed: There are no family relationships among any of our executive officers or any of our directors.
−Removed: David Allen, Jr.
−Removed: Independent Director
−Removed: Director Since:
−Removed: Committees Served:
−Removed: Audit Committee, Compensation Committee
−Removed: Since 2016, Mr.
−Removed: Allen has served as Chief Financial Officer of Smart Start, LLC, a provider of automotive technology products.
−Removed: Prior to Smart Start, from 2015 to 2016, Mr.
−Removed: Allen has served as Chief Financial Officer of Graebel Vanlines Holdings, LLC, a provider of commercial and residential logistics, moving and storage services.
−Removed: Prior to Graebel, from 2009 to 2015, Mr.
−Removed: Allen served as an officer of Snelling Services, LLC, a workforce solutions and contract provider.
−Removed: From 2010 to 2015, Mr.
−Removed: Allen served as President and Chief Executive Officer.
−Removed: From 2009 to 2010 he served as Chief Financial Officer.
−Removed: Prior to Snelling, Mr.
−Removed: Allen served for three years as Chief Operating Officer and six years as Chief Financial Officer for Telvista Inc., a business process outsourcer providing customer relationship management solutions.
−Removed: He earned a Master of Business Administration degree from the Tuck School at Dartmouth College in 1993 and received a Bachelor of Business Administration from Stephen F.
−Removed: Austin State University with honors in 1986.
−Removed: Our board of directors benefits from Mr.
−Removed: Allen's extensive experience in the workforce solutions industry as well as his financial expertise.
−Removed: Allen Baker, Jr.
−Removed: Director Since:
−Removed: Allen Baker, Jr.
−Removed: joined the board of managers of LTN Acquisition, LLC (the former parent of the predecessor to BGSF, Inc.) in 2008 while serving as the Executive Vice President/Chief Financial Officer of Impact Confections, Inc., a confections manufacturing company in Colorado, a position Mr.
−Removed: Baker held from 2002 through 2009 and was appointed to our board of directors in November 2013.
−Removed: He served as President and Chief Executive Officer of BGSF from 2009 through October 2018 when he assumed the role of Chairman.
−Removed: From 1985 to 2002, Mr.
−Removed: Baker served as Executive Vice President and Chief Financial Officer of Piping Design Services, Inc.
−Removed: d/b/a PDS Technical Services, a national, privately held service company headquartered in the Dallas/Fort Worth area, with operations in 43 states.
−Removed: Prior to this position, he worked at Core Laboratories, Inc.
−Removed: as the Corporate Controller from 1980 to 1985 and as Data Processing Manager from 1976 to 1980.
−Removed: Baker held several computer programmer positions prior to joining Core Laboratories, Inc.
−Removed: He has a Bachelor of Science in Mathematics with a minor in Computer Information Systems from West Texas A&M University (formerly West Texas State University) and a Master of Business Administration from the University of Dallas.
−Removed: Our board of directors benefits from Mr.
−Removed: Baker's extensive experience in the workforce solution industry.
−Removed: Independent Director
−Removed: Director Since:
−Removed: Committees Served:
−Removed: Audit Committee, Compensation Committee (Chair), Nominating and Corporate Governance Committee (Chair)
−Removed: served on the board of managers of LTN Acquisition, LLC (the former parent of the predecessor to BGSF, Inc.) since its inception and was appointed to serve on our board of directors in November 2013.
−Removed: Since March 2013, Mr.
−Removed: Baum has been Chairman of the Board of Unique Fabricating, Inc.
−Removed: (NYSE American:
−Removed: Baum joined Taglich Private Equity LLC in 2005 and currently is an active director with a number of private companies where Taglich has an investment.
−Removed: Prior to joining Taglich, Mr.
−Removed: Baum led a group that purchased a private equity portfolio from Transamerica Business Credit.
−Removed: From 1998 to 2003, Mr.
−Removed: Baum was a Managing Director in the small business merger and acquisition practices of Wachovia Securities and its predecessor, First Union Securities.
−Removed: From 1988 through 1998, Mr.
−Removed: Baum was a Principal with the Mid-Atlantic Companies, Ltd., a financial services firm acquired by First Union in 1998.
−Removed: Baum received a Bachelor of Science from Drexel University and a Master of Business Administration from the Wharton School of the University of Pennsylvania.
−Removed: Our board of directors benefits from Mr.
−Removed: Baum's perspective and experience with our ongoing operations and strategy that he has obtained through his prolonged service to the company and due to his ability to assist with the evaluation of potential acquisitions.
−Removed: President and Chief Executive Officer
−Removed: Director Since:
−Removed: Beth Garvey began serving as director in July 2020 and as President and Chief Executive Officer of the Company in October 2018.
−Removed: Garvey previously served as Chief Operating Officer of the Company from August 2016 and joined the Company through the Company's acquisition of substantially all of the assets of InStaff Holding Corporation and InStaff Personnel, LLC (“InStaff”) in 2013.
−Removed: Garvey started at InStaff in 1998 as Director of Human Resources, subsequently serving as Director of Operations, VP of Operations, Senior VP of Operations, COO and ultimately CEO prior to our acquisition.
−Removed: The Staffing Industry Analysts has recognized her as one of North America Staffing 100 for the previous 2 years and included her in the Global Power 150 – Women in Staffing list for the past 3 years.
−Removed: In addition, D CEO has named Ms.
−Removed: Garvey as one of the top Dallas 500 Business Leaders 4 times.
−Removed: Garvey was a Dallas Business Journal ‘Women in Business’ honoree recognizing outstanding local women business leaders who not only make a difference in their industries, but also in their communities.
−Removed: Beth currently serves on the Board of Directors of the Dallas Regional Chamber and is co-chair of the Talent Attraction committee.
−Removed: She is a past chair of the Executive Committee for the Dallas Executive Women’s Roundtable and is on the Board of Directors for The Family Place, a non-profit supporting victims of family violence.
−Removed: In addition, she is a founding member of Y Texas, as well as a Board Member of the Y Texas Foundation an initiative of Texas CEO’s to help advance workforce development initiatives for students and veterans in the State of Texas.
−Removed: Recently, Ms.
−Removed: Garvey was named as a finalist in the EY Entrepreneur of the Year® 2020 Award for the Southwest region.
−Removed: We believe that Ms.
