1095276--3/31/2006--WHITNEY_INFORMATION_NETWORK_INC

related topics
{regulation, government, change}
{stock, price, operating}
{provision, law, control}
{control, financial, internal}
{stock, price, share}
{loan, real, estate}
{personnel, key, retain}
{product, market, service}
Volatility in the real estate or securities markets may reduce interest in our educational courses, thereby reducing our revenue. Failure to comply with state laws regulating the marketing and sale of our educational courses could harm our reputation and reduce the demand for our course offerings. If we do not successfully introduce new programs, products and services, our growth rate and revenue will be reduced. If we fail to develop and then maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent financial fraud. As a result, current and potential stockholders could lose confidence in our financial reporting, which would reduce our ability to obtain subsequent financing, if necessary, as well as reduce the trading price of our common stock. The current market price of our common stock significantly exceeds our book value per share and increases the risk that our market value per share may decline in the future. Our Chairman and Chief Executive Officer owns over 50% of our outstanding capital stock, which means that he has the ability to approve or disapprove any matter requiring stockholder approval or prevent a change of control in our Company. The loss of any of our key personnel, especially Mr. Whitney, could disrupt our operations and reduce our profitability. Our Board of Directors, without stockholder approval, may issue preferred stock which could reduce the voting power or rights of our other stockholders and make it more difficult for a third party to acquire a majority of our outstanding voters stock.

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