1084384--4/15/2008--ELEPHANT_TALK_COMMUNICATIONS

related topics

{competitive, industry, competition}

{system, service, information}

{operation, international, foreign}

{stock, price, share}

{property, intellectual, protect}

{product, market, service}

{acquisition, growth, future}

{personnel, key, retain}

{regulation, change, law}

{regulation, government, change}

{control, financial, internal}

{customer, product, revenue}

Risks related to our company Our substantial and continuing losses, coupled with significant ongoing operating expenses, raise doubt about our ability to continue as a going concern. We have recently shifted our business strategy, and we may not prove successful in our new focus. We may not be able to integrate new technologies and provide new services in a cost-efficient manner. Disruptions in our networks and infrastructure may cause us to lose customers and incur additional expenses. Integration of acquisitions ultimately may not provide the benefits originally anticipated by management and may distract the attention of our personnel from the operation of our business. Uncertainties and risks associated with international markets could adversely impact our international operations. Because a significant portion of our business is conducted outside the United States, fluctuations in foreign currency exchange rates could adversely affect our results of operations. We are substantially smaller than our major competitors, whose marketing and pricing decisions, and relative size advantage, could adversely affect our ability to attract and retain customers and are likely to continue to cause significant pricing pressures that could adversely affect our net revenues, results of operations and financial condition. Our positioning in the marketplace as a smaller provider places a significant strain on our resources, and if not managed effectively, could result in operational inefficiencies and other difficulties. We are subject to the economic risks inherent in the Asian and European economies. We could suffer adverse tax and other financial consequences if U.S. or foreign taxing authorities do not agree with our interpretation of applicable tax laws. We must attract and retain skilled personnel. If we are unable to hire and retain technical, sales and marketing and operational employees, our business could be harmed. If we are not able to use and protect our intellectual property domestically and internationally, it could have a material adverse effect on our business. We must attract and retain skilled personnel. If we are unable to hire and retain technical, sales and marketing and operational employees, our business could be harmed. If we are not able to use and protect our intellectual property domestically and internationally, it could have a material adverse effect on our business. If we are not able to use and protect our intellectual property domestically and internationally, it could have a material adverse effect on our business. Risks related to our industry Changes in the regulation of the telecommunications industry could adversely affect our business, revenue or cash flow. If competitive pressures continue or intensify and/or the success of our new products is not adequate in amount or timing to offset the decline in results from our legacy businesses, we may not be able to service our debt or other obligations. We experience intense domestic and international competition which may adversely affect our results of operations and financial condition. We experience intense domestic and international competition which may adversely affect our results of operations and financial condition. A deterioration in our relationships with facilities-based carriers could have a material adverse effect upon our business. The telecommunications industry is rapidly changing, and if we are not able to adjust our strategy and resources effectively in the future to meet changing market conditions, we may not be able to compete effectively. If we are not able to operate a cost-effective network, we may not be able to grow our business successfully. We are subject to potential adverse effects of regulation which may have a material adverse impact on our competitive position, growth and financial performance. Our computer network is vulnerable to hacking, viruses and other disruptions. There are political, economic and regulatory risks associated with doing business in China and Asia. Regulation of the information industry in China may adversely affect our business Risks related to our securities Existing shareholders likely will experience increased dilution when we satisfy our obligations to issue shares of our common stock. We have no dividend history and have no intention to pay dividends in the foreseeable future. Our common stock is considered a penny stock. Penny stocks are subject to special regulations, which may make them more difficult to trade on the open market.

Full 10-K form ▸

1084384--4/15/2008--ELEPHANT_TALK_COMMUNICATIONS_INC