SPAR Group, Inc. Continues Work on Annual Report on Form 10-K for Fiscal Year ended December 31, 2024
SPAR Group (NASDAQ: SGRP) has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The company, which provides merchandising, marketing and distribution services, cited two main reasons for the delay: the extended closing process of an announced merger transaction with Highwire and the implementation of a new ERP system.
Despite filing Form 12b-25 on March 31, 2025, which provided a 15-calendar-day extension period, SPAR Group will not meet this extended deadline. The company is currently working with its independent registered accounting firm to complete the audit procedures and will file the Report once the year-end audit work is finalized.
SPAR Group (NASDAQ: SGRP) ha annunciato un ritardo nella presentazione del suo Rapporto Annuale sul Modulo 10-K relativo all'esercizio chiuso al 31 dicembre 2024. L'azienda, che offre servizi di merchandising, marketing e distribuzione, ha indicato due motivi principali per il ritardo: il prolungato processo di chiusura di una fusione annunciata con Highwire e l'implementazione di un nuovo sistema ERP.
Nonostante la presentazione del Modulo 12b-25 il 31 marzo 2025, che concedeva un'estensione di 15 giorni di calendario, SPAR Group non riuscirà a rispettare questa scadenza prorogata. Attualmente, la società sta collaborando con la sua società di revisione contabile indipendente per completare le procedure di audit e presenterà il Rapporto non appena il lavoro di revisione di fine anno sarà concluso.
SPAR Group (NASDAQ: SGRP) ha anunciado un retraso en la presentación de su Informe Anual en el Formulario 10-K correspondiente al año fiscal cerrado el 31 de diciembre de 2024. La compañía, que ofrece servicios de comercialización, marketing y distribución, citó dos razones principales para el retraso: el prolongado proceso de cierre de una transacción de fusión anunciada con Highwire y la implementación de un nuevo sistema ERP.
A pesar de haber presentado el Formulario 12b-25 el 31 de marzo de 2025, que otorgaba una prórroga de 15 días naturales, SPAR Group no cumplirá con este plazo extendido. Actualmente, la empresa está trabajando con su firma independiente de contabilidad registrada para completar los procedimientos de auditoría y presentará el Informe una vez finalizado el trabajo de auditoría de fin de año.
SPAR Group (NASDAQ: SGRP)는 2024년 12월 31일 종료된 회계연도에 대한 연례 보고서 Form 10-K 제출이 지연될 것이라고 발표했습니다. 머천다이징, 마케팅 및 유통 서비스를 제공하는 이 회사는 지연 사유로 Highwire와의 합병 거래 마감 절차가 지연된 점과 새로운 ERP 시스템 도입을 꼽았습니다.
2025년 3월 31일에 15일의 연장 기간을 제공하는 Form 12b-25를 제출했음에도 불구하고, SPAR Group은 이 연장된 기한을 맞추지 못할 것입니다. 현재 독립 등록 회계법인과 협력하여 감사 절차를 완료 중이며, 연말 감사 작업이 마무리되는 대로 보고서를 제출할 예정입니다.
SPAR Group (NASDAQ : SGRP) a annoncé un retard dans le dépôt de son rapport annuel sur le formulaire 10-K pour l'exercice clos au 31 décembre 2024. La société, qui fournit des services de marchandisage, marketing et distribution, a indiqué deux raisons principales à ce retard : le processus de clôture prolongé d'une opération de fusion annoncée avec Highwire et la mise en place d'un nouveau système ERP.
Bien que le formulaire 12b-25 ait été déposé le 31 mars 2025, offrant une prolongation de 15 jours calendaires, SPAR Group ne respectera pas ce délai supplémentaire. La société travaille actuellement avec son cabinet d'audit indépendant pour finaliser les procédures d'audit et déposera le rapport une fois les travaux d'audit de fin d'année achevés.
SPAR Group (NASDAQ: SGRP) hat eine Verzögerung bei der Einreichung seines Jahresberichts auf Formular 10-K für das am 31. Dezember 2024 endende Geschäftsjahr bekanntgegeben. Das Unternehmen, das Merchandising-, Marketing- und Vertriebsdienstleistungen anbietet, nannte zwei Hauptgründe für die Verzögerung: den verlängerten Abschlussprozess einer angekündigten Fusion mit Highwire und die Einführung eines neuen ERP-Systems.
Trotz der Einreichung des Formulars 12b-25 am 31. März 2025, das eine 15-Kalendertage-Fristverlängerung gewährte, wird SPAR Group diese verlängerte Frist nicht einhalten können. Das Unternehmen arbeitet derzeit mit seiner unabhängigen Wirtschaftsprüfungsgesellschaft zusammen, um die Prüfungsverfahren abzuschließen, und wird den Bericht einreichen, sobald die Jahresabschlussprüfung abgeschlossen ist.
- Ongoing progress in Highwire merger transaction
- Implementation of new ERP system for improved operations
- Failure to file Annual Report within statutory deadline
- Unable to meet extended 15-day filing deadline
- Delayed financial reporting due to ongoing merger and ERP implementation
Insights
SPAR Group's announcement that it will miss the extended deadline for filing its Annual Report on Form 10-K is a significant red flag for investors. Despite already utilizing the standard 15-day extension period granted through their earlier Form 12b-25 filing, the company still cannot complete its financial statements.
