3 unchanged sentences
The impact of COVID-19 on global commercial activity and the corresponding volatility in financial markets is evolving.
−Removed: Initially, the global impact of the outbreak led to many federal, state and local governments instituting quarantines and restrictions on travel.
+Added: Initially, the global impact of the outbreak led to many federal, state and local 
+Added: governments instituting quarantines and restrictions on travel.
More recently, there have been disruptions in global supply chains that have adversely impacted a number of industries, such as transportation, hospitality and entertainment.
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Our Cash Flows and Net Income Are Dependent Upon Payments from Our Investments in Receivables
−Removed: The collectability of our investments in receivables is a function of many factors including the criteria used to select who is issued credit, the pricing of the credit products, the lengths of the relationships, general economic conditions, the rate at which consumers repay their accounts or become delinquent, and the rate at which consumers borrow funds.
+Added: The collectability of our investments in receivables is a function of many factors including the criteria used to select who is issued credit, the pricing of the credit products, the lengths of the relationships, general economic conditions, the rate at which consumers repay their accounts or become delinquent, and the rate at which consumers borrow funds.
Deterioration in these factors would adversely impact our business.
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Due to our lack of significant experience with Internet consumers, we may not be able to evaluate their creditworthiness.
−Removed: We do not have significant experience with the credit performance of receivables owed by consumers acquired over the Internet and other digital channels.
+Added: Receivables owned by consumers and acquired over the internet present unique risk characteristics and exhibit higher rates of fraud.
As a result, we may not be able to successfully evaluate the creditworthiness of these potential consumers.
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We Are Substantially Dependent Upon Borrowed Funds to Fund Receivables We Purchase
−Removed: We finance receivables that we acquire in large part through financing facilities.
+Added: We finance receivables that we acquire in large part through financing facilities.
All of our financing facilities are of finite duration (and ultimately will need to be extended or replaced) and contain financial covenants and other conditions that must be fulfilled in order for funding to be available.
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If additional financing facilities are not available in the future on terms we consider acceptable, we will not be able to purchase additional receivables and those receivables may contract in size.
−Removed: Capital markets may experience periods of disruption and instability, which could limit our ability to grow our receivables.
+Added: Capital markets may experience periods of disruption and instability, potentially limiting our ability to grow our receivables.
From time-to-time, capital markets may experience periods of disruption and instability.
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Moreover, the re-appearance of market conditions similar to those experienced from 2008 through 2009 for any substantial length of time or worsened market conditions could make it difficult for us to borrow money or to extend the maturity of or refinance any indebtedness we may have under similar terms and any failure to do so could have a material adverse effect on our business.
−Removed: Unfavorable economic and political conditions, including future recessions, political instability, geopolitical turmoil and foreign hostilities, and disease, pandemics and other serious health events, also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us.
+Added: Unfavorable economic and political conditions, including future recessions, political instability, geopolitical turmoil and foreign hostilities, energy disruptions, inflation and disease, pandemics and other serious health events, also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us.
COVID-19 continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets.
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The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown.
−Removed: The rapid development and fluidity of this situation preclude any accurate prediction as to the ultimate adverse impact of the coronavirus.
+Added: The rapid development and fluidity of this situation preclude any accurate prediction as to the ultimate adverse impact of the coronavirus response.
Nevertheless, the pandemic presents material uncertainty and risk with respect to our performance and financial results.
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The recent growth of our investments in private label credit and general purpose credit card receivables may not be indicative of our ability to grow such receivables in the future.
−Removed: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $2,049.5 million at September 30, 2022 from $1,441.5 million at September 30, 2021.
+Added: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $2,055.0 million at March 31, 2023, from $1,677.6 million at March 31, 2022.
The amount of such receivables has fluctuated significantly over the course of our operating history.
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Reviews and enforcement actions by regulatory authorities under banking and consumer protection laws and regulations may result in changes to our business practices, may make collection of receivables more difficult or may expose us to the risk of fines, restitution and litigation.
