9 unchanged sentences
We may continue to experience increased costs, which could continue to adversely affect our business, results of operations, and financial condition in future periods.
−Removed: Despite widespread vaccination efforts as well as dropping infection and hospitalization rates in the United States, COVID-19 could still have an adverse impact on our business as the duration and magnitude of the continuing effects of COVID-19 remain uncertain and dependent on various factors, including the continued severity and transmission rates of the virus and variants of the virus, the effectiveness of COVID-19 vaccines against such variants, the nature and duration of future preventative measures, the extent and effectiveness of future containment and mitigation efforts, including vaccination programs and mandates, the type of stimulus measures and other policy responses that the U.S.
+Added: Despite widespread vaccination efforts as well as dropping infection and hospitalization rates in the United States, COVID-19 could still have an adverse impact on our business as the duration and magnitude of the continuing effects of COVID-19 remain uncertain and dependent on various factors, including the continued severity and transmission rates of the virus and variants of the virus, the effectiveness of COVID-19 vaccines against such variants, the extent and effectiveness of future containment and mitigation efforts, including vaccination programs and mandates, the type of stimulus measures and other policy responses that the U.S.
government or regulators may further adopt, including interest rate increases, if any, and the impact of these and other factors on our employees, customers, retail distributors, partners and vendors.
12 unchanged sentences
A significant portion of our operating revenues are derived from the products and services sold at our 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 were approximately 21.0% for the three and six months ended June 30, 2022, respectively.
+Added: As a percentage of total operating revenues, operating revenues derived from products and services sold at the store locations of Walmart were approximately 19.0% and 20% for the three and nine months ended September 30, 2022, respectively.
We expect that Walmart will continue to have a significant impact on our operating revenues in future periods, particularly in our Consumer Services segment.
5 unchanged sentences
There can be no assurance that we will be able to continue our relationships with our largest retail distributors, significant BaaS partners, third-party processors or consumers on the same or more favorable terms in future periods or that our relationships will continue beyond the terms of our existing contracts with them.
−Removed: For example, during the three months ended June 30, 2022, we and several business partners failed to reach agreement on renewal of their agreements with us, and we are also in the midst of a dispute with Uber over their obligations under our agreements with them.
+Added: For example, during the three months ended June 30, 2022, we and several business partners failed to reach an agreement on the renewal of their agreements with us, and we are also involved in litigation with Uber arising from a dispute over their obligations under our agreements with them.
Our operating revenues and results of operations could suffer if, among other things, any of our retail distributors, significant BaaS partners, third-party processors or consumers renegotiates, terminates or fails to renew, or to renew on similar or favorable terms, its agreement with us or otherwise chooses to modify the level of support it provides for our products.
84 unchanged sentences
If a retail distributor or partner 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, 2022, we had assets subject to settlement risk of $498.1 million.
+Added: As of September 30, 2022, we had assets subject to settlement risk of $409.2 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.
73 unchanged sentences
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.
−Removed: We have significantly expanded our software development operations in Shanghai, China and we expect to continue to increase headcount and infrastructure as we scale our operations in this region.
+Added: We have significantly expanded our software development operations in Shanghai, China over the past several years.
A prolonged disruption at our China facility for any reason due to natural- or man-made disasters, outbreaks of disease, such as the COVID-19 pandemic, climate change or other events outside of our control, such as equipment malfunction or large-scale outages or interruptions of service from utilities or telecommunications providers, could potentially delay our ability to launch new products or services, which could materially and adversely affect our business.
−Removed: For example, as a result of the resurgence of the COVID-19 pandemic's Omicron variant in China, our offices in Shanghai, China were closed during the first quarter of 2022 and shifted to a remote workforce strategy.
Additionally, as a result of our international operations, we face numerous other challenges and risks, including:
13 unchanged sentences
In addition, if at any time we or Green Dot Bank fail to be “well capitalized” or “well managed,” we may not commence, or acquire any shares of a company engaged in, any activities only permissible for an FHC, without prior Federal Reserve approval.
−Removed: The restriction on our ability to commence, or acquire any shares of a company engaged in, any activities only permissible for an
−Removed: FHC, without prior Federal Reserve approval would also generally apply if Green Dot Bank received a CRA rating of less than “Satisfactory.” Currently, under the BHC Act, we may not be able to engage in new activities or acquire shares or control of other businesses.
+Added: The restriction on our ability to commence, or acquire any shares of a company engaged in, any activities only permissible for an FHC, without prior Federal Reserve approval would also generally apply if Green Dot Bank received a CRA rating of less than “Satisfactory.” Currently, under the BHC Act, we may not be able to engage in new activities or acquire
+Added: shares or control of other businesses.
Such restrictions might limit our ability to pursue future business opportunities which we might otherwise consider, but which might fall outside the scope of permissible activities.
31 unchanged sentences
Furthermore, a substantial portion of our operating revenues is derived from interchange fees.
−Removed: For the three months ended June 30, 2022, interchange revenues represented 21% 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, 2022, interchange revenues represented 21% 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.
The enactment of the Dodd-Frank Act required the Federal Reserve Board to implement regulations that have substantially limited interchange fees for many issuers.
