8 unchanged sentences
The business and operations of our retail distributors and our BaaS and other partners have likewise been disrupted, with many experiencing reduced foot traffic or usage of their services.
−Removed: If the COVID-19 pandemic has a substantial and prolonged impact on our employees, partners or distributors’ attendance or productivity, our results of operations and overall financial performance may adversely harmed.
−Removed: The duration and magnitude of the effects of COVID-19 remains uncertain and dependent on various factors, including the continued severity and transmission rate of the virus, the nature of and duration for which the preventative measures remain in place, the extent and effectiveness of containment and mitigation actions, the type of stimulus measures and other policy responses that the U.S.
+Added: If the COVID-19 pandemic has a substantial and prolonged impact on our employees, partners or distributors’ attendance or productivity, our results of operations and overall financial performance may be adversely harmed.
+Added: The duration and magnitude of the effects of COVID-19 remain uncertain and dependent on various factors, including the continued severity and transmission rate of the virus, the nature of and duration for which the preventative measures remain in place, the extent and effectiveness of containment and mitigation actions, the type of stimulus measures and other policy responses that the U.S.
government may further adopt, and the impact of these and other factors on our employees, customers, retail distributors, partners and vendors.
The COVID-19 pandemic has already had an adverse effect on the global economy, and the ultimate business and economic impact of the COVID-19 pandemic remains unknown.
−Removed: The conditions caused by the COVID-19 pandemic adversely affected our customers’ spending levels and ability or willingness to purchase our products and services through our retail distributors, lowered the volume of transactions through our BaaS and PayCard programs and delayed the launching of new products and services, although governmental actions such as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) have helped mitigate the effects of COVID-19 on our business during the second quarter of 2020.
+Added: The conditions caused by the COVID-19 pandemic adversely affected our customers’ spending levels and ability or willingness to purchase our products and services through our retail distributors, lowered the volume of transactions through our BaaS and PayCard programs and delayed the launching of new products and services, although governmental actions such as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) helped mitigate the effects of COVID-19 on our business during the second quarter of 2020.
However, the incremental federal unemployment benefits from the CARES Act expired on July 31, 2020 and unless the government extends the duration of these additional unemployment benefits and does not significantly reduce these benefits, or offers comparable or better benefits, our customers' spending levels and usage of our products may be impacted, resulting in additional uncertainty on our revenue results for the remainder of the year.
6 unchanged sentences
Further, additional borrowings on our revolving line of credit have and will cause us to incur additional interest expense, which will negatively affect our earnings.
−Removed: Please see “Management’s Discussion and Analysis of Financial Position and Results of Operations” for a more detailed discussions of the potential impact of the COVID-19 pandemic and associated economic disruptions.
+Added: Please see “Management’s Discussion and Analysis of Financial Position and Results of Operations” for a more detailed discussion of the potential impact of the COVID-19 pandemic and associated economic disruptions.
Our operating results may fluctuate in the future, which could cause our stock price to decline.
33 unchanged sentences
A significant portion of our operating revenues are derived from the products and services sold at our four largest retail distributors.
−Removed: As a percentage of total operating revenues, operating revenues derived from products and services sold at the store locations of Walmart was approximately 29% and 27% for the three and six months ended June 30, 2020, respectively.
+Added: As a percentage of total operating revenues, operating revenues derived from products and services sold at the store locations of Walmart was approximately 27% for each of the three and nine months ended September 30, 2020.
We expect that Walmart will continue to have a significant impact on our operating revenues in future periods, particularly in our Account Services segment.
135 unchanged sentences
Furthermore, a substantial portion of our operating revenues is derived from interchange fees.
−Removed: For the three months ended June 30, 2020, interchange revenues represented 30.3% of our total operating revenues, and we expect interchange revenues to continue to represent a significant percentage of our total operating revenues.
+Added: For the three months ended September 30, 2020, interchange revenues represented 29.2% of our total operating revenues, and we expect interchange revenues to continue to represent a significant percentage of our total operating revenues.
The amount of interchange revenues that we earn is highly dependent on the interchange rates that the payment networks set and adjust from time to time.
17 unchanged sentences
In addition, any failure to implement our operating strategy successfully or the occurrence of any of the events or circumstances set forth in this Item 1A could result in our actual operating results being different from our guidance, and such differences may be adverse and material.
−Removed: Due to the uncertainty around the scope and the duration of the COVID-19 pandemic, we have decided to withdraw our guidance for 2020 until we have better visibility into the effect of the COVID-19 pandemic on our results of operations.
−Removed: If and when we provide guidance in the future, if our operating or financial results for a particular period do not meet our guidance or the expectations of our investors and analysts, or if we reduce our guidance for future periods, the market price of our common stock may decline.
We receive important services from third-party vendors.
19 unchanged sentences
The risk of unauthorized circumvention of our security measures has been heightened by advances in computer capabilities and the increasing sophistication of hackers.
−Removed: Our retail distributors, tax preparation partners, network acceptance members,
−Removed: other business partners, third-party processors and the merchants that accept our cards also may experience similar security breaches involving the receipt, transmission and storage of our confidential customer and other information.
+Added: Our retail distributors, tax preparation partners, network acceptance members, other business partners, third-party processors and the merchants that accept our cards also may experience similar security breaches involving the receipt, transmission and storage of our confidential customer and other information.
Improper access to our or these third parties’ systems or databases could result in the theft, publication, deletion or modification of confidential customer and other information.
26 unchanged sentences
We may unknowingly violate the intellectual property or other proprietary rights of others and, thus, may be subject to claims by third parties.
−Removed: These assertions may increase over time as a result of our growth and the general
−Removed: increase in the pace of patent claims assertions, particularly in the United States.
+Added: These assertions may increase over time as a result of our growth and the general increase in the pace of patent claims assertions, particularly in the United States.
