View Filing Data

Customer incentives and deposits

^[2]

2,584

3,349

^[1]

1,528

1,305

^[1]

Lines of credit and short-term loans

8,802

9,778

^[1]

Total current liabilities

30,781

29,765

^[1]

Long-term debt and other liabilities

^[1]

Total liabilities

30,821

29,769

^[1]

Commitments and Contingencies – See Note 9

Equity:

Preferred stock, $.01 par value: Authorized and available shares– 2,445,598 Issued and outstanding shares– None – June 30, 2017 and December 31, 2016

Common stock, $.01 par value: Authorized shares – 47,000,000 Issued shares – 20,680,717 – June 30, 2017 and December 31, 2016

207

Treasury stock, at cost 42,460 shares – June 30, 2017 and 37,877 shares – December 31, 2016

(51)

^[1]

Additional paid-in capital

16,198

16,093

^[1]

(2,021)

(2,407)

^[1]

Retained earnings

5,999

5,835

^[1]

20,332

19,677

^[1]

Total liabilities and equity

4,509

5,405

^[1]

Total equity

24,841

25,082

^[1],[3]

$ 55,662

$ 54,851

^[1]

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	Represent loans from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans). The loans have no payment terms and are due on demand and as such have been classified as current liabilities in the Company's consolidated financial statements.
[3]	See Note 2 Correction of Prior Period Financial Statements.

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares

Jun. 30, 2017

Dec. 31, 2016

^[1]

Preferred stock, par value (in dollars per share)

$ 0.01

Preferred stock, shares authorized (in shares)

2,445,598

Preferred stock, shares issued (in shares)

Preferred stock, shares outstanding (in shares)

Common stock, par value (in dollars per share)

$ 0.01

Common stock, shares authorized (in shares)

47,000,000

Common stock, shares issued (in shares)

20,680,717

Treasury stock, shares (in shares)

42,460

37,877

[1]	See Note 2 Correction of Prior Period Financial Statements.

Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

^[1]

Jun. 30, 2017

Jun. 30, 2016

^[1]

Net revenues

$ 42,722

$ 29,732

$ 82,608

$ 56,343

Cost of revenues

33,765

22,705

65,604

43,147

Gross profit

8,957

7,027

17,004

13,196

Selling, general and administrative expense

7,452

5,763

14,510

11,277

Depreciation and amortization

534

484

1,039

972

Operating income

971

780

1,455

947

Other (income), net

(135)

(80)

(197)

(105)

1,052

829

1,645

992

278

226

697

231

Net income attributable to non-controlling interest

774

603

948

^[2]

761

(431)

(320)

(849)

(618)

Basic and diluted income per common share: (in dollars per share)

$ 343

$ 283

$ 99

$ 143

$ 0.02

$ 0.01

$ 0

$ 0.01

Weighted average common shares – basic (in shares)

20,647

20,569

20,648

20,566

Weighted average common shares – diluted (in shares)

21,312

21,328

21,336

21,331

Foreign currency translation adjustments

$ 774

$ 603

$ 948

^[2]

$ 761

Other comprehensive income (loss):

578

(213)

742

(701)

Comprehensive income

1,352

390

1,690

Comprehensive (income) attributable to non-controlling interest

(689)

(173)

(1,205)

(156)

Comprehensive income (loss) attributable to SPAR Group, Inc.

$ 663

$ 217

$ 485

$ (96)

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.

Consolidated Statement of Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)
shares in Thousands, $ in Thousands

Common Stock [Member]

Treasury Stock [Member]

Additional Paid-in Capital [Member]

AOCI Attributable to Parent [Member]

Retained Earnings [Member]

Noncontrolling Interest [Member]

Total

Shares (in shares) at Dec. 31, 2016

^[1]

20,681

Balance at Dec. 31, 2016

^[1]

$ 207

$ (51)

$ 16,093

$ (2,407)

$ 5,835

$ 5,405

$ 25,082

^[2]

Share-based compensation

^[1]

130

Purchase of treasury shares (in shares)

^[1]

Purchase of treasury shares

^[1]

$ (32)

(32)

Reissued treasury shares – RSU's (in shares)

^[1]

(4)

Reissued treasury shares

^[1]

$ 5

(5)

Exercise of stock options (in shares)

^[1]

(21)

Exercise of stock options

^[1]

$ 27

(20)

Distributions to non-controlling investors

^[1]

(2,101)

Other comprehensive income

^[1]

386

356

742

Balance at June 30, 2017 (in shares) at Jun. 30, 2017

^[1]

849

948

20,681

Balance at June 30, 2017 at Jun. 30, 2017

$ 207

$ (51)

16,198

(2,021)

5,999

4,509

24,841

Adoption of ASU 2016-09 (Note 12) | Accounting Standards Update 2016-09 [Member]

^[1]

$ 65

Adoption of ASU 2016-09 (Note 12)

^[1]

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Operating activities

Adjustments to reconcile net income to net cashprovided by operating activities

$ 948

^[1]

$ 761

^[2]

Depreciation and amortization

1,039

972

Bad debt expense, net of recoveries

Share based compensation

130

183

Changes in operating assets and liabilities:

Accounts receivable

1,062

(578)

Prepaid expenses and other assets

(1,283)

(1,639)

Accounts payable

156

429

Accrued expenses, other current liabilities and customer incentives and deposits

1,743

297

Net cash provided by operating activities

3,863

446

Investing activities

Purchases of property and equipment and capitalized software

(640)

(732)

Net cash used in investing activities

(640)

(732)

Financing activities

Net (payments) borrowing on lines of credit

(608)

635

Proceeds from stock options exercised

Payments on term debt

(289)

(14)

Payments on capital lease obligations

(7)

Purchase of treasury shares

(32)

Distribution to non-controlling investors

(2,101)

(286)

Net cash (used in) provided by financing activities

(3,030)

338

Effect of foreign exchange rate changes on cash

792

(743)

Net change in cash and cash equivalents

985

(691)

Cash and cash equivalents at beginning of year

7,324

^[3]

5,718

Cash and cash equivalents at end of period

8,309

5,027

Supplemental disclosure of cash flows information

Interest paid

(128)

(67)

Income taxes paid

198

123

Increase in deferred tax asset due to adoption of ASU 2016-09 (Note 12)

$ 65

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.
[3]	See Note 2 Correction of Prior Period Financial Statements.

Note 1 - Basis of Presentation	6 Months Ended
Note 1 - Basis of Presentation	Jun. 30, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1. Basis of Presentation The unaudited, interim consolidated financial statements of SPAR Group, Inc., a Delaware corporation ("SGRP"), and its subsidiaries (together with SGRP, collectively, the "Company" or the "SPAR Group"), accompanying this Quarterly Report on Form 10 -Q for the second quarter ended June 30, 2017 ( this "Quarterly Report"), have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The consolidated balance sheet as of December 31, 2016 has been compiled from the Company’s audited consolidated balance sheet as of such date. In the opinion of management, all normal and recurring adjustments considered necessary for a fair presentation have been included in these interim financial statements. However, these interim financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto for the Company as contained in the SGRP's Annual Report on Form 10 -K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission (the "SEC") on April 17, 2017 ( the "2016 Annual Report"), and SGRP's Proxy Statement for its 2017 Annual Meeting of Stockholders as filed with the SEC on April 28, 2017 ( the "2017 Proxy Statement"). Particular attention should be given to Items 1 and 1A of the 2016 Annual Report respecting the Company's Business and Risk Factors, respectively, and the following parts of SGRP's 2017 Proxy Statement: (i) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT , (ii) CORPORATE GOVERNANCE, (iii) EXECUTIVE COMPENSATION, DIRECTORS AND OTHER INFORMATION and (iv) EXECUTIVE COMPENSATION, EQUITY AWARDS AND OPTIONS. The Company's results of operations for the interim period are not necessarily indicative of its operating results for the entire year.

Note 2 - Correction of Prior Period Financial Statements

6 Months Ended

Jun. 30, 2017

Accounting Changes and Error Corrections [Text Block]

Correction of Prior Period Financial Statements

In connection with the preparation of the Company’s consolidated financial statements for the

three

months ended

March 31, 2017,

the Company identified an error in the recognition of accumulated other comprehensive loss both in the equity section of the consolidated balance sheet, consolidated statement of equity and the comprehensive loss portion of the consolidated statement of income and comprehensive loss. In accordance with Staff Accounting Bulletin ("SAB")

No.

99,

Materiality, and SAB

No.

108,

Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the error and determined that the related impact was

not

material to the results of operations or financial position for any prior annual or interim period. The correction of this error required reclassification of

$1.6

million between comprehensive loss attributable to the Company and comprehensive loss attributable to non-controlling interest for the year ended

December 31, 2016.

Accordingly, the Company corrected the consolidated balance sheet and consolidated statement of income and comprehensive loss as of and for the year ended

December 31, 2016

and will correct these errors for all prior periods presented by revising the appropriate consolidated financial statements. The impact to the consolidated balance sheet as of

December 31, 2016

and the consolidated statements of income and comprehensive loss for the

three

and

six

months ended

June 30, 2016,

the

three

and

nine

months ended

September 30, 2016,

and the year ended

December 31, 2016

is as follows:

Consolidated Balance Sheets (in thousands):

	As of June 30, 2016
	As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,570	)	$	1,479		$	(2,091	)
Total SPAR Group, Inc. equity	$	18,330		$	1,479		$	19,809
Non-controlling interest	$	6,028		$	(1,479	)	$	4,549

	As of September 30, 2016									As of December 31, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,364	)	$	1,373		$	(1,991	)	$	(3,995	)	$	1,588		$	(2,407	)
Total SPAR Group, Inc. equity	$	18,572		$	1,373		$	19,945		$	18,089		$	1,588		$	19,677
Non-controlling interest	$	6,574		$	(1,373	)	$	5,201		$	6,993		$	(1,588	)	$	5,405

Consolidated Statement of Income and Comprehensive Loss (in thousands):

	Three months ended June 30, 2016								Six months ended June 30, 2016
	As Reported			Adjuste d		As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(320	)	$	147	$	(173	)	$	(618	)	$	462	$	(156	)
Comprehensive loss attributable to SPAR Group, Inc.	$	70		$	147	$	217		$	(558	)	$	462	$	(96	)

	Three months ended September 30, 2016									Nine months ended September 30, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(546	)	$	(105	)	$	(651	)	$	(1,164	)	$	357	$	(807	)
Comprehensive loss attributable to SPAR Group, Inc.	$	147		$	(105	)	$	42		$	(411	)	$	357	$	(54	)

	Twelve months ended December 31, 2016
	As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(1,583	)	$	572	$	(1,011	)
Comprehensive loss attributable to SPAR Group, Inc.	$	(953	)	$	572	$	(381	)

Note 3 - Business and Organization	6 Months Ended
Note 3 - Business and Organization	Jun. 30, 2017
Notes to Financial Statements
Nature of Operations [Text Block]	3. Business and Organization The Company is a supplier of merchandising and other marketing services throughout the United States and internationally. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandiser, office supply, grocery, drug, dollar, independent, convenience, toy, home improvement and electronics stores, as well as providing furniture and other product assembly services, audit services, in-store events, technology services and marketing research. Merchandising services primarily consist of regularly scheduled, special project and other product services provided at the store level, and the Company may be engaged by either the retailer or the manufacturer. Those services may include restocking and adding new products, removing spoiled or outdated products, resetting categories in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Other merchandising services include whole store or departmental product sets or resets, including new store openings, new product launches and in-store demonstrations, audit services, special seasonal or promotional merchandising, focused product support and product recalls. The Company also provides technology services and marketing research services. As of June 30, 2017, the Company operates in 10 countries and divides its operations into two reportable segments: its Domestic Division, which has provided services in the United States of America since certain of its predecessors were formed in 1979, and its International Division, which began operations in May 2001 and provides similar merchandising, marketing, audit and in-store event staffing services in Australia, Brazil, Canada, China, India, Japan, Mexico, South Africa, and Turkey.

