Geospace Technologies (GEOS)

Risks

• The Ongoing COVID-19 Pandemic Has Significantly Impacted Worldwide Economic Conditions and Could Have a Material Adverse Effect on Our Operations and Business.
• A Decrease in Oil Commodity Price Levels Is Likely to Negatively Affect Demand for Our Oil and Gas Products, Which Could Materially and Adversely Affect Our Results of Operations and Liquidity.
• We Operate in Highly Competitive Markets and Our Competitors May Be Able to Provide Newer or Better Products Than We Are Able to Provide
• Our Foreign Subsidiaries and Foreign Marketing Efforts Are Subject to Additional Political, Economic, Legal and Other Uncertainties Not Generally Associated with Domestic Operations
• Increases in Tariffs, Trade Restrictions or Taxes on our Products Could Have an Adverse Impact on our Operations.
• A Continued General Downturn in the Economy in Future Periods May Adversely Affect Our Business
• Our New Products Require a Substantial Investment by Us in Research and Development Expense and May Not Achieve Market Acceptance
• The Short-Term Nature of Our Order Backlog for Sales of Our Oil and Gas Products and Delayed or Canceled Customer Orders May Cause Us to Experience Fluctuations in Quarterly Results of Operations
• Our Credit Risk Could Increase and We May Incur Bad Debt Write-Offs If Our Customers Continue to Face Difficult Economic Circumstances
• The Industries in Which We Operate are Characterized by Rapid Technological Development and Product Obsolescence, Which May Affect Our Ability to Provide Product Enhancements or New Products on a Timely and Cost Effective Basis
• The Limited Market for Our Oil and Gas Markets and Emerging Markets Products Can Affect Our Revenue
• We Cannot Be Certain of the Effectiveness of Patent Protection on Our Products
• Our Strategy of Renting Our Oil and Gas Seismic Products Exposes Us to Additional Risks Relating to Equipment Recovery, Rental Renewals, Technological Obsolescence and Impairment of Assets
• Our Expansion into the Border and Perimeter Security Market May Not Be Successful
• Cybersecurity Breaches and Other Disruptions of Our Information Technology Network and Systems Could Adversely Affect Our Business
• We Rely on Key Suppliers for Certain Components Used in Our Products
• Our Success Depends Upon a Limited Number of Key Personnel
• We Have a Minimal Disaster Recovery Program at Our Houston Facilities
• Our Lack of a Credit Agreement Could Impose Restrictions on Our Business
• Reliance on Third Party Subcontractors Could Adversely Affect Our Results of Operations and Reputation
• The High Fixed Costs of Our Operations Could Adversely Affect Our Results of Operations
• Our Global Operations Expose Us to Risks Associated with Conducting Business Internationally, Including Failure to Comply with U.S. Laws Which Apply to International Operations, Such as the Foreign Corrupt Practices Act and U.S. Export Control Laws, as Well as the Laws of Other Countries
• Because We Have No Plans to Pay Any Dividends for the Foreseeable Future, Investors Must Look Solely to Stock Appreciation for a Return on Their Investment in Us
• We Have a Relatively Small Public Float, and Our Stock Price May be Volatile
• Unfavorable Currency Exchange Rate Fluctuations Could Adversely Affect Our Results of Operations
• Increased or Inaccurate Estimation of Contingent Earn-Out Liabilities Could Result in Increased Charge-Offs or Losses and Defaults Under Our Credit Agreement
• Should We Fail to Maintain an Effective System of Internal Control Over Financial Reporting, We May Not Be Able to Accurately Report Our Financial Results and Prevent Material Fraud, Which Could Adversely Affect the Value of Our Common Stock