Risk Factors Update Summary

• Failure to achieve anticipated synergies with Patriot, loss of customers, and key employees could materially harm our business. This change might result in decreased revenue and operational inefficiencies.
• Our used oil re-refinery may not operate at or near capacity, leading to greater volatility in revenue and earnings.
• Assumption of Patriot's liabilities may adversely affect us, including unknown or contingent liabilities and issues with internal controls and compliance. This change might result in unexpected financial burdens and harm our business.
• Our continued growth depends on recruiting, training, and retaining sales and service personnel, which could materially harm our business if lost.
• The level of debt incurred from the acquisition of Patriot could adversely affect our operating flexibility and put us at a competitive disadvantage. This change might result in higher interest payments and limited financial resources for future opportunities.
• Failure in our support system for our branch network could delay services, increase costs, and reduce revenue.
• Fluctuations in inventory of used solvents and potential lower prices could impact our operating results. This change might result in reduced profitability and financial performance.
• Changes in environmental laws and regulations could force us to alter our business model, impacting financial performance.
• Potential liability claims related to our services and products could result in material liabilities and affect our profitability. This change might result in legal expenses and reputational damage.
• Intense competition in the industrial and hazardous waste services industries and from other used oil re-refiners.
• The phasing out of LIBOR could expose us to variable interest rates and increased vulnerability to adverse economic conditions. This change might result in higher interest expenses and financial instability.
• Consolidation and declines in the U.S. vehicle repair and manufacturing industries could lower sales volumes, affecting growth and financial performance.
• Decline in expected profitability could lead to impairment of assets, including goodwill and deferred tax assets. This change might result in write-downs and negative impact on financial position.
• Dependence on third parties for supplies and transport, including rail, recycling, and disposal contractors.