1357115--3/23/2009--Brekford_International

related topics

{product, market, service}

{stock, price, share}

{condition, economic, financial}

{control, financial, internal}

{customer, product, revenue}

{acquisition, growth, future}

{personnel, key, retain}

{loan, real, estate}

{interest, director, officer}

{provision, law, control}

We have incurred operating losses during our last two fiscal years and may not become a profitable enterprise. Decreases in government fiscal spending could have a negative effect on our sales, gross margin, and cash flow. Recent legislative and regulatory initiatives to address difficult market and economic conditions may not stabilize the U.S. financial system or economy or benefit us. Current levels of securities and financial market volatility are unprecedented. Changes in the IT industry or the general economic environment may reduce demand for our products and services, adversely affecting our financial results and condition. We are dependent upon specific suppliers for products that we are able to sell competitively, the loss of which would have an adverse effect on our business and financial condition. Our ability to expand from a value-added reseller of products to a high-end solutions provider has certain risks which may impact future results. We may not effectively execute our business strategy, which would have an adverse effect on our business and financial condition. Our business model requires that we continually develop and augment our suite of products and services through internal development and acquisitions, and if we are unsuccessful we may not continue to increase our revenues in the future. We may be unable to implement our growth strategy, which would have an adverse effect on our business and financial condition. All of our sales presently occur within the Mid-Atlantic geographic region and this concentration of sales heightens our exposure to adverse developments related to competition, economic change and demographic changes. We have incurred and will continue to incur costs as a result of becoming a reporting company. Our Common Stock is subject to the SEC s penny stock rules, broker-dealers may experience difficulty in completing customer transactions and trading activity in our securities may be adversely affected. If we fail to maintain an effective system of internal control over financial reporting and disclosure controls and procedures, we may be unable to accurately report our financial results and comply with the reporting requirements under the Exchange Act. We depend on the revenues of a limited number of customers and the loss of one or more of these customers may have a material adverse effect on our results of operations. If we lose the services of our key management or other advisors, our business and ability to attain profitable operations would suffer. We encounter intense competition from substantially larger and better financed companies in the IT products and services markets. As a result of our initiative to offer technology products other than higher-end rugged mobile communications equipment, we are subject to additional competitive pricing pressures. We may issue additional shares of Common Stock or other securities which could dilute the value of our stockholders securities. are controlled by our principal stockholders and management, which will limit your ability to influence our operations and may affect the likelihood that you will receive a premium for your securities through a change in control Our Common Stock has a very limited trading market, which may affect your ability to buy and/or sell our shares. We do not intend to pay dividends and, therefore, you may not realize any return on your investment prior to a sale of your shares. Our bylaws provide for our indemnification of our officers and directors.

Full 10-K form ▸

1357115--3/23/2009--Brekford_International_Corp.