Because of the existence of a large number of patents in the mobile technology field, the secrecy of some pending patents, and the rapid rate of issuance of new patents, it is not economically practical or even possible to determine in advance whether a product or any of its elements infringes or will infringe on the patent rights of others.
−Removed: Regardless of the merit of these claims, we may be required to devote significant time and resources to defending against these claims or to protecting and enforcing our own rights.
+Added: Regardless of the merit of these claims, we may be required to devote significant time and resources to defending against these claims or to protecting and
+Added: enforcing our own rights.
We might also be required to develop a non-infringing technology or enter into license agreements and there can be no assurance that licenses will be available on acceptable terms and conditions, if at all.
27 unchanged sentences
• increased litigation or other claims in connection with the acquired company, including claims brought by terminated employees, customers, former stockholders or other third parties.
−Removed: If we are unable to successfully integrate an acquired business or technology or otherwise address these special risks and challenges or other problems encountered in connection with an acquisition, we might not realize the anticipated benefits of that acquisition, we might incur unanticipated liabilities or we might otherwise suffer harm to our business generally.
+Added: If we are unable to successfully integrate an acquired business or technology or otherwise address these special risks and challenges or other problems encountered in connection with an acquisition, we might not realize
+Added: the anticipated benefits of that acquisition, we might incur unanticipated liabilities or we might otherwise suffer harm to our business generally.
Unanticipated costs, delays or other operational or financial problems related to integrating the acquired company and business with our company may result in the diversion of our management's attention from other business issues and opportunities.
7 unchanged sentences
Because we have grown in part through acquisitions, our net goodwill and intangible assets represent a significant portion of our consolidated assets.
−Removed: Our net goodwill and intangible assets were $506.1 million as of June 30, 2020.
+Added: Our net goodwill and intangible assets were $499.0 million as of September 30, 2020.
Under accounting principles generally accepted in the United States, or U.S.
11 unchanged sentences
If a retail distributor becomes insolvent, files for bankruptcy, commits fraud or otherwise fails to remit proceeds to our card issuing bank from the sales of our products and services, we are liable for any amounts owed to our customers.
−Removed: As of June 30, 2020, we had assets subject to settlement risk of $312.4 million.
+Added: As of September 30, 2020, we had assets subject to settlement risk of $344.3 million.
Given the possibility of recurring volatility in global financial markets, the approaches we use to assess and monitor the creditworthiness of our retail distributors may be inadequate, and we may be unable to detect and take steps to mitigate an increased credit risk in a timely manner.
5 unchanged sentences
On June 8, 2020, the National Bureau of Economic Research announced that the United States was in an economic recession.
−Removed: A prolonged recession may result in us experiencing a reduction in the number of our accounts that are purchased or reloaded, the number of transactions involving our cards and the use of our reload network and related services.
+Added: A prolonged recession may result in us
+Added: experiencing a reduction in the number of our accounts that are purchased or reloaded, the number of transactions involving our cards and the use of our reload network and related services.
A sustained reduction in the use of our products and related services, either as a result of a general reduction in consumer spending or as a result of a disproportionate reduction in the use of card-based payment systems, would materially harm our business, results of operations and financial condition.
6 unchanged sentences
Replacing departing key personnel can involve organizational disruption and uncertainty.
−Removed: We have experienced transitions among our executive officers, including the departures of our founder, President and Chief Executive Officer, Steven W.
−Removed: Streit, as well as our Chief Operating Officer and Chief Financial Officer since December 31, 2019.
+Added: We have recently experienced transitions among our executive officers.
We appointed a new Chief Executive Officer in March 2020 and are in the process of appointing a permanent Chief Financial Officer.
22 unchanged sentences
Should we require additional credit at levels we are unable to access, the cost of credit is greater than expected, or the cost-savings measures we have implemented are ineffective or result in us incurring greater costs, our operating results could be adversely affected.
−Removed: Further, additional borrowings on our revolving line of credit have and will cause us to incur additional interest expense, which will negatively affect our earnings.
+Added: additional borrowings on our revolving line of credit have and will cause us to incur additional interest expense, which will negatively affect our earnings.
Some of our operations, including a significant portion of our software development operations, are located outside of the United States, which subjects us to additional risks, including increased complexity and costs of managing international operations and geopolitical instability.
22 unchanged sentences
We have in the past and may in the future discover areas of our internal financial and accounting controls and procedures that need improvement.
−Removed: Our internal control over financial reporting will not prevent or
−Removed: detect all error and all fraud.
+Added: Our internal control over financial reporting will not prevent or detect all error and all fraud.
A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system will be met.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company will be detected.
−Removed: If we are unable to maintain proper and effective internal controls, we may not be able to produce accurate financial statements on a timely basis, which could adversely affect our ability to operate our business and could result in regulatory action, and could require us to restate our financial statements.
+Added: If we are unable to maintain proper and effective internal controls, we may not be able to produce accurate financial statements on a timely basis, which could adversely affect our ability to operate our business and could result in regulatory action, and could require us to
+Added: restate our financial statements.
Any such restatement could result in a loss of public confidence in the reliability of our financial statements and sanctions imposed on us by the SEC.
22 unchanged sentences
In addition, any transition process may involve, among other things, increased volatility or illiquidity in markets for instruments that rely on LIBOR, reductions in the value of certain instruments or the effectiveness of related transactions such as hedges, increased borrowing costs, uncertainty under applicable documentation, or difficult and costly consent processes.
−Removed: This could materially and
−Removed: adversely affect our results of operations, cash flows, and liquidity.
+Added: This could materially and adversely affect our results of operations, cash flows, and liquidity.
We cannot predict the effect of the potential changes to LIBOR or the establishment and use of alternative rates or benchmarks.
47 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.