# EDGAR Filing Document

**Accession Number:** 0001004989
**File Stem:** 0001437749-25-027246
**Filing Date:** 2025-8
**Character Count:** 36553
**Document Hash:** d77f8171dc81267d5a7bd4899e2c41d2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-027246.hdr.sgml**: 20250818

**ACCESSION NUMBER**: 0001437749-25-027246

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20250812

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250818

**DATE AS OF CHANGE**: 20250818

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SPAR Group, Inc.
- **CENTRAL INDEX KEY:** 0001004989
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 330684451
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-27408
- **FILM NUMBER:** 251227952

**BUSINESS ADDRESS:**
- **STREET 1:** 1910 OPDYKE COURT
- **CITY:** AUBURN HILLS
- **STATE:** MI
- **ZIP:** 48326
- **BUSINESS PHONE:** 2483647727

**MAIL ADDRESS:**
- **STREET 1:** 1910 OPDYKE COURT
- **CITY:** AUBURN HILLS
- **STATE:** MI
- **ZIP:** 48326

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SPAR GROUP INC
- **DATE OF NAME CHANGE:** 19990713

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PIA MERCHANDISING SERVICES INC
- **DATE OF NAME CHANGE:** 19951220

?xml version='1.0' encoding='ASCII'? sgrp20250806_8k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 8-K CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): August 12, 2025

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| | | |
|:---|:---|:---|
|  | SPAR Group, Inc. |  |
|  | (Exact Name of Registrant as Specified in Charter) |  |
| **<u>Delaware</u>** | **<u>0-27408</u>** | **<u>33-0684451</u>** |
| **(State or Other Jurisdiction of Incorporation)** | **(Commission File No.)** | **(IRS Employer Identification No.)** |
| 1910 Opdyke Court, Auburn Hills, MI<br> (Address of Principal Executive Offices) |  | 48326<br> (Zip Code) |

---

Registrant's telephone number, including area code: (248) 364-7727

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(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a - 12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | &nbsp;&nbsp;&nbsp;&nbsp; **Trading Symbol(s)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Name of each exchange on which registered** |
| Common Stock, $0.01 par value | &nbsp;&nbsp;&nbsp;&nbsp; SGRP | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Nasdaq Stock Market LLC |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Introductory Note**

SPAR Group, Inc. ("<u>SGRP</u>" or the "<u>Corporation</u>", and together with its subsidiaries, the "<u>Company</u>", "<u>SPAR</u>" or "<u>SPAR Group</u>") has listed its shares of common stock, par value $0.01 ("<u>Common Stock</u>") for trading through the Nasdaq Stock Market LLC ("<u>Nasdaq</u>") under the trading symbol "SGRP" and periodically files reports with the Securities and Exchange Commission ("<u>SEC</u>"). Reference is made to: (a) SGRP's Amended 2024 Annual Report on Form 10-K/A for the year ended December 31, 2024, as filed with the SEC on July 17, 2025 (the "<u>2024 Annual Report</u>"), and (b) SGRP's Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports and statements as and when filed with the SEC (together with the 2024 Annual Report, each an "<u>SEC Report</u>").

**Item 2.02** – **Results of Operations and Financial Condition.**

On August 14, 2025, the Company announced its financial results for the second quarter ended June 30, 2025. A copy of the press release announcing this event is attached to and included in this Form 8-K as Exhibit 99.1.

**Item 5.02** – **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

***Background Respecting the CIC Agreement and Bartels Board Seat***

As previously reported, the Company is a party to the Change of Control, Voting and Restricted Stock Agreement (the "<u>CIC Agreement</u>") that became effective on January 28, 2022, when signed by the Company and Mr. Robert G. Brown, ("<u>Mr. Robert G. Brown</u>"), Mr. William H. Bartels, ("<u>Mr. Bartels</u>"), SPAR Administrative Services, Inc., ("<u>SAS</u>"), and SPAR Business Services, Inc. ("<u>SBS</u>"). Mr. Brown, Mr. Bartels, SAS and SBS may be referred to collectively as the "<u>Ma</u>j<u>ori</u>ty <u>Stockholders</u>". The CIC Agreement was approved by the Board of Directors of SGRP (the "<u>Board</u>"). During the term of the CIC Agreement, Mr. Bartels has the right to nominate for election to the Board one director (the "<u>Bartels Board Seat</u>") and the CIC Agreement gives him the right to replace that director from time to time.

