Company: TH
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001558370-25-003703
Chunk: 6

Company: Target Hospitality Corp.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 6
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Item 1A. Risk Factors

Risk Factors Summary

Below is a summary of the principal factors that make an investment in our common stock, par value $0.0001 per share (the “Common Stock”), speculative or risky. This summary does not address all of the risks that we face. Additional discussion of the risks summarized in this risk factor summary, and other risks that we face, can be found immediately following this summary and should be carefully considered, together with other information in this Annual Report on Form 10-K and our other filings with the SEC before making an investment decision regarding our Common Stock.  

Operational Risks

●Our operations are and will be exposed to operational, economic, political and regulatory risks.

●We face significant competition in the specialty rental sector. 

●The loss of our most significant customer or any of our largest customers in any of our business segments could adversely affect our results of operations.

●Our business depends on the quality and reputation of the Company and its communities, and any deterioration in such quality or reputation could adversely impact its market share, business, financial condition or results of operations.

●We derive a substantial portion of our revenue from the Government segment. The loss of, or a significant decrease in revenues from, our customer in this concentrated segment could seriously harm our financial condition and results of operations.

●We are subject to extensive procurement laws, regulations and procedures, including those that enable the U.S. government to terminate contracts for convenience.

●Our natural resource development customers are exposed to a number of unique operating risks and challenges which could also adversely affect us.

●Our business is contract intensive. Servicing existing contracts may lead to customer disputes or delays in receipt of payments, and failure to retain our current customers, renew existing customer contracts, and obtain new customer contracts, or the termination of existing contracts, could adversely affect our business.

●We are subject to fluctuations in occupancy levels, and a decrease in occupancy levels could cause a decrease in revenues and profitability.

●We may be adversely affected if customers reduce their specialty rental and hospitality services outsourcing.

●Our operations could be subject to natural disasters and other business disruptions, which could materially adversely affect our future revenue and financial condition and increase its costs and expenses.

●Construction risks exist which may adversely affect our results of operations.

●Demand for our products and services is sensitive to changes in demand within a number of key industry end-markets and geographic regions.

●Certain of our major communities are located on land subject to leases. If we are unable to renew a