Correction of Prior Period Financial Statements

In connection with the preparation of the Company’s consolidated financial statements for the

three

months ended

March

31,

2017,

we identified an error in the recognition of accumulated other comprehensive loss both in the equity section of the consolidated balance sheet, consolidated statement of equity and the comprehensive loss portion of the consolidated statement of income and comprehensive loss. In accordance with Staff Accounting Bulletin ("SAB") No.

99,

Materiality, and SAB No.

108,

Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the error and determined that the related impact was not material to our results of operations or financial position for any prior annual or interim period. The correction of this error required reclassification of

$1.6

million between comprehensive loss attributable to the Company and comprehensive loss attributable to non-controlling interest for the year ended

December

31,

2016.

Accordingly, we have corrected the consolidated balance sheet and consolidated statement of income and comprehensive loss as of and for the year ended

December

31,

2016

and will correct these errors for all prior periods presented by revising the appropriate consolidated financial statements. The impact to the consolidated balance sheet as of

December

31,

2016

and the consolidated statements of income and comprehensive loss for the

three

months ended

March

31,

2016,

the

three

and

six

months ended

June

30,

2016,

the

three

and

nine

months ended

September

30,

2016,

and the year ended

December

31,

2016

is as follows:

Consolidated Balance Sheets (in thousands):

	As of March 31, 2016									As of June 30, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,357	)	$	1,332		$	(2,025	)	$	(3,570	)	$	1,479		$	(2,091	)
Total SPAR Group, Inc. equity	$	18,163		$	1,332		$	19,495		$	18,330		$	1,479		$	19,809
Non-controlling interest	$	5,708		$	(1,332	)	$	4,376		$	6,028		$	(1,479	)	$	4,549

	As of September 30, 2016									As of December 31, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,364	)	$	1,373		$	(1,991	)	$	(3,995	)	$	1,588		$	(2,407	)
Total SPAR Group, Inc. equity	$	18,572		$	1,373		$	19,945		$	18,089		$	1,588		$	19,677
Non-controlling interest	$	6,574		$	(1,373	)	$	5,201		$	6,993		$	(1,588	)	$	5,405

Consolidated Statement of Income and Comprehensive Loss (in thousands):

	Three months ended March 31, 2016
	As Reported			Adjuste d		As Revised

Comprehensive (loss) income attributable to non-controlling interest	$	(298	)	$	315	$	17
Comprehensive loss attributable to SPAR Group, Inc.	$	(627	)	$	315	$	(312	)

	Three months ended June 30, 2016								Six months ended June 30, 2016
	As Reported			Adjuste d		As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(320	)	$	148	$	(172	)	$	(618	)	$	462	$	(156	)
Comprehensive loss attributable to SPAR Group, Inc.	$	69		$	148	$	217		$	(558	)	$	462	$	(96	)

	Three months ended September 30, 2016									Nine months ended September 30, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(546	)	$	(105	)	$	(651	)	$	(1,164	)	$	357	$	(807	)
Comprehensive loss attributable to SPAR Group, Inc.	$	147		$	(105	)	$	42		$	(411	)	$	357	$	(54	)

	Twelve months ended December 31, 2016
	As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(1,583	)	$	572	$	(1,011	)
Comprehensive loss attributable to SPAR Group, Inc.	$	(953	)	$	572	$	(381	)