1095276--4/15/2010--TIGRENT

related topics

{regulation, government, change}

{debt, indebtedness, cash}

{condition, economic, financial}

{control, financial, internal}

{system, service, information}

{operation, international, foreign}

{investment, property, distribution}

{personnel, key, retain}

{stock, price, share}

{operation, natural, condition}

{financial, litigation, operation}

{provision, law, control}

{acquisition, growth, future}

{regulation, change, law}

{customer, product, revenue}

{competitive, industry, competition}

We have experienced significant negative cash flows from operations in fiscal 2009 and 2008. If this trend continues in the future, it could adversely affect our financial condition and we may not have the ability to generate adequate liquidity to fund our working capital needs through December 31, 2010. The terms of our proposed new agreements with the Rich Dad Parties, restrict our current and future operating and financial flexibility and contain covenants that may result in default. If we do not finalize the definitive restructuring agreements with the Rich Dad Parties, our business and results of operations will be adversely affected. We have a high concentration of sales from our Rich Dad Education Brand and the expiration or early termination of this relationship would have an adverse impact on our financial results. Our uses of cash are restricted under the proposed new licensing agreement with RDO. If cooperation is not enhanced with RDO's licensed third party provider of coaching services, it could have a material adverse impact on our business and financial results. If we are unable to successfully conclude the litigation, governmental investigations and inquiries pending against us, our business, financial condition, results of operations and growth prospects could be adversely affected. We may require additional capital, which may not be available on favorable terms, or at all. Our results of operations may be materially affected by economic conditions. Additionally, other changes experienced by our customers including the willingness to trade or invest in securities or real estate could influence discretionary spending contributing to uncertainty in our future results of operations. We face significant competition in our markets. Laws and regulations can affect the operations of our business and may limit our ability to operate in certain jurisdictions. We could have liability or our reputation could be damaged if we do not protect customer data or if our information systems are breached. Our ability to offer courses may be affected by natural disaster, strikes or other unpredictable events. Our operations outside the United States subject us to additional risks inherent in international operations. 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 voting stock. Our introduction of new senior executives, or the loss of any of our key executive personnel, or high performing trainers, could disrupt our operations and reduce our profitability. Any decrease in the popularity of the Rich Dad Education Brand would have an adverse impact on our financial condition. If there is a material change in relationships with our customers or in the demand by potential customers for our services, it could have a significant impact on our business. The current market price of our common stock significantly exceeds our book value per share and increases the risk that our market price per share may decline in the future. We have material weaknesses in our internal control over financial reporting which could adversely affect our ability to report our financial condition and results of operations accurately and on a timely basis.

Full 10-K form ▸

1095276--4/15/2010--TIGRENT_INC