1125536--4/2/2008--CONVERA

related topics

{control, financial, internal}

{property, intellectual, protect}

{stock, price, operating}

{product, market, service}

{operation, international, foreign}

{regulation, change, law}

{acquisition, growth, future}

{system, service, information}

{personnel, key, retain}

{tax, income, asset}

{provision, law, control}

{stock, price, share}

{interest, director, officer}

We have had a history of operating losses and will likely incur future losses; if our losses continue and we are unable to achieve profitability, our stock price will likely suffer. Our ability to achieve profitability is dependent on our vertical search business and if it fails to achieve market acceptance we will be unable to grow our business and achieve profitability. While we believe we will have sufficient funds for our operations for at least the next twelve months, it is possible that we will during or after that time. If such additional capital is not available to us on acceptable terms or at all, it could harm our financial condition and future prospects. We experience quarterly fluctuations in our operating results, which may adversely affect our stock price We are in an extremely competitive market, and if we fail to compete effectively or respond to rapid technological change, our revenues and market share will be adversely affected. We depend on international sales, particularly in the United Kingdom, and any economic downturn, changes in laws, changes in currency exchange rates or political unrest in the United Kingdom or in other countries could have a material adverse effect on our business. Our vertical search offering relies on a third party hosting facility, and any failure or interruption in the services provided by this third party could harm our ability to operate our business and damage our reputation. Because of the technical nature of our business, our intellectual property is extremely important to our business, and adverse changes to our intellectual property could harm our ability to compete. We may in the future be subject to intellectual property rights claims, which are costly to defend and could require us to pay damages and could limit our ability to use certain technologies in the future. We depend on highly skilled personnel, the loss of whom would adversely affect our ability to effectively grow our business and we may have difficulty attracting and retaining skilled employees. Our stock price may fluctuate which may make it difficult to resell shares of our stock. We may not be able to use net operating loss carryforwards. Our amended and restated certificate of incorporation, bylaws, ownership and Delaware law contain provisions that could discourage a third party from acquiring us and consequently decrease the market value of an investment in our stock. Allen Holding Inc. and related parties exercise voting control over a significant percentage of our outstanding shares, and our other stockholders may not have an effective say in any matters upon which our stockholders vote. Legislative actions and potential new accounting pronouncements are likely to impact our future financial position or results of operations. Our internal controls may not be sufficient to achieve all stated goals and objectives. We may be subject to regulatory scrutiny and sustain a loss of public confidence if we are unable to satisfy regulatory requirements relating to our internal controls over financial reporting and/or we have internal control weaknesses which result in material financial reporting errors.

Full 10-K form ▸

1125536--4/2/2008--CONVERA_CORP