−Removed: Garvey should serve as a member of the Board due to her extensive experience in the workforce solutions industry.
−Removed: Independent Director
−Removed: Director Since:
−Removed: Committees Served:
−Removed: Audit Committee (Chair), Nominating and Corporate Governance Committee
−Removed: Hailey served on the board of managers of LTN Acquisition, LLC (the former parent of the predecessor to BGSF, Inc.) since its inception and was appointed to our board of directors in November 2013.
−Removed: Hailey is the managing director of Taglich Private Equity LLC.
−Removed: Hailey joined Taglich Brothers, Inc.
−Removed: in 1994 as Head of Investment Banking and is an employee, not a partner, director, shareholder or executive officer.
−Removed: Taglich Brothers, Inc.
−Removed: is not an affiliate of Taglich Private Equity LLC.
−Removed: He co-led the private equity initiative in 2001 and currently participates in evaluating and executing new investments.
−Removed: Prior to joining Taglich Brothers, Inc., Mr.
−Removed: Hailey spent five years with Weatherly Financial Group, assisting in sponsoring leveraged buyouts and five years in structured finance lending at Heller Financial and the Bank of New York.
−Removed: He received a Bachelor of Business Administration from Eastern New Mexico University and a Master of Business Administration in Finance from the University of Texas.
−Removed: Our board of directors benefits from Mr.
−Removed: Hailey's perspective and experience with our ongoing operations and strategy that he has obtained through his prolonged service to the company and due to his ability to assist with the evaluation of potential acquisitions.
−Removed: Cynthia Marshall
−Removed: Independent Director
−Removed: Director Since:
−Removed: Committees Served:
−Removed: Compensation Committee, Nominating and Corporate Governance Committee
−Removed: Marshall began service as director in July 2020.
−Removed: Marshall is currently the CEO of the Dallas Mavericks, is Founder, President and CEO of the consulting firm Marshalling Resources.
−Removed: The Marshalling Resources consulting firm specializes in leadership, diversity and inclusion, culture transformation and overall optimization of people resources.
−Removed: Marshall worked with The Dow Chemical Company in 2017 and 2018 to develop and implement a strategy for institutionalizing an inclusive culture.
−Removed: Prior to this position, Ms.
−Removed: Marshall retired from a 36-year career at AT&T, where she had ultimately served as SVP - Human Resources and Chief Diversity Officer.
−Removed: She was responsible for identifying and developing leaders, aligning employees with the company’s vision and priorities, overseeing major business unit HR support, performance development, employee engagement, skills transformation initiatives, EEO and Affirmative Action.
−Removed: She led the team that created a world class Diversity and Inclusion culture, earning AT&T a top 3 ranking on Diversity Inc’s 2017 Top 50 list of companies.
−Removed: Marshall also spearheaded the work that for the first-time placed AT&T on Fortune’s 100 Best Companies to Work For list in 2017 (one of only two Fortune 50 companies).
−Removed: Before her SVP-Human Resources and Chief Diversity Officer roles, Ms.
−Removed: Marshall served as President - AT&T North Carolina where she became the first African-American chair of the North Carolina State Chamber of Commerce.
−Removed: Marshall graduated from the University of California-Berkeley with degrees in Business Administration and Human Resources Management and holds four honorary Doctorate degrees.
−Removed: Marshall has chaired a variety of non-profit boards and is currently on the board of Dallas CASA, Dallas Regional Chamber, Texas Women’s Foundation, Texas 2036 and a member of the Executive Leadership Council.
−Removed: We believe that Ms.
−Removed: Marshall should serve as a member of the Board due to her extensive leadership and business experience and her expertise with respect to human resources and culture.
−Removed: Independent Director
−Removed: Director Since:
−Removed: Committees Served:
−Removed: Compensation Committee, Nominating and Corporate Governance Committee
−Removed: Since 2010, Mr.
−Removed: Seid has served on the board of directors of BioVentrix, a medical device company.
−Removed: Starting in 2013, he has served as Chief Executive Officer of RST Automation, a hospital instrumentation automation developer which was established 2004.
−Removed: For the past sixteen years he has been President of Strategic Data Marketing, a research and data collection company.
−Removed: He has also founded, bought and/ or sold over twenty companies in Asia, Europe, North, and South America.
−Removed: Seid graduated from Queen’s College, a division of the City University of New York, in 1968 with a Bachelor’s degree in Political Science.
−Removed: Seid has held numerous other board of directors and consulting positions.
−Removed: Our board of directors benefits from Mr.
−Removed: Seid's extensive experience growing diverse businesses.
−Removed: Information about our Executive Officers
−Removed: Our board of directors appoints our executive officers and updates the executive officer positions as needed throughout the fiscal year.
−Removed: Each executive officer serves at the behest of our board of directors and until their successors are appointed, or until the earlier of their death, resignation or removal.
−Removed: The following table sets forth certain information with respect to our executive officers as of the date of this Annual Report:
−Removed: Name Age Position
−Removed: Beth Garvey 55 President and Chief Executive Officer
−Removed: Dan Hollenbach 65 Chief Financial Officer and Secretary
−Removed: Beth Garvey began serving as President and Chief Executive Officer of the Company in October 2018.
−Removed: Garvey previously served as Chief Operating Officer of the Company from August 2016 and joined the Company through the Company's acquisition of substantially all of the assets of InStaff Holding Corporation and InStaff Personnel, LLC (“InStaff”) in 2013.
−Removed: Garvey started at InStaff in 1998 as Director of Human Resources, subsequently serving as Director of Operations, VP of Operations, Senior VP of Operations, COO and ultimately CEO prior to our acquisition.
−Removed: The Staffing Industry Analysts has recognized her as one of North America Staffing 100 for the previous 2 years and included her in the Global Power 150 – Women in Staffing list for the past 3 years.
−Removed: In addition, D CEO has named Garvey as one of the top Dallas 500 Business Leaders 4 times.
−Removed: Garvey was a Dallas Business Journal ‘Women in Business’ honoree recognizing outstanding local women business leaders who not only make a difference in their industries, but also in their communities.
−Removed: Beth currently serves on the Board of Directors of the Dallas Regional Chamber and is co-chair of the Talent Attraction committee.
−Removed: She is a past chair of the Executive Committee for the Dallas Executive Women’s Roundtable and is on the Board of Directors for The Family Place, a non-profit supporting victims of family violence.