−Removed: Our operations and the operations of the issuing banks through which the credit products we service are originated are subject to the jurisdiction of federal, state and local government authorities, including the SEC, the FDIC, the Office of the Comptroller of the Currency, the FTC, U.K.
+Added: Our operations and the operations of the issuing banks through which the credit products we service are originated are subject to the jurisdiction of federal, state and local government authorities, including the SEC, the FDIC, the Office of the Comptroller of the Currency, the FTC, U.K.
banking and licensing authorities, state regulators having jurisdiction over financial institutions and debt origination and collection and state attorneys general.
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Furthermore, negative publicity relating to any specific inquiry or investigation could hurt our ability to conduct business with various industry participants or to generate new receivables and could negatively affect our stock price, which would adversely affect our ability to raise additional capital and would raise our costs of doing business.
−Removed: If any deficiencies or violations of law or regulations are identified by us or asserted by any regulator or require us or issuing banks to change any practices, the correction of such deficiencies or violations, or the making of such changes, could have a material adverse effect on our financial condition, results of operations or business.
+Added: If any deficiencies or violations of law or regulations are identified by us or asserted by any regulator or require us or issuing banks to change any practices, the correction of such deficiencies or violations, or the making of such changes, could have a material adverse effect on our financial condition, results of operations or business.
In addition, whether or not these practices are modified when a regulatory or enforcement authority requests or requires, there is a risk that we or other industry participants may be named as defendants in litigation involving alleged violations of federal and state laws and regulations, including consumer protection laws.
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However, to the extent that the holding in Madden is broadened to cover circumstances applicable to our business, or if other litigation on related theories were brought against us or others and were successful, or we otherwise were found to be the “true lender,”
−Removed: we could become subject to state usury limits and state licensing laws, in addition to the state consumer protection laws to which we are already subject, in a greater number of states, loans in such states could be deemed void and unenforceable, and we could be subject to substantial penalties in connection with such loans.
+Added: we could become subject to state usury limits and state licensing laws, in addition to the state consumer protection laws to which we are already subject, in a greater number of states, loans in such states could be deemed void and unenforceable, and we could be subject to substantial penalties in connection with such loans.
In response to the uncertainty Madden created as to the validity of interest rates of bank-originated loans sold in the secondary market, in May 2020 and June 2020, the OCC and the FDIC, respectively, issued final rules that reaffirmed the “valid when made”
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The bank that we support in connection with its extension of loans and one of our subsidiaries currently are involved in a dispute with the Maryland Commissioner of Financial Regulation with respect to the extent to which federal preemption preempts state regulation of bank activities related to the lending process, such as lender licensing requirements and aspects of those licensing requirements that purport to limit the rate of interest that can be charged.
−Removed: The Commissioner issued a "charge letter" making various assertions regarding the applicability of the licensing requirements and interest rate limitations, with the case to be heard in the Maryland Office of Administrative Hearings. 
−Removed: The bank and our subsidiary removed the resulting administrative proceeding to federal court. 
−Removed: The federal court remanded the case back to the Maryland Office of Administrative Hearings, where the case is currently pending. 
+Added: The Commissioner issued a "charge letter" making various assertions regarding the applicability of the licensing requirements and interest rate limitations, with the case to be heard in the Maryland Office of Administrative Hearings where the case is currently pending.
The ultimate remedy sought by the Commissioner is the invalidation of loans to Maryland residents.
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In turn, it would materially adversely impact our business.
−Removed: The FDIC has issued examination guidance affecting the bank that utilizes our technology platform to market general purpose credit cards and certain other credit products and these or subsequent new rules and regulations could have a significant impact on such credit products.
+Added: The FDIC has issued examination guidance affecting the bank that utilizes our technology platform to market general purpose credit cards and certain other credit products and these or subsequent new rules and regulations could have a significant impact on such credit products.
The bank that utilizes our technology platform and other services to market general purpose credit cards and certain other credit products is supervised and examined by both the state that charters it and the FDIC.
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We will continue to monitor this guidance as it potentially becomes final.
