1157564--4/3/2006--SMALL_WORLD_KIDS_INC

related topics

{cost, regulation, environmental}

{condition, economic, financial}

{stock, price, share}

{acquisition, growth, future}

The toy industry is subject to high rates of seasonality. Our growth strategy depends in part upon our ability to acquire companies and new product lines. Our products sold in the United States are subject to various laws, including the Federal Hazardous Substances Act, the Consumer Product Safety Act, the Federal Hazardous Substances Act, the Flammable Fabrics Act and the rules and regulations promulgated under these acts. Because of the limited trading and because of the possible price volatility, you may not be able to sell your shares of common stock when you desire to do so.

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