1030058--4/17/2008--WORLDGATE_COMMUNICATIONS

related topics

{stock, price, share}

{product, market, service}

{system, service, information}

{control, financial, internal}

{debt, indebtedness, cash}

{regulation, change, law}

{operation, international, foreign}

{acquisition, growth, future}

{capital, credit, financial}

{personnel, key, retain}

{property, intellectual, protect}

{interest, director, officer}

{customer, product, revenue}

{financial, litigation, operation}

We cannot reliably project our continued revenues, and we expect to incur significant losses for an indefinite period of time. There is substantial doubt about our company s ability to continue as a going concern. We are subject to complex and changing rules and regulations concerning corporate governance and financial accounting standards, which may affect our reported financial results or the way we conduct business, or our ability to ensure proper financial reporting and adequate internal controls. We are currently reliant primarily on one customer We are dependent on a single line of business that currently has no significant history of revenues. We cannot predict our future results because our video phone business has no significant operating history. Our video phone technology and products remain subject to significant uncertainty. We rely on third parties to provide certain components and services for our video phone products. If our vendors fail to deliver their products in a reliable, timely and cost-efficient manner, our business will suffer. We rely on third parties to provide certain marketing and distribution services for our video phone products. If our vendors fail to deliver their services in an appropriate, reliable, timely and cost-efficient manner, our business will suffer. We may not be able to meet our product development objectives or market expectations. We may not be able to achieve competitive pricing in the marketplace. We may be subject to exchange rate fluctuations that could impact our product costs and our revenues. We are highly dependent on our key personnel to manage our business, and because of competition for qualified personnel we may not be able to recruit or retain necessary personnel. We may not be successful in developing or maintaining strong distribution channels for our video phone products. We may not be able to compete successfully in the highly competitive and rapidly evolving HSD communications market. We may not be able to protect intellectual property of our video phone business against third-party infringements or claims of infringement. Legal and regulatory developments could have adverse consequences for our business. The use of the high speed data infrastructure as a commercial marketplace is at an early stage of development. We may not have sufficient working capital to fund our continuing video phone business, and we may be unable to obtain additional capital. If we obtain additional financing, you may suffer significant dilution. Our common stock is listed on the NASDAQ Over Bulletin Board which increases the volatility of our stock and makes it harder to sell our stock Our stock price is volatile. A decrease in the price of our stock may trigger significant dilution of our stock Prior offerings of our common stock may have an adverse impact on the market value of our stock. The Company s failure to comply with certain covenants contained in agreements relating to its private placement of securities may have an adverse impact on the cash available to the Company. Our board of directors right to authorize additional shares of preferred stock could adversely impact the rights of holders of our common stock.

Full 10-K form ▸

1030058--4/17/2008--WORLDGATE_COMMUNICATIONS_INC