2 unchanged sentences
If any of the following risks develops into actual events, our business, financial condition or results of operations could be negatively affected, the market prices of our securities could decline and you may lose all or part of your investment.
−Removed: The response to 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.
−Removed: More recently, there have been disruptions in global supply chains that have adversely impacted a number of industries, such as transportation, hospitality and entertainment.
−Removed: In addition, there have been significant inflation and labor shortages over the past two years which could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown or recession.
−Removed: The rapid development and fluidity of this situation preclude any accurate prediction as to the ultimate impact of inflation and rising interest rates and other consequences to the responses to COVID-19.
−Removed: The global response to COVID-19 presents material uncertainty and risk with respect to our performance and financial results.
Our Cash Flows and Net Income Are Dependent Upon Payments from Our Investments in Receivables
17 unchanged sentences
Similarly, levels of loss and delinquency can result in our being required to repay lenders earlier than expected, thereby reducing funds available to us for future growth.
−Removed: Internet consumers have unique risk profiles and we may not be able to evaluate their creditworthiness.
−Removed: Receivables owed by consumers and acquired over the internet present unique risk characteristics and exhibit higher rates of fraud.
−Removed: As a result, we may not be able to successfully evaluate the creditworthiness of these potential consumers.
−Removed: Therefore, we may encounter difficulties managing the expected delinquencies and losses.
We Are Substantially Dependent Upon Borrowed Funds to Fund Receivables We Purchase
14 unchanged sentences
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 $2,414.7 million at June 30, 2024, from $2,173.4 million at June 30, 2023.
+Added: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $2,653.8 million at September 30, 2024, from $2,314.6 million at September 30, 2023.
The amount of such receivables has fluctuated significantly over the course of our operating history.
2 unchanged sentences
Reliance upon relationships with a few large retailers in the private label credit operations may adversely affect our revenues and operating results from these operations.
−Removed: Our five largest retail partners accounted for over 70% of our outstanding private label credit receivables as of June 30, 2024.
+Added: Our five largest retail partners accounted for over 75% of our outstanding private label credit receivables as of September 30, 2024.
Although we are adding new retail partners on a regular basis, it is likely that we will continue to derive a significant portion of this operations’ receivables base and corresponding revenue from a relatively small number of partners in the future.
76 unchanged sentences
If the FDIC or a state supervisory body considers any aspect of the products originated utilizing our technology platform to be inconsistent with its guidance, the banks may be required to alter or terminate some or all of these products.
−Removed: In June 2023, the FDIC, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency issued final guidance on managing risks associated with third-party relationships.
−Removed: The guidance sets forth considerations and a framework with respect to the management of risks arising from third-party relationships and replaces the federal banking agencies' existing guidance on the topic.
−Removed: The guidance broadly applies to business arrangements between a banking organization and a third party, including relationships with fintech entities and bank/fintech sponsorship arrangements.
Changes to consumer protection laws or changes in their interpretation may impede collection efforts or otherwise adversely impact our business practices.
246 unchanged sentences
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 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 as of June 30, 2024 we had outstanding 400,000 shares of Series A preferred stock and 3,300,704 shares of Series B preferred stock.
−Removed: As of June 30, 2024, we could issue up to 6,299,296 additional shares of 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 September 30, 2024 we had outstanding 400,000 shares of Series A preferred stock and 3,300,704 shares of Series B preferred stock.
+Added: As of September 30, 2024, we could issue up to 6,299,296 additional shares of preferred stock.
In addition, the Series B preferred stock effectively ranks junior to all existing and future indebtedness and other liabilities of (as well as any preferred equity interests held by others in) our existing subsidiaries and any future subsidiaries.
12 unchanged sentences
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 as of June 30, 2024 we had outstanding 400,000 shares of Series A preferred stock and 3,300,704 shares of Series B preferred stock.
−Removed: As of June 30, 2024, we could issue up to 6,299,296 additional shares of 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 September 30, 2024 we had outstanding 400,000 shares of Series A preferred stock and 3,300,704 shares of Series B preferred stock.
+Added: As of September 30, 2024, we could issue up to 6,299,296 additional shares of preferred stock.
The issuance of additional shares of Series B preferred stock and additional series of parity preferred stock could have the effect of reducing the amounts available to the holders of Series B preferred stock upon our liquidation or dissolution or the winding up of our affairs.
118 unchanged sentences
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.