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CLOSED · 03:10 ET
Market ClerkRecap
Sun Oct 25 · markets closed1 signal on Oct 2494 insider buys this week · $48.3MCIRO short report next: Oct 30The week ahead

CASH

PATHWARD FINANCIAL, INC.
NASDAQ · FINANCIALS · NATIONAL COMMERCIAL BANKS
77.50
+0.75 +0.98%
USD · close Oct 23
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Work order
8
FLAG · shorts 8
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $1.6BP/E 9.7DIV YIELD 0.26%FCF YIELD 42.46%REV TTM $825.8M −0.8%NET INCOME $175.8M −2.6%NET CASH $115.9M52W 66.47 – 99.93SEC XBRL · TTM TO Invalid Date

How CASH rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
77%
of sentences unchanged
Added
58
new sentences
Dropped
48
sentences removed
Length
+390
words, now 15,824

New in FY2025

  • See “Forward-Looking Statements.” Risk Factor Summary These risks and uncertainties include: Risks Related to Our Industry and Business • Our framework for managing risk, including our underwriting practices, may not prevent future losses. • We are subject to credit risk in connection with our lending and leasing activities, and our financial condition and results of operations may be negatively impacted by factors that adversely affect our borrowers. • If our actual credit losses exceed our allowance for credit losses, our net income will decrease. • Our earnings are significantly affected by general business, political and economic conditions. • Adverse developments or concerns affecting the financial services industry or specific financial institutions could adversely affect our financial condition and results of operations. • Ineffective liquidity management could adversely affect our financial condition and results of operation. • Our investments in certain tax-advantaged projects may not generate anticipated returns, causing an adverse impact on our results of operations. • The residual value of leased equipment at the time of its disposition may be less than forecasted at the time we entered into the lease. • Changes in interest rates could adversely affect our results of operations and financial condition. • We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively. • Our business could suffer if consumer behaviors, or other factors, in connection with the use of prepaid cards change, or there are adverse developments with respect to the prepaid financial services industry in general. • Our operations depend upon third-party relationships; our ability to maintain such relationships and such third parties' performances could adversely affect our business. • We derive a significant percentage of our deposits, total assets and income from deposit accounts that we generate through Payments' customer relationships, of which a limited number of program manager relationships are particularly significant to our operations. • We are exposed to fraud losses from customer accounts. • We are exposed to settlement and other losses from payments customers. • Our business strategy includes plans for organic growth, and our financial condition and results of operation could be adversely affected if we fail to grow or fail to manage our growth effectively. • Acquisitions and other strategic transactions, or the failure to consummate such transactions, could disrupt our business and harm our financial condition and may not yield the intended benefits. • New lines of business or new products and services may subject us to additional risks. • An impairment charge of goodwill or other intangibles could have a material adverse impact on our financial condition and results of operations. • We may incur losses due to fraudulent and negligent acts, as well as errors, by third parties or our employees. • Security breaches involving us, the Bank or any third parties with which we do business could expose us to liability and litigation, adversely affecting our reputation and operating revenues. • Failure to comply satisfactorily with certain privacy and data protection laws, regulations, and standards to which we are subject could adversely affect our reputation and operating revenues. • Our reputation and financial condition may be harmed by system failures, computer viruses and other technological interruptions to our operations. • Agency, technological, or human error could lead to tax refund processing delays, which could adversely affect our reputation and operating revenues. • The Commercial Finance business line generates government-backed loans funded by the Bank, any of which could be negatively impacted by a variety of factors. • Agreements between the Bank and third parties to market and service Bank-originated consumer loans may subject the Bank to credit, fraud and other risks, as well as claims from regulatory agencies and third parties that, if successful, could negatively impact the Bank's current and future business. • The OCC's grant of bank charters to fintech companies and special purpose fintech charter could present a market risk to us generally and the Partner Solutions business line specifically. • The loss or transition of key members of our senior management team or key employees in the Bank's divisions, or our inability to attract and retain qualified personnel, could adversely affect our business. • We regularly assess our investments in technology, and failure to effectively implement technology initiatives or anticipate future technology needs or demands could adversely affect our business or financial results. • Our ability to receive dividends from the Bank could affect our liquidity and ability to pay dividends on our common stock, interest on our trust preferred securities and principal on our debt. • Unclaimed funds represented by unused value on the cards presents compliance and other risks. • We have identified a material weakness in our internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective as of September 30, 2025.
