FTK Flotek Industries Dashboard

Risks

• The Company’s business is largely dependent upon its customers’ spending, both in the oil and gas industry and in the sanitizer, surface cleaner and disinfectant sector. Spending could be adversely affected by industry conditions or by new or increased governmental regulations; global economic conditions; spending on sanitizer, surface cleaner and disinfectant products; sentiment surrounding the COVID-19 pandemic; the availability of credit; and oil and natural gas prices.
• The COVID-19 pandemic has significantly reduced demand for our services and may continue to have a prolonged material adverse impact on our financial condition, results of operations and cash flows.
• Reduced unconventional oil production could lessen the positive effects of a general recovery of the oil and gas industry.
• The Company’s inability to develop and/or introduce new products or differentiate existing products could have an adverse effect on its ability to be responsive to customers’ needs and could result in a loss of customers, as well as adversely affecting the Company’s future success and profitability.
• Increased competition could exert downward pressure on prices charged for the Company’s products and services.
• If the Company is unable to adequately protect intellectual property rights or is found to infringe upon the intellectual property rights of others, or is unable to maintain the registrations and certifications of its products and facilities, the Company’s business is likely to be adversely affected.
• The loss of key customers could have an adverse impact on the Company’s results of operations and could result in a decline in the Company’s revenue.
• Loss of key suppliers, the inability to secure raw materials on a timely basis, or the Company’s inability to pass commodity price increases on to its customers could have a material adverse effect on the Company’s ability to service its customers’ needs and could result in a significant loss of customers.
• Removal of members of management or directors may be difficult or costly.
• Failure to maintain effective disclosure controls and procedures and internal controls over financial reporting could have an adverse effect on the Company’s operations and the trading price of the Company’s common stock.
• Network disruptions, security threats and activity related to global cyber-crime pose risks to the Company’s key operational, reporting and communication systems.
• The Company may pursue strategic acquisitions, joint ventures and strategic divestitures, which could have an adverse impact on the Company’s business.
• If the Company does not manage the potential difficulties associated with expansion successfully, the Company’s operating results could be adversely affected.
• The Company’s ability to grow and compete could be adversely affected if adequate capital is not available.
• Failure to collect for goods and services sold to key customers could have an adverse effect on the Company’s financial results, liquidity and cash flows.
• Unforeseen contingencies such as litigation could adversely affect the Company’s financial condition.
• The Company’s current insurance policies may not adequately protect the Company’s business from all potential risks.
• Regulatory pressures, environmental activism, and legislation could result in reduced demand for the Company’s products and services, increase the Company’s costs, and adversely affect the Company’s business, financial condition and results of operations.
• The Company is subject to complex foreign, federal, state and local environmental, health, and safety laws and regulations, which expose the Company to liabilities that could adversely affect the Company’s business, financial condition, and results of operations.
• Changes in law and regulation relating to hydraulic fracturing may have a negative effect on the Company’s operations.
• Regulation of greenhouse gases and/or climate change could have a negative impact on the Company’s business.
• The Company and the Company’s customers are subject to risks associated with doing business outside of the U.S., including political risk, foreign exchange risk, and other uncertainties.
• The Company’s ability to use net operating loss and tax attribute carryforwards to offset future taxable income may be limited.
• General economic declines or recessions, limits to credit availability, and industry specific factors could have an adverse effect on energy industry activity resulting in lower demand for the Company’s products and services.
• A continuing period of depressed oil and natural gas prices could result in further reductions in demand for the Company’s products and services and adversely affect the Company’s business, financial condition, and results of operations.
• New and existing competitors within the Company’s industries could have an adverse effect on results of operations.
• The Company’s industry has a high rate of employee turnover. Difficulty attracting or retaining personnel or agents could adversely affect the Company’s business.
• Severe weather could have an adverse impact on the Company’s business.
• A terrorist attack or armed conflict could harm the Company’s business.
• Our DA segment may be materially and negatively affected by government regulations and/or facility disruptions.
• The market price of the Company’s common stock has been and may continue to be volatile.
• If the Company cannot meet the New York Stock Exchange continued listing requirements, the NYSE may delist the Company’s common stock.
• An active market for the Company’s common stock may not continue to exist or may not continue to exist at current trading levels.
• If securities or industry analysts do not publish research or reports about the Company’s business or publish negative reports, the Company’s securities prices and trading volumes could decline and affect the price at which investors could sell securities.
• The Company has no plans to pay dividends on the Company’s common stock, and, therefore, investors will have to look to stock appreciation for return on investments.
• Certain anti-takeover provisions of the Company’s certificate of incorporation and applicable Delaware law could discourage or prevent others from acquiring the Company, which may adversely affect the market price of the Company’s common stock.
• Future issuance of additional shares of common stock could cause dilution of ownership interests and adversely affect the Company’s common stock price.
• The Company may issue shares of preferred stock or debt securities with greater rights than the Company’s common stock.