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 We face credit risk in connection with the termination of our business with Meta. We face certain credit risk in connection with the termination of Meta’s ASP program, which will occur on or before July 1, 2024. Whenever that actually occurs, we will have accounts receivable from certain advertisers who used our services while we were still an ASP of Meta, but with whom we will not have ongoing business after we cease being an ASP of Meta. There is risk, which we cannot quantify at this time, that certain such receivables may be uncollectible. We may need to raise capital if our current liquidity is insufficient to fund business activities. To the extent that our then current liquidity is insufficient to fund business activities or if we do not remain in compliance with our financial covenants under the 2023 Credit Agreement, whether as a result of the termination of the Meta ASP program or otherwise, we may be required to seek additional equity or debt financing in the future to satisfy capital requirements. There is no guarantee that any such capital would be available to us on favorable terms, or at all. The failure to obtain any required capital could have a material adverse effect on our operations and financial condition.