1006195--3/15/2007--MATRIXX_INITIATIVES_INC

related topics
{product, liability, claim}
{customer, product, revenue}
{product, market, service}
{product, candidate, development}
{property, intellectual, protect}
{personnel, key, retain}
{stock, price, share}
{loss, insurance, financial}
Because a significant portion of our business depends substantially on a small group of large national retailers, our sales, operating margins and income would be adversely affected by any disruption of our relationship with these retailers, or any other material adverse change in such retailers businesses. We believe that growth in the over-the-counter healthcare products market is driven, in part, by factors beyond our control, such as media attention and adverse publicity. If the factors currently having a positive impact on this market disappear or diminish, our sales in this market may suffer. Our future growth will depend in part upon our ability to develop and achieve sales of new products. Unanticipated problems associated with product development and commercialization could adversely affect our operating results. The inability to provide scientific proof for product claims may adversely affect our sales. FDA and other government regulation may restrict our ability to sell our products. If we are unable to protect our intellectual property or if we infringe the intellectual property of others, our financial condition and future prospects could be materially harmed. We do not have manufacturing capabilities of our own. We may experience product backlogs. Loss of key personnel could have a material adverse effect on our operations and financial results. To protect against various potential liabilities, we maintain a variety of insurance programs. Significant increases in the cost or decreases in the availability of such insurance could adversely impact our financial condition. Our Board of Directors is authorized to issue shares of preferred stock that could have rights superior to our outstanding shares of common stock and, if issued, could adversely impact the value of our common stock.

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