−Removed: Except as set for below there have been no material changes in our risk factors from those previously disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022.
−Removed: RISKS RELATING TO OUR NEW BUSINESS
+Added: Except as set forth below there have been no material changes in our risk factors from those previously disclosed in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022.
+Added: RISKS RELATING TO OUR BUSINESS
Our new lending business has limited history.
−Removed: Our Non-Bank Lending business (our “Lending Business”) is recently formed and has no operating history and has generated no revenues.
+Added: Our Non-Bank Lending business (our “Lending Business”) is recently formed and has no operating history and has generated no revenues through September 30, 2023.
This lack of operating history makes it difficult to evaluate our future prospects and the risks and challenges we may encounter.
−Removed: There is no assurance that we can generate revenues in the non-bank lending marketplace, and even if revenues are generated there is no assurance that we can earn a profit from this new business.
−Removed: Because our Lending Business’s business activities are in a very early stage, we can neither predict all potential risks nor assess the potential effects of those risks on our Lending Business’s business, operating results, and financial condition or how much any factor, or combination of factors, could have an adverse effect on our business, results of operations and financial condition.
+Added: There is no assurance that we can generate significant revenues in the non-bank lending marketplace, and even if revenues are generated there is no assurance that we can earn a profit from this new business.
+Added: Because our Lending Business’s activities are in a very early stage, we can neither predict all potential risks nor assess the potential effects of those risks on our Lending Business’s, operating results, and financial condition or how much any factor, or combination of factors, could have an adverse effect on our business, results of operations and financial condition.
Non-bank lending involves a substantial risk of loss.
Our Lending Business intends to assume the ultimate credit risk of borrower defaults on its future planned loan assets, and our Lending Business’s earnings, which come from net interest income and fees on those assets, depend significantly on their performance.
−Removed: Widespread and sustained repayment shortfalls on loans in Our Lending Business’s portfolio could result in losses, particularly if the value of the available collateral does not cover Our Lending Business’s exposure, and could materially and adversely affect Our Lending Business’s business, operations, operating results, financial condition, liquidity, or capital levels.
−Removed: RISKS RELATED TO ECONOMY AND MARKET CONDITIONS
+Added: Widespread and sustained repayment shortfalls on loans in our Lending Business’s portfolio could result in losses, particularly if the value of the available collateral does not cover our Lending Business’s exposure, and could materially and adversely affect our Lending Business’s, operations, operating results, financial condition, liquidity, or capital levels.
+Added: RISKS RELATING TO ECONOMY AND MARKET CONDITIONS
Market conditions may restrict or delay desirable non-bank lending opportunities.
−Removed: Our Lending Business’s business, operating results, financial condition, and capital levels may be materially and adversely affected by external factors that may affect the price or marketability of our Lending Business’s planned products and services or our Lending Business’s ability to offer its products and services, including, but not limited to:
+Added: Our Lending Business’s operating results, financial condition, and capital levels may be materially and adversely affected by external factors that may affect the price or marketability of our Lending Business’s planned products and services or our Lending Business’s ability to offer its products and services, including, but not limited to:
disruptions in the debt or equity capital markets;
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OPERATIONAL RISKS
−Removed: Our non-bank lending business and related operations require development of new processes and controls.
+Added: Our Lending Business and related operations require development of new processes and controls.
Our Lending Business is exposed to operational risk due to the complex nature of its planned business operations and the processes and systems used to undertake its business activities and comply with regulatory requirements.
5 unchanged sentences
external events, including a disruption involving physical site access, cyber incidents, catastrophic events, natural disasters, terrorist activities, or disease pandemics.
−Removed: Any of the foregoing could have an adverse effect on our ability to conduct our non-bank lending business, and our results of operations and financial condition.
−Removed: The success of our non-bank lending business initially will depend on one or a small number of employees.
+Added: Any of the foregoing could have an adverse effect on our ability to conduct our Lending Business, and our results of operations and financial condition.
+Added: The success of our Lending Business initially will depend on one or a small number of employees.
Our Lending Business will rely on its employee’s breadth and depth of knowledge of lending businesses and related industries to run its planned business operations successfully.
−Removed: If our Lending Business cannot retain and attract motivated and qualified employees or does not have adequate human capital to achieve its business objectives, our Lending Business’s business performance, operations, financial condition, or reputation could be materially adversely affected.
−Removed: Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities
−Removed: Defaults upon Senior Securities
−Removed: Mine Safety Disclosures
−Removed: Not applicable.
+Added: If our Lending Business cannot retain and attract motivated and qualified employees or does not have adequate human capital to achieve its business objectives, our Lending Business’s performance, operations, financial condition, or reputation could be materially adversely affected.
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.