Note 4 - Earnings Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Text Block]

Earnings Per Share

The following table sets forth the computations of basic and diluted net income per share (in thousands, except per share data):

	Three Months Ended June 30 ,				Six Months Ended June 30 ,
	20 17		20 16		20 17		20 16
Numerator:
Net income attributable to SPAR Group, Inc.	$	343	$	283	$	99	$	143

Denominator:
Weighted average shares used in basic net income per share calculation		20,647		20,569		20,648		20,566

Weighted average shares used in diluted net income per share calculation		21,312		21,328		21,336		21,331

Basic and diluted net income per common share	$	0.02	$	0.01	$	0.00	$	0.01

Note 5 - Credit Facilities

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Text Block]

Credit Facilities

Sterling Credit Facility:

SGRP and certain of its US and Canadian subsidiaries (namely SPAR Marketing Force, Inc., SPAR Assembly & Installation, Inc. (F/K/A SPAR National Assembly Services, Inc.), SPAR Group International, Inc., SPAR Trademarks, Inc., SPAR Acquisition, Inc., SPAR Canada, Inc.), and SPAR Canada Company ("SCC") (together with SGRP and SCC, each a "Borrower") are parties to a Revolving Loan and Security Agreement dated

July 6, 2010,

as amended in

June 2011,

July 2012,

January 2013,

July 2013,

October 2013,

June 2014,

September 2015,

December 2016,

March 2017,

April 2017

and

June 2017 (

as amended, the "Sterling Loan Agreement"), with Sterling National Bank (the "Lender"), and their Secured Revolving Loan Note in the amended maximum principal amounts of

$9.0

million (see below) to the Lender (as amended by all loan amendments, the "Sterling Note"), to document and govern their credit facility with the Lender (including such agreement and note, the "Sterling Credit Facility"). The Sterling Credit Facility currently is scheduled to expire and the Borrowers' loans thereunder will become due on

September 6, 2017.

The Sterling Loan Agreement currently requires the Borrowers to pay interest on the loans thereunder equal to the Agent's floating Prime Rate (as defined in such agreement) plus

one

half of

one

percent (

1/2%

) per annum, and a fee on the maximum unused line thereunder equal to

one

eighth

one

percent (

0.125%

) per annum.

Revolving Loans of up to

$9.0

million are available to the Borrowers under the Sterling Credit Facility based upon the borrowing base formula defined in the Sterling Loan Agreement (principally

85%

of "eligible" US and Canadian accounts receivable less certain reserves). The Sterling Credit Facility is secured by substantially all of the assets of the Borrowers (other than SGRP's non-Canadian foreign subsidiaries, certain designated domestic subsidiaries, and their respective equity and assets).

The amendment to the Sterling Loan Agreement dated as of

December 22, 2016,

among other things, increased the maximum principal amount of the Secured Revolving Loan Note to

$9.0

million until

January 31, 2017

and increased the interest rate to Prime plus

one

half of

one

percent. The amendment to the Sterling Loan Agreement dated as of

March 3, 2017,

among other things, extended the Secured Revolving Loan Note of

$9.0

million until

July 6, 2017

and the amendment dated as of

April 13, 2017,

among other things, provided for a waiver of the Company’s default on its Fixed Charge Ratio (“FCR”) for the year ended

December 31, 2016

and provided for an adjustment to its FCR for

2017.

The

June 27, 2017

amendment to the Sterling Loan Agreement extended the termination date to

September 6, 2017.

The Sterling Loan Agreement requires the Borrowers to maintain certain financial covenants, including maintenance by the Borrowers of a minimum combined tangible net worth of

$7.4

million and minimum consolidated tangible net worth of

$10.0

million, with those figures increasing by at least

50%

of combined and consolidated net profit each year, respectively. In addition, the Borrowers and the Company must

not

exceed a maximum combined indebtedness to tangible net worth ratio of

3.0

1.0,

and the Borrowers must maintain a minimum fixed charge coverage ratio of

1.5

1.0.

Also, capital expenditures for the Borrowers cannot exceed

$2.0

million during any fiscal year, and, on a consolidated basis, the Company's year-end operations

may

not

result in a loss or deficit, as determined in accordance with GAAP. The Company was in compliance with its financial covenants at

June 30, 2017.

International Credit Facilities:

SPARFACTS Australia Pty. Ltd. has a secured line of credit facility with Oxford Funding Pty Ltd. for

$1.2

million (Australian) or approximately

$922,000

USD (based upon the exchange rate at

June 30, 2017).

The facility provides for borrowing based upon a formula, as defined in the agreement (principally

80%

of eligible accounts receivable less certain deductions). The agreement technically expired on

October 31, 2012,

but is being extended from month to month at the Company's request. The outstanding balance as of

June 30, 2017

was

$298,000

USD.

March 7, 2011,

the Japanese subsidiary, SPAR FM Japan, Inc., a wholly owned subsidiary, secured a term loan with Mizuho Bank in the amount of

20.0

million Yen (Japanese), or approximately

$178,000

USD. The loan is payable in monthly installments of

238,000

Yen or approximately

$2,100

USD at an interest rate of

0.1%

per annum with a maturity date of

February 28, 2018.

The outstanding balance at

June 30, 2017,

was approximately

2.2

million Yen or

$19,000

USD (based upon the exchange rate at

June 30, 2017),

all of which is now classified as short term.

November 29, 2016,

SPAR Brazil established a line of credit with Itau Bank for

1.5

million Brazilian Real or approximately

$454,000

USD (based upon the exchange rate at

June 30, 2017).

The line of credit expires

November 29, 2017,

and the current interest rate is

2.08%

per month. The outstanding balance at

June 30, 2017

was

zero

December 26, 2016,

SPAR Brazil secured a term loan with Bradesco Bank for

2.0

million Brazilian Real or approximately

$605,000

USD (based upon the exchange rate at

June 30, 2017).

The term loan is payable in monthly installments of

184,000

Brazilian Real or approximately

$56,000

USD at an annual interest rate of

17.3%

with a maturity date of

December 15, 2017.

As of

June 30, 2017,

878,000

Brazilian Real or

$266,000

USD was outstanding (based upon the exchange rate at

June 30, 2017).

SPAR Todopromo has secured a line of credit facility with BBVA Bancomer Bank for

5.0

million Mexican Pesos or approximately

$277,000

USD (based upon the exchange rate at

June 30, 2017).

The revolving line of credit was secured on

March 15, 2016

and expires

March 2018.

The variable interest rate is TIIE (Interbank Interest Rate) +

which resulted in an annual interest rate of

11.5%

at the end of

June 2017.

The outstanding balance at

June 30, 2017

was

$119,000.

The Company had scheduled future maturities of loans as of

June 30, 2017,

approximately as follows (dollars in thousands):

	Interest Rate as of June 30, 2017		2017		2018
USA - Sterling National Bank		4.8%	$	8,100	$	–
Japan - Mizuho Bank		0.1%		13		6
Australia - Oxford Funding Pty Ltd.		6.4%		298		–
Brazil – Bradesco Bank		17.3%		266		–
Mexico - BBA Bancomer		11.5%		119		–
Total			$	8,796	$	6

Summary of

Unused Company Credit and Other Debt Facilities (in thousands):

	June 30, 2017		December 31, 2016
Unused Availability:
United States	$	662	$	500
Australia		624		688
Mexico		158		241
Brazil		454		–
Total Unused Availability	$	1,898	$	1,429

Management believes that based upon the continuation of the Company's existing credit facilities, projected results of operations, vendor payment requirements and other financing available to the Company (including amounts due to affiliates), sources of cash availability should be manageable and sufficient to support ongoing operations over the next year. However, delays in collection of receivables due from any of the Company's major clients, or a significant reduction in business from such clients could have a material adverse effect on the Company's cash resources and its ongoing ability to fund operations.

Note 6 - Related-party Transactions

6 Months Ended

Jun. 30, 2017

Related-Party Transactions

SGRP's policy respecting approval of transactions with related persons, promoters and control persons is contained in the SPAR Group Code of Ethical Conduct for its Directors, Senior Executives and Employees Amended and Restated (as of)

August 13, 2015 (

the "Ethics Code"). The Ethics Code is intended to promote and reward honest, ethical, respectful and professional conduct by each Covered Person (as defined in the Ethics Code in his or her position with the Company anywhere in the world, including (among other things) serving each customer, dealing with each vendor and treating each other with integrity and respect, and behaving honestly, ethically and professionally with each customer, each vendor, each other and the Company. Article II of the Ethics Code specifically prohibits various forms of self-dealing and collusion and Article V of the Ethics Code generally prohibits each "Covered Person" (including SGRP's officers and directors) from engaging in any business activity that conflicts with his or her duties to the Company, and directs each "Covered Person" to avoid any activity or interest that is inconsistent with the best interests of the SPAR Group, in each case except for any "Approved Activity" (as such terms are defined in the Ethics Code). Examples of violations include (among other things) having any ownership interest in, acting as a director or officer of or otherwise personally benefiting from business with any competitor, customer or vendor of the Company other than pursuant to any Approved Activity. Approved Activities include (among other things) any contract with an affiliated person (each an "Approved Affiliate Contract") or anything else disclosed to and approved by SGRP's Board of Directors (the "Board"), its Governance Committee or its Audit Committee, as the case

may

be, as well as the ownership, board, executive and other positions held in and services and other contributions to affiliates of SGRP and its subsidiaries by certain directors, officers or employees of SGRP, any of its subsidiaries or any of their respective family members. The Company's senior management is generally responsible for monitoring compliance with the Ethics Code and establishing and maintaining compliance systems, including those related to the oversight and approval of conflicting relationships and transactions, subject to the review and oversight of SGRP's Governance Committee as provided in clause

IV.11

of the Governance Committee's Charter, and SGRP's Audit Committee as provided in clause

I.2

(l) of the Audit Committee's Charter. The Governance Committee and Audit Committee each consist solely of independent outside directors.

SGRP's Audit Committee has the specific duty and responsibility to review and approve the overall fairness of all material related-party transactions. The Audit Committee receives affiliate contracts and amendments thereto for its review and approval (to the extent approval is given), and these contracts are periodically (often annually) again reviewed, in accordance with the Audit Committee Charter, the Ethics Code, the rules of the Nasdaq Stock Market, Inc. ("Nasdaq"), and other applicable law to ensure that the overall economic and other terms will be (or continue to be)

less favorable to the Company than would be the case in an arms-length contract with an unrelated provider of similar services (i.e., its overall fairness to the Company including pricing and the ability to provide services at comparable performance levels). The Audit Committee periodically reviews all related party relationships and transactions described below.

In addition, in order to (among other things) assist the Board and the Audit Committee in connection with an overall review of the Company’s related party transactions and certain worker classification-related litigation matters, in

April 2017

the Board formed a special subcommittee of the Audit Committee (the "Special Subcommittee") to (among other things) review the structure, documentation, fairness, conflicts, fidelity, appropriateness, and practices respecting each of the relationships and transactions discussed in this Note

(including those described in this Note under

Domestic Related Party Services

, below). The Special Subcommittee commenced that review in the

first

quarter of

2017

with the assistance of special auditors and counsel and is currently reviewing the preliminary results of such review, including the feedback received from its special auditors and counsel. The Company is currently unable to predict the remaining duration and final results of this review by the Special Subcommittee. See Note

to the Company's Consolidated Financial Statements –

Commitments and Contingencies

–

Legal Matters

, below.

