Insurance premiums have increased significantly in the past and may increase in the future because of market conditions in the insurance business generally, conditions in the child care industry more particularly or KLC's situation specifically. KLC cannot be certain of the cost or coverage it will obtain with replacements of existing policies, which will depend on the factors described above. 6.1.16 Factors beyond the Company’s control, such as economic conditions, may adversely affect the demand for child care services Demand for child care services is subject to fluctuations in general econemic conditions, and the Company's revenues depend, in part, on the number of working mothers and working single parents who require child care services. Recessionary pressure on the economy, and a consequent reduction in the general labor force, may adversely impact the Company because out-of-work parents tend to stop using child care services. In addition, certain demographic trends which are favorable to the Company's business, including the increasing percentage of mothers in the workforce and the growth in population of children of the age needing child care, as well as trends in the preference of working parents and employers for center based child care, may not continue. Other factors beyond the Company's control could adversely affect demand, such as terrorism, natural disasters and epidemics. Children attending KLC’s facilities are generally enrolled on a weekly basis. Accordingly, any change in economic conditions or other external factors affecting demand will impact us more quickly than businesses with longer contractual periods. 6.1.17 Aloss or reduction of government funding for child care assistance programs or food reimbursement programs could adversely affect KLC Federal and state child care assistance programs accounted for approximately 20% of KLC's revenues during the one year period ended December 31, 2005. These funds are primarily from the Child Care and