1084332--6/27/2007--SALON_MEDIA_GROUP

related topics

{system, service, information}

{stock, price, operating}

{capital, credit, financial}

{stock, price, share}

{personnel, key, retain}

{provision, law, control}

{regulation, change, law}

Factors That May Affect Salon s Future Results and Market Price of Stock Salon s projected cash flows may not meet expectations Salon may issue additional preferred stock at effective prices lower than current common stock market prices that may result in non-cash charges to operations Salon has relied on related parties for significant investment capital Salon s principal stockholders can exercise a controlling influence over Salon s business affairs and may make business decisions with which non-principal stockholders disagree and may affect the value of their investment Future sales of significant number of shares of Salon s common stock by principal stockholders could cause its stock price to decline Salon may not be able to receive the full value of its advertising credits Salon s stock has been and will likely continue to be subjected to substantial price and volume fluctuations due to a number of factors, many of which will be beyond its control and may prevent its stockholders from reselling its common stock at a profit Salon s preferred stockholders are entitled to potentially significant liquidation preferences of Salon s assets over common stockholders in the event of such an occurrence Salon has historically lacked significant revenues and has a history of losses Salon Premium memberships have been declining and may continue to decline, adversely affecting revenues and available cash Salon has depended on advertising sales for much of its revenues, and its inability to maintain or increase advertising revenues could harm its business Legislative action and potential new accounting pronouncements are likely to cause its general and administrative expenses and other operating expenses to increase Hackers may attempt to penetrate Salon s security system; online security breaches could harm its business With a volatile share price, Salon may be the target of securities litigation, which is costly and time-consuming to defend Salon s quarterly operating results are volatile and may adversely affect its common stock price The controversial content of Salon s Website may limit its revenues Salon s promotion of the Salon brand must be successful to attract and retain users as well as advertisers and strategic partners Salon needs to hire, integrate and/or retain qualified personnel because these individuals are important to its growth Salon may expend significant resources to protect its intellectual property rights or to defend claims of infringement by third parties, and if Salon is not successful it may lose rights to use significant material or be required to pay significant fees Salon s technology development efforts may not be successful in improving the functionality of its network, which could result in reduced traffic on its Website, reduced advertising revenues, or a loss of Salon Premium subscribers Salon relies on software, purchased from an independent supplier, to deliver and report some of its advertising, the failure of which could impair its business Salon may be held liable for content or third party links on its Website or content distributed to third parties Concerns about transactional security may hinder electronic commerce on Salon s Website and may expose Salon to potential liability Salon s internally developed software and software platforms provided by a third party to manage Salon s subscription business might fail resulting in lost subscription income Salon s systems may fail due to natural disasters, telecommunications failures and other events, any of which would limit user traffic Privacy concerns could impair Salon s business Possible state sales and other taxes could adversely affect Salon s results of operations Provisions in Delaware law and Salon s charter, stock option agreements and offer letters to executive officers may prevent or delay a change of control

Full 10-K form ▸

1084332--6/27/2007--SALON_MEDIA_GROUP_INC