***Resignation of William H. Bartels and Appointment of Tim Cook***

On August 12, 2025, Mr. Bartels resigned from the Board. Mr. Bartels' resignation was not the result of any disagreement with the Company on any matter relating to the Company's operations, policies, or practices. On the same date, Mr. Bartels nominated, and the Board appointed, Tim Cook as director to fill the Bartels Board Seat that was vacated upon Mr. Bartels' resignation. Mr. Cook's appointment to the Board was effective immediately. Mr. Cook was also appointed as Chairman of the Governance Committee, and will serve as a member of the Audit Committee and the Compensation Committee, effective immediately.

Mr. Cook is joining the Board, filling the Bartels Board Seat as the designee and the representative of Mr. William H. Bartels. As a manufacturing industry CEO, COO, and Board Member, Mr. Cook has 30+ years of experience in creating organizational excellence. From 1983-1985, he was in the United States Marine Corps Reserves before being accepted to Office Candidate School (1985-1987). From 1995-2002 Mr. Cook was the VP Sales & Marketing at Marlen International, and from 2002-2012, he was the VP of Sales \|Marketing\| Product Management at AMF Bakery Systems. From 2012-2016, Mr. Cook served as the COO and President of Shick Solutions where he spent four years preparing the company for a transition event and then led the sale of the company to Breteche Group. Beginning in 2017, he was in various leadership roles in a connected portfolio that concluded in 2022 with his last role in a successful tenure as President and CEO, leading the growth of LINXIS Group and orchestrating its sale to publicly traded, US industrial, Hillenbrand. Mr. Cook held the positions of Vice President of LINXIS Group and CEO of Shick Esteve, a manufacturer of automated processing systems for the industrial food industry. Partnering with private equity firm IK Partners, Mr. Cook developed and implemented global expansion strategies for the organization during this time. He is now seeking opportunities to contribute his experience through service on corporate boards. Mr. Cook serves on the advisory board of UltraSource LLC, WorkForge LLC, and on the industry board of the American Bakers Association (ABA). Additionally, he works as an advisor to private equity firms on select transactions. He earned his Bachelors of Arts degree in History, with a focus on Asian Studies, from the University of Kansas.

***Appointment of Director John Bode and Director Linda Houston***

After due review of the shareholders vote at the annual meeting of the stockholders on June 12, 2025, and after consideration of all relevant factors, John Bode and Linda Houston were appointed to the Board on August 12, 2025. Mr. Bode will serve as Chairman of the Audit Committee, and will serve as a member of the Compensation Committee and the Governance Committee, effective immediately. Ms. Houston will serve as Chairman of the Compensation Committee, and will serve as a member of the Audit Committee and the Governance Committee, effective immediately.

 **Forward Looking Statements**

This Current Report on Form 8-K (this "Current Report") contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, the Corporation and its subsidiaries. "Forward-looking statements" are defined in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Exchange Act, and other applicable federal and state securities laws, rules and regulations, as amended.

Readers can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Words such as "may," "will," "expect," "intend," "believe," "estimate," "anticipate," "continue," "plan," "project," or the negative of these terms or other similar expressions also identify forward-looking statements. Forward-looking statements made by the Corporation in this Current Report on Form 8-K may include (without limitation) statements regarding: risks, uncertainties, cautions, circumstances and other factors ("Risks"). Those Risks include (without limitation): potential non-compliance with applicable Nasdaq rules regarding the filing of periodic financial reports, director independence, bid price or other rules; any potential non-compliance with applicable Nasdaq annual meeting, director independence, bid price or other rules; the impact of selling certain of the Corporation's subsidiaries or any resulting impact on revenues, earnings or cash; the Company's cash flows or financial condition; and plans, intentions, expectations.

For additional information and risk factors that could affect SPAR Group, see its 2024 Annual Report and other SEC Reports as filed with the SEC. The information contained in this Current Report on Form 8-K is made only as of the date hereof, even if subsequently made available by the Corporation on its website or otherwise.