  • Failure to remediate this material weakness or otherwise to maintain an effective system of internal control and effective disclosure controls and procedures could have a material adverse effect on our results of operations and financial condition.
  • Risks Related to Regulation of the Company and the Bank • We operate in a highly regulated environment, and our failure to comply with laws and regulations, or changes in laws and regulations to which we are subject, may adversely affect our business, prospects, results of operations and financial condition. • The Bureau's rulemaking and enforcement of prohibitions against unfair, deceptive or abusive practices have directly impacted, and may continue to impact, the Bank's consumer financial products and service offerings. • Regulatory scrutiny of bank provision of partner solutions and related technology considerations has increased. • Increased scrutiny and evolving expectations from stakeholders with respect to sustainability practices may impose additional costs on us or expose us to new or additional risks. • We will be subject to heightened regulatory requirements if our total assets exceed $10 billion as of December 31 of any calendar year. • We will become subject to reduced interchange income and could face related adverse business consequences if our total assets exceed $10 billion as of December 31 of any calendar year. • Any change in the Bank's ability to gather brokered deposits may adversely impact the Bank. • As a BHC, we are required to serve as a "source of strength" for the Bank. • If we fail to maintain sufficient capital, our financial condition, liquidity, results of operations, and compliance with regulatory requirements would be adversely affected. • Changes in federal, state, and local tax laws, interpretations of existing tax laws, or adverse determinations by tax authorities, could increase our tax burden or otherwise have a material adverse effect on our business, financial condition, and results of operations.
  • General Risk Factors • The price of our common stock may be volatile, which may result in losses for investors. • An investment in our common stock is not an insured deposit. • Future sales or additional issuances of our capital stock may depress prices of shares of our common stock or otherwise dilute the book value of shares then outstanding. • Changes in accounting policies or accounting standards, or changes in how accounting standards are interpreted or applied, could materially affect how we report our financial results and condition. • Federal regulations and our organizational documents may inhibit a takeover, prevent a transaction you favor or limit our growth opportunities, causing the market price of our common stock to decline. • We may not be able to pay dividends in the future in accordance with past practice. • Catastrophic events could negatively impact our operations, the operations of third parties with which we do business, and the communities in which we do business. • Legal challenges to and regulatory investigations of our, or the Bank's, operations could have a significant material adverse effect on us. • Our reputation and business could be damaged by negative publicity. • Existing insurance policies may not adequately protect us and our subsidiaries.
  • Many borrowers have been negatively impacted by recent events impacting financial, real estate, and securities markets, including geopolitical turmoil, higher interest rates, inflation, tariffs, and other events that have caused market and economic volatility, and may continue to be similarly or more severely affected in the future.
  • A deterioration in business, political or economic conditions, including those arising from government shutdowns or defaults, geopolitical turmoil and war, increases in unemployment, or pandemics, could result in an increase in loan delinquencies and nonperforming assets, decreases in loan collateral values, and a decrease in demand for our products and services, among other things, any of which could have a material adverse impact on our financial condition and results of operations.
  • Additionally, an unpredictable or volatile political environment in the United States, including any social unrest, could negatively impact business and market conditions, economic growth, financial stability, and business, consumer, investor, and regulatory sentiments, any one or more of which could have a material adverse impact on our financial condition and results of operations.
  • It is difficult to predict the legislative, executive and regulatory changes that will result from the current Congress and Presidential Administration, which may cause broader economic changes due to various changes in the federal government's approach to regulation and administration.
  • Future legislation, regulation and changes in policy, as well as changes in the way in which existing statutes and regulations are interpreted or applied by courts and government agencies, could affect the economy and banking industry, including our business and results of operations, in ways that are difficult to predict.
  • See also "If our actual loan and lease losses exceed our allowance for credit losses, our net income will decrease." The electronic payments industry, including the prepaid financial services segment within that industry in which the Partner Solutions business line operates, could vary depending upon the overall level of consumer spending, which may decrease if economic or political conditions in the United States deteriorate and result in a reduction of the number of our prepaid accounts that are purchased or reloaded, the number of transactions involving our cards and the use of our reloadable card products and related services.