Domestic Related Party Services:

SPAR Business Services, Inc. ("SBS"), SPAR Administrative Services, Inc. ("SAS"), and SPAR InfoTech, Inc. ("SIT"), are affiliates of SGRP but are

not

under the control or part of the consolidated Company. Mr. Robert G. Brown, a Director, Chairman and a major stockholder of SGRP, and Mr. William H. Bartels, a Director, Vice Chairman and a major stockholder of SGRP, are the sole stockholders of SBS. Mr. Brown is the sole stockholder of SIT. Mr. Brown is a director and officer of SBS and SIT. Mr. Bartels is a director and officer of SAS. The stockholders of SAS were Mr. Bartels and previously Mr. Brown, and as of

January 1, 2015,

Mr. Brown transferred all of his ownership to parties related to Mr. Brown, each of whom is considered an affiliate of the Company for related party purposes because of their family relationships with Mr. Brown.

The Company executes the services it provides to its domestic clients primarily through independent field merchandising, auditing, assembly and other field personnel (each a "Field Specialist"), substantially all of whom are provided by SBS, and administers those services through local and regional administrators, substantially all of whom are provided by SAS. The Company paid

$12.8

million and

$10.3

million during the

six

months ended

June 30, 2017

and

2016,

respectively, to SBS for its provision as needed of approximately

5,230

of SBS's available Field Specialists in the U.S.A. (which amounted to approximately

81%

and

80%

of the Company's total domestic Field Specialist expense for the

six

months ended

June 30, 2017

and

2016,

respectively). The Company paid

2.1

million for both the

six

months ended

June 30, 2017

and

2016,

to SAS for its provision of its

and

full-time regional and district administrators as of

June 30, 2017

and

2016,

respectively (which amounted to approximately

90%

and

92%

of the Company's total domestic field administrative service cost for the

six

months ended

June 30, 2017

and

2016

). In addition to these field service and administration expenses, SAS also incurs other administrative expenses related to benefit and employment tax expenses of SAS and payroll processing, legal and other administrative expenses and SBS incurs expenses for processing vendor payments, legal defense and other administrative expenses (but those expenses are only reimbursed by SGRP to the extent approved by the Company as described below). The total cost recorded by the Company for the expenses of SBS and SAS in providing their services to the Company, including the "Cost Plus Fee" arrangement (as defined and discussed below) and other expenses paid directly by the Company on behalf of and invoiced to SBS and SAS, was

$14.9

and

$12.5

million, for the

six

months ended

June 30, 2017

and

2016,

respectively.

The terms of the Amended and Restated Field Service Agreement with SBS dated as of

January 1, 2004,

as amended in

2011,

and the Amended and Restated Field Management Agreement with SAS dated as of

January 1, 2004 (

each a "Prior Agreement"), defined reimbursable expenses and established a "Cost Plus Fee" arrangement where the Company paid SBS and SAS for their costs of providing those services plus a fixed percentage of such reimbursable expenses (the "Cost Plus Fee"). The parties have had negotiations respecting replacement agreements since the Prior Agreements expired on

November 30, 2014.

As further described below, a new Field Administration Agreement was entered into with SAS in

2016.

The Company and SBS have agreed in principle to a revised Cost Plus Fee arrangement equal to

2.96%

of the Field Specialists and certain other approved reimbursable expenses incurred by SBS in performing services for the Company, subject to certain offsetting credits. This agreement in principle went into effect on and has applied since

December 1, 2014.

A new SBS agreement is being prepared, which will be subject to contractual terms and provisions acceptable to the parties, but the documentation is proceeding slowly because the parties have failed (among other things) to agree on the descriptions and extent of the approval processes for reimbursable expenses.

SBS compensation to any officer, director or other related party has been reimbursed or approved to date by the Company, and

such compensation reimbursements were made or approved under SBS's Prior Agreement. This is

not

a restriction on SBS since SBS is

not

controlled by the Company and

may

pay any compensation to any person that SBS desires out of its own funds. However, SBS has attempted to invoice the Company monthly for certain such compensation payments from

July

2015

through

December 2016,

but the Company has rejected those invoices as non-reimbursable expenses. Since SBS is a "Subchapter S" corporation, all income from SBS is allocated to its stockholders (see above).

The Company has determined that the rates charged by SBS for the services of its field merchandising, auditing, assembly and other field personnel (each a "Field Specialist") are favorable to the Company when compared to other possible non-affiliate providers. SBS has advised the Company that those favorable rates are dependent (at least in part) on SBS's ability to continue to use independent contractors as its Field Specialists, that such Field Specialists generally provide greater flexibility and performance quality at lower total costs as a result of their business independence and initiative, and that it has an agreement with each Field Specialist clearly confirming his, her, or its status as an independent contractor.

The appropriateness of SBS's treatment of its Field Specialists as independent contractors has been periodically subject to legal challenge (both currently and historically) by various states and others, SBS's expenses of defending those challenges and other proceedings have historically been reimbursed by the Company under SBS's Prior Agreement, and SBS's expenses of defending those challenges and other proceedings were reimbursed by the Company for the

six

months ended

June 30, 2017

and

2016

(in the amounts of

$179,000

and

$443,000,

respectively), after determination (on a case by case basis) that those defense expenses were costs of providing services to the Company. The Company has advised SBS that, since there is

currently effective comprehensive written services agreement with SBS, the Company will continue to review and decide each request by SBS for reimbursement of its legal defense expenses (including appeals) on a case-by-case basis, including the relative costs and benefits to the Company. The Company has

not

agreed, and does

not

currently intend, to reimburse SBS for any judgment, settlement, or related tax, penalty, or interest in any legal challenge or other proceeding, and the Company does

not

believe it has ever done so (other than in insignificant nuisance amounts). However, there are

assurances that SBS or someone else will

not

claim, or that SBS will be able to successfully defend any claim, that the Company is liable (through reimbursement, indemnification or otherwise) for any judgment against SBS. Furthermore, there can be

assurance that SBS will succeed in defending any such legal challenge, the legal expenses of prolonged litigation and appeals could continue to be (and have from time to time been) significant, and any adverse determination in any such challenge could have a material adverse effect on SBS's ability to provide services needed by the Company and the Company's costs of doing business.

Current material and potentially material proceedings against SBS and, in

one

instance, the Company are described in Note

to the Company's Consolidated Financial Statements –

Commitments and Contingencies

–

Legal Matters

, below. These descriptions are based on an independent review by the Company and do

not

reflect the views of SBS, its management or its counsel.

Any prolonged continuation of or material increase in the legal defense costs of SBS (and thus the reimbursable expenses SBS

may

charge to and that

may

be paid by the Company), any claim by SBS, SAS, any related party or any

third

party that the Company is somehow liable for any judgment against SBS or SAS, any judicial determination that the Company is somehow liable for any judgment against SBS or SAS (in whole or in part), any decrease in SBS's or SAS’s performance (quality or otherwise), any inability by SBS or SAS to execute the services for the Company, or any increase in the Company's use of employees (rather than independent contractors) as its domestic Field Specialists, in each case in whole or in part, could have a material adverse effect on the Company or its performance or condition (including its assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievement, results or condition), whether actual or as planned, intended, anticipated, estimated or otherwise expected.

June 14, 2016,

SAS and SMF entered into a new Field Administration Agreement (the "SAS Agreement"). In order to provide continuity with SAS's Prior Agreement, the SAS Agreement is effective and governs the relationship of the parties as of

December 1, 2014,

and amends, restates and completely replaces SAS's Prior Agreement. The SAS Agreement more clearly defines reimbursable and excluded expenses and the budget and approval procedures and continues the indemnifications and releases provided by SAS's Prior Agreement (which indemnifications and releases were and are comparable to those applicable to SGRP's directors and executive officers under its By-Laws and applicable law). Specifically, the SAS Agreement reduced the Cost Plus Fee from

effective as of

June 1, 2016.

SGRP's Audit Committee has approved the SAS Agreement pursuant to its specific duty and responsibility to review and approve the overall fairness of all material related-party transactions, as more fully provided above in this Note

to the Company's Consolidated Financial Statements.

unbudgeted SAS compensation to any officer, director or other related party has been reimbursed or approved to date by the Company, and

such compensation reimbursements were made or approved under SAS's Prior Agreement. This is

not

a restriction on SAS since SAS is

not

controlled by the Company and

may

pay any compensation to any person that SAS desires out of its own funds. Since SAS is a "Subchapter S" corporation, all income from SAS is allocated to its stockholders (see above).

National Merchandising Services, LLC ("NMS"), is a consolidated domestic subsidiary of the Company and is owned jointly by SGRP through its indirect ownership of

51%

of the NMS membership interests and by National Merchandising of America, Inc. ("NMA"), through its ownership of the other

49%

of the NMS membership interests. Mr. Edward Burdekin is the Chief Executive Officer and President and a director of NMS and also is an executive officer and director of NMA. Ms. Andrea Burdekin, Mr. Burdekin's wife, is the sole stockholder and a director of NMA and a director of NMS. NMA is an affiliate of the Company but is

not

consolidated with the Company.

International Related Party Services:

SGRP Meridian (Pty), Ltd. ("Meridian") is a consolidated international subsidiary of the Company and is owned

51%

by SGRP and

49%

by the following individuals: Mr. Brian Mason, Mr. Garry Bristow, and Mr. Adrian Wingfield. Mr. Mason is President and a director and Mr. Bristow is an officer and director of Meridian. Mr. Mason is also an officer and director and

50%

shareholder of Merhold Property Trust ("MPT"). Mr. Mason and Mr. Bristow are both officers and directors and both own

50%

of Merhold Cape Property Trust ("MCPT"). Mr. Mason, Mr. Bristow and Mr. Wingfield are all officers and own

46.7%,

20%

and

33.3%,

respectively of Merhold Holding Trust ("MHT") which provides services similar to those provided by MPT. MPT owns the building where Meridian is headquartered and also owns

vehicles both of which are subleased to Meridian. MCPT provides a fleet of

126

vehicles to Meridian under a

year lease program. These leases are provided to Meridian at local market rates included in the summary table below.

SPAR Todopromo is a consolidated international subsidiary of the Company and is owned

51%

by SGRP and

49%

by the following individuals: Mr. Juan F. Medina Domenzain, Juan Medina Staines, Julia Cesar Hernandez Vanegas, and Jorge Medina Staines. Mr. Juan F. Medina Domenzain is an officer and director of SPAR Todopromo and is also majority shareholder (

) of CONAPAD ("CON") which supplied administrative and operational consulting support to SPAR Todopromo for the

three

and

six

month periods ended

June 30, 2017

and

2016.

August 2016,

Mr. Juan F. Medina Domenzain ("JFMD"), partner in SPAR Todopromo, purchased the warehouse that was being leased by SPAR Todopromo. A new lease expiring

December 31, 2017,

was entered into with SPAR Todopromo with the same terms and cost as with the previous owner.

September 8, 2016,

the Company (through

one

of its subsidiaries, SPAR International Ltd.) acquired

100%

ownership of SGRP Brasil Participações Ltda. ("SGRP Holdings"), a Brazilian limitada (which is a form of limited liability company), from its affiliate, SIT, at cost (including approved expenses). See

Related Party Transactions and Arrangements in the Brazil Acquisition

in this Note, below. SGRP Holdings then completed the formation and acquired a majority of the stock of SPAR Brasil Serviços de Merchandising e Tecnologia S.A., a Brazilian corporation ("SPAR BSMT"). SGRP Holdings and SPAR BSMT are consolidated subsidiaries of the Company. SPAR BSMT is owned

51%

by the Company,

39%

by JK Consultoria Empresarial Ltda.-ME, a Brazilian limitada ("JKC"), and

10%

by Earth Investments, LLC, a Nevada limited liability company ("EILLC").