−Removed: Changes to consumer protection laws or changes in their interpretation may impede collection efforts or otherwise adversely impact our business practices. 
+Added: Changes to consumer protection laws or changes in their interpretation may impede collection efforts or otherwise adversely impact our business practices.
Federal and state consumer protection laws regulate the creation and enforcement of consumer credit card receivables and other loans.
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Material regulatory developments may adversely impact our business and results from operations.
−Removed: Our Automobile Lending Activities Involve Risks in Addition to Others Described Herein
+Added: Our Automobile Lending Activities Involve Risks in Addition to Others Described Herein
Automobile lending exposes us not only to most of the risks described above but also to additional risks, including the regulatory scheme that governs installment loans and those attendant to relying upon automobiles and their repossession and liquidation value as collateral.
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Funding for automobile lending may become difficult to obtain and expensive.
−Removed: In the event we are unable to renew or replace any Auto Finance segment facilities that bear refunding or refinancing risks when they become due, our Auto Finance segment could experience significant constraints and diminution in reported asset values as lenders retain significant cash flows within underlying structured financings or otherwise under security arrangements for repayment of their loans.
+Added: In the event we are unable to renew or replace any Auto Finance segment credit facilities that bear refunding or refinancing risks when they become due, our Auto Finance segment could experience significant constraints and diminution in reported asset values as lenders retain significant cash flows within underlying structured financings or otherwise under security arrangements for repayment of their loans.
If we cannot renew or replace future facilities or otherwise are unduly constrained from a liquidity perspective, we may choose to sell part or all of our auto loan portfolios, possibly at less than favorable prices.
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As a result, the impact of any acquisition or sale on our future performance may not be as favorable as expected and actually may be adverse.
−Removed: Portfolio purchases may cause fluctuations in our reported CaaS segment’s managed receivables data, which may reduce the usefulness of this data in evaluating our business.
+Added: Portfolio purchases may cause fluctuations in our reported CaaS segment’s managed receivables data, possibly reducing the usefulness of this data in evaluating our business.
Our reported CaaS segment managed receivables data may fluctuate substantially from quarter to quarter as a result of recent and future credit card portfolio acquisitions.
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Furthermore, to the extent that supply chain disruptions result in deferred purchases, there will be a corresponding decrease in our receivable purchases.
−Removed: The extent to which COVID-19 will impact our business, results of operations and financial condition is dependent on many factors, which are highly uncertain, including, but not limited to, the duration and severity of the outbreak, the actions to contain the virus or mitigate its impact, and how quickly and to what extent normal economic and operating conditions will resume.
−Removed: If we experience a prolonged decline in purchases of receivables or increase in delinquencies, our results of operations and financial condition could be materially adversely affected.
We routinely engage in discussions with customers, some of whom have indicated that they have experienced economic hardship due to the COVID-19 pandemic and have requested payment deferral or forbearance or other modifications of their accounts.
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Additionally, the COVID-19 pandemic could adversely affect our liquidity position and could limit our ability to grow our business or fully execute on our business strategy.
−Removed: Furthermore, the COVID-19 pandemic could negatively impact our access to capital.
+Added: Furthermore, the COVID-19 pandemic and resulting economic conditions could negatively impact our access to capital.
The COVID-19 pandemic also resulted in us modifying certain business practices, such as transitioning to a distributed work model.
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an increased volume of borrower and regulatory requests for information and support, or new regulatory requirements, which could require additional resources and costs to address.
−Removed: Even after the COVID-19 pandemic has subsided, our business may continue to be unfavorably impacted by the economic turmoil caused by the pandemic.
+Added: Even as the COVID-19 pandemic subsides, our business may continue to be unfavorably impacted by the economic turmoil caused by the pandemic.
There are no recent comparable events that could serve to indicate the ultimate effect the COVID-19 pandemic may have and, as such, we do not at this time know what the extent of the impact of the COVID-19 pandemic will be on our business.
−Removed: To the extent the COVID-19 pandemic adversely affects our business and financial results, it also may heighten other risks described in this Part II, Item 1A.
