1078723--3/31/2010--INTERNATIONAL_FUEL_TECHNOLOGY

related topics

{product, candidate, development}

{customer, product, revenue}

{control, financial, internal}

{product, liability, claim}

{acquisition, growth, future}

{personnel, key, retain}

{system, service, information}

{cost, regulation, environmental}

{stock, price, share}

{condition, economic, financial}

{property, intellectual, protect}

{cost, operation, labor}

Because we have transitioned from a development stage to a commercialization phase for our products with a new technology and little market and sales visibility, we may not be able to create market demand for our products. We have a history of operating losses and due to our current lack of sustainable sales and the possibility of not achieving our sales goals, we may not become profitable or be able to sustain profitability. We have only a limited product sales history upon which to base any projection of the likelihood we will prove successful; therefore, we may not achieve profitable operations, or even generate meaningful operating revenues. If projected sales and revenues do not materialize as planned, we will require additional financing to continue operations. Global economic conditions have created turmoil in the credit and general industrial markets that could have a significant adverse impact on our operations. We are dependent on third parties for the distribution of our products outside North America and they may experience the same delays, customer acceptance problems or other product commercialization issues we have experienced, which would negatively impact our commercialization efforts in these regions. As we currently purchase all of our product supply requirements from outside sources and have no in-house product manufacturing capability, any business complications arising with either our suppliers or with our suppliers relationship could create adverse consequences with our product supply chain. There is a risk that one or more of the raw material suppliers currently supplying raw materials to our contract manufacturer could stop making a building block raw material necessary for production of our product and, therefore, cause a supply shortage until substitution raw materials could be identified and located. Products developed by our competitors could severely impact our product commercialization and customer acceptance efforts, thereby reducing the sales of our products and severely impacting our ability to meet our sales goals or to continue operations. Our products are designed for use in internal combustion engines and the development of alternative engine design and technology could severely reduce the market potential for our products. If we are unable to protect our technology and intellectual property from use by competitors, there is a risk that we will sustain losses, or that our business could fail. Because of the nature of our products, we may be subject to government approvals and regulations that reduce or prevent our ability to commercialize our products, increase our costs of operations and decrease our ability to generate income. We create products that may have harmful effects on the environment if not stored and handled properly prior to use, which could result in significant liability and compliance expense. If we lose any key personnel or are unable to attract qualified personnel and consultants, we may lose business prospects and sales, or be unable to otherwise fully operate our business. We may have difficulties managing growth, which could lead to lost sales opportunities. Our shares are quoted on the Over-The-Counter Bulletin Board and are subject to a high degree of volatility and liquidity risk.

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1078723--3/31/2010--INTERNATIONAL_FUEL_TECHNOLOGY_INC