JKC is owned by Mr. Jonathan Dagues Martins, a Brazilian citizen and resident ("JDM") and his sister, Ms. Karla Dagues Martins, a Brazilian citizen and resident. JDM is the Chief Executive Officer and President of each SPAR Brazil company pursuant to a Management Agreement between JDM and SPAR BSMT dated

September 13, 2016.

JDM also is a director of SPAR BSMT. Accordingly, JKC and JDM are each a related party in respect of the Company. EILLC is owned by Mr. Peter W. Brown, a citizen and resident of the USA ("PWB"). PWB is an officer and employee of the Company's affiliate, SIT, which is owned by SGRP's Chairman, Mr. Robert G. Brown, and is also an employee of the Company’s affiliate, SAS. PWB was an official observer at the meetings of SGRP's Board from

2014

through

December 2016,

and PWB also is the nephew of Mr. Robert G. Brown. PWB also is a director of SPAR BSMT. Accordingly, PWB and EILLC are each a related party in respect of the Company.

SPAR BSMT has contracted with Ms. Karla Dagues Martins, a Brazilian citizen and resident and JDM's sister to handle the labor litigation cases for SPAR BSMT and its subsidiaries. These legal services are being provided to them at local market rates by Ms. Martins's company, Karla Martins Sociedade de Advogados ("KMSA").

The NM Acquisition (as defined below in Note

to the Company's Consolidated Financial Statement -

Purchase of Interest in Subsi

diaries

) and associated related party transactions were reviewed and approved by the Audit Committee of SGRP's Board of Directors.

The Company believes it is the largest and most important customer of SBS, SAS, NRS, MPT, MCPT, MHT, CON, JFMD and KMSA (and from time to time

may

be each entity's only customer), and accordingly the Company generally has been able to negotiate better terms, receives more personal and responsive service and is more likely to receive credits and other financial accommodations from SBS, SAS, NRS, MPT, MCPT, MHT, CON, JFMD and KMSA than the Company could reasonably expect to receive from an unrelated service provider who has significant other customers and business. SBS, SAS and other material affiliate contracts and arrangements are annually reviewed and considered for approval by SGRP's Audit Committee, subject to the ongoing negotiations with SBS as described above.

Summary of Related Party Services:

The following costs of affiliates were charged to the Company (in thousands):

	Three Months Ended June 30 ,				Six Months Ended June 30 ,
	201 7		201 6		201 7		201 6
Services provided by affiliates:
Field merchandiser and other expenses (SBS)	$	6,929	$	5,390	$	12,805	$	10,337
Field administration and other expenses (SAS)		1,055		989		2,129		2,127
Office and vehicle rental expenses (MPT)		16		12		32		24
Vehicle rental expenses (MCPT)		296		194		600		373
Office and vehicle rental expenses (MHT)		42		26		83		51
Consulting and administrative services (CON)		57		83		153		167
Legal Services (KMSA)		23		–		46		–
Warehousing rental (JFMD)		12		–		23		–

Total services provided by affiliates	$	8,430	$	6,694	$	15,871	$	13,079

Due to affiliates consists of the following (in thousands):

	June 30 ,		December 31,
	201 7		201 6
Loans from local investors:(1)
Australia	$	246	$	231
Mexico		1,001		1,001
Brazil		139		139
China		303		761
NMS LLC		–		348
Accrued Expenses due to affiliates:
SBS/SAS		895		869
Total due to affiliates	$	2,584	$	3,349

(

) Represent loans from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans). The loans have

payment terms and are due on demand and as such have been classified as current liabilities in the Company's consolidated financial statements.

Other Related Party Transactions and Arrangements

July 1999,

SPAR Marketing Force, Inc. ("SMF"), SBS and SIT entered into a perpetual software ownership agreement providing that each party independently owned an undivided share of and had the right to unilaterally license and exploit their "Business Manager" Internet job scheduling software (which had been jointly developed by such parties), and all related improvements, revisions, developments and documentation from time to time voluntarily made or procured by any of them at its own expense. Business Manager and its other proprietary software and applications are used by the Company for (among other things) the scheduling, tracking, coordination and reporting of its merchandising and marketing services and are accessible via the Internet or other applicable telecommunication network by the authorized representatives of the Company and its clients through their respective computers and mobile devices. In addition, SPAR Trademarks, Inc., a wholly owned subsidiary of SGRP ("STM"), SBS and SIT entered into separate perpetual trademark licensing agreements whereby STM has granted non-exclusive royalty-free licenses to SIT and SBS (and through them to their commonly controlled subsidiaries and affiliates by sublicenses, including SAS) for their continued use of the name "SPAR" and certain other trademarks and related rights of STM. SBS and SAS provide services to the Company, as described above, SIT assisted in the Brazilian acquisition at a cost to the Company of

$49,000,

as described below, and SIT

longer provides services to and does

not

compete with the Company.

Through arrangements with the Company, SBS, SAS and other companies owned by Mr. Brown or Mr. Bartels participate in various benefit plans, insurance policies and similar group purchases by the Company, for which the Company charges them their allocable shares of the costs of those group items and the actual costs of all items paid specifically for them. All such transactions between the Company and the above affiliates are paid and/or collected by the Company in the normal course of business.

In addition to the above, SAS purchases insurance coverage for worker compensation, casualty and property insurance risk for itself, for SBS for its Field Specialists that require such insurance coverage, and for the Company from Affinity Insurance, Ltd. ("Affinity"). SAS owns a minority (less than

) of the common stock in Affinity. The Affinity insurance premiums for such coverage are ultimately charged to SAS (and through SAS to the Company), SBS (and through SBS to its covered Field Specialists) and the Company based on the contractual arrangements of the parties.

Note 7 - Preferred Stock	6 Months Ended
Note 7 - Preferred Stock	Jun. 30, 2017
Notes to Financial Statements
Preferred Stock [Text Block]	7. Preferred Stock SGRP's certificate of incorporation authorizes it to issue 3,000,000 shares of preferred stock with a par value of $0.01 per share (the "SGRP Preferred Stock"), which may have such preferences and priorities over the SGRP Common Stock and other rights, powers and privileges as the Company's Board of Directors may establish in its discretion from time to time. The Company has created and authorized the issuance of a maximum of 3,000,000 shares of Series A Preferred Stock pursuant to SGRP's Certificate of Designation of Series "A" Preferred Stock (the "SGRP Series A Preferred Stock"), which have dividend and liquidation preferences, have a cumulative dividend of 10% per year, are redeemable at the Company's option and are convertible at the holder's option (and without further consideration) on a one -to- one basis into SGRP Common Stock. The Company issued 554,402 of SGRP shares to affiliated retirement plans which were all converted into common shares in 2011 (including dividends earned thereon), leaving 2,445,598 shares of remaining authorized preferred stock. At June 30, 2017, no shares of SGRP Series A Preferred Stock were issued and outstanding.

Note 8 - Stock-based Compensation and Other Plans	6 Months Ended
Note 8 - Stock-based Compensation and Other Plans	Jun. 30, 2017
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	8. Stock-Based Compensation and Other Plans SGRP has granted restricted stock and stock option awards to its eligible directors, officers and employees and certain employees of its affiliates respecting shares of Common Stock issued by SGRP ("SGRP Shares") pursuant to SGRP's 2008 Stock Compensation Plan (as amended, the "2008 Plan"), which was approved by SGRP's stockholders in May of 2008 and 2009. The 2008 Plan provides for the granting of restricted SGRP shares, stock options to purchase SGRP shares (either incentive or nonqualified), and restricted stock units, stock appreciation rights and other awards based on SGRP shares ("Awards") to SGRP Directors and the Company's specified executives, employees and consultants (which are employees of certain of its affiliates), although to date SGRP has not issued any permissible form of Award other than stock option, restricted share awards, and performance stock units. As of June 30, 2017, approximately 1,378,000 SGRP shares were available for Award grants under the amended 2008 Plan. In the second quarter, there were 70,000 options awarded to officers and certain employees and 40,000 options were awarded to the outside directors of SPAR Group, Inc. The Company recognized $63,000 and $70,000 in stock-based compensation expense relating to stock option awards during the three month periods ended June 30, 2017 and 2016, respectively. The tax benefit available from stock based compensation expense related to stock option during the three months ended June 30, 2017 and 2016 was approximately $12,000 and $27,000 respectively. The Company recognized $109,000 and $151,000 in stock-based compensation expense relating to stock option Awards during the six month periods ended June 30, 2017 and 2016, respectively. The tax benefit, available to the Company, from stock based compensation expense related to stock options during the six months ended June 30, 2017 and 2016 was approximately $41,000 and $57,000, respectively. However, since the Company has NOL's available for the next several years, these tax benefits have not been realized as of this report. As of June 30, 2017, total unrecognized stock-based compensation expense related to stock options was $193,000. During the three months ended June 30, 2017 and 2016, the Company recognized approximately $12,000 and $18,000, respectively of stock based compensation expense related to restricted stock. The tax benefit available to the Company from stock based compensation expense related to restricted stock during the three months ended June 30, 2017 and 2016 was approximately $5,000 and $7,000, respectively. During the six months ended June 30, 2017 and 2016, the Company recognized approximately $21,000 and $32,000, respectively, of stock-based compensation expense related to restricted stock. The tax benefit, available to the Company, from stock based compensation expense related to restricted stock during the six months ended June 30, 2017 and 2016 was approximately $7,900 and $11,400, respectively. However, since the Company has NOL's available for the next several years, these tax benefits have not been realized as of this report. As of June 30, 2017, total unrecognized stock-based compensation expense related to unvested restricted stock Awards was $35,000.

