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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />We may need to raise additional capital in the future for working capital, capital expenditures and/or acquisitions, and we may not
<br />be able to do so on favorable terms or at all, which could impair our ability to operate our business or achieve ourgrowth
<br />objectives.
<br />Our ongoing ability to generate cash is important for funding our continuing operations, making acquisitions and servicing our
<br />indebtedness. To the extent that existing cash balances and cash flow from operations, together with borrowing capacity under our
<br />Revolving Credit Facility, are insufficient to make investments or acquisitions or provide needed working capital, we may require
<br />additional financing from other sources. Our ability to obtain such additional financing in the future will depend in part on prevailing
<br />market conditions, as well as conditions in our business and our operating results. Furthermore, if global economic, political or other
<br />market conditions adversely affect the financial institutions that provide credit to us, it is possible that our ability to draw upon our
<br />Revolving Credit Facility may be impacted. If adequate funds are not available, or are not available on acceptable terms, we may not
<br />be able to make certain investments, take advantage of acquisitions or other opportunities, or respond to competitive challenges, each
<br />of which could have a material adverse impact on our financial position, results of operations, cash flows and liquidity.
<br />We may be required to record an impairment charge if we determine that goodwill recorded in connection with prior acquisitions
<br />has become impaired, and this determination requires us to make significant judgments and assumptions about the future that are
<br />Inherently subject to risks and uncertainties.
<br />At September 30, 2021 and 2020, we had $85.4 million and $46.3 million, respectively, of goodwill recorded on our Consolidated
<br />Balance Sheets. We assess goodwill for impairment annually or more often if required. Our assessments involve a number of estimates
<br />and assumptions that are inherently subjective and require significant judgment regarding highly uncertain matters that are subject to
<br />change. The use of different assumptions or estimates could materially affect the determination as to whether or not an impairment has
<br />occurred. In addition, if future events are less favorable than what we assumed or estimated in our impairment analysis, we may be
<br />required to record an impairment charge, which could have a material impact on our consolidated financial statements.
<br />Our earnings are affected by the application of accounting standards and our critical accounting policies, which involve subjective
<br />judgments and estimates by our management. Our actual results could differ from the estimates and assumptions used to prepare
<br />our consolidated financial statements.
<br />The accounting standards that we use in preparing our financial statements are often complex and require us to make significant
<br />estimates and assumptions in interpreting and applying those standards. These estimates and assumptions affect the reported values of
<br />assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. We make critical estimates and assumptions
<br />involving accounting matters, including with respect to revenue recognition, contracts receivable including retainage, valuation of
<br />long-lived assets and goodwill, income taxes, accrued insurance costs and share -based payments and other equity transactions. These
<br />estimates and assumptions involve matters that are inherently uncertain and require us to make subjective and complex judgments.
<br />Although we believe we have the experience and processes to enable us to formulate appropriate assumptions and produce reasonably
<br />dependable estimates, these assumptions and estimates may change significantly in the future and could result in the reversal of
<br />previously recognized revenues and profit. If we used different estimates and assumptions or used different methods to determine these
<br />estimates, our financial results could differ, which could have a material negative impact on our financial condition and reported results
<br />of operations. For more information about our critical accounting policies and use of estimates, see "Management's Discussion and
<br />Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates."
<br />General Risks
<br />Force majeure events, such as natural disasters, pandemics and terrorist attacks, and unexpected equipment failures could
<br />negatively impact our business, which may affect our financial condition, results of operations or cash flows.
<br />Force majeure events, such as terrorist attacks, pandemics or natural disasters, have impacted, and could continue to negatively impact,
<br />the United States economy and the markets in which we operate. As an example, from time to time, we face unexpected severe weather
<br />conditions, evacuation of personnel and curtailment of services, increased labor and material costs or shortages, inability to deliver
<br />materials, equipment and personnel to work sites in accordance with contract schedules and loss of productivity. We seek to include
<br />language in our contracts with private customers that grants us certain relief in connection with force majeure events, and we attempt to
<br />mitigate the potential impact arising from force majeure events in both public and private customer contracts. However, the extra costs
<br />incurred as a result of these events may not be reimbursed by our customers, and we remain obligated to perform our services after
<br />most extraordinary events, subject to any relief that may be available pursuant to a force majeure clause. Additionally, our
<br />manufacturing processes depend on critical pieces of equipment, such as our HMA plants. This equipment, on occasion, may be out of
<br />service as a result of unanticipated failures or damage. Any significant interruption in production capability may require us to make
<br />significant capital expenditures to remedy problems or damage and cause us to lose revenues due to lost production time. These force
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