  • While our deposit base primarily consists of millions of retail cards and other small dollar accounts with an average balance less than $1,000 and we maintain a liquidity position with numerous funding options available totaling over $2.0 billion as of September 30, 2025, we cannot be assured that unusual deposit withdrawal activity will not affect banks generally in the future or us in particular.
  • In September 2024, the Federal Reserve began lowering the target range for the federal funds rate, which is now at a target range of 3.75% to 4.00%.
  • Several banking institutions have adopted business strategies similar to ours, particularly with respect to the Partner Solutions business.
  • In addition, if any of our counterparties are unable to or otherwise does not fulfill (or does not timely fulfill) its obligations to us for any reason (including, but not limited to, bankruptcy, computer or other technological interruptions or failures, personnel loss, negative regulatory actions, or acts of God) or engages in fraud or other misconduct during the course of such relationship, we may need to seek alternative third party service providers, or discontinue certain products or programs in their entirety.
  • At September 30, 2025, we had assets subject to settlement risk of $267.3 million.
  • See “Funding Activities – Deposits” for further breakdown of balances as of September 30, 2025.
  • We believe that our future organic growth will depend on competitive factors and on the ability of our senior management to maintain a robust system of internal controls and procedures and manage a growing number of customer relationships.
  • See "We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively." We may not be able to implement changes or improvements to these internal controls and procedures in an efficient or timely manner and have, and may in the future, discover deficiencies in existing systems and controls.
  • In the wake of the repeal of the True Lender Rule, several states announced their intention to broaden oversight of non-bank fintech lenders, and several states have adopted legislation and guidance regarding "true lenders." Additionally, certain parties have initiated litigation in order to obtain court guidance on how particular jurisdictions may weigh loan program facts and rule on “true lender” challenges.
  • In addition, the Bureau and the Federal Trade Commission previously announced their intention to explore their authority to supervise nonbank lending partnerships in markets for consumer financial products and services.
  • While the OCC has not granted any SPNB charters as of the date of this filing, it has granted national bank charters to companies that were previously non-bank fintech companies and approved the acquisition of national bank charters by fintech companies.
  • If, in the future, the OCC determines to grant any SPNB applications or continues to grant bank charters to fintech applicants, recipients of such charters may enter the U.S. payments market, banking as a service ("BaaS") solutions market, and other business lines in which the Bank operates, which could increase the competition we face and have a material adverse effect on the Bank and the Partner Solutions business line.
  • We regularly assess our investments in technology, and failure to effectively implement technology initiatives or anticipate future technology needs or demands could adversely affect our business or financial results.
  • The banking and financial services industry continually experiences technological changes, with frequent introductions of new technology-driven products and services, including recent and rapid developments in artificial intelligence ("AI"), including agentic AI.
  • Our success depends, in part, upon our ability to address the needs of our clients by using technology to provide products and services that will satisfy client demands for convenience, as well as to create operational efficiencies, including through AI capabilities.
  • There are risks in effectively implementing and marketing new technology-driven products and services.
  • Upgrades and integration may cause service interruptions, transaction errors, and delays, and could cause us to fail to comply with applicable laws.
  • There can be no assurance that we will be able to successfully manage the risks associated with our increased dependency on technology.
  • Failure to successfully keep pace with technological change affecting the banking and financial services industry could negatively affect our revenue and profitability.
  • The use of AI models developed by third parties introduces risks related to how those models are developed, trained, and deployed, including unauthorized material in training data and limited visibility into risk mitigation steps.
  • The legal and regulatory environment for AI is uncertain and rapidly evolving, both in the United States and internationally, potentially increasing compliance costs and risk of non-compliance.
  • We are also exposed to the risk that generative AI models may produce incorrect outputs, release confidential information, reflect biases, infringe intellectual property, or otherwise cause harm.
  • Their complexity makes it challenging to understand outputs and comply with documentation or explanation requirements.
  • Any of these risks could expose us to liability or adverse legal or regulatory consequences and harm our business or financial results.
  • We have identified a material weakness in our internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective as of September 30, 2025.
  • The rules governing the standards that must be met for management to determine the adequacy of our internal control over financial reporting are complex and require significant documentation, testing, and possible remediation if a deficiency is identified.
  • If we fail to maintain the adequacy of our internal control over financial reporting, we will not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act.
