SGRPHIGH SIGNALFINANCIAL10-K

SGRP underwent a significant financial restatement process affecting prior interim periods while showing a dramatic deterioration in cash position despite revenue growth.

The company had to restate multiple quarters of financial statements after identifying misstatements during year-end close, indicating serious internal control issues that required audit committee intervention. The combination of restated financials and an 82% decline in cash reserves while total debt increased creates substantial concern about financial stability and reporting reliability.

Comparing 2026-03-31 vs 2025-05-16View on EDGAR →
FINANCIAL ANALYSIS

SGRP shows a mixed but concerning financial picture with revenue growing meaningfully to $181.4M while gross profit declined substantially to $21.7M, indicating severe margin compression. The balance sheet deteriorated significantly with cash reserves falling dramatically from $18.2M to $3.3M while total debt and liabilities increased, shrinking total assets by 22% and reducing stockholders' equity by 17%. This combination of margin pressure, liquidity decline, and the need for financial restatements signals potential operational and financial distress.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-82.1%
$18.2M→$3.3M

Cash declined 82.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Debt
Balance Sheet
+49.3%
$4.3M→$6.4M

Debt increased 49.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Gross Profit
P&L
-43.6%
$38.5M→$21.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Total Liabilities
Balance Sheet
+35.2%
$32.1M→$43.4M

Liabilities grew 35.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Revenue
P&L
+35%
$134.3M→$181.4M

Strong top-line growth of 35% — accelerating demand or successful expansion into new markets.

Current Assets
Balance Sheet
-31.7%
$46.0M→$31.4M

Current assets declined 31.7% — monitor working capital adequacy and short-term liquidity.

Current Liabilities
Balance Sheet
+25.5%
$30.1M→$37.7M

Current liabilities rose 25.5% — increased short-term obligations, watch current ratio.

Total Assets
Balance Sheet
-21.9%
$56.4M→$44.1M

Total assets contracted 21.9% — asset sales, write-downs, or balance sheet optimization underway.

Stockholders Equity
Balance Sheet
-17%
$29.3M→$24.3M

Equity decreased 17% — buybacks or losses reducing book value, monitor solvency ratios.

SG&A Expense
P&L
-13.6%
$37.3M→$32.2M

SG&A reduced 13.6% — improved cost efficiency or headcount reduction improving operating margins.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-05-16
ADDED
false --12-31 FY 2025 true true true false Cybersecurity holds a significant role within our risk management procedures and remains a focal point for our Board and management.
true true false false false false true false 0.01 0.01 2,000,000 2,000,000 0 0 0 0 0.01 0.01 47,000,000 47,000,000 24,129,991 24,129,991 23,449,701 23,449,701 632,485 1,205,485 2 1 3 0 2 1 0 0 3 7 3 7 3 5 5 25 1.5 2.0 800,000 3 0 1 4 0 0 no 0 0 no 0 0 0 0 0 117,500 3 0 2 0 1.04 0.13 1.04 0.13 827 545 851 915 State taxes in Georgia, Mississippi, Michigan, and California for 2025 made up the majority (greater then 50 percent) of the tax effect in this category.
These expenses are reflected in "Selling, general, and administrative expense" in the consolidated statements of operations and comprehensive loss.
Other net revenues and other cost of revenue includes all international operations that were sold in 2024 that did not qualify for discontinued operation presentation.
and Canada, we successfully execute programs through our robust logistics, reporting and communication technology, which provides clients value through real-time insight on store / product conditions.
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REMOVED
false --12-31 FY 2024 true true true true true false false false false false 0.01 0.01 2,000,000 2,000,000 0 0 650,000 650,000 0.01 0.01 47,000,000 47,000,000 23,449,701 23,449,701 23,240,959 23,240,959 1,205,485 205,485 3 0 0 3 7 3 7 3 5 944 - 438 1,382 856 - - 856 5 25 1.5 2.0 http://fasb.org/us-gaap/2025#PrimeRateMember 0.3 0 - 5,173 1 4 0 0 0 0 0 0 0 0 0 3 0 0 545 875 915 1,253 Represent loans due from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans).
The loans have no payment terms, are due on demand, and are classified as current liabilities in the unaudited condensed consolidated balance sheets.
Represent loans from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans).
EXPLANATORY NOTE In connection with our year-end financial statement close and preparation of this Annual Report on Form 10-K for the year ended December 31, 2024, misstatements were identified in certain of our previous interim financial statements.
The determination to restate was made upon the recommendation of the audit committee (the Audit Committee ) of our Board of Directors after consultation with our independent auditors and management team.
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