1102750--3/31/2009--DAC_TECHNOLOGIES_GROUP_INTERNATIONAL

related topics

{customer, product, revenue}

{cost, regulation, environmental}

{acquisition, growth, future}

{personnel, key, retain}

{operation, international, foreign}

{control, financial, internal}

{competitive, industry, competition}

{capital, credit, financial}

{interest, director, officer}

If we are to expand our operations, we may need additional capital. Our growth program and future profitability remains uncertain. Our success depends on maintaining relationships with We depend on purchase orders and have no long-term contractual relationship with our customers. We depend on foreign contract manufacturers for substantially all of our manufacturing requirements. The increased cost of raw materials and manufacturing has adversely affected our profits. While we manufacture a variety of products, we rely primarily on the sale of gun cleaning kits and hunting and camping accessories as our major source of revenue. We may be unable to compete favorably in the highly competitive markets in which we operate. We may not be able to attract and retain the qualified personnel we need to succeed in the future. We may be adversely affected by legislation and regulation over firearms. We extend credit to our customers and should our customers default on their obligations to us, we may be subject to credit risk. With the exception of Gunmaster we have not to date registered or trademarked any of our product names. The Company has engaged in several related-party transactions, which were not effected in arms-length transactions. We face risks associated with international trade and currency exchange.

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1102750--3/31/2009--DAC_TECHNOLOGIES_GROUP_INTERNATIONAL_INC