1088034--3/27/2008--PAYMENT_DATA_SYSTEMS

related topics

{stock, price, share}

{product, market, service}

{system, service, information}

{regulation, government, change}

{acquisition, growth, future}

{competitive, industry, competition}

{control, financial, internal}

{interest, director, officer}

{provision, law, control}

{loss, insurance, financial}

Our independent accountants have issued a going concern opinion and if we cannot obtain additional financing, we may have to curtail operations and may ultimately cease to exist. We have generated significant losses and expect to generate operating losses for the foreseeable future, therefore we may not become profitable. If our security applications are not sufficient to address changing market conditions and customer concerns, we may incur significant losses and be unable to sell our services. If we do not adapt to rapid technological change, our business may fail. We rely on our relationship with the Automated Clearinghouse Network and if the Federal Reserve rules were to change, our business could be adversely affected. If our third-party card processing providers or our bank sponsors fail to comply with the applicable requirements of Visa and MasterCard credit card associations, we may have to find a new third-party processing provider, which could increase our costs. We depend on Michael R. Long and Louis A. Hoch and if these officers ceased to be active in our management, our business may not be successful. If our software fails, and we need to repair or replace it, or we become subject to warranty claims, our costs could increase. Our business strategy includes identifying businesses and assets to acquire, and if we cannot integrate acquisitions into our company successfully, we may not become profitable. If we do not manage our growth, we may not achieve or sustain profitability. If we do not manage our credit risks related to our merchant accounts, we may incur significant losses. The electronic commerce market is relatively new and if it does not grow, we may not be able to sell sufficient services to make our business viable. Changes in regulation of electronic commerce and related financial services industries could increase our costs and limit our business opportunities. If we cannot compete successfully in our industry, we could lose market share and our costs could increase. Our stock price is volatile and you may not be able to sell your shares at a price higher than what you paid. Existing stockholders may experience significant dilution from the sale of securities pursuant to our Investment Agreement with Dutchess. Dutchess will pay less than the then-prevailing market price of our common stock, which could cause the price of our common stock to decline. Penny stock rules may make buying or selling our securities difficult which may make our stock less liquid and make it harder for investors to buy and sell our shares. We have adopted certain measures that may make it more difficult for a third-party to acquire control of our company.

Full 10-K form ▸

1088034--3/27/2008--PAYMENT_DATA_SYSTEMS_INC