7 unchanged sentences
Some of these concerns are discussed more fully below.
−Removed: Our portfolio of receivables is not diversified and primarily originates from consumers whose creditworthiness is considered less than prime.
+Added: Our portfolio of receivables has limited diversification and primarily originates from consumers whose creditworthiness is considered less than prime.
Historically, we have invested in receivables in one of two ways—we have either (i) invested in receivables originated by lenders who utilize our services or (ii) invested in or purchased pools of receivables from other issuers.
−Removed: In either case, substantially all of our receivables are from borrowers represented by credit risks that regulators classify as less than prime.
+Added: In either case, the majority of our receivables are from borrowers represented by credit risks that regulators classify as less than prime.
Our reliance on these receivables may in the future negatively impact our performance.
25 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 $2,706.3 million at March 31, 2025, from $2,317.6 million at March 31, 2024.
+Added: Our period-end managed receivables balance for private label credit and general purpose credit card receivables grew to $3,046.5 million at June 30, 2025, from $2,414.7 million at June 30, 2024.
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 75% of our outstanding private label credit receivables as of December 31, 2024.
+Added: Our five largest retail partners accounted for over 80% of our outstanding private label credit receivables as of June 30, 2025.
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.
83 unchanged sentences
Risks Related to Our Financial Reporting and Accounting
−Removed: We are remediating a material weakness in our internal control over financial reporting.
+Added: We recently remediated a material weakness in our internal control over financial reporting.
If we experience additional material weaknesses in the future, our business may be harmed.
4 unchanged sentences
Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2024 and concluded that our internal control over financial reporting was not effective as of December 31, 2024 due to a material weakness described under Part II, Item 9A “Controls and Procedures” on our Form 10-K for the fiscal year ended December 31, 2024.
+Added: Based on the successful monitoring of these remediation efforts, the Company concluded that the material weakness identified above has been remediated as of the date of this report.
Remediation efforts place a significant burden on management and add increased pressure on our financial resources and processes.
36 unchanged sentences
trade policies, treaties and tariffs.
−Removed: Although trade negotiations are ongoing, sustained higher tariffs likely would accelerate inflation.
+Added: Although trade negotiations are ongoing, sustained higher tariffs might accelerate inflation.
Higher inflation increases the costs of goods and services, reduces consumer spending power and may negatively affect our ability to purchase receivables.
170 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 March 31, 2025, we had outstanding 400,000 shares of Series A preferred stock and 3,314,840 shares of Series B preferred stock.
−Removed: As of March 31, 2025, we could issue up to 6,285,160 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 June 30, 2025, we had outstanding 400,000 shares of Series A preferred stock and 3,457,443 shares of Series B preferred stock.
+Added: As of June 30, 2025, we could issue up to 6,142,557 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 March 31, 2025, we had outstanding 400,000 shares of Series A preferred stock and 3,314,840 shares of Series B preferred stock.
−Removed: As of March 31, 2025, we could issue up to 6,285,160 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 June 30, 2025, we had outstanding 400,000 shares of Series A preferred stock and 3,457,443 shares of Series B preferred stock.
+Added: As of June 30, 2025, we could issue up to 6,142,557 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.