1070534--3/31/2006--NEXTERA_ENTERPRISES

related topics

{debt, indebtedness, cash}

{stock, price, share}

{financial, litigation, operation}

{tax, income, asset}

{control, financial, internal}

{property, intellectual, protect}

{customer, product, revenue}

{competitive, industry, competition}

{product, market, service}

{condition, economic, financial}

{regulation, government, change}

We face significant competition within our industry, and we are not as financially strong or large as many of our competitors. We may be unsuccessful in developing and introducing new products or in expanding our existing product lines. We rely on others to manufacture our products, and disruptions to our manufacturing supply chain could affect our sales and financial condition. We may be subject to claims of infringement regarding products or technologies that are protected by trademarks, patents and other intellectual property rights. Our products are subject to federal and state regulations that could adversely affect our financial results. To service our indebtedness and fund our working capital requirements, we will require significant amounts of cash. We have a high level of indebtedness which could adversely affect our cash flows and business. Covenants in the credit agreement governing our senior secured credit facilities may limit our ability to operate our business. Rises in interest rates could adversely affect our financial condition. We may be unable to refinance our indebtedness. Nextera is a holding company with no business operations of its own and is dependent on subsidiaries to pay certain expenses and dividends. All of the shares of WLab stock are pledged to secure obligations under the Credit Agreement. Our ability to utilize our net operating loss carryforwards may be limited or eliminated in its entirety. Our common stock does not trade on an established trading market, which makes our common stock more difficult to trade and more susceptible to price volatility. Mounte LLC (successor to Krest, LLC, Knowledge Universe LLC and Knowledge Universe, Inc.) controls 64.7% of the voting power of our stock and can control all matters submitted to our stockholders and its interests may be different from yours. We have a history of losses and there is no assurance that we can achieve or sustain profitability in the future. Our stock price may be volatile and you could lose all or part of your investment.

Full 10-K form ▸

1070534--3/31/2006--NEXTERA_ENTERPRISES_INC