Note 9 - Commitments and Contingencies	6 Months Ended
Note 9 - Commitments and Contingencies	Jun. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	9. Commitments and Contingencies Legal Matters The Company is a party to various legal actions and administrative proceedings arising in the normal course of business. In the opinion of Company's management, disposition of these matters are not anticipated to have a material adverse effect on the Company or its assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievement, results or condition. The Company executes the services it provides to its domestic clients primarily through independent field merchandising, auditing, assembly and other field personnel (each a "Field Specialist"), almost all of whom are engaged and provided as independent contractors by SBS. For contractual details and payment amounts, see Note 6 to the Company's Consolidated Financial Statements – Related Party Transactions – Domestic Related Party Services , above. The appropriateness of SBS's treatment of its Field Specialists as independent contractors has been periodically subject to legal challenge (both currently and historically) by various states and others, SBS's expenses of defending those challenges and other proceedings have historically been reimbursed by the Company under SBS's Prior Agreement, and SBS's expenses of defending those challenges and other proceedings were reimbursed by the Company during the three month periods ended June 30, 2017 and 2016 (in the amounts of $93,000 and $89,000, respectively), and the six month periods ended June 30, 2017 and 2016 (in the amounts of $179,000 and $443,000, respectively), after determination (on a case by case basis) that those defense expenses were costs of providing services to the Company. The Company has advised SBS that, since there is no currently effective comprehensive written services agreement with SBS, the Company will continue to review and decide each request by SBS for reimbursement of its legal defense expenses (including appeals) on a case-by-case basis, including the relative costs and benefits to the Company. The Company has not agreed, and does not currently intend, to reimburse SBS for any judgment, settlement, or related tax, penalty, or interest in any legal challenge or other proceeding, and the Company does not believe it has ever done so (other than in insignificant nuisance amounts). However, there are no assurances that SBS or someone else will not claim, or that SBS will be able to successfully defend any claim, that the Company is liable (through reimbursement, indemnification or otherwise) for any judgment against SBS. Furthermore, there can be no assurance that SBS will succeed in defending any such legal challenge, the legal expenses of prolonged litigation and appeals could continue to be (and have from time to time been) significant, and any adverse determination in any such challenge could have a material adverse effect on SBS's ability to provide services needed by the Company and the Company's costs of doing business. Current material and potentially material proceedings against SBS and, in one instance, the Company are described below. These descriptions are based on an independent review by the Company and do not reflect the views of SBS, its management or its counsel. SBS Clothier Litigation Melissa Clothier was engaged by SBS (then known as SPAR Marketing Services, Inc.) and provided services pursuant to the terms of an "Independent Merchandiser Agreement" acknowledging her engagement as an independent contractor. On June 30, 2014, Ms. Clothier filed suit against SBS and the Company styled Case No. RG12 639317, in the Superior Court in Alameda County, California, in which Ms. Clothier asserted claims on behalf of herself and a putative class of similarly situated merchandisers in California who are or were classified as independent contractors at any time between July 16, 2008, and June 30, 2014. Ms. Clothier alleged that she and other class members were misclassified as independent contractors and that, as a result of this misclassification, the defendants improperly underpaid them in violation of various California minimum wage and overtime laws. The Company was subsequently dismissed from the action without prejudice. The court ordered that the case be heard in two phases. Phase one was limited to the determination of whether members of the class were misclassified as independent contractors. After hearing evidence, receiving post-trial briefings and considering the issues, the Court issued its Statement of Decision on September 9, 2016, finding that the class members had been misclassified as independent contractors rather than employees. The parties have now moved into phase two to determine damages (if any). No trial date for phase two has been set and the parties are currently engaged in discovery as to the measure of damages in this case. SBS has advised the Company that SBS will appeal the adverse phase one determination when permitted under the court's rules. SBS Rodgers Litigation Maceo Rodgers was engaged by and provided services to SBS pursuant to the terms of his "Master Agreements" with SBS acknowledging his engagement as an independent contractor. On February 21, 2014, Rodgers filed suit against SBS, Robert G. Brown and William H. Bartels, styled Civil Action No. 3:14 -CV- 00055, in the U.S. District Court for the Southern District of Texas (Galveston Division). Plaintiff asserted claims on behalf of himself and an alleged class of similarly situated individuals who provided services to SBS as independent contractors at any time on or after July 15, 2012, claiming they all were misclassified as independent contractors and that, as a result of this misclassification, the Defendants improperly underpaid them in violation of the Fair Labor Standards Act's overtime and minimum wage provisions. Although the Court conditionally certified the class on December 8, 2015, only 61 individuals joined the action as opt-in plaintiffs, and all but 11 of them have potentially disqualifying arbitration provisions, residences outside the class's geographic area, or late opt-in filings, and are being challenged by the Defendants in various pending motions, including a motion to decertify the class. SBS and SGRP Hogan Litigation Paradise Hogan was engaged by and provided services to SBS as an independent contractor pursuant to the terms of an "Independent Contractor Master Agreement" with SBS acknowledging his engagement as an independent contractor. On January 6, 2017, Hogan filed suit against SBS and SPAR Group, Inc. ("SGRP" and part of the Company), styled Civil Action No. 1:17 -cv- 10024 -LTS, in the U.S. District Court for District of Massachusetts. Hogan initially asserted claims on behalf of himself and an alleged nationwide class of similarly situated individuals who provided services to SBS and SGRP as independent contractors. Hogan alleged that he and other alleged class members were misclassified as independent contractors, and as a result of this purported misclassification, Hogan asserted claims on behalf of himself and the alleged Massachusetts class members under the Massachusetts Wage Act and Minimum Wage Law for failure to pay overtime and minimum wages, as well as state law claims for breach of contract, unjust enrichment, quantum meruit, and breach of the covenant of good faith and fair dealing. In addition, Hogan asserted claims on behalf of himself and the nationwide class for violation of the Fair Labor Standards Act's overtime and minimum wage provisions. On March 28, 2017, the Company moved to refer Hogan's claim to arbitration pursuant to his agreement, to dismiss or stay Hogan's case pending arbitration, and to dismiss Hogan's case for failure to state a specific claim upon which relief could be granted. Plaintiff’s counsel subsequently notified SGRP’s attorney of their intent to amend their Complaint without prejudice. The Amended Complaint, which was filed on May 2, 2017, eliminated all of Plaintiff’s claims except for a single claim against SGRP for failure to pay Hogan and a similarly situated class of Massachusetts independent contractors all wages under the Massachusetts Wage Act and a separate, but identical claim against SBS. The result of the amendment significantly narrowed the scope of the litigation and eliminated the original nationwide Fair Labor Standards Act claims. The Company was granted leave to refile their motion to compel arbitration to dismiss Hogan’s case pending arbitration, and to dismiss Hogan’s case for failure to state a specific claim upon which relief could be granted. The Company’s motion was filed on June 7, 2017, Plaintiff’s opposition to the Company’s motion was filed on June 21, 2017 and the Company thereafter filed a reply brief in support of its motion on June 30, 2017. The parties currently await a hearing date on the Company’s motion. Potential Adverse Effects of the SBS Litigation Any prolonged continuation of or material increase in the legal defense costs of SBS (and thus the reimbursable expenses SBS may charge to and that may be paid by the Company), any claim by SBS, any other related party or any third party that the Company is somehow liable for any judgment against SBS or other related party, any judicial determination that the Company is somehow liable for any judgment against SBS or other related party (in whole or in part), any decrease in SBS's performance (quality or otherwise), any inability by SBS to execute the services for the Company, or any increase in the Company's use of employees (rather than independent contractors) as its domestic Field Specialists, in each case in whole or in part, could have a material adverse effect on the Company or its performance or condition (including its assets, business, clients, capital, cash flow, credit, expenses, financial condition, income, liabilities, liquidity, locations, marketing, operations, prospects, sales, strategies, taxation or other achievement, results or condition), whether actual or as planned, intended, anticipated, estimated or otherwise expected. See Note 6 to the Company's Consolidated Financial Statements – Related Party Transactions – Domestic Related Party Services , above.

Note 10 - Segment Information

6 Months Ended

Jun. 30, 2017

Segment Reporting Disclosure [Text Block]

10.

Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising, business technology and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	201 7			201 6			2017			2016
Revenue:
United States	$	13,685		$	11,184		$	25,006		$	20,936
International		29,037			18,548			57,602			35,407
Total revenue	$	42,722		$	29,732		$	82,608		$	56,343

Operating income:
United States	$	292		$	362		$	357		$	64
International		679			418			1,098			883
Total operating income	$	971		$	780		$	1,455		$	947

Interest expense:
United States	$	52		$	27		$	102		$	52
International		2			4			(95	)		8
Total interest expense	$	54		$	31		$	7		$	60

Other (income), net:

United States	$	–		$	–		$	–		$	–
International		(135	)		(80	)		(197	)		(105	)
Total other (income), net	$	(135	)	$	(80	)	$	(197	)	$	(105	)

Income before income tax expense:
United States	$	240		$	335		$	255		$	12
International		812			494			1,390			980
Total income before income tax expense	$	1,052		$	829		$	1,645		$	992


Income tax expense:
United States	$	31		$	123		$	(85	)	$	(88	)
International		247			103			782			319
Total income tax expense	$	278		$	226		$	697		$	231

Net income:
United States	$	209		$	212		$	340		$	100
International		565			391			608			661
Total net income	$	774		$	603		$	948		$	761


Depreciation and amortization:
United States	$	340		$	336		$	679		$	679
International		194			148			360			293
Total depreciation and amortization	$	534		$	484		$	1,039		$	972

Capital expenditures:
United States	$	245		$	262		$	511		$	506
International		87			99			181			226
Total capital expenditures	$	332		$	361		$	692		$	732

Note: There were

inter-company sales for the

six

months ended

June 30, 2017

2016.

	June 30,		December 31,
	201 7		201 6
Assets:
United States	$	22,416	$	22,189
International		33,246		32,662
Total assets	$	55,662	$	54,851

Geographic Data

(in thousands)

	Three Months Ended June 30 ,										Six Months Ended June 30 ,
	20 17					2016					20 17					2016
International revenue:			% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue
Brazil	$	8,157		19.1	%	$	–		–	%	$	18,100		21.9	%	$	–		–	%
South Africa		6,916		16.2			4,721		15.9			12,943		15.7			8,935		15.9
Mexico		5,374		12.6			5,106		17.2			10,062		12.2			10,105		17.9
China		2,120		5.0			2,882		9.7			4,528		5.5			5,617		10.0
India		1,838		4.3			1,376		4.6			3,450		4.2			2,680		4.8
Japan		1,835		4.3			1,765		5.9			3,544		4.3			3,358		6.0
Canada		1,742		4.1			1,871		6.3			3,045		3.7			3,129		5.6
Australia		996		2.3			755		2.5			1,806		2.2			1,414		2.5
Turkey		59		0.1			72		0.2			124		0.2			169		0.3
Total international revenue	$	29,037		68.0	%	$	18,548		62.3	%	$	57,602		69.9	%	$	35,407		63.0	%

	June 30,		December 31,
	20 17		20 16
Long lived assets:
United States	$	8,494	$	8,594
International		4,567		3,965
Total long lived assets	$	13,061	$	12,559

Note 11 - Purchase of Interests in Subsidiaries

6 Months Ended

Jun. 30, 2017

Business Combination Disclosure [Text Block]

11.

Purchase of Interests in Subsidiaries

September 2016,

after acquiring SGRP Brasil Participações Ltda. ("SGRP Holdings"), a Brazilian limitada (which is a form of limited liability company), and establishing SPAR Brasil Serviços de Merchandising e Tecnologia S.A., a Brazilian corporation ("SPAR BSMT"), in a series of related party transactions (See Note

to the Company's Consolidated Financial Statements -

Related Party Transactions

– International

Related Party

Services

, above), SGRP Holdings and SPAR BSMT (the "Purchasers") entered into a Quota Purchase Agreement dated

September 13, 2016 (

the "NM QPA"), with Interservice Publicidade Sociedade Ltda., a Brazilian limitada, Momentum Promoções Ltda., a Brazilian limitada, and IPG Nederland B.V., a Netherlands company (collectively, the "Sellers"). The Sellers are subsidiaries of The Interpublic Group of Companies, Inc., a Delaware corporation ("Interpublic"), which is a global provider of advertising, media and other business services. The NM QPA provided for the acquisition by the Purchasers from the Sellers (the "NM Acquisition") of all of the equity shares (called "quotas") in New Momentum Ltda., a Brazilian limitada, and New Momentum Serviços Temporários Ltda., a Brazilian limitada (each a "NM Company" or collectively the "NM Companies"),

two

of Interpublic's "In Store" companies in Brazil. SPAR BSMT acquired

99%

of the quotas issued by each NM Company and SGRP Holdings acquired

of the quotas issued by each NM Company pursuant to the NM QPA. The closing of the acquisition of the NM Companies was completed with the disbursement of the purchase price to the Sellers on

September 19, 2016,

effective as of close of business on

September 13, 2016.

The purchase price for the NM Companies was

R$1,312,000

(approximately

US$401,000

). The Company has since changed the names of the NM Companies to SPAR Brasil Serviços LTDA. and SPAR Brasil Serviços Temporários LTDA.