−Removed: While the interchange rates that may be earned by us and Green Dot Bank are exempt from the limitations imposed by the Dodd-Frank Act, there can be no assurance that future regulation or changes by the payment networks will not impact our interchange revenues substantially.
+Added: While the interchange rates that may be earned by us and Green Dot Bank are exempt from the limitations imposed by the Dodd-Frank Act, there can be no assurance that future regulation, such as the recently proposed bipartisan legislation called the Credit Card Competition Act of 2022 or other legislation, or changes by the payment networks will not impact our interchange revenues substantially.
If interchange rates decline, whether due to actions by the payment networks or future regulation, we would likely need to change our fee structure to offset the loss of interchange revenues.
12 unchanged sentences
If regulatory or judicial proceedings or investigations were to be initiated against us by private or governmental entities, adverse publicity that may be associated with these proceedings or investigations could negatively impact our relationships with retail distributors, tax preparation partners, network acceptance members, other business partners and card processors and decrease acceptance and use of, and loyalty to, our products and related services, and could impact the price of our Class A common stock.
−Removed: In addition, such proceedings or investigations could increase the risk that we will be involved in litigation.
−Removed: For the foregoing reasons, any regulatory or judicial
−Removed: proceedings or investigations that are initiated against us by private or governmental entities, could adversely affect our business, results of operations and financial condition or could cause our stock price to decline.
+Added: In addition, such proceedings or investigations
+Added: could increase the risk that we will be involved in litigation.
+Added: For the foregoing reasons, any regulatory or judicial proceedings or investigations that are initiated against us by private or governmental entities, could adversely affect our business, results of operations and financial condition or could cause our stock price to decline.
Refer to Note 17 - Commitments and Contingencies to the Consolidated Financial Statements for further information regarding certain of our legal proceedings.
26 unchanged sentences
These restrictions could limit our ability to take advantage of financing, merger, acquisition or other opportunities, to fund our business operations or to fully implement our current and future operating strategies.
−Removed: We must also maintain compliance with a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio of 2.50 and 1.25, respectively, at the end of any fiscal quarter.
−Removed: Our ability to meet these financial ratios and tests will be dependent
−Removed: upon our future performance and may be affected by events beyond our control (including factors discussed in this “Risk Factors" section).
+Added: We must also maintain compliance with a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio of 2.50 and 1.25,
+Added: respectively, at the end of any fiscal quarter.
+Added: Our ability to meet these financial ratios and tests will be dependent upon our future performance and may be affected by events beyond our control (including factors discussed in this “Risk Factors" section).
If we fail to satisfy these requirements, our indebtedness under these agreements could become accelerated and payable at a time when we are unable to pay them.
29 unchanged sentences
Competitors have in the past and may in the future attempt to recruit our top management and employees.
−Removed: In order to attract and retain personnel in a competitive marketplace, we must provide competitive pay packages, including cash and
−Removed: equity-based compensation and the volatility in our stock price may from time to time adversely affect our ability to recruit or retain employees.
+Added: In order to attract and
+Added: retain personnel in a competitive marketplace, we must provide competitive pay packages, including cash and equity-based compensation and the volatility in our stock price may from time to time adversely affect our ability to recruit or retain employees.
Additionally, our U.S.-based employees, including our senior management team, work for us on an at-will basis and there is no assurance that any such employee will remain with us.
−Removed: Further, in 2021, the labor market in the U.S.
−Removed: began experiencing a significant increase in workers leaving their positions (often referred to as the “Great Resignation”), which has made the market to replace these individuals increasingly competitive and has resulted in significant wage inflation in response to labor shortages, and may further increase the challenge of employee attraction and retention for companies like ours.
+Added: Further, in 2021 and into 2022, the labor market in the U.S.
+Added: experienced significant increases in workers leaving their positions (often referred to as the “Great Resignation”), which made the market to replace these individuals competitive and resulted in significant wage inflation in response to labor shortages.
+Added: During the Great Resignation we have faced and may continue to face increased challenges of employee attraction and retention.
Acquisitions or investments, or the failure to consummate such transactions, could disrupt our business and harm our financial condition.
1 unchanged sentence
Identifying suitable acquisition candidates can be difficult, time-consuming and costly, and we may not be able to identify suitable candidates or successfully complete identified acquisitions.
−Removed: Failure to complete an acquisition could adversely affect our business as we could be required to pay a termination fee under certain circumstances or be subject to litigation (such as the recent lawsuit filed by Republic Bank), and our stock price may also suffer as the failure to consummate such an acquisition may result in negative perception in the investment community.
+Added: Failure to complete an acquisition could adversely affect our business as we could be required to pay a termination fee under certain circumstances or be subject to litigation, and our stock price may also suffer as the failure to consummate such an acquisition may result in negative perception in the investment community.
Further, the process of integrating an acquired business, product, service or technology can involve a number of special risks and challenges, including:
15 unchanged sentences
Our net goodwill and intangible assets represent a significant portion of our consolidated assets.
−Removed: Our net goodwill and intangible assets were $455.7 million as of June 30, 2022.
+Added: Our net goodwill and intangible assets were $449.7 million as of September 30, 2022.
Under generally accepted accounting principles in the United States, or ("U.S.
17 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.