1177845--6/27/2007--XPLORE_TECHNOLOGIES

related topics

{customer, product, revenue}

{provision, law, control}

{property, intellectual, protect}

{stock, price, share}

{stock, price, operating}

{product, market, service}

{control, financial, internal}

{product, candidate, development}

{personnel, key, retain}

{competitive, industry, competition}

{operation, international, foreign}

We have a history of net losses, we anticipate additional losses and may never become profitable. If we fail to obtain additional financing when needed, we may be unable to complete the development and commercialization of our rugged notebook and may have to significantly delay, scale back or discontinue the development or commercialization of one or more of our other products. Since our revenues are highly dependent on one product family, any significant reduction of sales of this product family would materially harm our operating results. We may not be able to develop a rugged notebook or develop a rugged notebook that is accepted by the market, in which case our planned future growth would be negatively affected. In fiscal year 2006, approximately 10% of our revenue was derived from one of our value-added resellers. If we are unable to replace revenues generated from one of our major resellers with revenues from others in future periods, our revenues may fluctuate and our growth would be limited. We experience lengthy sales cycles for our products and the delay of an expected large order could result in a significant unexpected revenue shortfall. We are dependent on Wistron to manufacture our products and our reliance subjects us to significant operational risks, any of which would impair our ability to deliver our products to our customers should they occur. We face competition from companies that have greater resources than we do and we may not be able to effectively compete against these companies. If we are unable to successfully protect our intellectual property, our competitive position will be harmed. Others could claim that we infringe on their intellectual property rights, which may result in costly and time consuming litigation and could delay the development and commercialization of our products. We are subject to risks by doing business outside of the United States which could impair our ability to grow our revenues. If we are unable to attract or retain key personnel we may not be able to execute our business strategy. Two of our shareholders, Philip S. Sassower and Phoenix Venture Fund LLC, own in the aggregate approximately 35.6% of our voting securities and thus have effective control over matters requiring shareholder approval. Some of the rights granted to the holders of our Series A Preferred Shares could prevent a potential acquirer from buying our company. The anti-takeover effect of certain of our charter provisions could adversely affect holders of our common stock. Many factors can adversely affect the price of our common stock. Dividends are not expected to be paid on our common stock.

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1177845--6/27/2007--XPLORE_TECHNOLOGIES_CORP