+Added: To the extent the COVID-19 pandemic adversely affects our business and financial results, it also may heighten other risks described in this Part I, Item 1A.
For additional discussion of the impact of COVID-19 on our business, see additional risk factors included in this Part II, Item 1A, as well as Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
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In 2022, inflation reached a four-decade high.
−Removed: The Federal Reserve has raised, and has indicated that it expects to continue to raise, interest rates to combat inflation.
+Added: The Federal Reserve has raised, and has indicated that it expects to continue to raise, interest rates to combat inflation.
Increased interest rates may adversely impact the spending levels of consumers and their ability and willingness to borrow money.
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Adverse outcomes or settlements of these matters could require us to pay damages, make restitution, change our business practices or take other actions at a level, or in a manner, that would adversely impact our business.
+Added: The failure of financial institutions or transactional counterparties could adversely affect our current and projected business operations and our financial condition and results of operations.
+Added: On March 10, 2023, Silicon Valley Bank, or SVB, was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver.
+Added: Similarly, on March 12, 2023, Signature Bank and Silvergate Capital Corp.
+Added: were each swept into receivership.
+Added: A statement by the Department of the Treasury, the Federal Reserve and the FDIC stated that all depositors of SVB would have access to all of their money after only one business day of closure, including funds held in uninsured deposit accounts.
+Added: On May 1, 2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. 
+Added: In connection therewith, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association to assume all of the deposits and substantially all of the other assets of First Republic Bank. Although we did not have any funds deposited with SVB, Signature Bank or First Republic Bank, we regularly maintain cash balances with other financial institutions in excess of the FDIC insurance limit.
+Added: A failure of a depository institution to return deposits could impact access to our invested cash or cash equivalents and could adversely impact our operating liquidity and financial performance.
Because we outsource account-processing functions that are integral to our business, any disruption or termination of these outsourcing relationships could harm our business.
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Any such failure to adapt to changes could have a material adverse effect on our business, prospects, results of operations, financial condition or cash flows.
−Removed: If we are unable to protect our information systems against service interruption, our operations could be disrupted and our reputation may be damaged. 
+Added: If we are unable to protect our information systems against service interruption, our operations could be disrupted and our reputation may be damaged.
We rely heavily on networks and information systems and other technology, that are largely hosted by third parties to support our business processes and activities, including processes integral to the origination and collection of loans and other financial products, and information systems to process financial information and results of operations for internal reporting purposes and to comply with regulatory, financial reporting, legal and tax requirements.
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Also, a party that is able to circumvent our security measures could misappropriate proprietary information, cause interruption in our operations, damage our computers or those of our users, or otherwise damage our reputation and business.
−Removed: Regulation in the areas of privacy and data security could increase our costs.
+Added: Regulation in the areas of privacy and data security could increase our costs.
We are subject to various regulations related to privacy and data security/breach, and we could be negatively impacted by these regulations.
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The CCPA provides for civil penalties for violations and a private right of action for data breaches.
−Removed: In addition, in November 2020, California voters approved the California Privacy Rights Act of 2020 (the “CPRA”) ballot initiative, which will become effective on January 1, 2023.
+Added: In addition, in November 2020, California voters approved the California Privacy Rights Act of 2020 (the “CPRA”) ballot initiative, which became effective on January 1, 2023.
The CPRA established the California Privacy Protection Agency to implement and enforce the CCPA and CPRA.
We anticipate that the CPRA and certain regulations promulgated by the California Privacy Protection Agency will apply to our business and we will work to ensure compliance with such laws and regulations by their effective dates.
−Removed: Compliance with these laws regarding the protection of consumer and employee data could result in higher compliance and technology costs for us, as well as potentially significant fines and penalties for non-compliance.
+Added: Compliance with these laws regarding the protection of consumer and employee data could result in higher compliance and technology costs for us, as well as potentially significant fines and penalties for noncompliance.
Further, there are various other statutes and regulations relevant to the direct email marketing, debt collection and text-messaging industries including the Telephone Consumer Protection Act.