Momentum Promoções Ltda.,

one

of the Sellers, also agreed to provide certain transition services and continued use of certain existing office space to SPAR BSMT and each of the NM Companies (collectively, "SPAR Brazil"), pursuant to a Transition Services Agreement dated

September 13, 2016 (

the "Transition Agreement"), and a Sublease Agreement dated

September 13, 2016 (

the "Sublease"), respectively. The Sublease has an initial term of

months and requires monthly rent and back office support payments of

R$205,417

(approximately

$65,700

USD). After

December 31, 2016,

the Transition Agreement relating to Accounting Service, terminated on

April 30, 2017

and for IT service, terminates on

September 13, 2017.

The Company has completed its preliminary calculation of the fair value and related allocation of assets between goodwill and other. The amounts listed below reflect the results of our preliminary assessment and

may

be updated should additional information become available related to this acquisition. A summary of assets acquired, goodwill and liabilities assumed and net of purchase price are as follows (in thousands):

Cash	$	484
Net Working Capital, net of cash		(155	)
Fixed Assets		22
Intangible Assets		336
Goodwill		133
Assumed Liabilities		(419	)
Net Fair Value of Assets Acquired	$	401

For the

six

month period ended

June 30, 2017,

the Company reported revenue of

$19.7

million and a net income of

$46,000

related to this acquisition. The following table contains unaudited pro forma revenue and net income for SPAR Group, Inc. assuming SPAR Brasil closed on

January 1, 2016 (

in thousands):

		Revenue				Net Loss
Consolidated supplemental pro forma for the six month period ended June 30, 2016		$	71,862			$	(10	)

The pro forma in the table above includes adjustments for, amortization of intangible assets and acquisition costs to reflect results that are more representative of the results of the transactions as if the SPAR Brasil acquisition closed on

January 1, 2016.

This pro forma information utilizes certain estimates, is presented for illustrative purposes only and

may

not

be indicative of the results of operation that would have actually occurred. In addition, future results

may

vary significantly from the results reflected in the pro forma information. The unaudited pro forma financial information does

not

reflect the impact of future events that

may

occur after the acquisition, such as anticipated cost savings from operating synergies.

Note 12 - Summary of Significant Accounting Policies	6 Months Ended
Note 12 - Summary of Significant Accounting Policies	Jun. 30, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	12. Summary of Significant Accounting Policies New Accounting Pronouncements In January 2017, the FASB issued Accounting Standard Update 2017 - 04 (ASU 2017 - 04 ), Intangibles-Goodwill and Other (Topic 350 ) Simplifying the Test for Goodwill Impairment. With ASU 2017 - 04, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017 - 04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of ASU 2017 - 04 will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017 - 01, Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017 - 01 is required to be applied prospectively for reporting periods beginning after December 31, 2017. The impact on the Company's consolidated financial statements will depend on the facts and circumstances of any specific future transactions. In August 2016, the FASB issued ASU 2016 - 15, Statement of Cash Flows ("ASU 2016 - 15" ) which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard is effective for reporting periods after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU 2016 - 13 amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016 - 09, “Compensation— Stock Compensation (Topic 718 )” (“ASU 2016 - 09” ). The guidance changes how companies account for certain aspects of equity-based payments to employees. Entities will be required to recognize income tax effects of awards in the income statement when the awards vest or are settled. The guidance also allows an employer to repurchase more of an employee’s shares than it can under current guidance for tax withholding purposes providing for withholding at the employee’s maximum rate as opposed to the minimum rate without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The updated guidance is effective for annual periods beginning after December 15, 2016. Effective January 1, 2017, the Company adopted the accounting guidance contained within ASU 2016 - 09. In February 2016, the FASB issued ASU 2016 - 02 amending the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles ("GAAP"), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization's leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. As our operations are conducted in leased facilities, this ASU may require us to disclose additional information about our leasing activities. The Company plans to evaluate the impact of the new guidance on our consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015 - 17, Income Taxes (Topic 740 ): Balance Sheet Classification of Deferred Taxes, simplifying the balance sheet classification of deferred taxes by requiring all deferred taxes, along with any related valuation allowance, to be presented as noncurrent. This ASU is effective for the Company beginning in the first quarter of 2017, which the Company has applied retroactively. Upon the adoption of the guidance, the Company has reclassified $471,000 from current assets to non-current assets, and reduced both non-current and current liabilities by $2,389,000. In May 2014, the FASB issued new revenue recognition guidance under ASU 2014 - 09 that will supersede the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date by one year (ASU 2015 - 14 ). This ASU will now be effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1 ) clarification of the implementation guidance on principal versus agent considerations (ASU 2016 - 08 ); 2 ) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016 - 10 ); 3 ) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016 - 11 ); 4 ) additional guidance and practical expedients in response to identified implementation issues (ASU 2016 - 12 ); and 5 ) technical corrections and improvements (ASU 2016 - 20 ). The company is currently assessing the method under which it will adopt and the potential impact of adopting ASU 2014 - 09 on its financial position, results of operations, cash flow and/or disclosures.

Note 13 - Capital Lease Obligations

6 Months Ended

Jun. 30, 2017

Capital Leases in Financial Statements of Lessee Disclosure [Text Block]

13.

Capital Lease Obligations

The Company has an outstanding capital lease obligation with an interest rate of

5.8%.

The related capital lease assets balances are detailed below (in thousands):

Start Date:		Original Cost				Accumulated Amortization				Net Book Value at June 30, 2017
January 2017		$	76			$	13			$	63

Annual future minimum lease payments required under the leases, together with the present value as of

June 30, 2017,

are as follows (in thousands):

Year Ending December 31,	Amount

2017	$	14
2018		28
2019		28
Total		70
Less amount representing interest		7
Present value of net minimum lease payments included in accrued expenses and other current liabilities, and long term debt	$	63

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements In January 2017, the FASB issued Accounting Standard Update 2017 - 04 (ASU 2017 - 04 ), Intangibles-Goodwill and Other (Topic 350 ) Simplifying the Test for Goodwill Impairment. With ASU 2017 - 04, an entity will no longer determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead, an entity will compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017 - 04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of ASU 2017 - 04 will have on our consolidated financial statements. In January 2017, the FASB issued ASU 2017 - 01, Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017 - 01 is required to be applied prospectively for reporting periods beginning after December 31, 2017. The impact on the Company's consolidated financial statements will depend on the facts and circumstances of any specific future transactions. In August 2016, the FASB issued ASU 2016 - 15, Statement of Cash Flows ("ASU 2016 - 15" ) which reduces diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard is effective for reporting periods after December 15, 2017, with early adoption permitted. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU 2016 - 13 amending how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance requires the application of a current expected credit loss model which is a new impairment model based on expected losses. Under this model, an entity recognizes an allowance for expected credit losses based on historical experience, current conditions and forecasted information rather than the current methodology of delaying recognition of credit losses until it is probable a loss has been incurred. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019 with early adoption permitted for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016 - 09, “Compensation— Stock Compensation (Topic 718 )” (“ASU 2016 - 09” ). The guidance changes how companies account for certain aspects of equity-based payments to employees. Entities will be required to recognize income tax effects of awards in the income statement when the awards vest or are settled. The guidance also allows an employer to repurchase more of an employee’s shares than it can under current guidance for tax withholding purposes providing for withholding at the employee’s maximum rate as opposed to the minimum rate without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The updated guidance is effective for annual periods beginning after December 15, 2016. Effective January 1, 2017, the Company adopted the accounting guidance contained within ASU 2016 - 09. In February 2016, the FASB issued ASU 2016 - 02 amending the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles ("GAAP"), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization's leasing activities. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective application. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on our consolidated financial statements and related disclosures. As our operations are conducted in leased facilities, this ASU may require us to disclose additional information about our leasing activities. The Company plans to evaluate the impact of the new guidance on our consolidated financial statements and related disclosures. In November 2015, the FASB issued ASU 2015 - 17, Income Taxes (Topic 740 ): Balance Sheet Classification of Deferred Taxes, simplifying the balance sheet classification of deferred taxes by requiring all deferred taxes, along with any related valuation allowance, to be presented as noncurrent. This ASU is effective for the Company beginning in the first quarter of 2017, which the Company has applied retroactively. Upon the adoption of the guidance, the Company has reclassified $471,000 from current assets to non-current assets, and reduced both non-current and current liabilities by $2,389,000. In May 2014, the FASB issued new revenue recognition guidance under ASU 2014 - 09 that will supersede the existing revenue recognition guidance under U.S. GAAP. The new standard focuses on creating a single source of revenue guidance for revenue arising from contracts with customers for all industries. The objective of the new standard is for companies to recognize revenue when it transfers the promised goods or services to its customers at an amount that represents what the company expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date by one year (ASU 2015 - 14 ). This ASU will now be effective for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. Early adoption is permitted, but not before the original effective date of December 15, 2016. Since the issuance of the original standard, the FASB has issued several other subsequent updates including the following: 1 ) clarification of the implementation guidance on principal versus agent considerations (ASU 2016 - 08 ); 2 ) further guidance on identifying performance obligations in a contract as well as clarifications on the licensing implementation guidance (ASU 2016 - 10 ); 3 ) rescission of several SEC Staff Announcements that are codified in Topic 605 (ASU 2016 - 11 ); 4 ) additional guidance and practical expedients in response to identified implementation issues (ASU 2016 - 12 ); and 5 ) technical corrections and improvements (ASU 2016 - 20 ). The company is currently assessing the method under which it will adopt and the potential impact of adopting ASU 2014 - 09 on its financial position, results of operations, cash flow and/or disclosures.

Note 2 - Correction of Prior Period Financial Statements (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

	As of June 30, 2016
	As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,570	)	$	1,479		$	(2,091	)
Total SPAR Group, Inc. equity	$	18,330		$	1,479		$	19,809
Non-controlling interest	$	6,028		$	(1,479	)	$	4,549

	As of September 30, 2016									As of December 31, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d			As Revised

Accumulated other comprehensive loss	$	(3,364	)	$	1,373		$	(1,991	)	$	(3,995	)	$	1,588		$	(2,407	)
Total SPAR Group, Inc. equity	$	18,572		$	1,373		$	19,945		$	18,089		$	1,588		$	19,677
Non-controlling interest	$	6,574		$	(1,373	)	$	5,201		$	6,993		$	(1,588	)	$	5,405

	Three months ended June 30, 2016								Six months ended June 30, 2016
	As Reported			Adjuste d		As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(320	)	$	147	$	(173	)	$	(618	)	$	462	$	(156	)
Comprehensive loss attributable to SPAR Group, Inc.	$	70		$	147	$	217		$	(558	)	$	462	$	(96	)

	Three months ended September 30, 2016									Nine months ended September 30, 2016
	As Reported			Adjuste d			As Revised			As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(546	)	$	(105	)	$	(651	)	$	(1,164	)	$	357	$	(807	)
Comprehensive loss attributable to SPAR Group, Inc.	$	147		$	(105	)	$	42		$	(411	)	$	357	$	(54	)

	Twelve months ended December 31, 2016
	As Reported			Adjuste d		As Revised

Comprehensive income attributable to non-controlling interest	$	(1,583	)	$	572	$	(1,011	)
Comprehensive loss attributable to SPAR Group, Inc.	$	(953	)	$	572	$	(381	)

Note 4 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended June 30 ,				Six Months Ended June 30 ,
	20 17		20 16		20 17		20 16
Numerator:
Net income attributable to SPAR Group, Inc.	$	343	$	283	$	99	$	143

Denominator:
Weighted average shares used in basic net income per share calculation		20,647		20,569		20,648		20,566

Weighted average shares used in diluted net income per share calculation		21,312		21,328		21,336		21,331

