1115463--3/29/2007--Alliance_Distributors_Holding_Inc.

related topics
{customer, product, revenue}
{product, market, service}
{competitive, industry, competition}
{condition, economic, financial}
{gas, price, oil}
{property, intellectual, protect}
{cost, operation, labor}
{personnel, key, retain}
{stock, price, operating}
{control, financial, internal}
{product, liability, claim}
We have a limited operating history and have engaged in our current business only since August 2003. We may be unable to sell our existing inventory as a result of shortages of new platform systems. We are dependent on the contributions of our key executives and must maintain their services; Not entitled to key man proceeds. Gross margins relating to our business have been historically narrow which increases the impact of variations in costs on our operating results. We depend on a limited number of suppliers and have no long-term agreement with any suppliers. We would be adversely affected by a change in the marketing and distribution of videogame hardware systems and videogames by manufacturers. We have not entered into any distribution arrangement with Microsoft for distribution of its Xbox 360 products. Our quarterly operating results may vary significantly, which could cause the price of our Common Stock to decline. We are subject to the risk that our inventory values may decline and protective terms under supplier arrangements may not adequately cover the decline in values. We have no long term agreements with any customer and we are dependent on a limited number of customers. We hold no patents or material proprietary technology. Unanticipated warranty costs could affect our ability to operate profitably. Risks Related To Our Industry Our business operates in a highly competitive environment. We may be adversely affected if the financial health of the U.S. retail industry should deteriorate. We may be adversely affected by the trend towards retail trade consolidation. The market for the titles we carry is characterized by short product life cycles. Our business is cyclical, and we may fail to anticipate changing consumer preferences. Rating systems for interactive entertainment software, potential legislation and consumer opposition could inhibit sales of the products we carry Our business is subject to sudden changes in the popularity of the products we distribute and to technological changes.

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