1168652--3/11/2008--HIRERIGHT

related topics

{system, service, information}

{regulation, change, law}

{acquisition, growth, future}

{property, intellectual, protect}

{customer, product, revenue}

{financial, litigation, operation}

{regulation, government, change}

{product, liability, claim}

{stock, price, operating}

{operation, international, foreign}

{personnel, key, retain}

{control, financial, internal}

{condition, economic, financial}

{loan, real, estate}

{competitive, industry, competition}

{loss, insurance, financial}

{operation, natural, condition}

We are subject to significant governmental regulation, and a failure to correctly identify, interpret, comply with and reconcile the laws and regulations to which we are subject could result in substantial liability. Evolving or increased regulations, particularly those related to the use of personal information, may lead to additional expense, restrictions and loss of revenue, which could have a material adverse effect on our business. We could face liability based on the nature of our services and the information we report, which may not be covered or fully covered by insurance. We could face liability based on information that we fail to report in our background screening reports, which may not be covered or fully covered by insurance. We may be required to indemnify our customers or data suppliers, which could have a material adverse effect on our financial condition and operating results to the extent such claims are not covered by insurance. Our business, financial condition and results of operations could be materially adversely affected by a downturn in the general economy. If we are unable to successfully manage our relationships with third-party providers of complementary products and services, including human resource outsourcing providers and recruiting software application providers, we may lose referral sources or may no longer be able to integrate with their systems, either of which could have a material adverse effect on our business. Security breaches and improper use of information may negatively impact our business and harm our reputation. We may be subject to and in violation of state private investigator licensing laws and regulations, which could adversely affect our ability to do business in certain states and subject us to liability. We are subject to significant competition, and if we fail to compete successfully, our sales could decline and our business, financial condition and results of operations could be adversely affected. Our contracts with our customers generally do not require that they use us exclusively and do not guarantee that we will receive any revenues from them. If we fail to successfully manage our growth, the additional demands and strain on us could have a material adverse effect on our business, financial condition and results of operations. Being a public company has and will continue to increase our expenses and administrative workload, which could strain our available resources. If we fail to maintain an effective system of internal control over financial reporting or fail to comply with Section 404 of the Sarbanes-Oxley Act, we may not be able to accurately report our financial results or to prevent fraud, and our stock price could decline. We may expand through acquisitions of, investments in, or strategic business relationships with, other organizations, all of which may divert our management's attention, result in additional dilution to our stockholders, consume resources that are necessary to sustain our business, and may not be successful. Our international screening business, as well as maintaining our technology development operations outside the United States, subjects us to a broad range of laws and regulations that may be difficult to manage and could expose us to numerous risks that, individually or together, could materially and adversely affect our business. System failures, including failures due to natural disasters or other catastrophic events, could delay and disrupt our services, cause harm to our business and reputation and result in a loss of customers. If we are unable to protect our proprietary technology and other intellectual property rights, it may reduce our ability to compete for business and we may experience reduced revenue and incur costly litigation to protect our rights. If a third party asserts that we are infringing its intellectual property, whether successful or not, it could subject us to costly and time-consuming litigation or expensive licenses, and our business may be harmed. We rely on key personnel and may need additional personnel for the success and growth of our business. We acquire information from a variety of sources to conduct our business, and if some of these sources are not available to us in the future, or if the fees charged by such sources significantly increase, our business may be materially and adversely affected and our profit margins may decline. To the extent the availability of free or relatively inexpensive information increases, the demand for our services may decrease, which could have a material adverse effect on our business. Our quarterly or annual results of operations may fluctuate in the future, which may cause us to fail to meet or exceed the expectations of investors or securities analysts and cause our stock price to decline. Our investments in marketable securities are subject to risks which may cause losses.

Full 10-K form ▸

1168652--3/11/2008--HIRERIGHT_INC