  • Our management concluded that there was a material weakness in internal control over financial reporting for the year ended September 30, 2025.
  • The material weakness related to our gross vs. net basis presentation and derivative accounting, and financial reporting, of certain third-party lending and servicing relationships within the Consumer Solutions business, within held-for-investment loan balances as described in Note 1.
  • Summary of Significant Accounting Policies in this Annual Report on Form 10-K for the year ended September 30, 2025.

and 18 more.

Gone since FY2024

  • See “Forward-Looking Statements.” Risk Factor Summary These risks and uncertainties include: Risks Related to Our Industry and Business • Our framework for managing risk, including our underwriting practices, may not prevent future losses. • We are subject to credit risk in connection with our lending and leasing activities, and our financial condition and results of operations may be negatively impacted by factors that adversely affect our borrowers. • If our actual credit losses exceed our allowance for credit losses, our net income will decrease. • Our earnings are significantly affected by general business, political and economic conditions. • Adverse developments or concerns affecting the financial services industry or specific financial institutions could adversely affect our financial condition and results of operations. • Ineffective liquidity management could adversely affect our financial condition and results of operation. • Our investments in certain tax-advantaged projects may not generate anticipated returns, causing an adverse impact on our results of operations. • The residual value of leased equipment at the time of its disposition may be less than forecasted at the time we entered into the lease. • Changes in interest rates could adversely affect our results of operations and financial condition. • We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively. • Our business could suffer if consumer behaviors, or other factors, in connection with the use of prepaid cards change, or there are adverse developments with respect to the prepaid financial services industry in general. • Our operations depend upon third-party relationships; our ability to maintain such relationships and such third parties' performances could adversely affect our business. • We derive a significant percentage of our deposits, total assets and income from deposit accounts that we generate through Payments' customer relationships, of which a limited number of program manager relationships are particularly significant to our operations. • We are exposed to fraud losses from customer accounts. • We are exposed to settlement and other losses from payments customers. • Our business strategy includes plans for organic growth, and our financial condition and results of operation could be adversely affected if we fail to grow or fail to manage our growth effectively. • Acquisitions and other strategic transactions, or the failure to consummate such transactions, could disrupt our business and harm our financial condition and may not yield the intended benefits. • New lines of business or new products and services may subject us to additional risks. • An impairment charge of goodwill or other intangibles could have a material adverse impact on our financial condition and results of operations. • We may incur losses due to fraudulent and negligent acts, as well as errors, by third parties or our employees. • Security breaches involving us, the Bank or any third parties with which we do business could expose us to liability and litigation, adversely affecting our reputation and operating revenues. • Failure to comply satisfactorily with certain privacy and data protection laws, regulations, and standards to which we are subject could adversely affect our reputation and operating revenues. • Our reputation and financial condition may be harmed by system failures, computer viruses and other technological interruptions to our operations. • Agency, technological, or human error could lead to tax refund processing delays, which could adversely affect our reputation and operating revenues. • The Commercial Finance business line generates government-backed loans funded by the Bank, any of which could be negatively impacted by a variety of factors. • Agreements between the Bank and third parties to market and service Bank-originated consumer loans may subject the Bank to credit, fraud and other risks, as well as claims from regulatory agencies and third parties that, if successful, could negatively impact the Bank's current and future business. • The OCC's grant of bank charters to fintech companies and special purpose fintech charter could present a market risk to us generally and the Partner Solutions business line specifically. • The loss or transition of key members of our senior management team or key employees in the Bank's divisions, or our inability to attract and retain qualified personnel, could adversely affect our business. • We regularly assess our investments in technology, and changes in technology could be costly. • Our ability to receive dividends from the Bank could affect our liquidity and ability to pay dividends on our common stock, interest on our trust preferred securities and principal on our debt. • Unclaimed funds represented by unused value on the cards presents compliance and other risks.
