1259550--3/16/2010--LOCAL.COM

related topics

{system, service, information}

{product, market, service}

{customer, product, revenue}

{tax, income, asset}

{property, intellectual, protect}

{condition, economic, financial}

{acquisition, growth, future}

{regulation, government, change}

{regulation, change, law}

{stock, price, operating}

{operation, natural, condition}

{stock, price, share}

{control, financial, internal}

{personnel, key, retain}

{provision, law, control}

We are dependent on third party products, services and technologies; changes to existing products, services and technologies or the advent of new products, services and technologies could adversely affect our business. We rely on our advertising partners to provide us access to their advertisers, and if they do not, it could have an adverse impact on our business. We are dependent on LSN and LDN partners to provide us with local search traffic and access to local advertisers, and if they do not, our business could be harmed. The effects of the recent global economic crisis may impact our business, operating results, or financial condition. The current global financial crisis and uncertainty in global economic conditions may have significant negative effects on our access to credit and our ability to raise capital. Our executive officers and certain key personnel are critical to our success, and the loss of these officers and key personnel could harm our business. The market for Internet and local search advertising services is in the early stages of development, and if the market for our services decreases it will have a material adverse effect on our business, prospects, financial condition and results of operations. We expect that our anticipated future growth, including through potential acquisitions, may strain our management, administrative, operational and financial infrastructure, which could adversely affect our business. If we acquire other businesses, it could adversely affect our operations and result in unanticipated liabilities. We may incur impairment losses related to goodwill and other intangible assets which could have a material and adverse effect on our financial results. We may be subject to intellectual property claims that create uncertainty about ownership of technology essential to our business and divert our managerial and other resources. We may be subject to lawsuits for information displayed on our websites and the websites of our advertisers, which may affect our business. Government and legal regulations may damage our business. If we do not deliver traffic that converts into revenue for advertisers, then our advertisers and our advertising partners may pay us less for their listing or discontinue listings with us. If we fail to detect click-through fraud, we could lose the confidence of our advertisers and advertising partners, thereby causing our business to suffer. If we do not continue to develop and offer compelling content, products and services, our ability to attract new consumers or maintain the engagement of our existing consumers could be adversely affected. If we cannot continue to develop and offer effective advertising products and services, our advertising revenues could be adversely affected. If we fail to maintain the number of customers purchasing our monthly subscription products, our revenue and our business could be harmed. If our billing partners lose the ability to bill our monthly subscription customers through Local Exchange Carriers on those monthly subscription customers telephone bills it would adversely impact our results of operations. Our revenue may decline over time due to the involvement of the alternative telephone suppliers in the local telephone markets. Our ability to efficiently bill our monthly subscription customers depends upon our third party billing partners. If our monthly subscription customers file complaints against us or our partners, we could be forced to refund material amounts of monthly subscription revenues and our ability to operate our subscription service could be adversely impacted, which would adversely affect our results of operation. Failure to adequately protect our intellectual property and proprietary rights could harm our competitive position. Two of our advertising partners have provided a substantial portion of our revenue; the loss of either of these partners may have a material adverse effect on our operating results. Our advertising partners may unilaterally change how they value our inventory of available advertising placements, which could materially affect our advertising revenue. One customer accounts for a significant portion of our accounts receivable, and the failure to collect from that customer would harm our financial condition and results of operations. A significant portion of the traffic to our Local.com website is acquired from other search engines, mainly google.com, the loss of the ability to acquire traffic could have a material and adverse effect on our financial results. Problems with our computer and communication systems may harm our business. We rely on third party technology, server and hardware providers, and a failure of service by any of these providers could adversely affect our business and reputation. If we fail to scale and adapt our existing technology architecture to manage the expansion of our offerings our business could be adversely affected. Our business is subject to a number of natural and man-made risks, including natural disasters such as fires, floods, and earthquakes and problems such as computer viruses or terrorism. State and local governments may be able to levy additional taxes on Internet access and electronic commerce transactions, which could result in a decrease in the level of usage of our services. Federal, state or international laws or regulations applicable to our business could adversely affect our business. Failure to comply with federal, state or international privacy laws or regulations, or the expansion of current or the enactment of new privacy laws or regulations, could adversely affect our business. Any regulation of our use of cookies or similar technologies could adversely affect our business. The market price of our common stock has been and is likely to continue to be highly volatile, which could cause investment losses for our stockholders and result in stockholder litigation with substantial costs, economic loss and diversion of our resources. Future sales of shares of our common stock that are eligible for sale by our stockholders may decrease the price of our common stock. Anti-takeover provisions may limit the ability of another party to acquire us, which could cause our stock price to decline. Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.

Full 10-K form ▸