---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-25-017177"
form_type: "8-K"
ticker: "SGRP"
cik: "0001004989"
company_name: "SPAR Group, Inc."
filed_at: "2025-05-15T23:59:59+00:00"
generated_at: "2026-05-21T04:15:16.516654+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# SPAR Group restates Q2/Q3 2024 financials; Brazilian JV sale accounting error

## Summary
- On May 14, 2025, management and Audit Committee determined unaudited Q2 and Q3 2024 financials should not be relied upon.
- Error: $7.5M loan from Brazilian JV sale wrongly classified as consideration instead of capital distribution.
- Restatement will correct the error in the 2024 Annual Report; material weakness in internal controls identified.
- Brazilian JV sale: total consideration $10.7M, carrying value $4.8M, economic benefit ~$5.9M.

## SEC filing metadata
- accession: 0001437749-25-017177
- form_type: 8-K
- ticker: SGRP
- cik: 0001004989
- company_name: SPAR Group, Inc.
- filed_at: 2025-05-15T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 4.02
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1004989/000143774925017177/0001437749-25-017177-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1004989/000143774925017177/sgrp20250515_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-25-017177
- JSON: https://secwatch.observer/filing/0001437749-25-017177.json
- Plain text: https://secwatch.observer/filing/0001437749-25-017177.txt

## Key facts
- Auditor Changes
  SPAR Group, Inc. reported that prior financial statements should not be relied upon.
  - Action: non reliance
  - Auditor: BDO USA P.C.
  source text: Management and the Audit Committee of the Company have determined that these errors in the unaudited condensed consolidated financial statements for the Non-Reliance Periods required a restatement of the Prior Period Financial Statements (the “Restatement”). The errors in the unaudited condensed consolidated financial statements for the Non-Reliance Periods noted above will be corrected in restated financial statements for the Non-Reliance Periods in the 2024 Annual Report.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1004989/000143774925017177/0001437749-25-017177-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.