Our business is subject to risks.
−Removed: The following important factors could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K or printed elsewhere by management from time to time.
+Added: The following important factors could cause actual results to differ materially from those contained in forward-looking statements made in this Annual Report on Form 10-K or our other publicly filed documents.
Business, Market and Strategy Risks
2 unchanged sentences
A substantial or prolonged economic downturn, weak or uncertain economic conditions or similar factors could adversely affect our clients’ financial condition which may reduce our clients’ demand for our services, force price reductions, cause project cancellations, or delay consulting services for which they have engaged us.
−Removed: For example, the recent coronavirus outbreak has created uncertainty in the global economy and could result in a reduction in spending on our services.
+Added: For example, COVID-19 pandemic has created uncertainty in the global economy and could result in a reduction in spending on our services and the geopolitical disruption resulting from the Russian and Ukraine conflict.
In addition, if we are unable to successfully anticipate the changing economic conditions, we may be unable to effectively plan for and respond to those changes, and our business could be negatively affected.
−Removed: Our results of operations have been adversely affected and could in the future be materially adversely impacted by the coronavirus pandemic (COVID-19).
+Added: Our results of operations have been adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic.
The global spread of the COVID-19 pandemic has created significant volatility, uncertainty and economic disruption.
Our clients, and therefore our business and revenues, are sensitive to negative changes in general economic conditions and business confidence.
−Removed: We expect that the negative impacts of the COVID-19 pandemic on our operating revenue may continue until economic conditions improve.
We continue to work with our clients and employees to responsibly address this global pandemic.
40 unchanged sentences
If clients do not perceive our solutions to be effective or of high quality, our brand name and reputation will suffer.
−Removed: In addition, if solutions we
−Removed: provide have defects, critical business functions of our clients may fail, and we could suffer adverse publicity as well as economic liability.
+Added: In addition, if solutions we provide have defects, critical business functions of our clients may fail, and we could suffer adverse publicity as well as economic liability.
We depend heavily on a limited number of clients.
29 unchanged sentences
We protect ourselves by entering into detailed written contracts with our clients covering the terms and contingencies of the client engagement.
−Removed: In some cases, however, consistent with what we believe to be industry practice, work is performed for clients on the basis of a limited statement of work or verbal agreement before a detailed written contract can be finalized.
+Added: In some cases, however, consistent with what we believe to be industry practice, work is performed for clients on
+Added: the basis of a limited statement of work or verbal agreement before a detailed written contract can be finalized.
To the extent that we fail to have detailed written contracts in place, our ability to collect fees, protect our IP and protect ourselves from liability to others may be impaired.
7 unchanged sentences
Also, if we fail to collect a large accounts receivable balance, we could be subjected to significant financial exposure.
−Removed: Consequently, you should
−Removed: not predict or anticipate our future revenue based upon the number of clients we currently have or the number and size of our existing client engagements.
+Added: Consequently, you should not predict or anticipate our future revenue based upon the number of clients we currently have or the number and size of our existing client engagements.
We also derive a portion of our revenue from annual memberships for our Executive Advisory Programs.
29 unchanged sentences
In integrating acquired businesses, we may not achieve expected economies of scale or profitability or realize sufficient revenue to justify our investment.
−Removed: If we encounter unexpected problems as we try to integrate an acquired firm into our business, our management may be required to expend time and attention to address the problems, which would divert their time and attention from other aspects of our business.
+Added: If we encounter unexpected problems as we try to integrate an acquired firm into our
+Added: business, our management may be required to expend time and attention to address the problems, which would divert their time and attention from other aspects of our business.
We may not be able to hire, train, motivate, retain and manage professional staff.
28 unchanged sentences
Any fluctuations in foreign currency exchange rates could materially impact the availability and amount of these funds available for transfer.
−Removed: The U.K.’s departure from the EU could adversely affect us.
−Removed: We are subject to risks and uncertainties associated with the U.K.’s withdrawal from the E.U.
−Removed: (referred to as “Brexit”), including implications for the free flow of labor and goods in the U.K.
−Removed: and other financial, legal, tax and trade implications.
−Removed: Brexit could cause disruptions to and create uncertainty surrounding our business in the U.K, including affecting our relationships with our existing and future customers, suppliers and employees, which could have an adverse effect on our business, financial results and operations.
−Removed: In addition, developments regarding Brexit may also create global economic uncertainty, which may cause our customers, particularly those who do business in the U.K., to closely monitor their costs and reduce their spending on our solutions and services.
Legal, Regulatory and Compliance Risks
16 unchanged sentences
As a company doing business in Europe, we are also subject to European data protection laws and regulations.
−Removed: The European Union General Data Protection Regulation, which took effect in May 2018, superseded prior European Union data protection legislation and imposes more stringent requirements in how we collect and process personal data and provides for significantly greater penalties for noncompliance;
+Added: The European Union General Data Protection Regulation (“GDPR”), imposes stringent requirements in how we collect and process personal data and provides for significantly greater penalties for noncompliance;
and several other countries have passed laws that require personal data relating to their citizens to be maintained on local servers and impose additional data transfer restrictions.
4 unchanged sentences
Government enforcement actions can be costly and interrupt the regular operation of our business, and violations of data privacy laws can result in fines, reputational damage and civil lawsuits, any of which may adversely affect our business, reputation and financial statements.
−Removed: Replacement of the LIBOR benchmark interest rate could increase our cost of borrowing and interest expense.
−Removed: The London Interbank Offered Rate (“LIBOR”) is used as an interest rate benchmark for establishing the variable rates of interest under our revolving credit facility.
+Added: Replacement of the London Interbank Offered Rate (“LIBOR”) benchmark rate could increase our cost of borrowing and interest expense.
+Added: LIBOR is used as an interest rate benchmark for establishing the variable rates of interest under our revolving credit facility.
LIBOR has been the subject of recent national, international and other regulatory guidance and proposals for reform.
5 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.