1068084--5/25/2010--PRIVATE_MEDIA_GROUP

related topics

{stock, price, share}

{capital, credit, financial}

{product, market, service}

{operation, international, foreign}

{system, service, information}

{interest, director, officer}

{personnel, key, retain}

{property, intellectual, protect}

{operation, natural, condition}

{stock, price, operating}

{provision, law, control}

{financial, litigation, operation}

{competitive, industry, competition}

{customer, product, revenue}

{acquisition, growth, future}

{debt, indebtedness, cash}

As a result of operating losses our independent registered public accounting firm has substantial doubt about our ability to continue as a going concern. Our future capital requirements and needs for additional financing are uncertain. We currently have no additional availability under our existing credit facilities and we cannot assure you that additional financing will be available to us in the future. Our business is highly competitive. Our business involves the provision of sexually explicit content which can create negative publicity, lawsuits and boycotts. We face online security risks in connection with our Internet business. Continued imposition of tighter processing restrictions by credit card associations and acquiring banks would make it more difficult to generate revenues from our websites. We outsource our production and distribution. We are dependent upon key employees. We are subject to rapidly changing technology. New technological discoveries may render our equipment uneconomical or obsolete. Increased government regulation in the United States or abroad could limit our ability to deliver content and expand our business. We face risks relating to our proprietary intellectual property rights. Enforcement of civil liabilities against Private Media Group and its management may be difficult. There are risks associated with our foreign operations. We are subject to risks relating to performers. We do not expect to pay dividends on our common stock in the foreseeable future. We may issue additional shares of our capital stock that could dilute the value of your shares of common stock. There are risks relating to the issuance of additional shares of preferred stock, including deterring attempts by third parties to acquire us. Our Chairman of the Board owns a significant amount of our common stock, which may enable him to exercise significant influence or control over our business and affairs, and he may have interests which differ from the other holders of our stock. Future sales of common stock by our Chairman or his pledgees as a result of margin calls or foreclosures could adversely affect the price our common stock and could in the future result in a change in control of the Company. There may be adverse consequences to our shareholders and our business if our common stock ceases to be quoted on the NASDAQ Stock Market or a principal stock exchange. If we are delisted from the NASDAQ Stock Market, your ability to sell your shares of our common stock would also be limited by the penny stock restrictions, which could further limit the marketability of your shares.

Full 10-K form ▸

1068084--5/25/2010--PRIVATE_MEDIA_GROUP_INC