You should carefully review and consider the Corporation's forward-looking statements (including all risk factors and other cautions and uncertainties) and other information made, contained or noted in or incorporated by reference into this Current Report on Form 8-K, but you should not place undue reliance on any of them. The results, actions, levels of activity, performance, achievements or condition of the Company (including its affiliates, assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, legal costs, liabilities, liquidity, locations, marketing, operations, performance, prospects, sales, strategies, taxation or other achievement, results, risks, trends or condition) and other events and circumstances planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, "Expectations"), and our forward-looking statements (including all Risks) and other information reflect the Corporation's current views about future events and circumstances. Although the Corporation believes those Expectations and views are reasonable, the results, actions, levels of activity, performance, achievements or condition of the Company or other events and circumstances may differ materially from our Expectations and views, and they cannot be assured or guaranteed by the Corporation, since they are subject to Risks and other assumptions, changes in circumstances and unpredictable events (many of which are beyond the Corporation's control). In addition, new Risks arise from time to time, and it is impossible for the Corporation to predict these matters or how they may arise or affect the Company. Accordingly, the Corporation cannot assure you that its Expectations will be achieved in whole or in part, that it has identified all potential Risks, or that it can successfully avoid or mitigate such Risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in the Corporation's common stock.

These forward-looking statements reflect the Corporation's Expectations, views, Risks and assumptions only as of the date hereof, and the Corporation does not intend, assume any obligation, or promise to publicly update or revise any forward- looking statements (including any Risks or Expectations) or other information (in whole or in part), whether as a result of new information, new or worsening Risks or uncertainties, changed circumstances, future events, recognition, or otherwise.

**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits:

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| | |
|:---|:---|
| 99.1 | [Press Release announcing earnings for the Company for the second quarter ended June 30, 2025.](ex_853590.htm) |

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| | |
|:---|:---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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<u>SIGNATURES</u>

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

**SPAR Group, Inc.**<br> Date: August 18, 2025<br> By: *<u>/s/ Michael R. Matacunas</u>*<br> Michael R. Matacunas, President & CEO<br>

## Exhibit 99.1

**Exhibit 99.1**

![logo.jpg](logo.jpg)

**SPAR Group, Inc. Reports Second Quarter 2025 Results**

August 14, 2025

**Strengthening quarterly sales, up 13.5% from first quarter, with stronger gross margins of 23.5% after 2024 divestitures of previously consolidated international JVs**

AUBURN HILLS, Mich., Aug. 14, 2025 (GLOBE NEWSWIRE) -- **SPAR Group, Inc.** (NASDAQ: SGRP) ("SPAR,""SPAR Group" or the "Company"), a leading provider of merchandising, marketing, and distribution services, today reported financial and operating results for the three and six months ended June 30, 2025.

**Mike Matacunas, the Company's President and Chief Executive Officer, commented** , "Although the year-over-year comparisons of the consolidated financials remain complicated by the divestitures in the prior year, our second quarter revenues of $38.6 million for the continuing U.S. and Canada businesses were strong. U.S. and Canada revenues were up 5%<sup>1</sup> compared to the prior year quarter and increased sequentially by 13.5% compared to the first quarter's revenues. Notably, the U.S. and Canada gross profit dollars of $9.1 million and margins of 23.5% increased for the second quarter from the first quarter and the year-ago quarter. We continue to build on the largest pipeline of opportunity in SPAR's history for the U.S. and Canada business, with more than $200 million of future business to win. I am excited about the future of SPAR Group.

"We are well-positioned with a solid balance sheet and available liquidity of over $15 million. Finally, I want to thank the employees of SPAR and our Board who have worked hard and partnered with me as we set new milestones in this next phase of growth," said Matacunas.

**Second Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net revenues were $38.6 million, up 13.5% sequentially from the first quarter. Sales declines from the prior year reflect the exit of joint ventures in Mexico, China, Japan, and India.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated Gross Margin was 23.5% of sales, compared favorably to 21.4% of sales in the first quarter and 20.6% of sales in the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income (loss) attributable to SPAR Group, Inc. was essentially break-even, or $0.00 per diluted share, compared to a loss of ($3.9) million, or ($0.16) per diluted share in the prior year quarter. The prior year's second quarter includes a $1.4 million non-cash loss on sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA attributable to SPAR Group, Inc. was $1.3 million, or 3.4% of sales, compared to the prior year quarter of $1.4 million, or 3.2% of sales.

