1089979--4/26/2006--PARAGON_FINANCIAL

related topics

{acquisition, growth, future}

{loan, real, estate}

{stock, price, share}

{stock, price, operating}

{competitive, industry, competition}

{product, market, service}

{personnel, key, retain}

{system, service, information}

{control, financial, internal}

{capital, credit, financial}

{loss, insurance, financial}

{financial, litigation, operation}

{regulation, change, law}

{operation, natural, condition}

Risks Related to Our Business An increase in interest rates could result in a reduction in our loan brokerage volumes, an increase in first payment defaults on loans we brokered, and a reduction in the revenue per loan brokered. Our business may be significantly harmed by a slowdown in the economy of Florida, where we conduct a significant amount of business. Our business may be significantly harmed by the weather in markets where we conduct a significant amount of business. We face intense competition that could adversely impact our market share and our revenue. Defective loans may harm our business. We are subject to losses due to fraudulent and negligent acts on the part of loan applicants, mortgage brokers, other vendors and our employees. The inability to attract and retain qualified employees could significantly harm our business. If we do not manage our growth effectively, our financial performance could be harmed. An interruption in or breach of our information systems may result in lost business. The success and growth of our business will depend upon our ability to adapt to and implement technological changes. Our financial results fluctuate as a result of seasonality and other timing factors, which makes it difficult to predict our future performance. In the future, our hedging strategies may not be successful in mitigating our risks associated with interest rates. We have incurred losses since inception. Risks Associated with Our Acquisition Strategy There are risks associated with our acquisition strategy. There are risks associated with our plan to use our common stock as acquisition consideration. Stockholder refusal to comply with regulatory requirements may interfere with our ability to do business in certain states. We may be unable to compete effectively with financial institutions that are exempt from certain state restrictions. The market price of our common stock may be materially adversely affected by market volatility. We have an open comment letter from the staff of the Securities and Exchange Commission. We are controlled by a small group of shareholders whose interests may differ from other shareholders. The public sale of our common stock by selling shareholders could adversely affect the price of our common stock. There is relatively limited trading in our common stock.

Full 10-K form ▸

1089979--4/26/2006--PARAGON_FINANCIAL_CORP