The company attributes this delay to two factors: navigating an "extended closing" of their announced merger transaction with Highwire and implementing a new ERP system. While both are legitimately complex processes, the inability to meet even the extended deadline raises serious concerns about the company's financial controls and reporting capabilities.
For a micro-cap company with a market capitalization of just
Most concerning is the lack of a concrete timeline - the company only states the report will be filed "as soon as the year-end audit work is completed," providing no clarity for investors attempting to evaluate their position. This information vacuum is especially problematic while a merger transaction remains in process.
The filing delay announcement creates a challenging dynamic for SPAR Group's pending merger with Highwire. The reference to an "extended closing" suggests the transaction is already experiencing complications beyond a typical M&A timeline. Now, the inability to produce timely financial statements compounds these difficulties.
Merger transactions rely heavily on transparent, accurate financial information. The acquirer (Highwire) requires current financial data to validate assumptions underpinning the deal structure. This reporting delay creates information asymmetry that could potentially impact negotiation dynamics or even transaction terms if prolonged.
The ERP system implementation mentioned as a contributing factor to the delay is a common challenge during M&A transitions, but one that sophisticated companies typically manage without missing regulatory filing deadlines. The convergence of these operational challenges raises questions about management's capacity to handle complex corporate events simultaneously.
While the announcement doesn't indicate the merger is at risk of termination, the extended closing period combined with financial reporting delays introduces unnecessary friction into the transaction process. Investors should closely monitor subsequent announcements for any signals of changing merger terms or further complications in the closing process.
AUBURN HILLS, Mich., April 15, 2025 (GLOBE NEWSWIRE) -- SPAR Group, Inc. (NASDAQ: SGRP) (“SGRP”, “SPAR Group” or the “Company”), a provider of merchandising, marketing and distribution services announced today that it will not timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Report”).
As reported by the Company on March 31, 2025, in Form 12b-25 filed with the Securities and Exchange Commission, the Company is unable to file the Report because it required additional time to finalize its consolidated financial statements for inclusion in the Report.
The Company is navigating the extended closing of the announced merger transaction and the conversion to a new ERP system. The Company is continuing to work with its independent registered accounting firm to finalize its audit procedures and is not in a position to file the Report within the 15-calendar-day extension period provided by the Form 12b-25 filing. The Company will file the Report as soon as the year-end audit work is completed.
Forward Looking Statements
This Press Release (this “Press Release”) contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, the Company. There also are “forward-looking statements” contained in SGRP's definitive Proxy Statement respecting its 2025 Annual Meeting of Stockholders (the “Proxy Statement”), which SGRP expects to file on or about April 30, 2025, with the Securities and Exchange Commission (the “SEC”), and SGRP's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports and statements as and when filed with the SEC.
Readers can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Words such as “may,” “will,” “expect,” “intend,” “believe,” “estimate,” “anticipate,” “continue,” “plan,” “project,” or the negative of these terms or other similar expressions also identify forward-looking statements. Forward-looking statements made by the Company in this Press Release may include (without limitation) statements regarding: risks, uncertainties, cautions, circumstances and other factors (“Risks”). Those Risks include (without limitation): the impact of the news of the proposed acquisition of the Corporation by Highwire (the “Proposed Acquisition”) or developments in it, and the uncertainty of the closing of the Proposed Acquisition within the anticipated time period, or at all, due to any reason, including any failure to satisfy the conditions to the consummation of the Proposed Acquisition or to complete any necessary financing arrangements.
You should carefully review and consider the Company's forward-looking statements (including all risk factors and other cautions and uncertainties) and other information made, contained or noted in or incorporated by reference into this Press Release, but you should not place undue reliance on any of them. The results, actions, levels of activity, performance, achievements or condition of the Company (including its subsidiaries, assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, legal costs, liabilities, liquidity, locations, marketing, operations, performance, prospects, sales, strategies, taxation or other achievement, results, risks, trends or condition) and other events and circumstances planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, “Expectations”), and our forward-looking statements (including all Risks) and other information reflect the Company's current views about future events and circumstances. Although the Company believes those Expectations and views are reasonable, the results, actions, levels of activity, performance, achievements or condition of the Company or other events and circumstances may differ materially from our Expectations and views, and they cannot be assured or guaranteed by the Company, since they are subject to Risks and other assumptions, changes in circumstances and unpredictable events (many of which are beyond the Company's control). In addition, new Risks arise from time to time, and it is impossible for the Company to predict these matters or how they may arise or affect the Company. Accordingly, the Company cannot assure you that its Expectations will be achieved in whole or in part, that it has identified all potential Risks, or that it can successfully avoid or mitigate such Risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in the Company's Common Stock.
These forward-looking statements reflect the Company's Expectations, views, Risks and assumptions only as of the date of this Press Release and the Company does not intend, assume any obligation, or promise to publicly update or revise any forward-looking statements (including any Risks or Expectations) or other information (in whole or in part), whether as a result of new information, new or worsening Risks or uncertainties, changed circumstances, future events, recognition, or otherwise.
About SPAR Group, Inc.
SPAR Group is a leading merchandising and marketing services company, providing a broad range of services to retailers, manufacturers, and distributors. With more than 50 years of experience, the company distinguishes itself from the competition by offering flexible, scalable and innovative solutions to some of the world’s leading brands and retailers. For more information, please visit the SPAR Group’s website at http://www.sparinc.com.
Investor Relations Contact:
Three Part Advisors, LLC
Sandy Martin
smartin@threepa.com
214-616-2207
FAQ
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