<sup>1</sup> Refer to the Geographic Data table in the Segment footnote of the Company's Form 10-Q for the second quarter of 2025.

**First Half 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net revenues were $72.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated Gross Margin was 22.5% of sales, compared to 20.1% of sales in the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income attributable to SPAR Group, Inc. was $0.5 million, or $0.02 per diluted share, compared to $2.7 million, or $0.12 per diluted share, in the first six months of fiscal 2025. The 2024 half-year includes a $5.7 million non-cash gain on sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA attributable to SPAR Group, Inc. was $2.8 million, or 3.9% of sales, compared to the prior year first half of $3.8 million, or 4.1% of sales.

**Financial Position as of June 30, 2025**

The Company's total liquidity at the end of the quarter was $15.1 million, with $13.9 million in cash and cash equivalents and $1.2 million of unused availability as of June 30, 2025. For the six months ending June 30, 2025, net cash used by operating activities was $11.9 million. The Company ended the period with net working capital of $15.9 million on June 30, 2025.

**About SPAR Group, Inc.**

SPAR Group is a leading merchandising and marketing services company in North America, providing a broad range of services to retailers, manufacturers, and distributors. With more than 50 years of experience, merchandising across the United States and Canada, an average of 30,000+ store visits a week and long-term relationships with leading manufacturers and retail businesses, we provide specialized capabilities across North America. Our unique combination of scale, merchandising, and marketing expertise, combined with our unwavering commitment to excellence, separates us from the competition. For more information, please visit the SPAR Group's website at <u>http://www.sparinc.com</u>.

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**Cautionary Note Regarding Forward-Looking Statements**

*This Press Release contains, and the above referenced recorded comments, will contain "forward-looking statements" within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, made by, or respecting, SPAR Group, Inc. ("SGRP'') and its subsidiaries (together with SGRP, "SPAR'; "SPAR Group" or the "Company''), filed in an Annual Report on Form 10-KIA by SGRP with the Securities and Exchange Commission (the "SEC') for its fiscal year ended December 31, 2024, and SGRP's Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports and statements as and when filed with the SEC (including the Quarterly Report, the Annual Report and the Proxy Statement, the Information Statement, the Second Special Meeting Proxy/Information Statement, each* a *"SEC Report'). "Forward-looking statements" are defined in Section* 27*A of the Securities Act of 1933, as amended (the "Securities Act'), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act'), and other applicable federal and state securities laws, rules and regulations,* as *amended (together with the Securities Act and Exchange Act, the "Securities Laws').*

*The forward-looking statements made by the Company in this Press Release may include (without limitation) any expectations, guidance or other information respecting the pursuit or achievement of the Company's corporate strategic objectives. The Company's forward-looking statements also include, in particular and without limitation, those made in "Business", "Risk Factors''. "Legal Proceedings", and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report. You can identify forward-looking statements in such information by the Company's use of terms such as "may", "will", "expect", "intend", "believe", "estimate", "anticipate", "continue", "plan", "project" or similar words or variations or negatives of those words.*

*You should carefully consider (and not place undue reliance on) the Company's forward-looking statements, risk factors and the other risks, cautions and information made, contained or noted in or incorporated by reference into this Press Release, the Annual Report, the Proxy Statement and the other applicable SEC Reports that could cause the Company's actual performance or condition (including its assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, performance, prospects, sales, strategies, taxation or other achievement, results, risks, trends or condition) to differ materially from the performance or condition planned, intended, anticipated, estimated or otherwise expected by the Company (collectively, "expectations') and described in the information in the Company's forward-looking and other statements, whether expressed or implied. Although the Company believes them to be reasonable, those expectations involve known and unknown risks, uncertainties, and other unpredictable factors (many of which are beyond the Company's control) that could cause those expectations to fail to occur or be realized or such actual performance or condition to be materially and adversely different from the Company's expectations. In addition, new risks and uncertainties arise from time to time, and it is impossible for the Company to predict these matters or how they may arise or affect the Company. Accordingly, the Company cannot assure you that its expectations will be achieved in whole or in part, that the Company has identified all potential risks, or that the Company can successfully avoid or mitigate such risks in whole or in part, any of which could be significant and materially adverse to the Company and the value of your investment in SGRP's Common Stock.*

