1177845--6/9/2010--XPLORE_TECHNOLOGIES

related topics

{customer, product, revenue}

{stock, price, share}

{property, intellectual, protect}

{provision, law, control}

{stock, price, operating}

{product, candidate, development}

{control, financial, internal}

{personnel, key, retain}

{competitive, industry, competition}

{operation, international, foreign}

{acquisition, growth, future}

Risks Relating to our Business 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 future products or 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. In fiscal year 2010, more than 10% of our revenue was derived from one of our customers. If we are unable to replace revenues generated from one of our major resellers or end-user customers 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 currently dependent on Wistron to manufacture our products and products under development and our reliance subjects us to significant operational risks, any of which would impair our ability to deliver 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 or otherwise impair 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 retain key personnel we may not be able to execute our business strategy. If we are unable to acquire key components or are unable to acquire them on favorable terms, our business will suffer. If we fail to predict our manufacturing requirements accurately, we could incur additional costs or experience manufacturing delays, which could reduce our gross margins or cause us to lose sales. Our inability to obtain any third-party license required to develop new products and product enhancements could seriously harm our business, financial condition and results of operations. Risks Relating to Ownership of our Common Stock Two of our stockholders, Philip S. Sassower and Phoenix Venture Fund LLC, beneficially own as of May 15, 2010 in the aggregate approximately 49.6% of our voting securities and thus have effective control over matters requiring stockholder approval. Some of the rights granted to the holders of our Series A Preferred Stock 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. There may not be an active market for shares of our common stock, which may cause our shares to trade at a discount and may make it difficult for you to sell your shares. 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--6/9/2010--XPLORE_TECHNOLOGIES_CORP