1096560--3/12/2008--SULPHCO

related topics

{product, candidate, development}

{personnel, key, retain}

{competitive, industry, competition}

{control, financial, internal}

{acquisition, growth, future}

{customer, product, revenue}

{stock, price, share}

{product, liability, claim}

{financial, litigation, operation}

{interest, director, officer}

{operation, international, foreign}

{property, intellectual, protect}

{cost, operation, labor}

{stock, price, operating}

We are a development stage company with a limited operating history, which makes it more difficult to predict whether we will be able to successfully commercialize our technology and implement our business plan. Our auditors have included a going concern emphasis paragraph in their audit report. Our technologies are not fully developed, are commercially untested, and therefore, the successful development and commercialization of our technologies remain subject to significant uncertainty. Our technologies are not fully developed, are commercially untested, and therefore, the successful development and commercialization of our technologies remain subject to significant uncertainty. We have a history of operating losses and have not generated material revenues to date, and we are unable to predict when or if we will generate material revenues on a sustained basis or achieve profitability. We may not have sufficient working capital in the future, and we may be unable to obtain additional capital, which could result in the curtailment, suspension or cessation of our business activity. If we obtain additional financing, you may suffer significant dilution. Commercial activities by us in foreign countries could subject us to political and economic risks which could impair future potential sources of revenue or impose significant costs. We may have difficulty managing our growth. Our strategy for the development and commercialization of our technologies contemplates collaborations with third parties, making us dependent on them for our success. We have very limited manufacturing, marketing and sales experience, which could result in delays to the implementation of our business plan. We rely on third parties to provide certain components for our products. If our vendors fail to deliver their products in a reliable, timely and cost-efficient manner, our business will suffer. We are highly dependent on our key personnel to manage our business, and because of competition for qualified personnel , we may not be able to recruit or retain necessary personnel. The loss of key personnel or the inability to retain new personnel could delay the implementation of our business plan. Because the market for products utilizing our technologies is still developing and is highly competitive, we may not be able to compete successfully in the highly competitive and evolving desulphurization and upgrading market. The success of our business is highly dependent on our patents and other proprietary intellectual property, and we cannot assure you that we will be able to protect and enforce our patents and other intellectual property. We are a new entrant in our business and we face significant competition. Regulatory developments could have adverse consequences for our business. We may be sued for product liability, which could result in liabilities which exceed our available assets. We are the defendant in several lawsuits, in which an adverse judgment against us could result in liabilities which exceed our available assets. Our stock price is volatile, which increases the risk of an investment in our common stock.

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1096560--3/12/2008--SULPHCO_INC