EZCORP INC 10-Q

ITEM 1A. RISK FACTORS Important risk factors that could affect our operations and financial performance, or that could cause results or events to differ from current expectations, are described in "Part I, Item 1A — Risk Factors" of our Annual Report on Form 10-K for the year ended September 30, 2019 , as supplemented by the information set forth below. Public health issues, including the current COVID-19 pandemic, could adversely affect our financial condition, results of operations or liquidity. Our business may be impacted by public health issues, including pandemics and the spread of contagious diseases. Such public health issues, and the government and consumer responses thereto, may (i) limit our ability to supply products and services to our customers as a result of store closures, reduced access to or foot traffic in our stores, or labor shortages, (ii) adversely affect the demand for our products and services or (iii) cause other unforeseen negative developments. Any of these factors may adversely affect our financial condition, results of operations or liquidity. The outbreak of COVID-19 has affected our operations beginning primarily in March 2020. Governmental fiscal stimulus response, stay-at-home orders and business restrictions, health agency guidance regarding social distancing and public perceptions of the risks associated with the COVID-19 pandemic have resulted in a reduction in the demand for pawn loans with a resulting significant decline in pawn loan balances. See “Part I, Item 2 — Management’s Discussion and Analysis of Results of Operations and Financial Condition - Impact of COVID-19.” The decline in pawn loan balances negatively impacted our financial performance during the third quarter and will continue to negatively impact our financial performance for the remainder of fiscal 2020. We expect that the impact of the pandemic, and the recovery therefrom, will continue to adversely affect our net revenues and earnings into fiscal 2021. A prolonged pandemic and recovery may impact our results of operations, financial condition and liquidity in future periods. The extent of the impact is dependent upon a number of factors, including the longevity and severity of the pandemic, the pace of business reopenings and rebound, the impact of government responses and the degree to which customer behaviors return to historical norms. ITEM 6. EXHIBITS The following exhibits are filed with, or incorporated by reference into, this report. Exhibit No. Description of Exhibit 31.1† Certification of Jason A. Kulas, Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2† Certification of Jason A. Kulas, Chief Executive Officer and Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1†† Certifications of Jason A. Kulas, Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS††† XBRL Instance Document 101.SCH††† XBRL Taxonomy Extension Schema Document 101.CAL††† XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF††† XBRL Taxonomy Extension Definition Linkbase Document 101.LAB††† XBRL Taxonomy Label Linkbase Document 101.PRE††† XBRL Taxonomy Extension Presentation Linkbase Document † Filed herewith. †† Furnished herewith. ††† Filed herewith as Exhibit 101 to this report are the following formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2020, March 31, 2019 and September 30, 2019; (ii) Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2020 and March 31, 2010; (iii) Condensed Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended March 31, 2020 and March 31, 2019; (iv) Condensed Consolidated Statements of Stockholders' Equity for the periods ended March 31, 2020 and March 31, 2019; (v) Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2020 and March 31, 2019; and (vi) Notes to Interim Condensed Consolidated Financial Statements. 43 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. EZCORP, INC. Date: August 4, 2020 /s/ Jason A. Kulas Jason A. Kulas, Chief Executive Officer and Chief Financial Officer 44