1 unchanged sentence
In addition to the foregoing enhanced data security requirements, various federal banking regulatory agencies, and all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands, have enacted data security regulations and laws requiring varying levels of consumer notification in the event of a security breach.
−Removed: Also, federal legislators and regulators are increasingly pursuing new guidelines, laws and regulations that, if adopted, could further restrict how we collect, use, share and secure consumer information, which could impact some of our current or planned business initiatives.
+Added: Also, federal legislators and regulators are increasingly pursuing new guidelines, laws and regulations that, if adopted, could further restrict how we collect, use, share and secure consumer information, possibly impacting some of our current or planned business initiatives.
Unplanned system interruptions or system failures could harm our business and reputation.
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Climate change and related regulatory responses may impact our business.
−Removed: Climate change as a result of emissions of greenhouse gases is a significant topic of discussion and may generate federal and other regulatory responses.
+Added: Climate change as a result of emissions of greenhouse gases is a significant topic of discussion and has generated and may continue to generate federal and other regulatory responses.
We are uncertain of the ultimate impact, either directionally or quantitatively, of climate change and related regulatory responses on our business.
−Removed: The most direct impact is likely to be an increase in energy costs, which would adversely impact consumers and their ability to incur and repay indebtedness.
−Removed: We elected the fair value option effective as of January 1, 2020, and we use estimates in determining the fair value of our loans.
+Added: The most direct impact is likely to be an increase in energy costs, adversely impacting consumers and their ability to incur and repay indebtedness.
+Added: We elected the fair value option for newly originated assets, effective as of January 1, 2020, and we use estimates in determining the fair value of our loans.
If our estimates prove incorrect, we may be required to write down the value of these assets, adversely affecting our results of operations.
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Management has processes in place to monitor these judgments and assumptions, but these processes may not ensure that our judgments and assumptions are accurate.
−Removed: Our allowance for uncollectible loans is determined based upon both objective and subjective factors and may not be adequate to absorb loan losses.
+Added: Our allowance for uncollectible loans is determined based upon both objective and subjective factors and may not be adequate to absorb credit losses.
We face the risk that customers will fail to repay their loans in full.
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the overall financing environment, which is critical to our value;
−Removed: the operating and stock performance of our competitors;
−Removed: announcements by us or our competitors of new products or services or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments;
changes in interest rates;
−Removed: inflation and supply chain disruptions;
−Removed: the announcement of enforcement actions or investigations against us or our competitors or other negative publicity relating to us or our industry;
+Added: inflation and supply chain disruptions;
+Added: the operating and stock performance of our competitors;
+Added: announcements by us or our competitors of new products or services or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments;
+Added: the announcement of enforcement actions or investigations against us or our competitors or other negative publicity relating to us or our industry;
changes in generally accepted accounting principles in the U.S.
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the annual yield from distributions on the Series B Preferred Stock as compared to yields on other financial instruments;
−Removed: global pandemics (such as the COVID-19 pandemic).
+Added: epidemics and pandemics (such as the COVID-19 pandemic).
In addition, the stock markets from time to time experience extreme price and volume fluctuations that may be unrelated or disproportionate to the operating performance of companies.
−Removed: These broad fluctuations may adversely affect the trading prices of our securities, regardless of our actual operating performance.
+Added: These broad fluctuations may adversely affect the trading prices of our securities, regardless of our actual operating performance.
Future sales of our common stock or equity-related securities in the public market could adversely affect the trading price of our common stock and our ability to raise funds in new stock offerings.
−Removed: Sales of significant amounts of our common stock or equity-related securities in the public market or the perception that such sales will occur, could adversely affect prevailing trading prices of our common stock and could impair our ability to raise capital through future offerings of equity or equity-related securities.
+Added: Sales of significant amounts of our common stock or equity-related securities in the public market or the perception that such sales will occur, could adversely affect prevailing trading prices of our common stock and could impair our ability to raise capital through future offerings of equity or equity-related securities.
