1311318--3/26/2007--Lightspace

related topics

{stock, price, share}

{product, market, service}

{control, financial, internal}

{stock, price, operating}

{product, liability, claim}

{product, candidate, development}

{acquisition, growth, future}

{regulation, change, law}

{customer, product, revenue}

{loss, insurance, financial}

{personnel, key, retain}

{property, intellectual, protect}

{provision, law, control}

{competitive, industry, competition}

Because we have a limited operating history, you have a limited basis on which to evaluate our ability to achieve our business objectives. We are in the early stages of our development, have yet to achieve net earnings since inception and may not generate sufficient revenues to stay in business. Our products are complex and could have unknown defects or errors, which may give rise to claims against us, diminish our brand or divert our resources from other purposes. We may need additional capital, which may not be available on acceptable terms, to fund our growth or sustain our business. If we fail to adequately protect our intellectual property and proprietary technology, our ability to produce and market our products may be impaired. The market for our products is uncertain and sales of our Lightspace systems may not generate sufficient revenues to meet our operating expenses. Our revenues may experience severe fluctuations, which could cause our business to suffer or fail. We may not be able to compete against existing and potential competitors in the markets we serve. If we are unable to improve the effectiveness and breadth of our sales and research and development organizations, our future revenue may be adversely affected. Our efforts to sell our products internationally may be unsuccessful and result in losses. Our marketing strategies may not be successful, which would adversely affect our future revenues and profitability. Failures or delays in introducing new technologies or products could negatively impact our revenues. Our products may not always be compatible with third-party technologies, which could adversely affect our business. We depend on third party suppliers and manufacturers, and our business would be harmed if these parties fail to meet our requirements. We have experienced turnover among key officers and employees, and any inability to attract qualified successors in the future could harm our business and prospects. Lightspace management has limited experience in the management of a public entity. A trading market for our units, common stock and warrants may not develop or be sustained, which may limit your ability to resell our securities. The market for our common stock and warrants may be limited, and our shareholders may have difficulty reselling their shares and warrants when desired or at attractive prices. We do not intend to register our securities under Section 12(g) of the Exchange Act, which may limit your access to information about us. We must comply with new regulatory requirements regarding internal control over financial reporting and corporate governance, which will cause us to incur increased costs, and our failure to comply with these requirements, could cause our stock price to decline. Our common stock is subject to the Securities and Exchange Commission's "penny stock" regulations, which limit the liquidity of common stock held by our shareholders. Our warrants may have limited value unless the price of our common stock equals or exceeds the exercise price of the warrants at the time of exercise. Our warrants are exercisable during a period that continues until April 30, 2011. If the current registration statement does not continue in effect, you may not be able to exercise or resell your warrants. If an exemption from registration on which we have relied on for any of our past offerings of securities were later challenged legally, we may have to expend time and money defending them or risk paying expenses for defense and/or rescission. There may be substantial sales of our common stock by stockholders which could cause the price of our stock to fall. Our certificate of incorporation authorizes us to issue additional shares of stock, which could dilute your ownership interest and influence in Lightspace. Outstanding warrants and options, and additional future obligations to issue our securities to various parties, may dilute the value of your investment and may adversely affect our ability to raise additional capital. We have not paid dividends on our common stock in the past and do not expect to do so in the future. A majority of our common stock is beneficially owned by a small number of persons. As a result, our other stockholders may be unable to affect the outcome of any stockholder vote. Changes in the accounting treatment of stock options will adversely affect our results of operations.

Full 10-K form ▸

1311318--3/26/2007--Lightspace_Corp