*You should also carefully review the risk factors described in the Annual Report (See Item 1A* - *Risk Factors) and any other risks, cautions or information made, contained or noted in or incorporated by reference into the Annual Report, the Proxy Statement or other applicable SEC Report. All forward-looking and other statements or information attributable to the Company or persons acting on its behalf are expressly subject to and qualified by all such risk factors and other risks, cautions and information.*

*The Company does not intend or promise, and the Company expressly disclaims any obligation, to publicly update or revise any forward-looking statements, risk factors or other risks, cautions or information (in whole or in part), whether as* a *result of new information, risks or uncertainties, future events or recognition or otherwise, except* as *and to the extent required by applicable law.*

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| | |
|:---|:---|
| **Media Contact:** | **Investor Relations Contact:** |
| Ronald Margulis | Sandy Martin |
| RAM Communications | Three Part Advisors |
| 908-272-3930 | 214-616-2207 |
| <u>ron@rampr.com</u> | <u>smartin@threepa.com</u> |

---

- *Financial Statements Follow* -

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**SPAR Group, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Income**

**(unaudited)**

*(In thousands, except per share data)*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net revenues | $**38629** | $43402 | $**72671** | $92799 |
| Field Management | **3106** | 2460 | **5440** | 4701 |
| Direct Expenses | **26461** | 31978 | **50893** | 69422 |
| Gross profit | **9062** | 8964 | **16338** | 18676 |
| Selling, general and administrative expense | **7934** | 8068 | **13807** | 15773 |
| (Gain) loss on sale of business | **-** | 1411 | **-** | (5746) |
| Depreciation and amortization | **413** | 451 | **780** | 926 |
| Operating income (loss) | **715** | **(966)** | **1751** | 7723 |
| Interest expense | **589** | 590 | **1058** | 1066 |
| Other expense (income), net | **7** | (296) | **(2)** | (288) |
| Income (loss) before income tax expense | **119** | (1260) | **695** | 6945 |
| Income tax expense | **120** | 934 | **234** | 2327 |
| Income (loss) from continuing operations | **(1)** | **(2194)** | **461** | **4618** |
| Discontinued Operations |  |  |  |  |
| Income from discontinued operations | **-** | 552 | **-** | 1381 |
| Loss on disposal of business | **-** | (1188) | **-** | (1188) |
| Income tax expense | **-** | (613) | **-** | (1074) |
| Net loss from discontinued operations | **-** | **(1249)** | **-** | **(881)** |
| Net income (loss) | **(1)** | (3443) | **461** | 3737 |
| Net income attributable to non-controlling interest | **-** | (448) | **-** | (1002) |
| Net income (loss) attributable to SPAR Group, Inc. | $**(1)** | $(3891) | $**461** | $2735 |
| Basic earnings (loss) per common share attributable to SPAR Group, Inc. from continuing operations | $**-** | $(0.12) | $**0.02** | $0.15 |
| Diluted earnings (loss) per common share attributable to SPAR Group, Inc. from continuing operations | $**-** | $(0.11) | $**0.02** | $0.16 |
| Basic loss per common share attributable to SPAR Group, Inc. from discontinued operations | $**-** | $(0.05) | $**-** | $(0.04) |
| Diluted loss per common share attributable to SPAR Group, Inc. from discontinued operations | $**-** | $(0.05) | $**-** | $(0.04) |
| Basic earnings (loss) per common share attributable to SPAR Group, Inc. | $**-** | $(0.17) | $**0.02** | $0.11 |
| Diluted earnings (loss) per common share attributable to SPAR Group, Inc. | $**-** | $(0.16) | $**0.02** | $0.12 |
| Weighted-average common shares outstanding– basic | **23470** | 23786 | **23460** | 23670 |
| Weighted-average common shares outstanding – diluted | **23499** | 24010 | **23532** | 23873 |

