1038133--3/31/2006--HESKA

related topics

{product, candidate, development}

{regulation, change, law}

{stock, price, share}

{customer, product, revenue}

{product, liability, claim}

{product, market, service}

{personnel, key, retain}

{acquisition, growth, future}

{cost, regulation, environmental}

{property, intellectual, protect}

{debt, indebtedness, cash}

{stock, price, operating}

{control, financial, internal}

We may be unable to successfully market, sell and distribute our products. We rely substantially on third-party suppliers. The loss of products or delays in product availability from one or more third-party supplier could substantially harm our business. If the third parties to whom we granted substantial marketing rights for certain of our existing products or future products under development are not successful in marketing those products, then our sales and financial position may suffer. Many of our expenses are fixed and if factors beyond our control cause our revenue to fluctuate, this fluctuation could cause greater than expected losses, cash flow and liquidity shortfalls. We have historically not consistently generated positive cash flow from operations and may need additional capital and any required capital may not be available on acceptable terms or at all. Interpretation of existing legislation, regulations and rules or implementation of future legislation, regulations and rules could cause our costs to increase or could harm us in other ways. We may not be able to achieve sustained profitability. We often depend on third parties for products we intend to introduce in the future. If our current relationships and collaborations are not successful, we may not be able to introduce the products we intend to in the future. We operate in a highly competitive industry, which could render our products obsolete or substantially limit the volume of products that we sell. This would limit our ability to compete and achieve profitability. The loss of significant customers could harm our operating results. We may face costly intellectual property or other legal disputes, or our technology or that of our suppliers or collaborators may become the subject of legal action. Our future revenues depend on successful research, development, commercialization and/or market acceptance, any of which can be slower than we expect or may not occur. Our stock price has historically experienced high volatility, which may increase in the future, and which could affect our ability to raise capital in the future or make it difficult for investors to sell their shares. Our common stock is listed on the Nasdaq Capital Market and we may not be able to maintain that listing, which may make it more difficult for you to sell your shares. If we are unable to maintain various financial and other covenants under our credit facility agreement we will be unable to borrow any funds under the agreement and fund our operations. Obtaining and maintaining regulatory approvals in order to market our regulated products may be costly and delay the marketing and sales of our products. We depend on key personnel for our future success. If we lose our key personnel or are unable to attract and retain additional personnel, we may be unable to achieve our goals. Changes to financial accounting standards may affect our results of operations and cause us to change our business practices. We may face product returns and product liability litigation in excess of or not covered by our insurance coverage. If we become subject to product liability claims resulting from defects in our products, we may fail to achieve market acceptance of our products and our sales could substantially decline. We may be held liable for the release of hazardous materials, which could result in extensive clean up costs or otherwise harm our business.

Full 10-K form ▸

1038133--3/31/2006--HESKA_CORP