1386570--3/31/2010--ChromaDex

related topics

{property, intellectual, protect}

{stock, price, operating}

{stock, price, share}

{product, candidate, development}

{customer, product, revenue}

{acquisition, growth, future}

{product, market, service}

{cost, regulation, environmental}

{product, liability, claim}

{competitive, industry, competition}

{financial, litigation, operation}

{cost, contract, operation}

{regulation, government, change}

{condition, economic, financial}

{system, service, information}

{personnel, key, retain}

{control, financial, internal}

Risks Related to Our Business and Industry The global economic recession and financial market conditions could adversely affect our ability to conduct business. Our short term future capital needs are uncertain and we may need to raise additional funds and based on the current market conditions such funds may not be available on acceptable terms or at all. We have a history of operating losses and we will need additional financing to meet our future long term capital requirements. Our ability to protect our intellectual property and proprietary technology through patents and other means is uncertain and may be inadequate, which would have a material and adverse effect on us. We may become subject to claims of infringement or misappropriation of the intellectual property rights of others, which could prohibit us from developing our products, require us to obtain licenses from third parties or to develop non-infringing alternatives, and subject us to substantial monetary damages. Our patents and licenses may be subject to challenge on validity grounds, and our patent applications may be rejected. The prosecution and enforcement of patents licensed to us by third parties are not within our control, and without these technologies, our product may not be successful and our business would be harmed if the patents were infringed or misappropriated without action by such third parties. We may be subject to damages resulting from claims that we, our employees, or our independent contractors have wrongfully used or disclosed alleged trade secrets of others. Litigation may harm our business. We face significant competition, including changes in pricing. Many of our competitors are larger and have greater financial and other resources than we do. We depend on key personnel. Partnering for technological capabilities and new products and services. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are outside of our control. We may never develop any additional products to commercialize. We face the risk of product liability claims or recalls and may not be able to obtain or maintain adequate product liability insurance. If we are unable to establish or maintain sales, marketing and distribution capabilities or enter into and maintain arrangements with third parties to sell, market and distribute our products, our business may be harmed. We rely on a limited number of third-party suppliers for the raw materials required for the production of our products. Furthermore, in some cases we rely on a single supplier. We rely on a limited number of third-party manufacturers to manufacture our products. Our sales and results of operations depend on our customers research and development efforts and their ability to obtain funding for these efforts. Demand for our products and services are subject to the commercial success of our customers products, which may vary for reasons outside our control. We may bear financial risk if we under-price our contracts or overrun cost estimates. We will need to increase the size of our organization, and we may be unable to manage rapid growth effectively. If we fail to maintain adequate quality standards for our products and services, our business may be adversely affected and our reputation harmed. We heavily rely on third party air cargo carriers and other package delivery services, and a significant disruption in these services or significant increases in prices may disrupt our ability to ship products or import materials, increase our costs and lower our profitability and harm our reputation. If we experience a significant disruption in our information technology systems or if we fail to implement new systems and software successfully, our business could be adversely affected. Risks Related to Regulatory Approval of Our Products and Other Government Regulations We are subject to regulation by various federal, state and foreign agencies that require us to comply with a wide variety of regulations, including those regarding the manufacture of products, the distribution of our products and environmental matters. We are subject to regulations that govern the handling of hazardous substances. Government regulations of our customer s business are extensive and are constantly changing. Changes in government regulation or in practices relating to the pharmaceutical, dietary supplement, food and cosmetic industry could decrease the need for the services we provide. Risks Related to the Securities Markets and Ownership of our Common Stock The concentrated common stock ownership by certain of our executive officers and directors will limit your ability to influence corporate matters. Since our common stock is only minimally publicly traded, and will likely remain so for some time, the price may be subject to wide fluctuations. Our common stock is and likely will remain subject to the SEC s Penny Stock rules, which may make its shares more difficult to sell. Securities analysts may elect not to report on our common stock or may issue negative reports that adversely affect the stock price. ChromaDex has incurred significant costs related to reporting, legal, accounting and compliance as a public reporting entity, and expects to continue to incur significant future costs as a public reporting entity. ChromaDex does not intend to pay cash dividends. Stockholders may experience significant dilution if future equity offerings are used to fund operations or acquire complementary businesses. ChromaDex may become involved in securities class action litigation that could divert management s attention and harm its business.

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1386570--3/31/2010--ChromaDex_Corp.