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**SPAR Group, Inc. and Subsidiaries**

**Condensed Consolidated Balance Sheets**

**(unaudited)**

*(In thousands, except share and per share data)*

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| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
| **Assets:** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $**13929** | $**18221** |
| Accounts receivable, net | **44370** | **24766** |
| Prepaid expenses and other current assets | **2259** | **3009** |
| Total current assets | **60558** | **45996** |
| Property and equipment, net | **2965** | **2015** |
| Operating lease right-of-use assets | **477** | **630** |
| Goodwill | **856** | **856** |
| Intangible assets, net | **775** | **841** |
| Deferred income taxes | **4095** | **4259** |
| Other assets | **1834** | **1834** |
| Total assets | $**71560** | $**56431** |
| **Liabilities and equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $**10632** | $**8767** |
| Accrued expenses and other current liabilities | **7016** | **3533** |
| Due to affiliates | **-** | **-** |
| Customer incentives and deposits | **1589** | **892** |
| Lines of credit and short-term loans | **24701** | **16082** |
| Current portion of long-term debt | **500** | **500** |
| Current portion of operating lease liabilities | **180** | **276** |
| Total current liabilities | **44618** | **30050** |
| Operating lease liabilities, net of current portion | **297** | **353** |
| Long-term debt | **1753** | **1722** |
| Total liabilities | **46668** | **32125** |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| Total stockholders' equity | **24892** | **24306** |
| Total liabilities and stockholders' equity | $**71560** | $**56431** |

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**SPAR Group, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(unaudited)**

*(In thousands)*

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| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net income | $**461** | $3737 |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| Depreciation and amortization | **811** | 926 |
| Amortization of operating lease right-of-use assets | **174** | 310 |
| Provision for expected credit losses | **-** | 89 |
| Deferred income tax expense | **204** | 1349 |
| Gain on sale of business | **-** | (5746) |
| Share-based compensation expense | **54** | 256 |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable, net | **(19012)** | (6199) |
| Prepaid expenses and other current assets | **754** | 171 |
| Change in deferred taxes due to deconsolidation | **-** | 2307 |
| Accounts payable | **1859** | 2493 |
| Operating lease liabilities | **(272)** | (310) |
| Accrued expenses, other current liabilities, due to affiliates and customer incentives and deposits | **3067** | 1213 |
| Net cash (used in) provided by operating activities of continuing operations | **(11900)** | 596 |
| Net cash used in operating activities of discontinued operations | **-** | (426) |
| Net cash (used in) provided by operating activities | **(11900)** | 170 |
| **Cash flows from investing activities** |  |  |
| Purchases of property and equipment | **(959)** | (771) |
| Proceeds from the sale of joint ventures | **-** | 7982 |
| Net cash provided by (used in) investing activities of continuing operations | **(959)** | 7211 |
| Net cash provided by investing activities of discontinued operations | **-** | 3751 |
| Net cash (used in) provided by investing activities | **(959)** | 10962 |
| **Cash flows from financing activities** |  |  |
| Borrowings under line of credit | **69136** | 69117 |
| Repayments under line of credit | **(60589)** | (64044) |
| Proceeds from term debt | **-** | 26 |
| Repurchases of common stock | **-** | (1800) |
| Payments of notes to seller | **-** | (1843) |
| Payments to acquire noncontrolling interests | **-** | (250) |
| Net cash provided by financing activities of continuing operations | **8547** | 1206 |
| Net cash used in financing activities of discontinued operations | **-** | (1315) |
| Net cash (used in) provided by financing activities | **8547** | **(109)** |
| Effect of foreign exchange rate changes on cash | **20** | (48) |
| Net change in cash, cash equivalents and restricted cash | **(4292)** | 10976 |
| Cash, cash equivalents at beginning of period | **18221** | 10719 |
| Cash, cash equivalents at end of period | $**13929** | $21695 |

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**Reconciliation of GAAP to Non-GAAP Financial Measures**

