Company: NEWTP
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001587987-25-000050
Chunk: 127

Company: NewtekOne, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 1A
Chunk 127
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Any public health emergency, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on us and the fair value of our investments, our subsidiaries and our clients. 

•Economic recessions or downturns could impair our clients and our operating results.

•Inflation may adversely affect our business, operating results and financial condition.

•Terrorist attacks, acts of war, global health emergencies or natural disasters may impact the businesses in which we lend to and/or operate, and harm our business, operating results and financial condition.

•If we cannot obtain additional capital because of either regulatory or market price constraints, we could be forced to curtail or cease our new lending activities and the value of our loan portfolio value could decrease and our level of liquidity and distributions could be affected adversely.

Risks Related to Our Business and Structure 

•We are dependent upon our Senior Lending Team and our executive officers for our future success, and if we are unable to hire and retain qualified personnel or if we lose any member of our Senior Lending Team or our executive officers our ability to execute on our business plan could be significantly harmed.

•We could be adversely affected by the soundness of other financial institutions.

•We operate in a highly competitive market for clients, which could reduce returns and result in losses.

•If we are unable to acquire and process clients effectively, we may be unable to achieve our business objectives.

•Our business may be adversely affected if our risk management framework does not effectively identify, assess and mitigate risk.

•Indebtedness could adversely affect our business and financial results. 

•We may expose ourselves to risks as we engage in hedging transactions.

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•An inability to maintain adequate liquidity could jeopardize our business and financial condition.

•Our acquisitions and other strategic transactions, including the acquisition of Newtek Bank, may not yield the intended benefits.

•Internal control deficiencies could impact the accuracy of our financial results or prevent the detection of fraud. As a result, shareholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock. 

•During 2023 and 2024, we identified and remediated material weaknesses in our internal controls over financial reporting which, if not remediated, could have adversely affected our ability to report our financial condition and results of operations in a timely and accurate manner, investor confidence in our Company and, as a result the value of our common stock.

•Our business is subject