1094084--3/16/2006--TELKONET

related topics

{product, market, service}

{debt, indebtedness, cash}

{stock, price, share}

{stock, price, operating}

{property, intellectual, protect}

{product, liability, claim}

{regulation, change, law}

{acquisition, growth, future}

{control, financial, internal}

{personnel, key, retain}

The Company has a history of operating losses and an accumulated deficit and expects to continue to incur losses for the foreseeable future. Potential fluctuations in operating results could have a negative effect on the price of the Company s common stock. The Company s directors and executive officers own a substantial percentage of the Company s issued and outstanding common stock. Their ownership could allow them to exercise significant control over corporate decisions. Further issuances of equity securities may be dilutive to current stockholders. Our significant indebtedness and interest payment obligations may adversely affect our ability to obtain additional financings, service other existing debt, use our operating cash flow in other areas of our business, or otherwise adversely affect our operations. Our convertible senior debt financing contains loan covenants relating to revenue targets and other restrictions which may reduce our operating cash. If we acquire any companies or technologies in the future, they could provide difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results. Recent accounting pronouncements may impact our future financial position and results of operations. The exercise of options and warrants outstanding and available for issuance may adversely affect the market price of the Company s common stock. The powerline communications industry is intensely competitive and rapidly evolving. Government regulation of the Company s products could impair the Company s ability to sell such products in certain markets. Products sold by the Company s competitors could become more popular than the Company s products or render the Company s products obsolete. The failure of the Internet to continue as an accepted medium for business commerce could have a negative impact on the Company s results of operations. The Company may not be able to obtain patents, which could have a material adverse effect on its business. Infringement by third parties on the Company s proprietary technology and development of substantially equivalent proprietary technology by the Company s competitors could negatively impact the Company s business. The Company depends on a small team of senior management, and it may have difficulty attracting and retaining additional personnel.

Full 10-K form ▸

1094084--3/16/2006--TELKONET_INC