−Removed: In addition, she is a founding member of Y Texas, as well as a Board Member of the Y Texas Foundation an initiative of Texas CEO’s to help advance workforce development initiatives for students and veterans in the State of Texas.
−Removed: Recently, Ms.
−Removed: Garvey was named as a finalist in the EY Entrepreneur of the Year® 2020 Award for the Southwest region.
−Removed: Dan Hollenbach joined as CFO and Secretary in August 2015.
−Removed: Prior to joining the Company, Mr.
−Removed: Hollenbach was the CFO of Cybergy Holdings, Inc.
−Removed: CYBG), an advisory service and products company for the federal and state governments, and commercial client partners, from May 2014 to August 2015.
−Removed: Prior to this position, he led the consulting practice for Robert Half Management Resources in Colorado from June 2010 to May 2014.
−Removed: From August 2004 to July 2009, Dan was the CFO for Global Employment Holdings (OTC:
−Removed: GEYH), a national workforce solution, consulting, and professional employer organization company.
−Removed: Hollenbach began his career in the Audit and Assurance Services practice of EY before entering the corporate world.
−Removed: He has over three decades of experience in corporate accounting and finance, including expertise in initial public offerings, SEC reporting, mergers and acquisitions, SarbanesOxley, treasury management, process improvement, and all phases of audit, tax, and reporting.
−Removed: Additionally, he has served on audit committees and led negotiations of multiple senior debt restructurings.
−Removed: He is a CPA in the State of Texas, holds a Chartered Global Management Accountant certification, and received his B.B.A.
−Removed: in accounting from Texas Tech University.
−Removed: Code of Ethics
−Removed: We have adopted a Code of Ethics that applies to all of our team members, including our chief executive officer and our chief financial officer (who is our principal accounting officer).
−Removed: Our Code of Ethics is available on our website at www.bgsf.com.
−Removed: If we amend or grant a waiver of one or more of the provisions of our Code of Ethics, we intend to satisfy the requirements under Item 5.05 of Item 8-K regarding the disclosure of amendments to or waivers from provisions of our Code of Ethics that apply to our principal executive, financial and accounting officers by posting the required information on our website at the above address.
−Removed: Our website is not part of this Annual Report on Form 10-K.
−Removed: Corporate Governance Guidelines
−Removed: The board of directors has adopted Corporate Governance Guidelines on a number of significant matters, including director qualifications, director responsibilities, board committees, director access to officers, employees, and advisors, director compensation, related party transactions, annual performance evaluations, and chief executive officer and director succession.
−Removed: A copy of the Corporate Governance Guidelines is posted on our website at http://www.bgsf.com.
−Removed: The information on our website is not part of this Annual Report on Form 10-K.
−Removed: Delinquent Section 16(a) Reports
−Removed: Section 16(a) of the Exchange Act requires our executive officers, directors and persons who own more than 10% of our common stock to file reports of ownership and changes in ownership with the SEC and further requires us to identify in this Annual Report on Form 10-K those executive officers, directors and persons who failed to timely file such a report.
−Removed: A Form 4 for Ms.
−Removed: Beth Garvey and Mr.
−Removed: Dan Hollenbach were filed late on August 7, 2020 to report an option grant on August 4, 2020 of 6,000 and 4,500 shares of common stock, respectively.
−Removed: A Form 4 for Mr.
−Removed: David Allen, Jr., Mr.
−Removed: Allen Baker, Jr., Mr.
−Removed: Baum, Jr., Mr.
−Removed: Hailey, and Mr.
−Removed: Seid were filed late on August 7, 2020 to report an option grant and restricted stock grant on August 4, 2020 of 2,060 and 1,672, respectively, shares of common stock each.
−Removed: A Form 3 for Cynthia Marshall was filed late on August 11, 2020 to report ownership on July 29, 2020 and a Form 4 for Ms.
−Removed: Cynthia Marshall was filed late on August 11, 2020 to report an option grant and restricted stock grant on August 4, 2020 of 2,060 and 1,672, respectively, shares of common stock.
−Removed: A Form 4 for Mr.
−Removed: David Allen, Jr., Mr.
−Removed: Allen Baker, Jr., Mr.
−Removed: Baum, Jr., Mr.
−Removed: Cynthia Marshall, and Mr.
−Removed: Seid were filed late on November 20, 2020 to report a restricted stock grant on November 4, 2020 of 1,932 shares of common stock each.
−Removed: Excepting the late filing disclosed above, and based solely on our review of these forms or written representations from the executive officers, directors and persons who own more than 10% of our common stock, we believe that all Section 16(a) filing requirements were met during Fiscal 2020.
+Added: The information required by Items 10, 11, 12, 13 and 14 is or will be set forth in the definitive proxy statement relating to the 2022 Annual Meeting of Stockholders of BGSF, Inc., which is to be filed with the SEC pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.
+Added: The definitive proxy statement relates to a meeting of stockholders involving the election of directors and the portions therefrom containing the information required to be set forth in this Form 10-K under Items 10, 11, 12, 13 and 14 are incorporated herein by reference pursuant to General Instruction G(3) to Form 10-K.
Executive Compensation.
−Removed: Named Executive Officers
−Removed: Our named executive officers for Fiscal 2020 are:
−Removed: • Beth Garvey, our President and Chief Executive Officer;
−Removed: • Dan Hollenbach, our Chief Financial Officer and Secretary (Principal Financial and Accounting Officer).
−Removed: Throughout this section, the term “named executive officer” is intended to refer to the individuals identified above.
−Removed: Fiscal 2020, we had only two named executive officers, each of whom is set forth above.
−Removed: Summary Compensation Table
−Removed: The following table presents compensation information for our named executive officers with respect to Fiscal 2020 and 2019.
−Removed: Principal Position
−Removed: Awards ($) (*)
−Removed: Awards ($) (*)
−Removed: incentive plan
−Removed: compensation ($)
−Removed: Non-qualified
−Removed: Beth Garvey President and Chief Executive Officer
−Removed: 2020 $350,000 $113,475 $35,763 $193,860 $— $— $14,588 (1) $707,686
−Removed: 2019 $350,000 $70,000 $— $252,728 $— $— $13,710 (1) $686,438
−Removed: Dan Hollenbach Chief Financial Officer and Secretary
−Removed: 2020 $275,000 $94,725 $35,763 $124,214 $— $— $10,400 (1) $540,102
−Removed: 2019 $275,000 $55,000 $— $184,766 $— $— $5,710 (1) $520,476
−Removed: (*) The amounts reflect the dollar amounts recognized for financial statement reporting purposes in accordance with FASB ASC Topic 718.
