1270200--3/31/2009--VIASPACE

related topics

{stock, price, share}

{product, market, service}

{competitive, industry, competition}

{property, intellectual, protect}

{acquisition, growth, future}

{debt, indebtedness, cash}

{stock, price, operating}

{personnel, key, retain}

{system, service, information}

{customer, product, revenue}

Our ability to continue as a going concern is dependent on achieving profitability or future financing. We operate in a changing and unpredictable regulatory environment. Our success depends upon market acceptance of our technologies and product development. We operate in a competitive market against companies that have significantly greater resources than we have. Due to uncertainties in our business, the capital on hand may not be sufficient to fund our operations until we achieve positive cash flow. If we lose key personnel or are unable to hire additional qualified personnel, it could impact our ability to grow our business. Our revenues to date have been to a few customers, the loss of which could result in a material decline in revenues. Our products and services could infringe on the intellectual property rights of others, which may lead to costly litigation, lead to payment of substantial damages or royalties and/or prevent us from manufacturing and selling our current and future products and services. Risks Related To the Industry If we fail to successfully introduce new products and services, our future growth may suffer. Our areas of anticipated future growth are certain products and services at an early stage of development. If we do not update and enhance our technologies, they will become obsolete or noncompetitive. Our competitors may succeed in developing products and services faster than we do. Our success depends, in part, on attracting customers who will embrace the new technologies offered by our products and services. If we fail to comply with our obligations in our intellectual property licenses with Caltech and USC, we could lose license rights that are important to our business. Our success depends, in part, on our ability to protect our intellectual property rights. Risks Related To An Investment In Our Stock Any future sale of a substantial number of shares of our common stock could depress the trading price of our common stock, lower our value and make it more difficult for us to raise capital. Our stock price is likely to be highly volatile because of several factors, including a limited public float. Our executive officers, directors and principal shareholders own 48.0% of our voting stock, which may allow them to control substantially all matters requiring shareholder approval, and their interests may not align with the interests of our other stockholders. Because our common stock is considered a penny stock any investment in our common stock is considered to be a high-risk investment and is subject to restrictions on marketability. We have additional securities available for issuance, including preferred stock, which if issued could adversely affect the rights of the holders of our common stock. Warrants issued by the Company may have an adverse impact on the market value of our common stock. The warrants may adversely affect our operational flexibility. Certain events could result in adjustments in the exercise price of our warrants.

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1270200--3/31/2009--VIASPACE_Inc.