What Liquidity Services, Inc. told the SEC could break it.

Liquidity Services' CAG and Machinio teams operate in China; a China-Taiwan military conflict could disrupt those operations and, more broadly, cut off Taiwan semiconductors and Chinese ports/exporters — disrupting the industries whose surplus assets feed its marketplaces.

“in the case of a military conflict between China and Taiwan, global manufacturers would likely lose access to advanced semiconductor chips and other products that are sourced from Taiwan. Such a conflict would also likely limit access to key Chinese ports and exporters due to both military actions and potential international sanctions, which would create significant disruption for a variety of industries that we serve that rely on supply chain in China.”

Liquidity Services' marketplace volume depends on the supply of surplus/returned/overstocked assets from sellers; global supply-chain disruptions and international tensions can limit the volume of assets made available for sale in any period.

“Global supply chains may experience heightened disruptions due to international tensions and other factors, which could limit the volume of assets made available for sale in any period.”

Tariffs and trade barriers affect both Liquidity Services' buyers and sellers and the availability of assets to list on its marketplaces; some industrial categories saw tempered activity from tariff-related supply-chain uncertainty, and retaliatory trade actions could harm its global business.

“Increasing costs, such as increasing tariffs and trade wars between nations, may make international trade less profitable and adversely affect our global business. Tariffs, economic sanctions and other changes in U.S. trade policy have in the past and could in the future trigger retaliatory actions by affected countries.”