ENTRAVISION COMMUNICATIONS CORP 10-Q

ITEM 1. LEGAL PROCEEDINGS We are subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability that may arise out of or with respect to these matters will not materially adversely affect our financial position, results of operations or cash flows. ITEM 1A. RI SK FACTORS Our expanding overseas operations pose a variety of risks to our business, which risks may increase if and as our overseas operations continue to expand. Outside the United States, our digital segment engages in business operations that are located primarily in Spain, Mexico, Argentina and other Latin American countries, as well as Singapore, India, Malaysia, Thailand, Vietnam, the Philippines and other Southeast Asian countries. We are subject to certain risks inherent in business operations outside the United States. These risks include but are not limited to geopolitical concerns, local politics, governmental instability, socioeconomic disparities, fiscal policies, periodic high inflation and occasional hyper-inflation, currency fluctuations, currency exchange controls, restrictions on repatriating foreign-derived profits to the United States, local regulatory compliance, punitive tariffs, unstable local tax policies, trade embargoes, import and export license requirements, trade restrictions, greater difficulty collecting accounts receivable, unfamiliarity with local laws and regulations, differing legal standards in enforcing or defending our rights in courts or otherwise, the possibility of less favorable intellectual property protection than is provided in the United States, changes in labor conditions, difficulties in staffing and managing international operations, difficulties in finding personnel locally who are capable of complying with the financial and reporting requirements of U.S. reporting companies, difficulties in finding personnel locally who are familiar with our financial controls and procedures and/or disclosure controls and procedures, actions taken by foreign governments to respond to localized public health emergencies, such as recent quarantines and travel restrictions related to the COVID-19 pandemic, and other cultural differences. Foreign economies may differ favorably or unfavorably from the U.S. economy in growth of gross domestic product, rate of inflation, market development, rate of savings, capital investment, resource self-sufficiency and balance of payments positions, and in many other respects. Any or all of these circumstances may present uncertainties in our business planning, challenges in the execution of our business model and uncertainties in their impact on our results of operations and financial condition. The ongoing COVID-19 pandemic in certain parts of the world where we operate could have an uncertain impact in the operations in our digital segment. Our overseas operations include substantial personnel, operations and commercial activities in Latin America, Europe and Southeast Asia. Some of the countries in which we operate, especially some of those in Latin American and Southeast Asia, have lower vaccination rates and increasing rates of infection than does the United States and much of Europe. The continuation of the pandemic, or a resurgence of the pandemic, in those parts of the world could result in the type of significant societal and business disruptions that were experienced in the United States in the first several months of the pandemic, potentially resulting in adverse consequences for our digital operations and our results of operations.