1172136--6/28/2007--US_GEOTHERMAL

related topics

{stock, price, share}

{acquisition, growth, future}

{property, intellectual, protect}

{gas, price, oil}

{stock, price, operating}

{personnel, key, retain}

{debt, indebtedness, cash}

{interest, director, officer}

{control, financial, internal}

{competitive, industry, competition}

{customer, product, revenue}

{cost, regulation, environmental}

{loss, insurance, financial}

{product, liability, claim}

We have a limited operating history, have incurred losses to date, and cannot give any assurance that we can ever attain profitability. Our future performance depends on our ability to establish that the geothermal resource is economically sustainable. We have a need for substantial additional financing and will have to significantly delay, curtail or cease operations if we are unable to secure such financing. We may be subject to liquidated damages in the event that a resale registration statement is not declared effective by November 5, 2007. We may not be able to fully develop the geothermal resource within the Unit 1 joint venture boundaries. It is very costly to place geothermal resources into commercial production. We may not be able to manage our growth. If we incur material debt to fund our business, we could face significant risks associated with such debt levels. The success of our business relies on retaining our key personnel. Our development activities are inherently very risky. The impact of governmental regulation could adversely affect our business. Industry competition may impede our growth. Claims have been made that some geothermal plants cause seismic activity and related property damage. Actual costs of construction or operation of a power plant may exceed estimates used in negotiation of power purchase and power financing agreements. Payments under our initial power purchase agreement may be reduced if we are unable to forecast our production adequately. There are some risks for which we do not or cannot carry insurance. Our officers and directors may have conflicts of interests arising out of their relationships with other companies. A significant number of shares of our common stock are eligible for public resale. If a significant number of shares are resold on the public market, the share price could be reduced and could adversely affect our ability to raise needed capital. Our officers and directors hold sufficient shares that acting collectively they may be able to influence the outcome of matters submitted to the shareholders. The possible issuance of substantial amounts of additional shares without shareholder approval may dilute the percentage ownership of our shareholders. Because the public market for shares of our common stock is limited, investors may be unable to resell their shares of common stock. The price of our common stock is volatile, which may cause investment losses for our shareholders. Our common stock is considered to be a penny stock, which may make it more difficult for investors to sell their shares.

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1172136--6/28/2007--US_GEOTHERMAL_INC