Non-GAAP net income attributable to SPAR Group and related per share amounts represents net income attributable to SPAR Group adjusted for the removal of a one-time positive adjustment. Adjusted EBITDA represents net income before, as applicable from time to time, (i) depreciation and amortization of long-lived assets, (ii) interest expense (iii) income tax expense, (iv) Board of Directors incremental compensation expense, (v) restructuring, (vi) impairment, (vii) nonrecurring legal settlement costs and associated legal expenses unrelated to the Company's core operations, (viii) and special items as determined by management. These metrics are supplemental measures of our operating performance that are neither required by, nor presented in accordance with, GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as an alternative to performance measure derived in accordance with GAAP as an indicator of our operating performance. We present Adjusted net income attributable to SPAR Group and per share amounts, and Adjusted EBITDA because management uses these measures as key performance indicators, and we believe that securities analysts, investors and others use these measures to evaluate companies in our industry. Our calculation of these measures may not be comparable to similarly named measures reported by other companies. The following tables present a reconciliation of net income, the most directly comparable measure calculated in accordance with GAAP, to these measures for the periods presented:

**SPAR Group, Inc.**

**Net income (Loss) attributable to SPAR Group, Inc. to**

**non-GAAP Net income (Loss) attributable to SPAR Group, Inc. Reconciliation**

**Diluted earnings per common share attributable to SPAR Group, Inc. to**

**non-GAAP Diluted earnings per common share attributable to SPAR Group, Inc. Reconciliation**

*(In thousands)*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net Income attributable to SPAR Group Inc. | $**(1)** | $**(3891)** | $**461** | $2735 |
| Adjustments to Consolidated EBITDA (net of taxes)\* | **146** | **1473** | **220** | (3820) |
| Adjusted net income (loss) attributable to SPAR Group, Inc. | $**145** | $(2418) | $**681** | $(1085) |
| Diluted income (loss) per common share attributable to SPAR Group, Inc. | $**-** | $**(0.16)** | $**0.02** | $**0.12** |
| Adjustments to Consolidated EBITDA per share (net of taxes) | **0.01** | **0.06** | **0.01** | **(0.17)** |
| Adjusted diluted income (loss) per common share attributable to SPAR Group, Inc. | $**0.01** | $**(0.10)** | $**0.03** | $**(0.05)** |

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*\* 2025 Q2 Adjustments to Consolidated EBITDA include $144K for review of strategic initiatives, $14K of legal costs, and $27K of stock based compensation. 2024 Q2 Adjustments to Consolidated EBITDA include $325K for review of strategic alternatives, $1,411K in loss on sale of businesses and $128K for stock based compensation. All of these are tax effected at 21% to compute the after tax value presented here.*<br>

**SPAR Group, Inc.**

**Net Income (Loss) to Consolidated Adjusted EBITDA to Adjusted EBITDA attributable to SPAR Group, Inc. Reconciliation**

*(In thousands)*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30** | **June 30** | **June 30** | **June 30** |
|  | **2025** | **2024** | **2025** | **2024** |
| Consolidated net income (loss) | $**(1)** | $(2194) | $**461** | $4618 |
| Depreciation and amortization | **413** | 451 | **780** | 926 |
| Interest expense | **589** | 590 | **1058** | 1066 |
| Income tax expense | **120** | 934 | **234** | 2327 |
| Other expense (income), net | **7** | (296) | **(2)** | (288) |
| EBITDA of discontinued operations | **-** | 556 | **-** | 1475 |
| Consolidated EBITDA | **1128** | 41 | **2531** | 10124 |
| Review of strategic alternatives | **144** | 325 | **210** | 655 |
| Legal costs | **14** |  | **14** |  |
| Gain (loss) on sale of business | **-** | 1411 | **-** | (5746) |
| Share-based compensation | **27** | 128 | **54** | 256 |
| Consolidated Adjusted EBITDA | **1313** | 1905 | **2809** | 5289 |
| Adjusted EBITDA attributable to non controlling interest | **-** | (525) | **-** | (1443) |
| Adjusted EBITDA attributable to SPAR Group, Inc. | $**1313** | $1380 | $**2809** | $3846 |

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Source: SPAR Group, Inc

![logosmall.jpg](logosmall.jpg)

Source: SPAR Group, Inc