Basic and diluted net income per common share	$	0.02	$	0.01	$	0.00	$	0.01

Note 5 - Credit Facilities (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Debt [Table Text Block]

	Interest Rate as of June 30, 2017		2017		2018
USA - Sterling National Bank		4.8%	$	8,100	$	–
Japan - Mizuho Bank		0.1%		13		6
Australia - Oxford Funding Pty Ltd.		6.4%		298		–
Brazil – Bradesco Bank		17.3%		266		–
Mexico - BBA Bancomer		11.5%		119		–
Total			$	8,796	$	6

Credit And Debt Facilities Unused Availability [Table Text Block]

	June 30, 2017		December 31, 2016
Unused Availability:
United States	$	662	$	500
Australia		624		688
Mexico		158		241
Brazil		454		–
Total Unused Availability	$	1,898	$	1,429

Note 6 - Related-party Transactions (Tables)

6 Months Ended

Jun. 30, 2017

	Three Months Ended June 30 ,				Six Months Ended June 30 ,
	201 7		201 6		201 7		201 6
Services provided by affiliates:
Field merchandiser and other expenses (SBS)	$	6,929	$	5,390	$	12,805	$	10,337
Field administration and other expenses (SAS)		1,055		989		2,129		2,127
Office and vehicle rental expenses (MPT)		16		12		32		24
Vehicle rental expenses (MCPT)		296		194		600		373
Office and vehicle rental expenses (MHT)		42		26		83		51
Consulting and administrative services (CON)		57		83		153		167
Legal Services (KMSA)		23		–		46		–
Warehousing rental (JFMD)		12		–		23		–

Total services provided by affiliates	$	8,430	$	6,694	$	15,871	$	13,079

	June 30 ,		December 31,
	201 7		201 6
Loans from local investors:(1)
Australia	$	246	$	231
Mexico		1,001		1,001
Brazil		139		139
China		303		761
NMS LLC		–		348
Accrued Expenses due to affiliates:
SBS/SAS		895		869
Total due to affiliates	$	2,584	$	3,349

Note 10 - Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
	201 7			201 6			2017			2016
Revenue:
United States	$	13,685		$	11,184		$	25,006		$	20,936
International		29,037			18,548			57,602			35,407
Total revenue	$	42,722		$	29,732		$	82,608		$	56,343

Operating income:
United States	$	292		$	362		$	357		$	64
International		679			418			1,098			883
Total operating income	$	971		$	780		$	1,455		$	947

Interest expense:
United States	$	52		$	27		$	102		$	52
International		2			4			(95	)		8
Total interest expense	$	54		$	31		$	7		$	60

Other (income), net:

United States	$	–		$	–		$	–		$	–
International		(135	)		(80	)		(197	)		(105	)
Total other (income), net	$	(135	)	$	(80	)	$	(197	)	$	(105	)

Income before income tax expense:
United States	$	240		$	335		$	255		$	12
International		812			494			1,390			980
Total income before income tax expense	$	1,052		$	829		$	1,645		$	992


Income tax expense:
United States	$	31		$	123		$	(85	)	$	(88	)
International		247			103			782			319
Total income tax expense	$	278		$	226		$	697		$	231

Net income:
United States	$	209		$	212		$	340		$	100
International		565			391			608			661
Total net income	$	774		$	603		$	948		$	761


Depreciation and amortization:
United States	$	340		$	336		$	679		$	679
International		194			148			360			293
Total depreciation and amortization	$	534		$	484		$	1,039		$	972

Capital expenditures:
United States	$	245		$	262		$	511		$	506
International		87			99			181			226
Total capital expenditures	$	332		$	361		$	692		$	732

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	June 30,		December 31,
	201 7		201 6
Assets:
United States	$	22,416	$	22,189
International		33,246		32,662
Total assets	$	55,662	$	54,851

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Three Months Ended June 30 ,										Six Months Ended June 30 ,
	20 17					2016					20 17					2016
International revenue:			% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue					% of consolidated net revenue
Brazil	$	8,157		19.1	%	$	–		–	%	$	18,100		21.9	%	$	–		–	%
South Africa		6,916		16.2			4,721		15.9			12,943		15.7			8,935		15.9
Mexico		5,374		12.6			5,106		17.2			10,062		12.2			10,105		17.9
China		2,120		5.0			2,882		9.7			4,528		5.5			5,617		10.0
India		1,838		4.3			1,376		4.6			3,450		4.2			2,680		4.8
Japan		1,835		4.3			1,765		5.9			3,544		4.3			3,358		6.0
Canada		1,742		4.1			1,871		6.3			3,045		3.7			3,129		5.6
Australia		996		2.3			755		2.5			1,806		2.2			1,414		2.5
Turkey		59		0.1			72		0.2			124		0.2			169		0.3
Total international revenue	$	29,037		68.0	%	$	18,548		62.3	%	$	57,602		69.9	%	$	35,407		63.0	%

Reconciliation Of Long Lived Assets From Segments To Consolidated [Table Text Block]

	June 30,		December 31,
	20 17		20 16
Long lived assets:
United States	$	8,494	$	8,594
International		4,567		3,965
Total long lived assets	$	13,061	$	12,559

Note 11 - Purchase of Interests in Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash	$	484
Net Working Capital, net of cash		(155	)
Fixed Assets		22
Intangible Assets		336
Goodwill		133
Assumed Liabilities		(419	)
Net Fair Value of Assets Acquired	$	401

Business Acquisition, Pro Forma Information [Table Text Block]

		Revenue				Net Loss
Consolidated supplemental pro forma for the six month period ended June 30, 2016		$	71,862			$	(10	)

Note 13 - Capital Lease Obligations (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Capital Leased Assets [Table Text Block]

Start Date:		Original Cost				Accumulated Amortization				Net Book Value at June 30, 2017
January 2017		$	76			$	13			$	63

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

Year Ending December 31,	Amount

2017	$	14
2018		28
2019		28
Total		70
Less amount representing interest		7
Present value of net minimum lease payments included in accrued expenses and other current liabilities, and long term debt	$	63

Note 2 - Correction of Prior Period Financial Statements (Details Textual) $ in Millions	6 Months Ended
	Jun. 30, 2017 USD ($)
Reclassification Between Comprehensive Loss Attributable to SPAR Group, Inc. and Comprehensive Loss Attributable to Non-controlling Interest [Member] \| Year Ended December 31, 2016 [Member]
Prior Period Reclassification Adjustment	$ 1.6

Note 2 - Correction of Prior Period Financial Statements - Adjustments to Prior Period Financials (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Jun. 30, 2017

Sep. 30, 2016

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Sep. 30, 2016

Dec. 31, 2016

$ (2,021)

$ (1,991)

$ (2,091)

$ (2,021)

$ (2,091)

$ (1,991)

$ (2,407)

^[1]

20,332

19,945

19,809

20,332

19,809

19,945

19,677

^[1]

Comprehensive income attributable to non-controlling interest

4,509

5,201

4,549

4,509

4,549

5,201

5,405

^[1]

(689)

(651)

(173)

^[2]

(1,205)

(156)

^[2]

(807)

(1,011)

Comprehensive loss attributable to SPAR Group, Inc.

$ 663

217

^[2]

$ 485

(96)

^[2]

(54)

(381)

Scenario, Previously Reported [Member]

(3,364)

(3,570)

(3,364)

(3,995)

18,572

18,330

18,572

18,089

Comprehensive income attributable to non-controlling interest

6,574

6,028

6,574

6,993

(546)

(320)

(618)

(1,164)

(1,583)

Comprehensive loss attributable to SPAR Group, Inc.

147

(558)

(411)

(953)

Restatement Adjustment [Member]

1,373

1,479

1,373

1,588

1,373

1,479

1,373

1,588

Comprehensive income attributable to non-controlling interest

(1,373)

(1,479)

(1,373)

(1,588)

(105)

147

462

357

572

Comprehensive loss attributable to SPAR Group, Inc.

$ (105)

$ 147

$ 462

$ 357

$ 572

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.

Note 3 - Business and Organization (Details Textual)	6 Months Ended
Note 3 - Business and Organization (Details Textual)	Jun. 30, 2017
Number of Countries in which Entity Operates	10
Number of Reportable Segments	2

Note 4 - Earnings Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Weighted average shares used in basic net income per share calculation (in dollars per share)

$ 343

$ 283

^[1]

$ 99

$ 143

^[1]

$ 20,647

$ 20,569

$ 20,648

$ 20,566

Weighted average shares used in diluted net income per share calculation (in dollars per share)

21,312

21,328

21,336

21,331

Basic and diluted net income per common share (in dollars per share)

$ 0.02

$ 0.01

^[1]

$ 0

$ 0.01

^[1]

[1]	See Note 2 Correction of Prior Period Financial Statements.

Note 5 - Credit Facilities (Details Textual) $ in Millions, $ in Millions							6 Months Ended
	Dec. 26, 2016 USD ($)	Dec. 26, 2016 BRL (R$)	Dec. 22, 2016 USD ($)	Nov. 29, 2016 USD ($)	Mar. 07, 2011 USD ($)	Mar. 07, 2011 JPY (¥)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 JPY (¥)	Jun. 30, 2017 MXN ($)	Jun. 30, 2017 AUD ($)	Jun. 30, 2017 BRL (R$)	Mar. 03, 2017 USD ($)	Dec. 26, 2016 BRL (R$)	Nov. 29, 2016 BRL (R$)	Mar. 07, 2011 JPY (¥)
Mizuho Bank [Member]
Line of Credit Facility, Interest Rate at Period End							0.10%	0.10%	0.10%	0.10%	0.10%
Debt Instrument, Face Amount					$ 178,000										¥ 20,000,000
Debt Instrument, Periodic Payment					$ 2,100	¥ 238,000
Debt Instrument, Interest Rate, Stated Percentage					0.10%										0.10%
Loans Payable							$ 19,000	¥ 2,200,000
Itau Bank [Member]
Debt Instrument, Interest Rate, Monthly				2.08%
Long-term Line of Credit							$ 0
Line of Credit Facility, Maximum Borrowing Capacity				$ 454,000										R$ 1,500,000
Bradeso Bank [Member]
Line of Credit Facility, Interest Rate at Period End							17.30%	17.30%	17.30%	17.30%	17.30%
Debt Instrument, Face Amount	$ 605,000												R$ 2,000,000
Debt Instrument, Periodic Payment	$ 56,000	R$ 184,000
Debt Instrument, Interest Rate, Stated Percentage	17.30%												17.30%
Short-term Debt							$ 266,000				R$ 878,000
Sterling Credit Facility [Member]
Percent Of Eligible Domestic Accounts Receivable Less Certain Reserves To Calculate Borrowing Availability							85.00%	85.00%	85.00%	85.00%	85.00%
Line of Credit Facility, Covenant Terms, Minimum Tangible Net Worth							$ 7,400,000
Line of Credit Facility, Covenant Terms, Minimum Consolidated Tangible Net Worth							$ 10,000,000
Line of Credit Facility, Covenant Terms, Percent of Increase in Net Profit							50.00%
Line of Credit Facility, Covenant Terms, Maximum Indebtedness to Tangible Net Worth Ratio							3	3	3	3	3
Line of Credit Facility, Covenant Terms, Minimum Fixed Charge Coverage Ratio							1.5	1.5	1.5	1.5	1.5
Line of Credit Facility, Covenant Terms, Maximum Capital Expenditures							$ 2,000,000
Line of Credit Facility, Maximum Borrowing Capacity			$ 9,000,000				$ 9,000,000					$ 9,000,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage							0.125%
Sterling Credit Facility [Member] \| Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate			0.50%				0.50%
Oxford Funding Pty Ltd [Member]
Percent Of Eligible Domestic Accounts Receivable Less Certain Reserves To Calculate Borrowing Availability							80.00%	80.00%	80.00%	80.00%	80.00%
Long-term Line of Credit							$ 298,000
Line of Credit Facility, Maximum Borrowing Capacity							$ 922,000			$ 1.2
Revolving Credit Facility [Member] \| BBVA Bancomer Bank [Member]
Line of Credit Facility, Interest Rate at Period End							11.50%	11.50%	11.50%	11.50%	11.50%
Long-term Line of Credit							$ 119,000
Line of Credit Facility, Maximum Borrowing Capacity							$ 277,000		$ 5
Revolving Credit Facility [Member] \| Interbank Interest Rate [Member] \| BBVA Bancomer Bank [Member]
Debt Instrument, Basis Spread on Variable Rate							4.00%

