Note 2 - Business

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

2. Business

SPAR Group, Inc., a Delaware corporation (“SGRP”), and its subsidiaries (together with SGRP, “SPAR Group” or the “Company”, “We”, “Our”), is a leading global merchandising and brand marketing services company, providing a broad range of services to retailers, consumer goods manufacturers and distributors around the world. With more than 50 years of experience, a network of approximately 25,000+ merchandising specialists around the world working during the year, more than 11 million hours in store per year, and long-term relationships with some of the world’s leading businesses, we provide specialized capabilities across nine (9) countries and five (5) continents. Our unique combination of resource scale, deep expertise, advanced technology and unwavering commitment to excellence, separates us from the competition. 

The Company historically operated under two (2) divisions: Domestic and International. The Domestic division was comprised of all operations within the United States, and the International division was a consolidation of all operations and joint ventures outside of the United States. To better align the business structure with the Company’s global growth strategy and leveraging regional footprint, the Company effective January 1, 2022, operates under three (3) divisions: Americas, Asia-Pacific (“APAC”) and Europe, Middle East and Africa (“EMEA”). The Americas division is comprised of the United States, Canada, Mexico, and Brazil, APAC is comprised of China, Japan, Australia, and India, and EMEA is comprised of South Africa.

Novel Coronavirus (Covid-19) Outbreak 

The COVID-19 pandemic has not had material unfavorable effects to the Company's financial results during the fiscal year of 2021 although the economic impact continues to evolve globally. In March of 2022, China implemented zero tolerance COVID-19 policy and locked down Shanghai Province and surrounding districts. The policy has since expanded to other cities with no firm expiration date; operations of the Company's joint venture in China was impacted as a result. The Company's joint venture in China comprises approximately 6% of the Company’s total revenue in 2021, and it appears that current year results will continue to not have a material impact to SPAR’s total consolidated financial results. Management continues to actively monitor the situation and assess operational and cashflow impact to determine course of actions.