−Removed: The assumptions used in the calculation of these amounts are included in Note 14 Share-based Compensation to the audited consolidated financial statements included in this Annual Report on Form 10-K.
−Removed: (1) Represents the matching 401(k) contributions made by us.
−Removed: Agreements with Executive Officers
−Removed: President and Chief Executive Officer
−Removed: On October 1, 2018, we amended a 2016 employment agreement with Beth Garvey pursuant to which Ms.
−Removed: Garvey serves as our President and Chief Executive Officer through September 30, 2021.
−Removed: The agreement remains in effect under successive one-year extensions unless terminated pursuant its terms.
−Removed: Garvey's annual compensation is evaluated annually, but may not be less than $350,000 per year.
−Removed: Effective December 27, 2020, Ms.
−Removed: Garvey's annual salary was raised to $425,000.
−Removed: Garvey is eligible to receive an annual cash bonus based on achieving certain adjusted EBITDA levels (as defined by the Compensation Committee) and, except as stated in her employment agreement, provided that Ms.
−Removed: Garvey is in our employment on the last day of the fiscal year.
−Removed: Moreover, if certain acquisitions occur during her employment period, Ms.
−Removed: Garvey will receive a bonus equal to 1% of the acquired company’s adjusted EBITDA, as determined by the board, for the first 12 months after the acquisition’s closing date.
−Removed: The Compensation Committee may also grant discretionary bonuses.
−Removed: In the event that Ms.
−Removed: Garvey’s employment is terminated by us without cause or by Ms.
−Removed: Garvey for good reason, Ms.
−Removed: Garvey will receive as severance installments equal to twelve months of base salary plus COBRA premiums for eighteen months for Ms.
−Removed: Garvey and her dependents.
−Removed: In the event that Ms.
−Removed: Garvey’s employment is terminated without cause or for good reason within one year of a change in control, Ms.
−Removed: Garvey will receive her base salary and COBRA premiums for eighteen months for her and her dependents.
−Removed: Garvey will also generally be entitled to receive any bonus payable but unpaid, payment for unused vacation days, and unpaid reimbursements.
−Removed: The severance is contingent upon Ms.
−Removed: Garvey’s execution of a separation agreement including a general release.
−Removed: In the event that Ms.
−Removed: Garvey’s employment is terminated by us for cause, or by Ms.
−Removed: Garvey other than for good reason, we will pay to Ms.
−Removed: Garvey any monthly salary, bonus, unused vacation, and expense reimbursements, earned or due to Ms.
−Removed: Garvey but unpaid.
−Removed: Garvey have also entered into a confidentiality, non-solicitation, non-interference and non-competition agreement.
−Removed: Pursuant to the agreement, Ms.
−Removed: Garvey generally agrees not to disclose our confidential information (as defined in the agreement) and, for a period of eighteen months following her termination, not to solicit our client partners, interfere with our client partner and supplier relationships, or solicit our team members.
−Removed: Garvey also agrees not to compete with us for a period of twelve months after termination.
−Removed: Garvey was granted stock options in Fiscal 2020 and granted stock options and restricted stock in Fiscal 2018 as further described under “Outstanding Equity Awards” below.
−Removed: Chief Financial Officer
−Removed: On October 1, 2018, we amended a 2015 employment agreement with Dan Hollenbach pursuant to which Mr.
−Removed: Hollenbach serves as our Chief Financial Officer and Secretary through September 30, 2021.
−Removed: The contract remains in effect under successive one-year extensions unless terminated pursuant to its terms.
−Removed: Hollenbach's annual compensation is evaluated annually, but may not be less than $275,000 per year.
−Removed: Effective December 27, 2020, Mr.
−Removed: Hollenbach's annual salary was raised to $320,000.
−Removed: Hollenbach is eligible to receive an annual cash bonus based on achieving certain adjusted EBITDA levels (as defined by the Compensation Committee) and, except as stated in his employment agreement, provided that Mr.
−Removed: Hollenbach is in our employment on the last day of the fiscal year.
−Removed: Moreover, if certain acquisitions occur during his employment period, Mr.
−Removed: Hollenbach will receive a bonus equal to 1% of the acquired company’s adjusted EBITDA, as determined by the board, for the first 12 months after the acquisition’s closing date.
−Removed: The Compensation Committee may also grant discretionary bonuses.
−Removed: In the event that Mr.
−Removed: Hollenbach’s employment is terminated by us without cause or by Mr.
−Removed: Hollenbach for good reason, Mr.
−Removed: Hollenbach will receive as severance installments equal to twelve months of base salary plus COBRA premiums for eighteen months for Mr.
−Removed: Hollenbach and his dependents.
−Removed: In the event that Mr.
−Removed: Hollenbach’s employment is terminated without cause or for good reason within one year of a change in control, Mr.
−Removed: Hollenbach will receive his base salary and COBRA premiums for eighteen months for him and his dependents.
−Removed: Hollenbach will also generally be entitled to receive any bonus payable but unpaid, payment for unused vacation days, and unpaid reimbursements.
−Removed: The severance is contingent upon Mr.
−Removed: Hollenbach’s execution of a separation agreement including a general release.
−Removed: In the event that Mr.
−Removed: Hollenbach’s employment is terminated by us for cause, or by Mr.
−Removed: Hollenbach other than for good reason, we will pay to Mr.
−Removed: Hollenbach any monthly salary, bonus, unused vacation, and expense reimbursements, earned or due to Mr.
−Removed: Hollenbach but unpaid.
−Removed: Hollenbach have also entered into a confidentiality, non-solicitation, non-interference and non-competition agreement.
−Removed: Pursuant to the agreement, Mr.
−Removed: Hollenbach generally agrees not to disclose our confidential information (as defined in the agreement) and, for a period of eighteen months following his termination, not to solicit our client partners, interfere with our client partner and supplier relationships, or solicit our team members.
−Removed: Hollenbach also agrees not to compete with us for a period of twelve months after termination.
−Removed: Hollenbach was granted stock options in Fiscal 2020 and granted stock options and restricted stock in Fiscal 2018 as further described under “Outstanding Equity Awards” below.
