1119721--3/18/2009--Eastern_Environment_Solutions

related topics

{regulation, change, law}

{stock, price, share}

{personnel, key, retain}

{customer, product, revenue}

{loss, insurance, financial}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{operation, international, foreign}

{product, liability, claim}

We rely on one relationship for all of our current revenues. Our business and growth will suffer if we are unable to hire and retain key personnel that are in high demand. We may have difficulty establishing adequate management and financial controls in China and in complying with U.S. corporate governance and accounting requirements. Capital outflow policies in China may hamper our ability to pay dividends to shareholders in the United States. We have limited business insurance coverage. Environmental compliance and remediation could result in substantially increased capital requirements and operating costs. We may be required to raise additional financing by issuing new securities with terms or rights superior to those of our shares of common stock, which could adversely affect the market price of our shares of common stock. We do not intend to pay any cash dividends on our common stock in the foreseeable future and, therefore, any return on your investment in our common stock must come from increases in the fair market value and trading price of our common stock. All of our assets are located in China and changes in the political and economic policies of the PRC government could have a significant impact upon what business we may be able to conduct in the PRC and accordingly on the results of our operations and financial condition. Our bank deposits are not insured. Our operations are subject to PRC laws and regulations that are sometimes vague and uncertain. Any changes in such PRC laws and regulations, or the interpretations thereof, may have a material and adverse effect on our business. The scope of our business license in China is limited, and we may not expand or continue our business without government approval and renewal, respectively. We rely principally on dividends and other distributions on equity paid by our operating subsidiary to fund our cash and financing requirements, but such dividends and other distributions are subject to restrictions under PRC law. Limitations on the ability of our operating subsidiary to pay dividends or other distributions to us could have a material adverse effect on our ability to grow, make investments or acquisitions, pay dividends to you, and otherwise fund and conduct our business. Our business development, future performance, strategic plans, and other objectives would be hindered if we lost the services of our Chairman.

Full 10-K form ▸

1119721--3/18/2009--Eastern_Environment_Solutions_Corp.