1281872--5/1/2009--ICP_Solar_Technologies

related topics

{product, market, service}

{stock, price, share}

{property, intellectual, protect}

{customer, product, revenue}

{product, liability, claim}

{personnel, key, retain}

{acquisition, growth, future}

{control, financial, internal}

{cost, regulation, environmental}

{regulation, government, change}

{product, candidate, development}

Risks Related to Our Business, Products and the Solar Power Industry We may need to raise significant additional capital in order to fund our operations and to continue to grow our business, which subjects us to the risk that we may be unable to maintain or grow our business as planned and that our stockholders may be subject to substantial additional dilution. We have a history of losses, expect to incur substantial further losses and may not achieve or maintain profitability in the future, which may decrease the market value of our stock. Our dependence on a limited number of third party manufacturers for solar panels, key components for our solar power products could prevent us from delivering our products to our customers within required timeframes, which could result in order cancellations and loss of market share. We may fail to successfully bring to market our new solar power products under development, which may prevent us from achieving increased sales and market share. Our solar power products may not gain market acceptance, which would prevent us from achieving increased sales and market share. Technological changes in the solar power industry could render our solar power products uncompetitive or obsolete, which could reduce our market share and cause our sales to decline. Our ability to increase market share and sales depends on our ability to successfully maintain our existing distribution relationships and expand our existing distribution channels. Our dependence on a small number of resellers may cause significant fluctuations or declines in our product revenues. Problems with product quality or product performance may cause us to incur warranty expenses and may damage our market reputation and prevent us from achieving increased sales and market share. Our success in the future may depend on our ability to establish and maintain strategic alliances, and any failure on our part to establish and maintain such relationships would adversely affect our market penetration and revenue growth. Existing regulations and changes to such regulations may present technical, regulatory and economic barriers to the purchase and use of solar power products, which may significantly reduce demand for our products. Compliance with environmental regulations can be expensive, and noncompliance with these regulations may result in adverse publicity and potentially significant monetary damages and fines. We face intense competition from other companies producing solar power and other energy generation products. If we fail to compete effectively, we may be unable to increase our market share and sales. The success of our business depends on the continuing contributions of our key personnel and our ability to attract and retain new qualified employees in a competitive labor market. Our management team may not be able to successfully implement our business strategies. If solar power technology is not suitable for widespread adoption or sufficient demand for solar power products does not develop or takes longer to develop than we anticipate, our sales would not significantly increase and we may be unable to achieve or sustain profitability. Product liability claims against us could result in adverse publicity and potentially significant monetary damages. Risks Related to Our Supply Chain We will continue to be dependent on a limited number of third-party suppliers for certain raw materials and components for our products, which could prevent us from delivering our products to our customers within required timeframes, which could result in sales and installation delays, cancellations, liquidated damages and loss of market share. Risks Related to Our Intellectual Property If we are unable to protect our intellectual property adequately, we could lose our competitive advantage in the solar power market. If we are subject to litigation and infringement claims, they could be costly and disrupt our business. We may be unable to adequately protect or enforce our proprietary information, which may result in its unauthorized use or reduced sales or otherwise reduce our ability to compete. If the effective term of our patents is decreased due to changes in patent laws or if we need to re-file some of our patent applications, the value of our patent portfolio and the revenues we derive from it may be decreased. Risks Related to Our Securities We may conduct further offerings in the future, in which case your shareholdings will be diluted. Because our common stock is considered a penny stock , stockholders will be more limited in their ability to sell their shares. Because the Board of Directors may designate and authorize issuance of preferred shares, the rights of the holders of Common Stock may be adversely affected. Because we do not intend to pay dividends, stockholders will benefit from an investment in our common stock only if it appreciates in value. The conversion of convertible debentures and the exercise of warrants issued in our recent private placement could result in a substantial number of additional shares of our common stock being issued in the event that we fail to achieve certain milestones.

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1281872--5/1/2009--ICP_Solar_Technologies_Inc.