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Gencor (GENC) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Gencor disclosed 31 risk factors in its most recent earnings report. Gencor reported the most risks in the “Finance & Corporate” category.

Risk Overview Q2, 2025

Source: the company's latest filing for the period ended Jun 30, 2025, filed Aug 08, 2025

Risk Distribution
31Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Gencor disclosed risks per quarterNo. of Risks2426283032Q3Q3Q2Showing: Q2, 2025
Risks removedRisks addedRisks changedGencor Risk Factors
No changes from previous report

Risk Highlights Q2, 2025

Main Risk Category
Finance & Corporate
With 12 Risks
Number of Disclosed Risks
31
+1
From last report
S&P 500 Average: 32
Recent Changes
1Risks added
0Risks removed
0Risks changed
Since Jun 2025
Number of Risk Changed
0
-3
From last report
S&P 500 Average: 1

Risk Word Cloud

risks generally associated with our information systems or cybersecurity attacks on our systems could adversely affect the results of our business operations.results of our business operationsthe business is affected by the prices of liquid asphalt and oil.prices of liquid asphaltthe company is dependent upon third-party suppliers, making it vulnerable to supply shortages and price increases.vulnerable to supply shortagesthe company has identified material weaknesses in its internal control over financial reporting, which could, if not remediated, adversely affect its ability to report its financial condition and results of operations in a timely and accurate manner. if the company fails to comply with requirements relating to internal control over financial reporting under section 404 of the sarbanes-oxley act, the business could be harmed and its stock price could decline.requirements relating to internal controlthe company is subject to extensive environmental laws and regulations, and the costs related to compliance with, or the company's failure to comply with, existing or future laws and regulations, could adversely affect the business and results of operations.subject to extensive environmental lawsthere can be a shortage of skilled production workers, especially those with welding and/or fabricating capabilities. the company could experience difficulty hiring or replacing those individuals, which could adversely affect its business.shortage of skilled production workersthe company does not expect to pay cash dividends for the foreseeable future.expect to pay cash dividendsthe company is subject to extensive environmental laws and regulations, and the costs related to compliance with, or the company's failure to comply with, existing or future laws and regulations, could adversely affect the business and results of operations.costs related to compliancethe company may be subject to substantial liability for its products.subject to substantial liabilitythe business is affected by the level of government funding for highway construction in the united states and canada.level of government funding

Risk Factors Full Breakdown - Total Risks 31

Share Price & Shareholder Rights4 | 12.9%
  • Share Price & Shareholder Rights - Risk 1
    The Company faces risks related to being delinquent in its SEC reporting obligations.

    Due to the circumstances discussed in the Explanatory Note in this Annual Report, the Company's recent SEC filings, including this Annual Report, its Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2024 and March 31, 2025 (the "Delinquent Reports") were delinquent. NYSE Regulation ("NYSE") informed the Company that, under the rules of the NYSE American, LLC ("NYSE American"), it is subject to the procedures set forth in Section 1007 of the NYSE American Company Guide, and that the Company has an initial six-month period from the Form 10-K filing due date of December 31, 2024 to regain compliance with the NYSE American listing standards, allowing the Company to file the Delinquent Reports by June 30, 2025. On June 10, 2025, the Company submitted an extension request to NYSE Regulation, requesting additional time to regain compliance with the NYSE American continued listing standards. While the Company is filing this 2024 Annual Report within the initial six-month period granted by the initial delinquency notification, the Company requested an extension to allow it additional time to coordinate the completion of the Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2024 and March 31, 2025. On June 24, 2025, the NYSE informed the Company that it accepted the extension request, allowing the Company to submit the Delinquent Reports by August 19, 2025. The Company faces the following risks and challenges related to being delinquent in its SEC reporting obligations, including: -   The Company may fail to file all Delinquent Reports by August 19, 2025, and there can be no assurance that the NYSE will grant an additional discretionary extension for the Company to regain compliance;-   The NYSE may commence delisting proceedings at any time if it deems that the circumstances warrant;-   The Company may fail to remediate material weaknesses in its internal control over financial reporting and other material weaknesses may be identified in the future, which could adversely affect the accuracy and timing of the Company's financial reporting; and -   Failure to timely file its SEC reports and make the Company's current financial information available has placed, and may continue to place, downward pressure on the Company's stock price. If the Company is unable to file all Delinquent Reports by August 19, 2025 and the NYSE does not grant an additional discretionary extension for the Company to regain compliance, or if the NYSE otherwise determines circumstances so warrant, our Common Stock may be subject to delisting. If the NYSE American delists the Company's Common Stock from trading on its exchange, the Company could face a limited availability of market quotations for its Common Stock and reduced liquidity for its Common Stock.

  • Share Price & Shareholder Rights - Risk 2
    The Company's management has effective voting control.

    The Company's officers beneficially own 100% of the outstanding shares of the Company's Class B stock. The holders of the Class B stock are entitled to elect 75% (calculated to the nearest whole number, rounding five-tenths to next highest whole number) of the members of the Company's Board of Directors. Further, approval of a majority of the holders of the Class B stock is generally required to affect a sale of the Company and certain other corporate transactions. As a result, the Class B shareholders can elect more than a majority of the Board of Directors and exercise significant influence over most matters requiring approval by the Company's shareholders. This concentration of control may also have the effect of delaying or preventing a change in control.

  • Share Price & Shareholder Rights - Risk 3
    The issuance of preferred stock may impede a change of control or may be dilutive to existing shareholders.

    The Company's Certificate of Incorporation, as amended, authorizes the Company's Board of Directors, without shareholder vote, to issue up to 300,000 shares of preferred stock in one or more series and to determine for any series the dividend, liquidation, conversion, voting or other preferences, rights and terms that are senior, and not available, to the holders of the Company's common stock. Thus, issuances of series of preferred stock could adversely affect the relative voting power, distributions and other rights of the common stock. The issuance of preferred stock could deter or impede a merger, tender offer or other transaction that some, or a majority of the Company's common shareholders might believe to be in their best interest or in which the Company's common shareholders might receive a premium for their shares over the then current market price of such shares.

  • Share Price & Shareholder Rights - Risk 4
    The Company's common stock has been, and likely will continue to be, subject to substantial price and volume fluctuations due to a number of factors, many of which will be beyond the Company's control.

    The market price of the Company's common stock may be significantly affected by various factors, such as: -   Quarterly variations in operating results;-   Changes in revenue growth rates as a whole or for specific geographic areas or products;-   Changes in earnings estimates by market analysts;-   The announcement of new products or product enhancements by the Company or its competitors;-   Speculation in the press or analyst community of potential acquisitions by the Company; and -   General market conditions or market conditions specific to particular industries.

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.