1103345--3/30/2006--BEACON_POWER

related topics

{cost, regulation, environmental}

{stock, price, share}

{personnel, key, retain}

{product, market, service}

{financial, litigation, operation}

{property, intellectual, protect}

{provision, law, control}

{control, financial, internal}

{gas, price, oil}

{product, liability, claim}

For our business strategy to be effectively implemented, demonstrations of the performance of our Smart Energy Matrix at NYSERDA and CEC need to be successful. We face significant technical challenges in completing the development of the Smart Energy Matrix. We may fail to develop our 25kWh generation flywheel system, which is a critical requirement for the development of the Smart Energy Matrix and, even if we are able to develop the 25kWh system, we may fail to develop the Smart Energy Matrix. Competitors in the frequency regulation market include established utilities and independent service providers with far greater resources than us. Although the market for frequency regulation services is large and growing, we have not demonstrated an ability to sell into that market. Increases or decreases in purchase prices or availability of carbon fiber or other materials and commodities may affect our ability to achieve profitability. Fluctuations in energy prices may have a material impact on the pricing of frequency regulation services and therefore the profitability of our flywheel systems New sources of energy including the commissioning of nuclear power plants and other technologies could adversely affect the demand for frequency regulation services Failure to protect our intellectual property could impair our competitive position. Government regulation may impair our ability to market our products. Our ability to complete development of our Smart Energy Matrix will require substantial funds. Our stockholders may be adversely affected if we issue debt securities or additional equity securities to obtain financing. The exercise of options and warrants and other issuances of shares will likely have a dilutive effect on our stock price. We have a history of losses and anticipate future losses and we will have limited revenues in the near term. Unless we raise additional capital to operate our business, we may not be able to continue as a going concern as our cash balances are sufficient to fund operations only through approximately the first quarter of 2007. Our financial performance could be adversely affected if we are unable to retain key executive officers and retain or attract key technical personnel. We have anti-takeover defenses and a staggered board of directors that could delay or prevent an acquisition and changes in control in our board of directors and management, and could adversely affect the price of our common stock.

Full 10-K form ▸

1103345--3/30/2006--BEACON_POWER_CORP