Green Dot 2010 Annual Report Download - page 37

• evaluate and maintain our system of internal control over financial reporting, and report on
management’s assessment thereof, in compliance with the requirements of Section 404 of the
Sarbanes-Oxley Act and related rules and regulations of the SEC and the Public Company
Accounting Oversight Board; and
• involve and retain outside legal counsel and accountants in connection with the activities listed
above.
The adequacy of our internal control over financial reporting must be assessed by management for
each year commencing with the year ending December 31, 2011. We have documented our internal
control over financial reporting and are in the process of documenting our compliance with these controls
on a periodic basis in accordance with Section 404 of the Sarbanes- Oxley Act. If we were unable to
implement the controls and procedures required by Section 404 in a timely manner or otherwise to comply
with Section 404, management might not be able to certify, and our independent registered public
accounting firm might not be able to report on, the adequacy of our internal control over financial reporting.
If we are unable to maintain adequate internal control over financial reporting, we might be unable to report
our financial information on a timely basis and might suffer adverse regulatory consequences or violate
NYSE listing standards. There could also be a negative reaction in the financial markets due to a loss of
investor confidence in us and the reliability of our financial statements.
The changes necessitated by becoming a public company require a significant commitment of
resources and management oversight that has increased and may continue to increase our costs and
might place a strain on our systems and resources. As a result, our management’s attention might be
diverted from other business concerns. In addition, we might not be successful in implementing and
maintaining controls and procedures that comply with these requirements. If we fail to maintain an effective
internal control environment or to comply with the numerous legal and regulatory requirements imposed
on public companies, we could make material errors in, and be required to restate, our financial state-
ments. 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.
Our future success depends on our ability to attract, integrate, retain and incentivize key
personnel.
Our future success will depend, to a significant extent, on our ability to attract, integrate, retain and
recognize key personnel, namely our management team and experienced sales, marketing and program
and systems management personnel. We must retain and motivate existing personnel, and we must also
attract, assimilate and motivate additional highly-qualified employees. We may experience difficulty
assimilating our newly-hired personnel, which may adversely affect our business. Competition for qualified
management, sales, marketing and program and systems management personnel can be intense.
Competitors have in the past and may in the future attempt to recruit our top management and employees.
If we fail to attract, integrate, retain and incentivize key personnel, our ability to manage and grow our
business could be harmed.
We might require additional capital to support our business in the future, and this capital
might not be available on acceptable terms, or at all.
If our unrestricted cash and cash equivalents balances and any cash generated from operations are
not sufficient to meet our future cash requirements, we will need to access additional capital to fund our
operations. We may also need to raise additional capital to take advantage of new business or acquisition
opportunities. We may seek to raise capital by, among other things:
• issuing additional shares of our Class A common stock or other equity securities;
• issuing debt securities; and
• borrowing funds under a credit facility.
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