1099290--3/31/2008--ABLEAUCTIONS_COM

related topics

{system, service, information}

{loss, insurance, financial}

{property, intellectual, protect}

{stock, price, share}

{financial, litigation, operation}

{loan, real, estate}

{stock, price, operating}

{cost, regulation, environmental}

{operation, international, foreign}

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{competitive, industry, competition}

{cost, operation, labor}

We depend on eBay for revenue and uninterrupted Internet access and may be harmed by the loss of any such service. Our operating results fluctuate significantly and may be impacted by factors that are beyond our control. This makes it difficult to accurately predict what the revenues from our operations will be. Our core business is done through the Internet and requires us to be able to include all the bidders that care to bid at the auctions we facilitate. However, we may be subject to capacity constraints and system development risks that could damage our customer relations or inhibit our possible growth. Changing technology may render our equipment, software, and programming obsolete or irrelevant. Our inventory liquidation business, Unlimited Closeouts, Inc., is dependent on a small number of customers. If we cannot protect our Internet domain names, our ability to conduct our operations may be impeded. Our success depends on the services of Abdul Ladha, Paul Piotrowski and Erick Richardson, the key employees of Ableauctions.com, Inc., iCollector.com Technologies Ltd. and Unlimited Closeouts Inc. respectively The e-commerce industry is highly competitive, and we cannot assure you that we will be able to compete effectively. Our business may be subject to government regulation and legal uncertainties that may increase the costs of our operations or limit our ability to generate revenues. Our business may be subject to sales and other taxes, which may cause administrative difficulties and increase our cost of operations. In the future, laws making us liable for the activities of users of our services could be passed, which would adversely affect our business, operations and financial condition. We conduct a significant amount of our business online, however such activities may not be secure. If a breach of security occurred, our reputation could be damaged and we could be sued. During 2007, a significant portion of our income resulted from loans we made to third parties. While we try to adequately secure the loans we make, we cannot guarantee you that these loans will always be recovered if a default were to occur. During 2005 we further expanded our business to include property development. In order to develop property, we must advance significant funds which if the development fails we may not be able to recover. Even though we will obtain homeowner warranties for our building project from a registered insurer, we will still be liable for up to $2.52 million ($2.5 million CAD) in the event that significant warranty claims are made. If we were required to pay this entire amount, it could have a material adverse effect on our cash flow and results of operations. Despite the insurance that we carry for the development of our properties, we could still be liable for the activities of our general contractor or the sub-contractors hired by our general contractor. If we were found to be liable for the acts or omissions of our general contractor or a subcontractor, our business, operations and financial condition could be materially adversely affected. Our stock price is subject to extreme volatility. The market price of our common stock may be adversely affected if too much of it is sold at once. The posting of inventory using third party technology (e.g., eBay) or our own technology may expose us to certain liabilities. We have invested our assets in securities such as stocks, bonds, mortgage loans, real estate and income trusts. If these investments decline in value, we may suffer significant losses. A majority of our obligations, investments and expenditures with respect to our operations are incurred in a foreign currency. Unexpected rate hikes in insurance premiums could adversely affect our business and results of operations. If the American Stock Exchange determines that our common stock does not meet its listing criteria, our stock could be delisted. In 2002 we acquired iCollector PLC. This business eventually failed. We cannot guarantee that we will be able to successfully incorporate into our business model the acquisitions that we make, or that the acquisitions we make will be profitable. We may be unable to adequately protect our intellectual property. We could lose the right to use third party technologies on which we rely, such as eBay s online auction technology. If that were to happen, it would have a material adverse affect on our business, results of operations and financial condition. We may infringe on the proprietary rights of others, which could have a material adverse effect on our business, results of operations and financial condition. We have been sued for claims relating to our discontinued operations and we may have more such claims.

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1099290--3/31/2008--ABLEAUCTIONS_COM_INC