Future sales of shares of common stock or the availability of shares of common stock for future sale, including sales of our common stock in short sale transactions, may have a material adverse effect on the trading price of our common stock.
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Our obligations to the holders of Series A Convertible Preferred Stock and Series B Preferred Stock also could limit our ability to obtain additional financing or increase our borrowing costs, which could have an adverse effect on our financial condition and the value of our common stock.
−Removed: Our outstanding Series A Convertible Preferred Stock has anti-dilution protection that, if triggered, could cause substantial dilution to our then-existing holders of common stock, which could adversely affect our stock price.
+Added: Our outstanding Series A Convertible Preferred Stock has anti-dilution protection that, if triggered, could cause substantial dilution to our then-existing holders of common stock, which could adversely affect our stock price.
The document governing the terms of our outstanding Series A Convertible Preferred Stock contains anti-dilution provisions to benefit the holders of such stock.
As a result, if we, in the future, issue common stock or other derivative securities, subject to specified exceptions, for a per share price less than the then existing conversion price of the Series A Convertible Preferred Stock, an adjustment to the then current conversion price would occur.
−Removed: This reduction in the conversion price could result in substantial dilution to our then-existing holders of common stock, which could adversely affect the price of our common stock.
+Added: This reduction in the conversion price could result in substantial dilution to our then-existing holders of common stock, adversely affecting the price of our common stock.
In the past, we have not paid cash dividends on our common stock on a regular basis, and an increase in the market price of our common stock, if any, may be the sole source of gain on an investment in our common stock.
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Our common stock may be subordinate to additional classes of preferred stock issued in the future in the payment of dividends and other distributions made with respect to common stock, including distributions upon liquidation or dissolution.
−Removed: Our Amended and Restated Articles of Incorporation (the "Articles of Incorporation") permit our board of directors to issue preferred stock without first obtaining shareholder approval, which we did in December 2019 when we issued the Series A Convertible Preferred Stock and in June and July 2021 when we issued the Series B Preferred Stock.
+Added: Our Amended and Restated Articles of Incorporation (the "Articles of Incorporation") permit our board of directors to issue preferred stock without first obtaining shareholder approval, which we did in December 2019 when we issued the Series A Convertible Preferred Stock and in June and July 2021 when we issued the Series B Preferred Stock.
If we issue additional classes of preferred stock, these additional securities may have dividend or liquidation preferences senior to the common stock.
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As a result, these shareholders may have the ability to control matters requiring shareholder approval, including the election and removal of directors, the approval of significant corporate transactions, such as any reclassification, reorganization, merger, consolidation or sale of all or substantially all of our assets and the control of our management and affairs.
−Removed: Accordingly, this concentration of ownership may have the effect of delaying, deferring or preventing a change of control of us, impede a merger, consolidation, takeover or other business combination involving us or discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could have an adverse effect on the market price of our common stock.
+Added: Accordingly, this concentration of ownership may have the effect of delaying, deferring or preventing a change of control of us, impede a merger, consolidation, takeover or other business combination involving us or discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, adversely affecting the market price of our common stock.
The Series B Preferred Stock rank junior to our Series A Convertible Preferred Stock and all of our indebtedness and other liabilities and are effectively junior to all indebtedness and other liabilities of our subsidiaries.
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The rights of holders of the Series B Preferred Stock to participate in the distribution of our assets will rank junior to the prior claims of our current and future creditors, the Series A Convertible Preferred Stock and any future series or class of preferred stock we may issue that ranks senior to the Series B Preferred Stock.
−Removed: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and we currently have outstanding 400,000 shares of Series A Convertible Preferred Stock and 3,193,262 shares of Series B Preferred Stock.
+Added: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of March 31, 2023 we have outstanding 400,000 shares of Series A Convertible Preferred Stock and 3,254,161 shares of Series B Preferred Stock.
We may issue up to 6,345,839 additional shares of preferred stock.
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We may issue additional shares of the Series B Preferred Stock and additional series of preferred stock that rank on a parity with the Series B Preferred Stock as to dividend rights, rights upon liquidation or voting rights.
