1375063--9/21/2009--SYNTHESIS_ENERGY_SYSTEMS

related topics

{cost, contract, operation}

{stock, price, share}

{property, intellectual, protect}

{operation, international, foreign}

{control, financial, internal}

{product, candidate, development}

{product, market, service}

{condition, economic, financial}

{acquisition, growth, future}

{stock, price, operating}

{cost, operation, labor}

{customer, product, revenue}

{regulation, change, law}

{investment, property, distribution}

{gas, price, oil}

{personnel, key, retain}

{loan, real, estate}

Limited continuing rights of prior licensees of U-GAS technology could limit the exclusivity of our license and materially adversely affect our business and results of operations. We face the potential inability to protect our intellectual property rights which could have a material adverse effect on our business. Continued disruption in U.S. and international economic conditions and in the commodity and credit markets may adversely affect our business, financial condition and results of operation The U.S. government s current plans to address the financial crises may not be effective to stabilize the financial markets or to increase the availability of credit. The termination of our license agreement with GTI or any of our joint venture agreements would materially adversely affect our business and results of operations. We utilize a technology with a limited commercial history. If the U-GAS technology fails to gain or loses market acceptance, our business will suffer. We are dependent on our relationships with our strategic partners for project development. We may never be able to reach agreements regarding the completion of future projects. Our projects are subject to an extensive governmental approval process which could delay the implementation of our business strategy. Joint ventures that we enter into present a number of challenges that could have a material adverse effect on our business and results of operations. We or our joint venture partners will manage the design, procurement and construction of our plants. If our management of these issues fails, our business and operating results could suffer. A portion of our revenues will be derived from the merchant sales of commodities and our inability to obtain satisfactory prices could have a material adverse effect on our business. We are dependent on the availability and cost of low rank coal and coal waste and our inability to obtain a low cost source could have an impact on our business. We are dependent on key personnel who would be difficult to replace. Payment of severance benefits could strain our cash flow. Our success will depend in part on our ability to grow and diversify, which in turn will require that we manage and control our growth effectively. We face intense competition. If we cannot gain market share among our competition, we may not earn revenues and our business may be harmed. In our areas of operation, the projects we intend to build are subject to rigorous environmental regulations, review and approval. We cannot assure you that we will be able to obtain such approvals, satisfy applicable requirements or maintain approvals once granted. We may incur substantial liabilities to comply with climate control legislation and regulatory initiatives. Our controls and procedures may fail or be circumvented. We are subject to the requirements of Section 404 of the Sarbanes-Oxley Act. If we are unable to maintain compliance with Section 404 or if the costs related to compliance are significant, our profitability, stock price and results of operations and financial condition could be materially adversely affected. Risks Related to Our Chinese Operations Foreign laws may not afford us sufficient protections for our intellectual property, and we may not be able to obtain patent protection outside of the United States. Our operations in China may be adversely affected by evolving economic, political and social conditions. Long term offtake agreements could be difficult to obtain and, if obtained, enforce because of China s underdeveloped legal system. Our results of operations would be negatively affected by potential currency fluctuations in exchange rates with foreign countries. Chinese regulations of loans and direct investment by offshore entities to Chinese entities may delay or prevent us from utilizing proceeds of funds to make loans or additional capital contributions to our operations in China, which could materially and adversely affect our liquidity and our ability to fund and expand our business. Risks Related to our Common Stock We may have a contingent liability arising out of the issuance of shares by Tamborine. Our historic stock price has been volatile and the future market price for our common stock is likely to continue to be volatile. If we do not meet the NASDAQ continued listing requirements, our common stock may be delisted . Our common stock is thinly traded on The NASDAQ Stock Market. The market valuation of our business may fluctuate due to factors beyond our control and the value of the investment of our stockholders may fluctuate correspondingly.

Full 10-K form ▸

1375063--9/21/2009--SYNTHESIS_ENERGY_SYSTEMS_INC