−Removed: 2013 Long-Term Incentive Plan
−Removed: In December 2013, the board of directors adopted the original 2013 Plan.
−Removed: Under the original 2013 Plan team members, directors and consultants of the Company may receive incentive stock options and other awards.
−Removed: A total of 900,000 shares of common stock of BGSF, Inc.
−Removed: were initially reserved for issuance pursuant to the original 2013 Plan.
−Removed: On November 3, 2020 and May 16, 2017, stockholders of the Company approved and made effective amendments to the 2013 Plan, which each added an additional 250,000 shares of common stock reserved for issuance.
−Removed: To the extent any option or award expires unexercised or is canceled, terminated or forfeited in any manner without the issuance of common stock thereunder, such shares shall again be available for issuance under the original 2013 Plan, of which 1,088,739 shares remain available for issuance as of December 27, 2020.
−Removed: The term of each option is determined by the board of directors but cannot exceed 10 years.
−Removed: Unless otherwise specified in an option agreement, options vest and become exercisable on the following schedule:
−Removed: 20% immediately and 20% on each anniversary date of the grant date.
−Removed: Each option shall be designated as an incentive stock option (“ISO”) or a non-qualified option (“NQO”).
−Removed: The exercise price of an ISO shall not be less than the fair market value of the stock covered by the ISO at the grant date;
−Removed: provided, however, the exercise price of an ISO granted to any person who owns, directly or indirectly, stock of the Company constituting more than 10% of the total combined voting power of all classes of outstanding stock of the Company or of any affiliate of the Company, shall not be less than 110% of such fair market value.
−Removed: For more details on our 2013 Plan, see our registration statement on Form S-8 (File No.
−Removed: 333-193014) filed on December 20, 2013, Form S-8 (File No.
−Removed: 333-218869) filed on June 20, 2017, Form S-8 (File No.
−Removed: 333-251192) filed on December 8, 2020, and Note 14 in the Notes to Consolidated Financial Statements.
−Removed: 2020 Employee Stock Purchase Plan (“2020 ESPP”)
−Removed: In November 2020, the board of directors adopted and the shareholders approved the 2020 ESPP.
−Removed: Under the 2020 ESPP, eligible team members of the Company may elect for payroll deductions to purchase shares on each purchase date during an offering period.
−Removed: A total of 250,000 shares of common stock of BGSF, Inc.
−Removed: were initially reserved for issuance pursuant to the 2020 ESPP.
−Removed: All shares remain available for issuance as of December 27, 2020 and we plan to begin our initial offering period during second quarter 2021.
−Removed: For more details on our 2020 Plan, see our registration statement on Form S-8 (File No.
−Removed: 333-251193) filed on December 8, 2020, and Note 14 in the Notes to Consolidated Financial Statements.
−Removed: Outstanding Equity Awards
−Removed: The following table presents outstanding equity awards as of December 27, 2020.
−Removed: Name Option Awards Stock Awards
−Removed: Grant date Number of securities underlying unexercised options (#) exercisable Number of securities underlying unexercised options (#) unexercisable Equity incentive plan awards:
−Removed: Number of securities underlying unexercised unearned options (#) Option exercise price ($) Option expiration date Number of Shares or Units of Stock that Have Not Vested (#) Market Value of Shares or Units of Stock that Have Not Vested ($)
−Removed: (a) (b) (c) (d) (e) (f) (g) (h)
−Removed: Beth Garvey 08/04/2020 1,200 2,400 (1) — $ 9.72 08/04/2030 — —
−Removed: 08/04/2020 — 2,400 (2) — $ 9.72 08/04/2030 — —
−Removed: 09/24/2018 — 6,150 (3) — $ 25.71 09/24/2028 — —
−Removed: 09/24/2018 60,000 33,850 (4) — $ 25.71 09/24/2028 — —
−Removed: 08/10/2018 — — — $ — — 1,250 (11) $ 15,763
−Removed: 06/07/2017 — 2,500 (5) — $ 16.76 06/07/2027 — —
−Removed: 06/07/2017 10,000 — — $ 16.76 06/07/2027 — —
−Removed: 08/16/2016 13,185 — — $ 17.46 08/16/2026 — —
−Removed: 08/16/2016 36,815 — — $ 17.46 08/16/2026 — —
−Removed: 06/09/2015 20,000 — — $ 11.00 06/09/2025 — —
−Removed: Dan Hollenbach 08/04/2020 900 1,800 (6) — $ 9.72 08/04/2030 — —
−Removed: 08/04/2020 — 1,800 (7) — $ 9.72 08/04/2030 — —
−Removed: 09/24/2018 2,260 6,150 (8) — $ 25.71 09/24/2028 — —
−Removed: 09/24/2018 42,740 23,850 (9) — $ 25.71 09/24/2028 — —
−Removed: 08/10/2018 — — — $ — — 1,250 (11) $ 15,763
−Removed: 06/07/2017 2,500 2,500 (10) — $ 16.76 06/07/2027 — —
−Removed: 06/07/2017 7,500 — — $ 16.76 06/07/2027 — —
−Removed: 10/27/2015 17,012 — — $ 11.07 10/27/2025 — —
−Removed: 10/27/2015 19,835 — — $ 11.07 10/27/2025 — —
−Removed: (1) Incentive stock options will vest 1,200 on August 4, 2021 and 1,200 on August 4, 2022.
−Removed: (2) Nonqualified stock options will vest 1,200 on August 4, 2023 and 1,200 on August 4, 2024.
−Removed: (3) Incentive stock options will vest 2,260 on September 24, 2021 and 3,890 on September 24, 2022.
−Removed: (4) Nonqualified stock options will vest 17,740 on September 24, 2021 and 16,110 on September 24, 2022.
−Removed: (5) Incentive stock options will vest on June 7, 2021.
−Removed: (6) Incentive stock options will vest 900 on August 4, 2021 and 900 on August 4, 2022.
−Removed: (7) Nonqualified stock options will vest 900 on August 4, 2023 and 900 on August 4, 2024.
−Removed: (8) Incentive stock options will vest 2,260 on September 24, 2021 and 3,890 on September 24, 2022.
−Removed: (9) Nonqualified stock options will vest 12,740 on September 24, 2021 and 11,110 on September 24, 2022.
