Green Dot 2010 Annual Report Download - page 38

We may not be able to raise needed cash in a timely basis on terms acceptable to us or at all.
Financings, if available, may be on terms that are dilutive or potentially dilutive to our stockholders. The
holders of new securities may also receive rights, preferences or privileges that are senior to those of
existing holders of our Class A common stock. In addition, if we were to raise cash through a debt
financing, the terms of the financing might impose additional conditions or restrictions on our operations
that could adversely affect our business. If we require new sources of financing but they are insufficient or
unavailable, we would be required to modify our operating plans to take into account the limitations of
available funding, which would harm our ability to maintain or grow our business.
The occurrence of catastrophic events could damage our facilities or the facilities of third
parties on which we depend, which could force us to curtail our operations.
We and some of the third-party service providers on which we depend for various support functions,
such as customer service and card processing, are vulnerable to damage from catastrophic events, such
as power loss, natural disasters, terrorism and similar unforeseen events beyond our control. Our principal
offices, for example, are situated in the foothills of southern California near known earthquake fault zones
and areas of elevated wild fire danger. If any catastrophic event were to occur, our ability to operate our
business could be seriously impaired, as we do not maintain redundant systems for critical business
functions, such as finance and accounting. In addition, we might not have adequate insurance to cover our
losses resulting from catastrophic events or other significant business interruptions. Any significant losses
that are not recoverable under our insurance policies, as well as the damage to, or interruption of, our
infrastructure and processes, could seriously impair our business and financial condition.
Risks Related to Ownership of Our Class A Common Stock
The price of our Class A common stock may be volatile.
In the recent past, stocks generally, and financial services company stocks in particular, have
experienced high levels of volatility. The trading price of our Class A common stock may fluctuate
substantially. The trading price of our Class A common stock depends on a number of factors, including
those described in this “Risk Factors” section, many of which are beyond our control and may not be
related to our operating performance. Factors that could cause fluctuations in the trading price of our
Class A common stock include the following:
• price and volume fluctuations in the overall stock market from time to time;
• significant volatility in the market prices and trading volumes of financial services company stocks;
• actual or anticipated changes in our results of operations or fluctuations in our operating results;
• actual or anticipated changes in the expectations of investors or the recommendations of any
securities analysts who follow our Class A common stock;
• actual or anticipated developments in our business or our competitors’ businesses or the com-
petitive landscape generally;
• the public’s reaction to our press releases, other public announcements and filings with the SEC;
• litigation involving us, our industry or both or investigations by regulators into our operations or those
of our competitors;
• new laws or regulations or new interpretations of existing laws or regulations applicable to our
business;
• changes in accounting standards, policies, guidelines, interpretations or principles;
• general economic conditions; and
• sales of shares of our Class A common stock by us or our stockholders.
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