Our inability to manage future growth effectively could have an adverse impact on our business,
results of operations and financial condition.
Our ability to grow will depend on our managements ability to originate and/or acquire
investor real estate loans. In order to do this, we will need to identify, hire, train, supervise and manage new employees. Any failure to effectively manage our future growth, including a failure to successfully expand our loan origination
activities could have a material and adverse effect on our business, results of operations and financial condition.
If we fail to develop, enhance
and implement strategies to adapt to changing conditions in the real estate and capital markets, our business, results of operations and financial condition may be materially and adversely affected.
The manner in which we compete and the loans for which we compete are affected by changing conditions, which can take the form of trends or sudden changes in
our industry, regulatory environment, changes in the role of government-sponsored entities, changes in the role of credit rating agencies or their rating criteria or process or the United States economy more generally. If we do not effectively
respond to these changes, or if our strategies to respond to these changes are not successful, our business, results of operations and financial condition may be materially and adversely affected.
Operational risks, including the risk of cyberattacks, could disrupt our business and materially and adversely affect our business, results of
operations and financial condition.
Our financial, accounting, communications and other data processing systems may fail to operate properly or
become disabled as a result of tampering or a breach of the network security systems or otherwise. In addition, such systems have been and may be from time to time subject to cyberattacks or other cybersecurity incidents, which may continue to
increase in sophistication and frequency in the future.
Unauthorized parties who seek to breach network security systems often intend to obtain
unauthorized access to proprietary information or personal identifying information of the targets customers, borrowers, stockholders or other business partners, destroy data or disable, degrade or sabotage our systems, including through the
introduction of computer viruses and other malicious code, network failures, computer and telecommunication failures, infiltration by unauthorized persons and security breaches, usage errors by their respective professionals or service providers.
Unauthorized parties who gain access to information and technology systems, often do so with the aim of stealing, publishing, deleting or modifying private and sensitive information. Although we take various measures to ensure the integrity of our
information and technology systems, there can be no assurance that these measures will provide protection. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or other espionage may not be
identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing it from being addressed appropriately.
Moreover, we are highly dependent on information systems and technology. Our information systems and technology may not continue to be able to accommodate our
growth, and the cost of maintaining such systems may increase from its current level. Such a failure to accommodate growth, or an increase in costs related to such information systems, could have a material adverse effect on us.
We are headquartered in Westlake Village, California, in an area known for seismic activity and prone to wildfires. An earthquake, wildfire or other disaster
or a disruption in the infrastructure that supports our business, including a disruption involving electronic communications or other services used by us or third parties with whom we conduct business, or directly affecting our headquarters, could
have a material adverse impact on our ability to continue to operate our business without interruption. Our disaster recovery programs may not be sufficient to mitigate the harm that may result from such a disaster or disruption. Insurance and other
safeguards might only partially reimburse us for our losses, if at all.
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