  • Risks Related to Regulation of the Company and the Bank • We operate in a highly regulated environment, and our failure to comply with laws and regulations, or changes in laws and regulations to which we are subject, may adversely affect our business, prospects, results of operations and financial condition. • The Bureau's rulemaking and enforcement of prohibitions against unfair, deceptive or abusive practices have directly impacted, and may continue to impact, the Bank's consumer financial products and service offerings. • Regulatory scrutiny of bank provision of partner solutions and related technology considerations has increased. • Increased scrutiny and evolving expectations from stakeholders with respect to ESG practices may impose additional costs on us or expose us to new or additional risks. • We will be subject to heightened regulatory requirements if our total assets exceed $10 billion as of December 31 of any calendar year. • We will become subject to reduced interchange income and could face related adverse business consequences if our total assets exceed $10 billion as of December 31 of any calendar year. • Any change in the Bank's ability to gather brokered deposits may adversely impact the Bank. • As a BHC, we are required to serve as a "source of strength" for the Bank. • If we fail to maintain sufficient capital, our financial condition, liquidity, results of operations, and compliance with regulatory requirements would be adversely affected. • Changes in federal, state, and local tax laws, interpretations of existing tax laws, or adverse determinations by tax authorities, could increase our tax burden or otherwise have a material adverse effect on our business, financial condition, and results of operations.
  • General Risk Factors • The price of our common stock may be volatile, which may result in losses for investors. • An investment in our common stock is not an insured deposit. • Future sales or additional issuances of our capital stock may depress prices of shares of our common stock or otherwise dilute the book value of shares then outstanding. • Changes in accounting policies or accounting standards, or changes in how accounting standards are interpreted or applied, could materially affect how we report our financial results and condition. • If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, our ability to operate our business and our reputation. • Federal regulations and our organizational documents may inhibit a takeover, prevent a transaction you favor or limit our growth opportunities, causing the market price of our common stock to decline. • We may not be able to pay dividends in the future in accordance with past practice. • Catastrophic events could negatively impact our operations, the operations of third parties with which we do business, and the communities in which we do business. • Legal challenges to and regulatory investigations of our, or the Bank's, operations could have a significant material adverse effect on us. • Our reputation and business could be damaged by negative publicity. • Existing insurance policies may not adequately protect us and our subsidiaries.
  • Many borrowers have been negatively impacted by recent events impacting financial, real estate, and securities markets, including geopolitical turmoil, higher interest rates, inflation, adverse developments in the financial services industry, and other events that have caused market and economic volatility, and may continue to be similarly or more severely affected in the future.
  • A deterioration in business, political or economic conditions, including those arising from pandemics, geopolitical turmoil and war, government shutdowns or defaults, or increases in unemployment, could result in an increase in loan delinquencies and nonperforming assets, decreases in loan collateral values, and a decrease in demand for our products and services, among other things, any of which could have a material adverse impact on our financial condition and results of operations.
  • Additionally, an unpredictable or volatile political environment in the United States, including any social unrest and uncertainty as a result of the 2024 U.S. presidential election, could negatively impact business and market conditions, economic growth, financial stability, and business, consumer, investor, and regulatory sentiments, any one or more of which could have a material adverse impact on our financial condition and results of operations.
  • It is difficult to predict the legislative and regulatory changes that may result due to the upcoming presidential election.
  • A new administration, or a change in the make-up of either the Senate and/or House of Representatives may cause broader economic changes due to changes in governing ideology and style.
  • See also "If our actual loan and lease losses exceed our allowance for credit losses, our net income will decrease." The electronic payments industry, including the prepaid financial services segment within that industry in which the Partner Solutions business line operates, depends heavily upon the overall level of consumer spending, which may decrease if economic or political conditions in the United States deteriorate and result in a reduction of the number of our prepaid accounts that are purchased or reloaded, the number of transactions involving our cards and the use of our reloadable card products and related services.
  • While our deposit base primarily consists of millions of retail cards and other small dollar accounts with an average balance less than $1,000 and we maintain a liquidity position with numerous funding options available totaling over $2.0 billion as of September 30, 2024, we cannot be assured that unusual deposit withdrawal activity will not affect banks generally in the future or us in particular.
  • In September 2024 and November 2024, the Federal Reserve lowered the target range for the federal funds rate to its current range of 4.50% to 4.75% in light of the progress on inflation.
  • Several banking institutions have adopted business strategies similar to ours, particularly with respect to the banking-as-a-service ("BaaS") business.
  • In addition, if any of our counterparties is unable to or otherwise does not fulfill (or does not timely fulfill) its obligations to us for any reason (including, but not limited to, bankruptcy, computer or other technological interruptions or failures, personnel loss, negative regulatory actions, or acts of God) or engages in fraud or other misconduct during the course of such relationship, we may need to seek alternative third party service providers, or discontinue certain products or programs in their entirety.
