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Many of the key responsibilities of our business have been assigned to a relatively small number of individuals. Our
future success depends to a considerable degree on the skills, experience and effort of our senior management. We may add
additional senior personnel in the future. If we lose the services of any of our key employees, it could have an adverse effect on
our business.We do not carry “keyman” insurance for any of our management executives. Competition to hire personnel possessing
the skills and experience we require could contribute to an increase in our employee turnover rate. Our business model depends
heavily on staffing our call center with highly trained personnel. High turnover or an inability to attract and retain qualified
replacement personnel could have an adverse effect on our business, financial condition, results of operations and cash flows.
We have access to personally identifiable confidential information of current and prospective customers and the improper use
of or failure to protect that information could adversely affect our business and reputation. Furthermore, any significant
security breach of our software applications or technology that contains personally identifiable confidential information of
current customers could adversely affect our business and reputation.
Our business often requires that we handle personally identifiable confidential information, the use and disclosure of
which is significantly restricted under federal and state privacy laws. As part of our normal operations, we rely on secure processing,
storage, and transmission of confidential customer information through computer software systems and networks. Our information
technology infrastructure is potentially vulnerable to security breaches, and a party able to circumvent our security measures could
misappropriate private customer information. We maintain and rely on external and internal cybersecurity solutions as part of our
internal controls that are designed to provide reasonable assurance that unauthorized access to our customer’s confidential data is
prevented or detected in a timely manner. However, although we have not had any occurrences of a breach of our cybersecurity
solutions, these internal controls may not continue to prevent unauthorized access to our software systems and networks.
In addition, our employees, vendors and business partners may have access to such confidential information. It is not
always possible to deter misconduct by our employees, vendors and business partners, and the precautions we take to prevent
disclosure of confidential information by our employees, vendors and business partners may not be effective in all cases. If our
employees, vendors or business partners improperly use or disclose such confidential information, we could be subject to legal
proceedings or regulatory sanctions.
Loss ormisappropriation of confidential information of our customersmay result in a loss of confidence in our transactions,
may greatly harm our reputation, may adversely affect or ability to maintain current or potential customer relationships, and may
have a material adverse effect on our business, financial condition and results of operations and cash flows. We maintain insurance
coverage for certain losses associated with a cybersecurity breach, but we cannot guarantee that our insurance policies will fully
protect us against all such losses and liabilities.
If the identities of structured settlement or annuity holders or of current litigants become readily available, it could have an
adverse effect on our structured settlement or annuity payment purchasing or pre-settlement funding business, financial
condition, results of operations and cash flows.
We expect to continue to build and enhance our databases of holders of structured settlements and annuities and of current
litigants through a combination of commercial and Internet advertising campaigns, social media activities and targeted marketing
efforts. If the identities of structured settlement or annuity holders or of current litigants in our databases were to become readily
available to our competitors or to the general public, including through the physical or cyber theft of our databases, we could face
increased competition and the value of our proprietary databases would be diminished, which would have a negative effect on our
structured settlement and annuity payment purchasing and pre-settlement funding businesses, financial condition, results of
operations and cash flows.
If we are unable to integrate our operational and financial information systems or expand, train, manage and motivate our
workforce, our business may be adversely affected.
The success of our business strategy depends in part on our ability to expand our operations in the future. Our growth
has placed, and will continue to place, increased demands on our information systems and other resources and further expansion
of our operations will require substantial financial resources. To accommodate our past and anticipated future growth and to
compete effectively, we will need to continue to integrate our financial information systems and expand, train, manage andmotivate
our workforce. Furthermore, focusing our financial resources on the expansion of our operations may negatively impact our
financial results. Any failure to integrate our operational and financial information systems, or to expand, train, manage or motivate
our workforce, may adversely affect our business.
Problems with the technologies and third-party technology service providers that we rely upon may diminish our ability to
manage essential business functions.
