1356093--3/13/2009--WIRELESS_RONIN_TECHNOLOGIES

related topics

{customer, product, revenue}

{stock, price, share}

{system, service, information}

{stock, price, operating}

{control, financial, internal}

{property, intellectual, protect}

{personnel, key, retain}

{operation, international, foreign}

{financial, litigation, operation}

{product, market, service}

{condition, economic, financial}

{provision, law, control}

{acquisition, growth, future}

{competitive, industry, competition}

{capital, credit, financial}

{tax, income, asset}

Risks Related to Our Business Our operations and business are subject to the risks of an early stage company with limited revenue and a history of operating losses. We have incurred losses since inception, and we have had only nominal revenue. We may not ever become or remain profitable. Our success depends on our RoninCast system achieving and maintaining widespread acceptance in our targeted markets. If our products contain errors or defects, our business reputation may be harmed. World-wide efforts to cut capital spending, general economic uncertainty, and a weakening global economy could have a material adverse effect on us. We may experience fluctuations in our quarterly operating results. Due to our dependence on a limited number of customers, we are subject to a concentration of credit risk. The integration and operation of McGill Digital Solutions may disrupt our business and create additional expenses and we may not achieve the anticipated benefits of the acquisition. In the event we elect to expand our business through additional acquisitions, we cannot assure that such future acquisitions, if pursued and consummated, will be advantageous or profitable. Most of our contracts are terminable by our customers with limited notice and without penalty payments, and early terminations could have a material effect on our business, operating results and financial condition. Our prospective customers often take a long time to evaluate our products, with this lengthy and variable sales cycle making it difficult to predict our operating results. Adequate funds for our operations may not be available, requiring us to curtail our activities significantly. Difficulty in developing and maintaining relationships with third party manufacturers, suppliers and service providers could adversely affect our ability to deliver our products and meet our customers demands. Reductions in hardware costs will likely decrease hardware pricing to our customers and would reduce our per unit revenue. Our industry is characterized by frequent technological change. If we are unable to adapt our products and develop new products to keep up with these rapid changes, we will not be able to obtain or maintain market share. We recently replaced many members of our management and effected a substantial reduction in our associate headcount, and our failure to successfully adapt to these changes and/or a failure by our new management team to successfully manage our operations may adversely affect our business. Our future success depends on key personnel and our ability to attract and retain additional personnel. Our ability to execute our business strategy depends on our ability to protect our intellectual property, and if any third parties make unauthorized use of our intellectual property, or if our intellectual property rights are successfully challenged, our competitive position and business could suffer. Our industry is characterized by frequent intellectual property litigation, and we could face claims of infringement by others in our industry. Such claims are costly and add uncertainty to our business strategy. Our business may be adversely affected by malicious applications that interfere with, or exploit security flaws in, our products and services. We could have liability arising out of our previous sales of unregistered securities. We compete with other companies that have more resources, which puts us at a competitive disadvantage. Our results of operations may depend upon selling our products to customers requiring large-scale rollouts and large-scale monitoring and maintenance, which we have not previously conducted. We may be subject to sales and other taxes, which could have adverse effects on our business. Our results of operations could be adversely affected by changes in foreign currency exchange rates, particularly fluctuations in the exchange rate between the U.S. dollar and the Canadian dollar. Risks Related to Our Securities We are subject to financial reporting and other requirements for which our accounting, other management systems and resources may not be adequately prepared. If we fail to comply with the NASDAQ requirements for continued listing, our common stock could be delisted from NASDAQ, which could hinder our investors ability to trade our common stock in the secondary market. The market price of our stock may be subject to wide fluctuations. Our articles of incorporation, bylaws and Minnesota law may discourage takeovers and business combinations that our shareholders might consider in their best interests. We do not anticipate paying cash dividends on our shares of common stock in the foreseeable future.

Full 10-K form ▸

1356093--3/13/2009--WIRELESS_RONIN_TECHNOLOGIES_INC