−Removed: (10) Incentive stock options will 2,500 on June 7, 2021.
−Removed: (11) Shares will vest on August 10, 2021.
−Removed: Each option and stock award is subject to the condition that the optionee will have remained employed by the Company, or any one or more of its subsidiaries, through such vesting dates, and each option is further subject to the terms and conditions set forth in the 2013 Plan and in the applicable Stock Option Agreement.
−Removed: Compensation Committee Interlocks and Insider Participation
−Removed: No member of our Compensation Committee is a current or former officer or team member of BGSF, Inc.
−Removed: or its subsidiaries.
−Removed: No executive officer of BGSF, Inc.
−Removed: served as a director or member of the compensation committee of any entity that has one or more executive officers serving as a member of our board of directors or Compensation Committee.
−Removed: Director Compensation
−Removed: Set forth below is a summary of the components of compensation payable to our non-management directors.
−Removed: Cash Compensation
−Removed: We reimburse each member of our board of directors for all reasonable out-of-pocket expenses incurred in connection with their attendance at meetings of our board of directors and any committees thereof, including, without limitation, reasonable travel, lodging and meal expenses.
−Removed: Each director who is not a team member or officer of the Company is entitled to (i) an annual retainer of $45,000 for their service on our board of directors, and (ii) an annual retainer of $5,000 for audit committee service.
−Removed: Name Board Member
−Removed: ($) Audit Committee ($) Compensation Committee
−Removed: ($) Nominating & Governance Committee ($) Chairman of the Board
−Removed: David Allen, Jr.
−Removed: $ 45,000 $ 5,000 $ — $ — $ — $ 50,000
−Removed: Allen Baker, Jr.
−Removed: $ 45,000 $ — $ — $ — $ — $ 45,000
−Removed: $ 45,000 $ 5,000 $ — $ — $ — $ 50,000
−Removed: Hailey $ 45,000 $ 5,000 $ — $ — $ — $ 50,000
−Removed: Cynthia Marshall * $ 22,500 $ — $ — $ — $ — $ 22,500
−Removed: Seid $ 45,000 $ — $ — $ — $ — $ 45,000
−Removed: Marshall began service as a director in July 2020.
−Removed: Director Compensation for Fiscal 2020
−Removed: The table below sets forth the compensation payable to our non-management directors for service during Fiscal 2020.
−Removed: Name Fees earned or paid in cash
−Removed: ($) Stock awards
−Removed: Option awards
−Removed: Non-equity incentive plan
−Removed: ($) Nonqualified deferred
−Removed: compensation earnings
−Removed: ($) All other compensation
−Removed: David Allen, Jr.
−Removed: $ 50,000 $ 46,270 $ 4,032 $ — $ — $ — $ 100,302
−Removed: Allen Baker, Jr.
−Removed: $ 45,000 $ 10,507 $ 4,032 $ — $ — $ — $ 59,539
−Removed: $ 50,000 $ 46,270 $ 4,032 $ — $ — $ — $ 100,302
−Removed: Hailey $ 50,000 $ 46,270 $ 4,032 $ — $ — $ — $ 100,302
−Removed: Cynthia Marshall $ 22,500 $ 10,507 $ 952 $ — $ — $ — $ 33,959
−Removed: Seid $ 45,000 $ 46,270 $ 4,032 $ — $ — $ — $ 95,302
−Removed: * The amounts reflect the dollar amounts recognized for financial statement reporting purposes in accordance with FASB ASC Topic 718.
−Removed: The assumptions used in the calculation of these amounts are included in Note 14 Share-based Compensation to the audited consolidated financial statements included in this Annual Report on Form 10-K.
+Added: The information required by Items 10, 11, 12, 13 and 14 is or will be set forth in the definitive proxy statement relating to the 2022 Annual Meeting of Stockholders of BGSF, Inc., which is to be filed with the SEC pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.
+Added: The definitive proxy statement relates to a meeting of stockholders involving the election of directors and the portions therefrom containing the information required to be set forth in this Form 10-K under Items 10, 11, 12, 13 and 14 are incorporated herein by reference pursuant to General Instruction G(3) to Form 10-K.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
−Removed: The following table sets forth information regarding the beneficial ownership of our common stock as of January 15, 2021 by:
−Removed: • each person, or group of affiliated persons, known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock;
−Removed: • each of our named executive officers and directors;
−Removed: • all our executive officers and directors as a group.
−Removed: Each stockholder’s percentage ownership is based on 10,328,379 shares of common stock outstanding as of January 15, 2021.
−Removed: Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities.
−Removed: Except as otherwise indicated, each person or entity named in the table has sole voting and investment power with respect to all shares of our capital shown as beneficially owned, subject to applicable community property laws.
−Removed: The number and percentage of shares beneficially owned by a person includes shares that may be acquired by such person within 60 days of January 15, 2021 through the exercise of vested options or warrants, while these shares are not counted as outstanding for computing the percentage ownership of any other person.
−Removed: Except as otherwise set forth below, the address of the persons below is c/o BGSF, Inc., 5850 Granite Parkway, Suite 730, Plano, Texas 75024.
−Removed: Name of Beneficial Owner Shares of
−Removed: Stock Owned Percent of
−Removed: Dan Hollenbach 97,597 (1)
−Removed: David Allen, Jr.
−Removed: Allen Baker, Jr.
−Removed: Hailey 98,348 (6)
−Removed: Cynthia Marshall 4,016 (7)
−Removed: Seid 64,723 (8)
−Removed: All executive officers and directors as a group (8 total) 584,254 2.8 %
−Removed: BlackRock, Inc.
−Removed: * Less than 1%.
−Removed: (1) Includes 92,747 shares of common stock issuable upon exercise of stock options and 1,250 shares of unvested restricted common stock.
−Removed: (2) Includes 1,412 shares of common stock issuable upon exercise of stock options and 4,893 shares of unvested restricted common stock.
−Removed: (3) Includes 55,785 shares of common stock held by a trust, 1,412 shares of common stock issuable upon exercise of stock options, and 3,643 shares of unvested restricted common stock.
−Removed: (4) Includes 13,662 shares of common stock issuable upon exercise of stock options, 44,544 shares of common stock held by a private investment company controlled by Mr.
−Removed: Baum, 5,388 shares of common stock held by a family trust and 4,893 shares of unvested restricted common stock.
