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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />Our business could be materially and adversely affected by a widespread outbreak of a contagious disease or other similar adverse
<br />public health development, such as COVID-19, or fear of such an event, and the measures that federal, state and local
<br />governments, agencies, law enforcement and health authorities implement to address it.
<br />Our business could be adversely impacted by the effects of a widespread outbreak of a contagious disease, including the COVID-19
<br />pandemic or a similar adverse public health development, as well as actions taken by federal, state and local governments, agencies,
<br />law enforcement and health authorities to contain the outbreak. Such an event in our markets could, among other things, result in
<br />employee absences or require us to temporarily close our facilities or project sites, which, in turn, could significantly and adversely
<br />affect our productivity and our ability to complete projects in accordance with our contractual obligations. In addition, a disruption in
<br />the supply chain for raw materials or equipment, whether as a result of facility closures or otherwise, could increase our labor and
<br />materials costs and impair our ability to manufacture HMA. Moreover, our customers — both public and private — who are adversely
<br />impacted could cancel or delay current or prospective projects and could become delinquent in their payments to us for work that we
<br />have performed. Although several of these risks have materialized in varying degrees as a result of the COVID-19 pandemic, none of
<br />these risks, individually or in the aggregate, have significantly impacted our operations to date.
<br />Our business could also be negatively impacted over the medium -to -longer term if the disruptions related to the COVID-19 pandemic
<br />decrease consumer confidence generally or significantly prolong the current economic downturn, which could lead to a decline in
<br />public and private development projects and thereby reduce demand for our services. An economic slowdown caused by the outbreak
<br />of an infectious disease or other similar adverse public health development could cause, and in some cases have caused, the tax
<br />revenues received by federal, state and local government agencies to decline and thereby decrease the funding available for public
<br />projects. Such developments could (i) impair our ability to undertake construction projects in a typical manner or at all, generate
<br />revenues and cash flows, and/or access the capital or lending markets (or significantly increase the costs of doing so); (ii) increase the
<br />costs or decrease the supply of raw materials or equipment or the availability of subcontractors and other talent, including as a result of
<br />infections or quarantining; and/or (iii) result in the diversion of public funds that otherwise would be available for infrastructure
<br />projects to support public health efforts. The inherent uncertainty surrounding COVID-19, due in part to rapidly changing
<br />governmental directives, public health challenges and progress, and market reactions thereto, also makes it challenging for our
<br />management to estimate the impact of the COVID-19 pandemic on the future performance of our business.
<br />We have incurred, and expect to continue to incur, substantial costs as a result of being a public company, which may significantly
<br />affect our financial condition.
<br />As a public company, we incur significant legal, accounting and other expenses associated with our financial reporting and corporate
<br />governance requirements, including requirements under the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") and the Dodd -
<br />Frank Act of 2010 and rules implemented by the SEC. For example, as a publicly traded company, we are required to adopt policies
<br />regarding internal controls and disclosure controls and procedures, including the preparation of reports on internal control over
<br />financial reporting. These rules and regulations have made, and may continue to make, it more difficult and more expensive for us to
<br />obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur
<br />substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain
<br />qualified individuals to serve on our board of directors or as executive officers.
<br />If we are unable to maintain effective internal control overfinancial financial reporting, investors could lose confidence in our consolidated
<br />financial statements and our Company, which could have a material adverse effect on our stockprice.
<br />We have designed and implemented a number of internal controls and other remedial measures that we believe will provide reasonable
<br />assurance regarding the reliability of our financial reporting and the preparation of our financial statements in accordance with GAAP.
<br />A failure to maintain effective internal controls could result in a material misstatement of our consolidated financial statements that
<br />would not be prevented or detected on a timely basis, which could cause investors to lose confidence in our financial information or
<br />cause the trading price of our Class A common stock to decline and impact our liquidity, perceived creditworthiness and ability to
<br />complete acquisitions.
<br />We have incurred, and expect to continue to incur, significant costs related to certain requirements of Section 404 of the Sarbanes-
<br />Oxley Act ("Section 404'9. If we are unable to timely comply with such requirements, our profitability, stock price, results of
<br />operations and financial condition could be materially adversely affected
<br />We are required to comply with certain provisions of Section 404, which requires that we document and test our internal control over
<br />financial reporting and issue management's assessment of our internal control over financial reporting. Section 404 also requires that
<br />our independent registered public accounting firm opine on those internal controls. The out-of-pocket costs, the diversion of
<br />management's attention from running the day-to-day operations and operational changes caused by the need to comply with the
<br />requirements of Section 404 have been significant, and we expect to continue to incur substantial costs in connection with our
<br />https://www.sec.gov/Archives/edgarldata/0001718227/000171822721000107/road-20210930.htm 391144
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