Item 1A. Risk Factors
ITEM 1A. Risk Factors
Information regarding our risk factors appears in Item 1A. of our 2022 Form 10-K for the year ended December 31, 2022. These risk factors describe some of the assumptions, risks, uncertainties and other factors that could adversely affect our business or that could otherwise result in changes that differ materially from our expectations. In addition, the following amends our discussion of risk factors contained our 2022 Form 10-K for the year ended December 31, 2022:
Adverse developments and instability in financial institutions and markets may adversely impact our business and financial condition.
The global macroeconomic environment could be negatively affected by, among other things, disruptions to the banking system and financial market volatility resulting from recent bank failures and actions to reduce inflation. The Company utilizes and typically maintains material balances of cash and cash equivalents and is therefore reliant on banks and financial institutions to safeguard and allow ready access to these assets. The Company has approximately $232.2 million in cash and cash equivalents including restricted cash as of September 30, 2023 held by various significant, well-capitalized financial institutions.
We maintain cash and cash equivalents at banks and third-party financial institutions in excess of Federal Deposit Insurance Corporation insurance limits. Accordingly, the failure of a bank, or other adverse conditions in the financial markets, impacting the institutions or counterparties with which the Company, or its customers or vendors, maintain deposits or financing activities, could impact our timely access to liquid assets or its financial performance. There are no assurances or guarantees that deposits greater than the Federal Deposit Insurance Corporation limits will be protected by the U.S. government or that any bank, government or financial institution will be able to obtain the needed liquidity in the event of a failure or similar crisis. If financial institutions are unable to provide timely access to deposits and funds, the Company may be required to seek additional financing which may not be available. As a result of uncertainty in the broader financial markets, there may be additional impacts to our business that cannot be predicted at this time.
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