Green Dot 2011 Annual Report Download - page 33

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property rights of third parties. Our future success will depend, in part, on our ability to develop new technologies and
adapt to technological changes and evolving industry standards. These initiatives are inherently risky, and they may
not be successful or may have an adverse effect on our business, financial condition and results of operations.
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. Replacing departing key personnel can involve organizational disruption and uncertainty, as we experienced
in connection with replacing Mark T. Troughton, our former President, Cards and Network, following his resignation in
January 2012. We must retain and motivate existing personnel, and we must also attract, assimilate and motivate
additional highly-qualified employees. We may experience difficulty in managing transitions and 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.
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.
If we fail to maintain proper and effective internal controls, our ability to produce accurate financial
statements on a timely basis could be impaired, which could result in a loss of investor confidence in our
financial reports and have an adverse effect on our stock price.
Our management is responsible for establishing and maintaining adequate internal control over financial reporting
to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial
statements for external purposes in accordance with U.S. generally accepted accounting principles. 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. We may in the future discover areas of our internal financial and accounting controls and
procedures that need improvement. Our internal control over financial reporting will not prevent or detect all error and
all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute,