Item 1A. Risk Factors
ITEM
1A. RISK
FACTORS
Our
business, financial condition, results of operations, and cash flows may be impacted by a number of factors, many of which are
beyond our control, including those set forth in our Form 10-K, the occurrence of any one of which could have a material adverse
effect on our actual results.
There
have been no material changes to the Risk Factors previously disclosed in our Form 10-K, except as noted below.
Our
results of operations could in the future be materially adversely affected by the global coronavirus pandemic (COVID-19).
The
global coronavirus pandemic (COVID-19) has created significant volatility in the price of our common stock, uncertainty in customer
demand for our services, and widespread economic disruption. The extent to which the coronavirus pandemic will impact our business,
operations and financial results will depend on numerous factors that are frequently changing or unknown, and that we may not
be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’
responses or planned responses to the pandemic; the impact of the pandemic on economic activity and any interventions intended
to mitigate decreased economic activity; the effect on our customers and customer demand for our products, services, and solutions;
our ability to sell and provide our products, services, and solutions, including as a result of travel restrictions, personnel
working from home or with diminished technology and communication abilities, and social distancing; the ability of our customers
to pay timely, if at all, for our services and solutions with or without discounts requested by our customers; and closures of
our and our customers’ offices and facilities. The closure of our customers’ facilities, restrictions that prevent
our customers from accessing those facilities or their own customers, and broad disruptions in our customers’ markets and
customer base, has disrupted, and could in the future disrupt the demand for our products, services, and solutions and result
in, among other things, termination of customer contracts, delays or interruptions in the performance of contracts, losses of
revenues, and an increase in bad debts. Customers may also slow or halt decision making, delay planned work, or suspend, terminate,
or reduce existing contracts or services. Indeed, one of the Company’s largest customers has terminated the majority of
its work as a result of COVID-19. This customer has accounted in the past for annual revenues of between $5 to $7 million dollars.
The impact on this quarter is a reduction of approximately $1.5 million in revenue. Travel and immigration restrictions may delay
or prevent our personnel from accessing worksites, and work-from-home or remote working arrangements could reduce profitability
or increase information security and connectivity vulnerabilities. In addition, when COVID-19-related restrictions on business
are eased, our ability to deliver services to our customers could be affected by any outbreak of illness among employees returning
to our facilities or to our customers’ facilities. Moreover, there may be additional costs that we will have to incur in
connection with further changes to, or a return to, normal operating conditions. To the extent the COVID-19 pandemic adversely
affects our business and financial results, it may also have the effect of heightening many of the other risks described in the
risk factors included in the Annual Report on Form 10-K for the year ended December 31, 2019, including, but not limited to, those
relating to our operations in emerging markets, our ability to execute on our growth strategy through strategic acquisitions,
our dependency on third parties for network infrastructure, attracting, hiring, and retaining personnel, the effects on movements
in foreign currency exchange rates, and the effects that changes to fiscal, political, regulatory and other federal policies may
have on our operations, each of which could materially adversely affect our business, financial condition, results of operations
and/or stock price.
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