MoneyGram 2008 Annual Report Download - page 25

Table of Contents
experience increased costs and other operating inefficiencies, which could have an adverse effect on our results of operations. The
diversion of capital and management's attention from our core business that results from opening retail locations or acquiring or opening
new businesses could adversely affect our business, financial condition and results of operations.
There are a number of risks associated with our international sales and operations that could adversely affect our business.
We provide money transfer services between and among 189 countries and territories, and our strategy is to expand our international
business. Our ability to grow in international markets and our future results could be harmed by a number of factors, including:
• changes in political and economic conditions and potential instability in certain regions;
• changes in regulatory requirements or in foreign policy, including the adoption of foreign laws detrimental to our business;
• possible increased costs and additional regulatory burdens imposed on our business due to the European Union Payment Services
Directive;
• burdens of complying with a wide variety of laws and regulations;
• possible fraud of theft losses, and lack of compliance by international representatives in foreign legal jurisdictions where collection
and legal enforcement may be difficult or costly;
• reduced protection for our intellectual property rights;
• unfavorable tax rules or trade barriers;
• inability to secure, train or monitor international agents; and
• failure to successfully manage our exposure to foreign currency exchange rates, in particular with respect to the Euro.
Unfavorable outcomes of tax positions we take could adversely affect our tax expense.
We file tax returns and take positions with respect to federal, state, local and international taxation that are subject to review and audit by
taxing authorities. An unfavorable outcome of a tax review or audit could result in higher tax expense, which could adversely affect our
results of operations and cash flows. We establish reserves for material, known tax exposures. While we believe our reserves are adequate
to cover material, known tax exposures, there can be no assurance that an actual taxation event would not exceed our reserves.
Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material
adverse effect on our business.
We are required to certify and report on our compliance with the requirements of Section 404 of the Sarbanes-Oxley Act, which requires
annual management assessments of the effectiveness of our internal control over financial reporting and a report by our independent
registered public accounting firm addressing the effectiveness of our internal control over financial reporting. If we fail to maintain the
adequacy of our internal controls, as such standards are modified, supplemented or amended from time to time, we may not be able to
ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with
Section 404. In order to achieve effective internal controls we may need to enhance our accounting systems or processes which could
increase our cost of doing business. Any failure to achieve and maintain an effective internal control environment could have a material
adverse effect on our business.
We have significant overhang of salable convertible preferred stock relative to float.
The trading market for our common stock was first established in June 2004. The float in that market now consists of approximately
82,000,000 shares out of a total of 82,540,662 shares issued and outstanding as of February 23,
22