1108891--7/14/2009--LIGHTSCAPE_TECHNOLOGIES

related topics

{stock, price, share}

{product, market, service}

{capital, credit, financial}

{operation, international, foreign}

{condition, economic, financial}

{control, financial, internal}

{customer, product, revenue}

{acquisition, growth, future}

{stock, price, operating}

{competitive, industry, competition}

{operation, natural, condition}

{interest, director, officer}

{personnel, key, retain}

{property, intellectual, protect}

{regulation, change, law}

Risks Related to Our Business Our limited operating history makes it difficult to evaluate our future prospects and results of operations. We may require additional financing, the availability of which cannot be assured, and if our company is unable to obtain such financing, our business may fail. Our operations are cash intensive and our business could be adversely affected if we fail to maintain sufficient levels of working capital. Our operating results may fluctuate from period to period and if we fail to meet market expectations for a particular period, our share price may decline. If there are any interruptions to or a decline in the quality of our LED hardware supply channels, our sales could be materially and adversely affected. We operate in a highly-competitive industry and our failure to compete effectively may adversely affect our ability to generate revenue. Our failure to maintain existing relationships or to obtain new relationships with companies that allow us to access desirable locations where we plan to operate our LED out-of-home advertising billboards could harm our growth potential and our ability to increase our revenues. If we are unable to attract advertisers to advertise on the LED out-of-home advertising network we are building, we will be unable to generate advertising fees, which could negatively affect our ability to grow revenues. We may be subject to government actions based on the content displayed on and the locations of the LED billboards in the LED out-of-home advertising network we are building in China. Rapid technological changes in our industry could render our products non-competitive or obsolete and consequently affect our ability to generate revenues. We could lose our competitive advantages if we are not able to protect our proprietary technology and intellectual property rights against infringement, and any related litigation could be time-consuming and costly. We may not be able to hire and retain qualified personnel to support our growth and if we are unable to retain or hire such personnel in the future, our ability to improve our products and implement our business objectives could be adversely effected. Our company is subject to sales channel risk due to a concentration of sales to a limited number of customers and any significant interruption from these customers may have a material adverse effect on our company. Our company is subject to the credit risk of our customers, which could have a material adverse effect on our financial condition, results of operations and liquidity. Our growth could be impaired if we do not successfully handle certain risks associated with international business. The current economic environment has adversely affected business spending patterns, which may have an adverse effect on our business. We derive a substantial portion of our revenues from sales in the PRC and any downturn in the Chinese economy could have a material adverse effect on our business and financial condition. Any changes in the political and economic policies of, or any new regulations implemented by, the Chinese government could affect, or even restrict, the operation of our business and our ability to generate revenues. Our company is subject to foreign exchange rate risk, particularly fluctuations in the exchange rate between Chinese Renminbi and United States dollars and between Singapore dollars and United States dollars. New or changing government policies or regulations related to the LED out-of-home advertising or LED products and services industries in our markets may have an adverse effect on our operations and may require our company to modify our business plan. If LED-based hardware does not achieve greater market acceptance, prospects for our growth and profitability may be limited. If advances in LED technology do not continue, we may be unable to increase our penetration of our existing markets or expand into new markets. If we fail to develop and maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud; as a result, current and potential shareholders could lose confidence in our financial reports, which could harm our business and the trading price of our common stock. Most of our assets, all of our directors and most of our officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers. The occurrence of a widespread health epidemic may adversely affect our financial condition and results of operations. Risks Related to Our Industry The LED out-of-home advertising and LED products and services industries in the PRC may face increasing competition from both domestic and foreign companies, as well as increasing industry consolidation, which may affect our market share and profit margin. Risks Related to Our Common Stock A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations. If we issue additional shares in the future, it will result in the dilution of our existing stockholders. If a market for our common stock does not develop, stockholders may be unable to sell their shares. The market price for our common stock may be volatile and subject to wide fluctuations, which may adversely affect the price at which you can sell our shares. Trading of our stock may be restricted by the Securities and Exchange Commission s penny stock regulations which may limit a stockholder s ability to buy and sell our stock. The Financial Industry Regulatory Authority, or FINRA, has adopted sales practice requirements, which may limit a stockholder s ability to buy and sell our shares. If we are late multiple times in filing any of our annual or quarterly reports during the next two years, our common stock may become ineligible for quotation on the OTC Bulletin Board, which would negatively affect the market for our shares and our ability to obtain additional financing.

Full 10-K form ▸

1108891--7/14/2009--LIGHTSCAPE_TECHNOLOGIES_INC.