Note 5 - Credit Facilities - Summary of Credit and Other Debt Facilities (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2017	$ 8,796
2018	$ 6
Sterling Credit Facility [Member]
Interest Rate	4.80%
2017	$ 8,100
2018
Mizuho Bank [Member]
Interest Rate	0.10%
2017	$ 13
2018	$ 6
Oxford Funding Pty Ltd [Member]
Interest Rate	6.40%
2017	$ 298
2018
Bradeso Bank [Member]
Interest Rate	17.30%
2017	$ 266
2018
BBVA Bancormer [Member]
Interest Rate	11.50%
2017	$ 119
2018

Note 5 - Credit Facilities - Unused Availability (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Unused Availability	$ 1,898	$ 1,429
UNITED STATES
Unused Availability	662	500
AUSTRALIA
Unused Availability	624	688
MEXICO
Unused Availability	158	241
BRAZIL
Unused Availability	$ 454

Note 6 - Related-party Transactions (Details Textual)		3 Months Ended		5 Months Ended	6 Months Ended		13 Months Ended
Note 6 - Related-party Transactions (Details Textual)	Sep. 08, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	May 31, 2016	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017
Related Party Transaction, Expenses from Transactions with Related Party		$ 8,430,000	$ 6,694,000		$ 15,871,000	$ 13,079,000
SGRP Holdings [Member]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Merhold Property Trust [Member]
Number Of Vehicles Subleased					2
Number Of Vehicles Leased					126
Lessee, Operating Lease, Term of Contract					4 years
SGRP Holdings [Member] \| SPAR BSMT Joint Venture [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	51.00%
JKC [Member] \| SPAR BSMT Joint Venture [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	39.00%
EILLC [Member] \| SPAR BSMT Joint Venture [Member]
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	10.00%
SBS [Member]
Number of Merchandising Specialists					5,230
Number of National, Regional, and District Administrators					56	50
Related Party Transaction, Reimbursement of Legal Expenses from Transaction with Related Party		$ 93,000	$ 89,000		$ 179,000	$ 443,000
SBS [Member] \| Domestic Merchandising Specialists Field Force [Member]
Payments for Related Party Services					$ 12,800,000	$ 10,300,000
Percent Of Service Provided By Related Party					81.00%	80.00%
SBS [Member] \| Domestic Field Management [Member]
Payments for Related Party Services					$ 2,100,000	$ 2,100,000
Percent Of Service Provided By Related Party					90.00%	92.00%
Related Party Transaction, Expenses from Transactions with Related Party					$ 14,900,000	$ 12,500,000
SBS [Member] \| Cost Plus Fees [Member]
Related Party Transaction, Rate				4.00%	2.96%		2.00%
NRS [Member]
Majority Interest Ownership Percentage By Parent		51.00%			51.00%		51.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		49.00%			49.00%		49.00%
C M R Meridien [Member]
Majority Interest Ownership Percentage By Parent		51.00%			51.00%		51.00%
Mr. Brian Mason Mr. Garry Bristow And Mr. Adrian Wingfield [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		49.00%			49.00%		49.00%
Mr. Mason [Member] \| Merhold Property Trust [Member]
Related Party Ownership Percentage					50.00%
Mr. Mason [Member] \| Merhold Holding Trust [Member]
Related Party Ownership Percentage					46.70%
Mr. Mason and Mr. Bristow [Member] \| Merhold Cape Property Trust [Member]
Related Party Ownership Percentage					50.00%
Mr. Bristow [Member] \| Merhold Holding Trust [Member]
Related Party Ownership Percentage					20.00%
Mr. Wingfield [Member] \| Merhold Holding Trust [Member]
Related Party Ownership Percentage					33.30%
NDS [Member]
Majority Interest Ownership Percentage By Parent		51.00%			51.00%		51.00%
Mr And Ms Yilmaz [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		49.00%			49.00%		49.00%
Mr. Juan F. Medina Domenzain [Member] \| CON [Member]
Related Party Ownership Percentage		90.00%	90.00%		90.00%	90.00%
SPAR InfoTech, Inc. [Member] \| Assistance Provided in Connection to Brazilian Acquisition [Member]
Related Party Transaction, Amounts of Transaction	$ 49,000

Note 6 - Related-party Transactions - Transactions Between the Company and Affiliates (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Dec. 31, 2016

$ 8,430

$ 6,694

$ 15,871

$ 13,079

Local Investors in Australia [Member] | Loans Due to Affiliates [Member]

^[1]

2,584

$ 3,349

^[2]

Local Investors in Mexico [Member] | Loans Due to Affiliates [Member]

^[1]

246

231

Local Investors in Brazil [Member] | Loans Due to Affiliates [Member]

^[1]

1,001

Local Investors in China [Member] | Loans Due to Affiliates [Member]

^[1]

139

NMS LLC [Member] | Loans Due to Affiliates [Member]

^[1]

303

761

SBS [Member] | Accrued Expenses Due to Affiliates [Member]

^[1]

348

Field Merchandiser Services SBS [Member]

^[1]

895

$ 869

Field Administration Expenses SAS [Member]

6,929

5,390

12,805

10,337

Office And Vehicle Rental MPT [Member]

1,055

989

2,129

2,127

Vehicle Rental MCPT [Member]

Office And Vehicle Rental MHT [Member]

296

194

600

373

Consulting and Administrative Services (CON) [Member]

Legal Services (KMSA) [Member]

153

167

Warehouse Rental (JFMD) [Member]

Preferred Stock, Par or Stated Value Per Share

$ 12

$ 23

[1]	Represent loans from the local investors into the Company's subsidiaries (representing their proportionate share of working capital loans). The loans have no payment terms and are due on demand and as such have been classified as current liabilities in the Company's consolidated financial statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.

Note 7 - Preferred Stock (Details Textual) - $ / shares

6 Months Ended

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

^[1]

Dec. 31, 2011

Dec. 31, 2010

$ 0.01

Preferred Stock, Shares Authorized

2,445,598

3,000,000

Preferred Stock, Shares Outstanding

Preferred Stock, Shares Issued

Series A Preferred Stock [Member]

Preferred Stock, Shares Authorized

3,000,000

Preferred Stock, Dividend Rate, Percentage

10.00%

Preferred Stock, Conversion Basis

Common Stock For Conversion

554,402

Preferred Stock Number Of Authorized Shares Remaining

2,445,598

Preferred Stock, Shares Outstanding

Preferred Stock, Shares Issued

[1]	See Note 2 Correction of Prior Period Financial Statements.

Note 8 - Stock-based Compensation and Other Plans (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restricted Stock [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 35,000		$ 35,000
Allocated Share-based Compensation Expense	12,000	$ 18,000	21,000	$ 32,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 5,000	7,000	$ 7,900	11,400
The 2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,378,000		1,378,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 193,000		$ 193,000
Allocated Share-based Compensation Expense	63,000	70,000	109,000	151,000
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 12,000	$ 27,000	$ 41,000	$ 57,000
The 2008 Plan [Member] \| Officers and Certain Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	70,000
The 2008 Plan [Member] \| Outside Directors of SPAR Group, Inc. [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	40,000

Note 9 - Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
SBS [Member]
Related Party Transaction, Reimbursement of Legal Expenses from Transaction with Related Party	$ 93,000	$ 89,000	$ 179,000	$ 443,000

Note 10 - Segment Information (Details Textual)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

USD ($)

Jun. 30, 2016

USD ($)

^[1]

Jun. 30, 2017

USD ($)

Jun. 30, 2016

USD ($)

Number of Reportable Segments

Intersegment Eliminations [Member]

$ 42,722

$ 29,732

$ 82,608

$ 56,343

^[1]

$ 0

[1]	See Note 2 Correction of Prior Period Financial Statements.

Note 10 - Segment Information - Segment Reporting Information (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

$ 42,722

$ 29,732

^[1]

$ 82,608

$ 56,343

^[1]

Operating income (loss)

971

780

^[1]

1,455

947

^[1]

^[1]

Other income, net

(135)

(80)

^[1]

(197)

(105)

^[1]

1,052

829

^[1]

1,645

992

^[1]

278

226

^[1]

697

231

^[1]

Net income attributable to non-controlling interest

774

603

^[1]

948

^[2]

761

^[1]

(431)

(320)

^[1]

(849)

(618)

^[1]

Depreciation and amortization

534

484

^[1]

1,039

972

^[1]

343

283

^[1]

143

^[1]

Capital expenditures

332

361

692

732

US Segment [Member]

13,685

11,184

25,006

20,936

Operating income (loss)

292

362

357

102

Other income, net

240

335

255

123

(85)

(88)

Net income attributable to non-controlling interest

209

212

340

100

340

336

679

International Segment [Member]

245

262

511

506

29,037

18,548

57,602

35,407

Operating income (loss)

679

418

1,098

883

(95)

Other income, net

(135)

(80)

(197)

(105)

812

494

1,390

980

247

103

782

319

Net income attributable to non-controlling interest

565

391

608

661

194

148

360

293

International Segment [Member]

$ 87

$ 99

$ 181

$ 226

[1]	See Note 2 Correction of Prior Period Financial Statements.
[2]	See Note 2 Correction of Prior Period Financial Statements.

Note 10 - Segment Information - Assets (Details) - USD ($)
$ in Thousands

Jun. 30, 2017

Dec. 31, 2016

Assets

$ 55,662

$ 54,851

^[1]

US Segment [Member]

Assets

22,416

22,189

Assets

$ 33,246

$ 32,662

[1]	See Note 2 Correction of Prior Period Financial Statements.

Note 10 - Segment Information - Geographic Data (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

$ 42,722

$ 29,732

^[1]

$ 82,608

$ 56,343

^[1]

BRAZIL

19.10%

21.90%

$ 8,157

$ 18,100

SOUTH AFRICA

16.20%

15.90%

15.70%

15.90%

$ 6,916

$ 4,721

$ 12,943

$ 8,935

MEXICO

12.60%

17.20%

12.20%

17.90%

$ 5,374

$ 5,106

$ 10,062

$ 10,105

CHINA

5.00%

9.70%

5.50%

10.00%

$ 2,120

$ 2,882

$ 4,528

$ 5,617

INDIA

4.30%

4.60%

4.20%

4.80%

$ 1,838

$ 1,376

$ 3,450

$ 2,680

JAPAN

4.30%

5.90%

4.30%

6.00%

$ 1,835

$ 1,765

$ 3,544

$ 3,358

CANADA

4.10%

6.30%

3.70%

5.60%

$ 1,742

$ 1,871

$ 3,045

$ 3,129

AUSTRALIA

2.30%

2.50%

2.20%

2.50%

$ 996

$ 755

$ 1,806

$ 1,414

TURKEY

0.10%

0.20%

0.30%

$ 59

$ 72

$ 124

$ 169

International [Member]

68.00%

62.30%

69.90%

63.00%