Company: NINE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001532286-25-000008
Chunk: 66

Company: Nine Energy Service, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1A
Chunk 66
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. Terrorist activities and the threat of potential terrorist activities and any resulting economic downturn could adversely affect our results of operations, impair our ability to raise capital, or otherwise adversely impact our ability to realize certain business strategies.

A portion of our revenue is derived from sales to customers outside of the U.S., which exposes us to risks inherent in doing business internationally.

In 2024, we derived 4.6% of our revenue from sales to customers outside of the U.S. Sales to customers in countries other than the U.S. are subject to various risks, including:

•volatility in political, social, and economic conditions;

•social unrest, acts of terrorism, war, or other armed conflicts; 

•confiscatory taxation or other adverse tax policies;

•deprivation of contract rights;

•trade and economic sanctions or other restrictions;

•the imposition of duties and tariffs and other trade barriers;

•exposure under the FCPA or similar legislation, as discussed in the below risk factor; and

•currency exchange controls.

We are currently out of compliance with the NYSE minimum market capitalization requirement and are at risk of the NYSE delisting our common stock; such a delisting could negatively impact us as it would likely reduce the liquidity and market price of our common stock, which in turn would, among other things, negatively impact our ability to raise equity financing.

On October 21, 2024, we received written notification (the “Notice”) from the NYSE that we no longer satisfy the continued listing compliance standards set forth under Section 802.01B of the NYSE Listed Company Manual (the “NYSE Manual”) because our average global market capitalization was less than $50,000,000 over a consecutive 30 trading-day period that ended on October 18, 2024 and, at the same time, our last reported stockholders’ equity was less than $50,000,000.

In accordance with NYSE procedures, we had 45 days from receipt of the Notice to submit a plan to the NYSE demonstrating how we intend to regain compliance with the NYSE’s continued listing standards within 18 months of our receipt of the Notice. We developed and submitted a plan to bring the Company into compliance with the listing standards within the required timeframe (the “Plan”), which was reviewed by the Listings Operations Committee of the NYSE (the 

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“Listings Committee”). The Listings Committee accepted our Plan, and our common stock will continue to be listed on the NYSE during the