  • At September 30, 2024, we had assets subject to settlement risk of $365.9 million.
  • See “Funding Activities – Deposits” for further breakdown of balances as of September 30, 2024.
  • We believe that our future organic growth will depend on competitive factors and on the ability of our senior management to continue to maintain a robust system of internal controls and procedures and manage a growing number of customer relationships.
  • See "We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively." We may not be able to implement changes or improvements to these internal controls and procedures in an efficient or timely manner and may discover deficiencies in existing systems and controls.
  • In the wake of the repeal of the True Lender Rule, several states have announced their intention to broaden oversight of non-bank fintech lenders, and several states have adopted legislation and guidance regarding "true lenders." Additionally, certain parties have initiated litigation in order to obtain court guidance on how particular jurisdictions may weigh loan program facts and rule on “true lender” challenges.
  • In addition, the Consumer Financial Protection Bureau and the Federal Trade Commission have each announced their intention to explore their authority to supervise nonbank lending partnerships in markets for consumer financial products and services.
  • While the OCC has not granted any SPNB charters as of the date of this filing, it has granted national bank charters to companies that were previously non-bank fintech companies.
  • If, in the future, the OCC determines to grant any SPNB applications or continues to grant bank charters to fintech applicants, recipients of such charters may enter the U.S. payments market, BaaS solutions market, and other business lines in which the Bank operates, which could increase the competition we face and have a material adverse effect on the Bank and the Partner Solutions business line.
  • We regularly assess our investments in technology, and changes in technology could be costly.
  • We provide products and services to third parties through issuing, acquiring, digital payments, financial institution solutions, credit solutions, and professional tax solutions.
  • Increased scrutiny and evolving expectations from stakeholders with respect to ESG practices may impose additional costs on us or expose us to new or additional risks.
  • As a regulated financial institution and a publicly traded company, we are facing increasing scrutiny from customers, regulators, investors, and other stakeholders related to ESG practices and disclosure.
  • Investor advocacy groups, investment funds, and influential investors are increasingly focused on these practices, especially as they relate to climate risk, hiring practices, diversity, health and safety and human rights.
  • Failure to adapt to or comply with regulatory requirements or investor or stakeholder expectations and standards could negatively impact the Company’s reputation, ability to do business with certain partners, and stock price.
  • Both recently adopted and pending government regulations will result in new or more stringent forms of ESG oversight and expanding mandatory and voluntary reporting, diligence, and disclosure.
  • Additionally, ongoing legislative or regulatory uncertainties and changes regarding ESG, including climate risk, management and practices may result in higher compliance, credit and reputational risks and costs.
  • To the extent that we or our customers experience increases in costs, including with respect to compliance with any additional regulatory or disclosure requirements or expectations, reductions in the value of assets, constraints on operations or similar concerns driven by changes in ESG oversight and regulation, our results of operations, financial condition, and business could be adversely affected.
  • As of September 30, 2024, our total assets were $7.55 billion.
  • On July 30, 2024, the FDIC released a notice of proposed rulemaking to revise its regulations regarding brokered deposits, which would significantly change the FDIC’s current approach to brokered deposits.
  • If the FDIC adopts these amendments as proposed, it could have an adverse impact on the Bank’s ability to accept brokered deposits.
  • We have continued to experience considerable growth recently, having increased our assets from $2.53 billion at September 30, 2015 to $7.55 billion at September 30, 2024, primarily due to strategic transactions, such as the Crestmark Acquisition, through participation in government stimulus programs such as the EIP, and through organic growth.
  • As of September 30, 2024, we were authorized to issue up to 90,000,000 shares of common stock, of which 24,847,353 shares were outstanding, and 3,769 shares were held as treasury stock.
  • If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired, which could harm our operating results, our ability to operate our business and our reputation.
  • We incur significant costs and demands upon management and accounting and finance resources as a result of complying with the laws and regulations affecting public companies.
  • Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that needs to be re-evaluated frequently.
  • We have historically dedicated a significant amount of time and resources to implement our internal financial and accounting controls and procedures.
  • Substantial work may continue to be required to further implement, document, assess, test, and, if necessary, remediate our system of internal controls.

and 8 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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