1315320--3/29/2007--InfoLogix

related topics

{acquisition, growth, future}

{control, financial, internal}

{stock, price, share}

{customer, product, revenue}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, operating}

{system, service, information}

{property, intellectual, protect}

{competitive, industry, competition}

{product, market, service}

{condition, economic, financial}

{provision, law, control}

{operation, natural, condition}

{cost, regulation, environmental}

{regulation, change, law}

Risks Relating to our Business and Industry We are an early-stage company with a limited operating history, which limits the information available to you to evaluate our business. We have incurred losses in the past and our ability to operate profitability in the future is uncertain. We may need additional financing to fund our operations and finance our growth, but we may be unable to obtain financing on terms acceptable to us. Our sales and profitability may be affected by changes in economic, business or industry conditions. Increasing our profitability is necessary to achieve our strategic objectives. We have limited experience in acquiring other businesses and cannot assure you that we will be able to successfully integrate any businesses, products, technologies or personnel that we might acquire in the future. We are dependent on our key industry relationships. We depend on third-party component suppliers and contract manufacturers to manufacture our products. If these third parties experience any delay, disruption or quality control problems in their operations, or cease manufacturing our products, we could lose market share and revenues, and our reputation may be harmed. If we are unable to provide our third-party component suppliers and contract manufacturers with an accurate forecast of our component and material requirements, we may experience delays in the manufacturing of our products and the costs of our products may increase. In many circumstances, we rely upon third parties for technology that is critical to our products, and if we are unable to continue to license this technology and future technology our ability to offer competitive products could be harmed and our costs of production could increase. Our industry is highly competitive, and competitive pressures from existing and new companies may have a materially adverse effect on our business, revenues, growth rates and market share. If we fail to continue to introduce new products that achieve broad market acceptance on a timely basis, we will not be able to compete effectively and we will be unable to increase or maintain sales and profitability. We may be unsuccessful in expanding our professional services and, as a result, fail to achieve our objectives. The success of our business depends on the continuing development, maintenance and operation of our information technology systems. If we fail to maintain and upgrade our information technology systems to meet the demands of our customers and protect our information technology systems against risks that we cannot control, our business may be adversely affected. If we are unable to protect our intellectual property rights or if third parties assert we are in violation of their intellectual property rights, we could be prevented from selling our products, the time and attention of management could be diverted from operating the business and our ability to attract new customers and retain current customers could be hampered, any of which could have a material adverse effect on our financial condition and results of operation. Our products are complex and may contain undetected and unexpected defects, errors or failures. Armed hostilities, terrorism, natural disasters, or public health issues could harm our business. We depend on retaining our existing senior management team and recruiting additional senior managers in order to be successful, and the loss or failure to recruit key executives could materially and adversely affect our business. Our business is subject to the budget cycles of our customers. Our products are subject to certain government regulations and noncompliance with, or a change in, those regulations could have a material adverse effect on our profitability and financial condition. Our growth objectives depend on our ability to successfully manage potential international expansion. The management and former stockholders of InfoLogix Systems Corporation beneficially own a substantial number of shares of our common stock, which give them significant control over certain major decisions. We recently became subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, which can be expensive. Risks Relating to our Indebtedness The covenants in our credit facility may restrict our operations, which could inhibit our ability to execute our growth strategy and have a negative effect on our results of operations. Our indebtedness could adversely impact our financial condition. Risks Relating to our Common Stock Applicable SEC rules governing the trading of penny stocks may limit the liquidity of our common stock which may affect its trading price. The market price of our common stock is likely to be highly volatile and subject to wide fluctuations. There may be a limited public market for our securities and we may fail to qualify for the NASDAQ Stock Market LLC or other listing. We do not expect to pay dividends for the foreseeable future. Failure to achieve and maintain effective internal controls could have a material adverse effect on our business, operating results and stock price. Provisions in our organizational documents and under Delaware law may delay or prevent attempts by our stockholders to change our management and hinder efforts to acquire a controlling interest in us.

Full 10-K form ▸

1315320--3/29/2007--InfoLogix_Inc