−Removed: (5) Includes 141,200 shares of common stock issuable upon exercise of stock options and 1,250 shares of unvested restricted common stock.
−Removed: (6) Includes 25,160 and 1,613 shares of common stock issuable upon exercise of stock options and warrants, respectively, and 4,893 shares of unvested restricted common stock.
−Removed: (7) Includes 412 shares of common stock issuable upon exercise of stock options and 3,643 shares of unvested restricted common stock.
−Removed: (8) Includes 13,662 shares of common stock issuable upon exercise of stock options and 4,893 shares of unvested restricted common stock.
−Removed: (9) The address of BlackRock, Inc.
−Removed: is SS East 52 nd Street, New York, New York 10055.
−Removed: (10) Includes 656,500 shares over which BlackRock, Inc.
−Removed: or its subsidiaries have sole voting power and 664,894 shares over which such entities have sole disposition power.
−Removed: Equity Compensation Plans
−Removed: See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Equity Compensation Plans in this Annual Report.
+Added: The information required by Items 10, 11, 12, 13 and 14 is or will be set forth in the definitive proxy statement relating to the 2022 Annual Meeting of Stockholders of BGSF, Inc., which is to be filed with the SEC pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.
+Added: The definitive proxy statement relates to a meeting of stockholders involving the election of directors and the portions therefrom containing the information required to be set forth in this Form 10-K under Items 10, 11, 12, 13 and 14 are incorporated herein by reference pursuant to General Instruction G(3) to Form 10-K.
Certain Relationships and Related Transactions, and Director Independence.
−Removed: Policy on Review and Approval of Transactions with Related Persons
−Removed: Our board of directors is currently primarily responsible for developing and implementing processes and controls to obtain information from our directors, executive officers and significant stockholders regarding related-person transactions and then determining, based on the facts and circumstances, whether we or a related person has a direct or indirect material interest in these transactions.
−Removed: Our Audit Committee is responsible for the review, approval and ratification of “related-person transactions” between us and any related person.
−Removed: Under SEC rules, a related person is a director, executive officer, nominee for director or beneficial holder of more than of 5% of any class of our voting securities or an immediate family member of any of the foregoing.
−Removed: In the course of its review and approval or ratification of a related-person transaction, the Audit Committee will consider:
−Removed: • the nature of the related person’s interest in the transaction;
−Removed: • the material terms of the transaction, including the amount involved and type of transaction;
−Removed: • the importance of the transaction to the related person and to the Company;
−Removed: • whether the transaction would impair the judgment of a director or executive officer to act in our best interest and the best interest of our stockholders;
−Removed: • any other matters the Audit Committee deems appropriate.
−Removed: Any member of the Audit Committee who is a related person with respect to a transaction under review will not be able to participate in the deliberations or vote on the approval or ratification of the transaction.
−Removed: However, such a director may be counted in determining the presence of a quorum at a meeting of the committee that considers the transaction.
−Removed: 2018 Registered Offering
−Removed: On May 25, 2018, the Company issued and sold 1,293,750 shares of common stock, $0.01 par value per share, to various investors in a registered offering for an aggregate purchase price of $23.3 million in cash.
−Removed: The purchase price was $18.00 per share.
−Removed: The newly issued shares constituted approximately 14.7% of the total of issued and outstanding shares of common stock immediately before the initial execution of the Underwriting Agreement.
−Removed: In connection with the closing, underwriting discounts received by Taglich Brothers, Inc., as joint book-running manager, were approximately $0.8 million.
−Removed: Taglich and Robert F.
−Removed: Taglich are co-founders of Taglich Brothers, Inc.
−Removed: and the beneficial owners of more than 5% of our common stock.
−Removed: Doug Hailey is not an owner, director, or executive officer of Taglich Brothers, Inc.
−Removed: Taglich Brothers, Inc.
−Removed: is not an affiliate of Taglich Private Equity LLC.
−Removed: The Company used a portion of the net proceeds received from the sale of the common stock to cancel outstanding in-the-money stock options held by L.
−Removed: Allen Baker, Jr., BGSF's President and Chief Executive Officer, as further described below.
−Removed: Stock Option Cancellation
−Removed: On May 31, 2018, the Company entered into a stock option cancellation agreement with L.
−Removed: Allen Baker, Jr., the Company's President and Chief Executive Officer, pursuant to which the Company agreed to pay Mr.
−Removed: Baker (the “Cancellation Agreement”) $18.00 per share of common stock underlying certain vested in-the-money stock options of the Company’s 2013 Long-Term Incentive Plan, as amended (the “2013 Plan”), less the exercise price per share thereof, in exchange for the cancellation and termination of such stock options.
−Removed: Pursuant to the terms of the Cancellation Agreement, the Company agreed to pay $3,287,500 to Mr.
−Removed: Baker in exchange for the cancellation of 284,888 stock options granted to him under the 2013 Plan.
+Added: The information required by Items 10, 11, 12, 13 and 14 is or will be set forth in the definitive proxy statement relating to the 2022 Annual Meeting of Stockholders of BGSF, Inc., which is to be filed with the SEC pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.
+Added: The definitive proxy statement relates to a meeting of stockholders involving the election of directors and the portions therefrom containing the information required to be set forth in this Form 10-K under Items 10, 11, 12, 13 and 14 are incorporated herein by reference pursuant to General Instruction G(3) to Form 10-K.
Principal Accountant Fees and Services.
−Removed: The Audit Committee reviews and pre-approves both audit and all permissible non-audit services provided by our independent registered public accounting firm, and accordingly, all services and fees in Fiscal 2020, 2019, and 2018 provided by Whitley Penn LLP were pre-approved by the Audit Committee.
−Removed: The Audit Committee has considered whether the provision of services, other than services rendered in connection with the audit of our annual financial statements, is compatible with maintaining Whitley Penn LLP’s independence.
−Removed: The Audit Committee has determined that the rendering of non-audit services by Whitley Penn LLP during Fiscal 2020, 2019, and 2018 was compatible with maintaining the firm’s independence.
−Removed: Aggregate fees billed or incurred related to the following years for professional services rendered by Whitley Penn LLP for Fiscal 2020 and 2019 are set forth below.
