Core Insights - SPAR Group, Inc. will participate in the 16th Annual Midwest IDEAS Investor Conference on August 27, 2025 [1] - The company will host one-on-one investor meetings and a presentation scheduled from 11:30 AM to 12:05 PM CT [2] - The presentation will be webcast live and available for replay shortly after [2] Company Overview - SPAR Group is a leading provider of merchandising and marketing services in North America with over 50 years of experience [3] - The company conducts an average of 30,000+ store visits weekly and maintains long-term relationships with major manufacturers and retailers [3] - SPAR Group's unique combination of scale, merchandising, and marketing expertise distinguishes it from competitors [3]

Core Insights - SPAR Group, Inc. reported a strong second quarter with revenues of $38.6 million, reflecting a 13.5% sequential increase from the first quarter and a 5% increase year-over-year for the continuing U.S. and Canada businesses [2][9] - The company's gross margin improved to 23.5%, up from 21.4% in the first quarter and 20.6% in the same quarter last year [9] - SPAR Group has a robust pipeline with over $200 million in future business opportunities [2] Financial Performance - For the second quarter of 2025, net revenues were $38.6 million, a 13.5% increase from the first quarter, while net revenues for the first half of 2025 totaled $72.7 million [9] - The net income attributable to SPAR Group was essentially break-even at $0.00 per diluted share, compared to a loss of $3.9 million or ($0.16) per diluted share in the prior year quarter [9] - Adjusted EBITDA for the second quarter was $1.3 million, or 3.4% of sales, compared to $1.4 million, or 3.2% of sales in the prior year quarter [9] Liquidity and Financial Position - As of June 30, 2025, SPAR Group had total liquidity of $15.1 million, including $13.9 million in cash and cash equivalents [7] - The company ended the period with net working capital of $15.9 million [7] - Net cash used by operating activities for the first half of 2025 was $11.9 million [7] Operational Highlights - The company is well-positioned with a solid balance sheet and available liquidity, indicating a strong foundation for future growth [3] - SPAR Group has been focusing on expanding its services in North America, leveraging over 50 years of experience in merchandising and marketing [8]

Core Viewpoint - SPAR Group, Inc. is responding to false claims made by Robert G. Brown, a former chairman, regarding the company's board and management, asserting that his demands are self-serving and not in the interest of all shareholders [1][2][3]. Group 1: Background on Robert G. Brown - Robert G. Brown, who founded SPAR in 1967, has a history of disrupting the board for personal gain, leading to the resignation of independent directors and multiple CEOs [4]. - Brown's recent demands include $15 million in cash, $900,000 annually in consulting fees, and a long-term service agreement with his defunct business, which the board views as solely benefiting him [3][4]. Group 2: Board's Position and Actions - The board emphasizes that Brown has significant influence, holding two dedicated seats on the board and the ability to remove a director to gain further control [6][7]. - The board has stated that it is in compliance with its by-laws and has not improperly refused other candidates for director nominations [10]. Group 3: Financial and Legal Context - Brown is currently in violation of Section 16(b) of the Securities Exchange Act of 1934, and the company has demanded he return profits from short-swing trades [5]. - The company reported a loss in 2024 due to accounting treatment related to a joint venture sale, but asserts that its balance sheet remains strong [10]. Group 4: Shareholder Engagement and Recommendations - The board encourages shareholders to support the proposed Stock Compensation Plan, which aims to align executive compensation with performance [9]. - The company has set June 12, 2025, as the date for the annual meeting of stockholders and continues to welcome nominations that comply with its by-laws [10][12].

Core Points - SPAR Group, Inc. received a notification from Nasdaq regarding compliance with its financial reporting obligations, specifically for its Quarterly Report on Form 10-Q for the period ended March 31, 2025 [1][2] - The company has been granted 60 calendar days to submit a plan to regain compliance, with a potential extension until October 13, 2025, if the plan is accepted [2] - SPAR Group is actively working to complete its Fiscal 2025 Form 10-Q to maintain compliance with SEC reporting obligations [3] Company Overview - SPAR Group is a leading provider of merchandising, marketing, and distribution services, with over 50 years of experience in the industry [9] - The company differentiates itself by offering flexible, scalable, and innovative solutions to major brands and retailers [9]