−Removed: We are allowed to issue additional shares of Series B Preferred Stock and additional series of preferred stock that would rank on a parity with the Series B Preferred Stock as to dividend payments and rights upon our liquidation, dissolution or winding up of our affairs pursuant to our Articles of Incorporation and the Amended and Restated Articles of Amendment Establishing the Series B Preferred Stock without any vote of the holders of the Series B Preferred Stock.
−Removed: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and we currently have outstanding 400,000 shares of Series A Convertible Preferred Stock and 3,193,262 shares of Series B Preferred Stock.
+Added: We are allowed to issue additional shares of Series B Preferred Stock and additional series of preferred stock that would rank on a parity with the Series B Preferred Stock as to dividend payments and rights upon our liquidation, dissolution or winding up of our affairs pursuant to our Articles of Incorporation and the Amended and Restated Articles of Amendment Establishing the Series B Preferred Stock without any vote of the holders of the Series B Preferred Stock.
+Added: Our Articles of Incorporation authorize us to issue up to 10,000,000 shares of preferred stock in one or more series on terms determined by our board of directors, and as of March 31, 2023 we have outstanding 400,000 shares of Series A Convertible Preferred Stock and 3,254,161 shares of Series B Preferred Stock.
We may issue up to 6,345,839 additional shares of preferred stock.
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In addition, those features of the Series B Preferred Stock may have the effect of inhibiting a third party from making an acquisition proposal for our Company or of delaying, deferring or preventing a change of control of the Company under circumstances that otherwise could provide the holders of our common stock and Series B Preferred Stock with the opportunity to realize a premium over the then-current market price or that shareholders may otherwise believe is in their best interests.
−Removed: Holders of Series B Preferred Stock may be unable to use the dividends-received deduction and may not be eligible for the preferential tax rates applicable to “qualified dividend income.”
+Added: Holders of Series B Preferred Stock may be unable to use the dividends-received deduction and may not be eligible for the preferential tax rates applicable to “qualified dividend income.”
Distributions paid to corporate U.S.
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it may make us more vulnerable to downturns in our business, our industry or the economy in general.
−Removed: Our operations may not generate sufficient cash to enable us to service our debt.
+Added: Our operations may not generate sufficient cash to enable us to service our debt.
If we fail to make a payment on the Senior Notes, we could be in default on the Senior Notes, and this default could cause us to be in default on other indebtedness, to the extent outstanding.
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In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our existing or future secured indebtedness and the secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness and may consequently receive payment from these assets before they may be used to pay other creditors, including the holders of the Senior Notes.
−Removed: The Senior Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.
+Added: The Senior Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.
The Senior Notes are obligations exclusively of Atlanticus and not of any of our subsidiaries.
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create restrictions on the payment of dividends or other amounts to us from our subsidiaries.
−Removed: In addition, the indenture does not include any protection against certain events, such as a change of control, a leveraged recapitalization or “going private”
+Added: In addition, the indenture does not include any protection against certain events, such as a change of control, a leveraged recapitalization or “going private”
transaction (which may result in a significant increase of our indebtedness levels), restructuring or similar transactions.
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The issuance or incurrence of any such debt with incremental protections could affect the market for and trading levels and prices of the Senior Notes.
−Removed: We may not be able to generate sufficient cash to service all of our debt, and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful.
+Added: We may not be able to generate sufficient cash to service all of our debt, and may be forced to take other actions to satisfy our obligations under such indebtedness, which may not be successful.
Our ability to make scheduled payments on, or to refinance our obligations under, our debt will depend on our financial and operating performance and that of our subsidiaries, which, in turn, will be subject to prevailing economic and competitive conditions and to financial and business factors, many of which may be beyond our control.
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Note Regarding Risk Factors
−Removed: The risk factors presented above are all of the ones that we currently consider material.
+Added: The risk factors presented above are all of the ones that we currently consider material.
However, they are not the only ones facing our company.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.