−Removed: Audit Fees (1)
−Removed: $ 298,487 $ 266,992
−Removed: Audit-Related Fees (2)
−Removed: 48,435 71,300
−Removed: All Other Fees
−Removed: $ 346,922 $ 338,292
−Removed: (1) Audit fees consist principally of fees for the audit of our consolidated financial statements and Sarbanes-Oxley audit over internal controls, review of our interim consolidated financial statements, and audit services related to our acquisitions.
−Removed: (2) These fees consist principally of fees related to the preparation of SEC registration statements, acquisition due diligence, and U.S.
−Removed: Department of Labor filings.
−Removed: The Audit Committee appointed Whitley Penn LLP as our independent registered public accounting firm for the 2021 fiscal year and Whitley Penn LLP has served in this capacity since 2013.
−Removed: Our board of directors has further directed that we submit the selection of our independent registered public accounting firm for ratification by our shareholders at the 2021 annual meeting.
+Added: The information required by Items 10, 11, 12, 13 and 14 is or will be set forth in the definitive proxy statement relating to the 2022 Annual Meeting of Stockholders of BGSF, Inc., which is to be filed with the SEC pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended.
+Added: The definitive proxy statement relates to a meeting of stockholders involving the election of directors and the portions therefrom containing the information required to be set forth in this Form 10-K under Items 10, 11, 12, 13 and 14 are incorporated herein by reference pursuant to General Instruction G(3) to Form 10-K.
Exhibits and Financial Statement Schedules.
3 unchanged sentences
As of and for the Fiscal Years Ended December 26, 2021, December 27, 2020, and December 29, 2019.
−Removed: Report of Independent Registered Public Accounting Firm
+Added: Report of Independent Registered Public Accounting Firm (PCAOB ID 726 )
Consolidated Balance Sheets
17 unchanged sentences
David Allen, Jr.
−Removed: Allen Baker, Jr.
−Removed: Chairman of the Board
−Removed: Allen Baker, Jr.
/s/ Richard L.
5 unchanged sentences
EXHIBIT INDEX
−Removed: 2.1 Asset Purchase Agreement, dated as of May 28, 2013, by and among LTN Staffing, LLC, InStaff Holding Corporation and InStaff Personnel, LLC (incorporated by reference from the registrant’s registration statement on Form S-1 (File No.
−Removed: 333-191683) filed on October 10, 2013)
−Removed: 2.2 Asset Purchase Agreement, dated as of December 3, 2012, by and among BG Staffing, LLC, American Partners, Inc., Thomas Leonard, Justin Franks, Ronald Wnek, and LTN Acquisition, LLC (incorporated by reference from the registrant’s registration statement on Form S-1 (File No.
−Removed: 333-191683) filed on October 10, 2013)
−Removed: 2.3 Asset Purchase Agreement, dated as of February 23, 2015, between BG Finance and Accounting, Inc., BG Staffing, Inc., D&W Talent, LLC and Willis Group, LLC (incorporated by reference from the registrant’s Form 8-K filed on February 27, 2015)
−Removed: 2.4 First Amendment to Asset Purchase Agreement, dated as of December 15, 2015, among BG Finance and Accounting, Inc., D&W Talent, LLC and Willis Group, LLC (incorporated by reference from Amendment No.
−Removed: 1 to the registrant's Annual Report on Form 10-K filed on April 25, 2016)
−Removed: 2.5 Second Amendment to Asset Purchase Agreement, dated as of March 9, 2016, among BG Finance and Accounting, Inc., D&W Talent, LLC and Willis Group, LLC (incorporated by reference from Amendment No.
−Removed: 1 to the registrant's Annual Report on Form 10-K filed on April 25, 2016)
−Removed: 2.6 Asset Purchase Agreement, dated as of September 28, 2015, between BG Staffing, LLC, as Buyer, Vision Technology Services, Inc., Vision Technology Services, LLC and VTS-VM, LLC, collectively, as Sellers, and M.
−Removed: Scott Cerasoli and Robert Troska, collectively, as the Selling Persons (incorporated by reference from the registrant’s Form 8-K filed on September 30, 2015)
−Removed: 2.7 Asset Purchase Agreement, dated, as of April 3, 2017, by and between BG Staffing, Inc., BG Staffing, LLC, Zycron Inc., and Darrell S.
−Removed: Freeman (incorporated by reference to the registrant’s Current Report on Form 8-K filed on April 6, 2017)
−Removed: 2.8 Asset Purchase Agreement, dated as of September 18, 2017, by and between BG Finance and Accounting, Inc., Smart Resources, Inc.
−Removed: and Accountable Search, LLC, and Timothy J.
−Removed: Flood and Margaret L.
−Removed: Francis (incorporated by reference to the registrant’s Current Report on Form 8-K filed on September 22, 2017)
2.9 Asset Purchase Agreement, dated as of December 13, 2019, between BG Staffing, Inc., BG Staffing, LLC, L.J.Kushner & Associates, L.L.C., and Lee J.
2 unchanged sentences
2.11 Asset Purchase Agreement, dated as of February 8, 2021, between BG Staffing, LLC, Momentum Solutionz LLC, Lorne Kaufman, and Jeff Servidio (incorporated by reference from the registrant’s Current Report on Form 8-K filed on February 11, 2021)
+Added: 2.12 Asset Purchase Agreement, dated as of February 28, 2022, between BGSF, Inc ., Sentech Engineering Services, Inc.
+Added: , and J oband talent Holding Limited (incorporated by reference from the registrant’s Current Report on Form 8-K filed on March 1, 2022)
3.1 Certificate of Incorporation of BG Staffing, Inc.
30 unchanged sentences
(incorporated by reference from the registrant’s Form 8-K filed on February 4, 2014)
−Removed: 10.09 Form of Warrant to Purchase Common Stock issued by BG Staffing, Inc.
−Removed: to designees of Taglich Brothers, Inc.
−Removed: in connection with private placement (incorporated by reference from the registrant’s Form 8-K filed on December 11, 2014)
10.10** Executive Employment Agreement, entered into January 26, 2016 to be effective as of December 28, 2015, between B G Staff Services, Inc.
1 unchanged sentence
(incorporated by reference from registrant’s Form 8-K filed February 1, 2016)
−Removed: 10.11 Form of the Representatives’ Warrant (incorporated by reference from the registrant's Form 8-K filed on May 27, 2016)
10.12 Stock Option Cancellation Agreement, dated May 31, 2018 (incorporated by reference from the registrant's Form 8-K filed June 5, 2018)
24 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.