1392960--3/27/2008--Consolidation_Services

related topics

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{acquisition, growth, future}

{condition, economic, financial}

{control, financial, internal}

{cost, operation, labor}

{regulation, change, law}

{competitive, industry, competition}

{interest, director, officer}

{cost, contract, operation}

{personnel, key, retain}

{system, service, information}

{product, liability, claim}

{stock, price, operating}

Risks Related to Our Business We are an early stage development company and have no operating history. We expect to continue to incur losses for the near-future. Our current capitalization is inadequate and we may not be able to raise the required capital to conduct our operations. Our financial statements have been prepared assuming that the Company will continue as a going concern. We can provide no assurance that our internal control over our financial reporting will be effective under Section 404 of the Sarbanes-Oxley Act of 2002. Establishing internal controls over our financial reporting, following the transition period for newly public companies, is likely to increase our costs. Our business strategy, in part, depends upon our ability to complete and manage acquisitions of other companies. We have no assurance that our proposed acquisitions will be completed. We may not be able to manage proposed acquisitions and achieve profitability. We may not be able to successfully compete against companies with substantially greater resources. Our business may be subject to fluctuations in the economy and geopolitical events. If we were to lose the services of our CEO, we may not be able to execute our business strategy. Directors and officers have limited liability. Our business may be subject to fluctuations in the economy and geopolitical events. If we are unable to hire, retain or motivate qualified personnel, consultants and advisors, we may not be able to grow effectively. We may become subject to undisclosed liabilities as a result of proposed acquisitions. Risks Related to Our Securities Selling stockholders may suffer dilution if founders or their affiliates register their shares under future registration statements. The determination of the offering price of the shares and exercise prices of warrants was arbitrary. Our principal stockholders may have the ability to control almost all matters of the company. The Company does not intend to pay dividends to its stockholders. Our common stock is subject to restrictions on sales by broker-dealers and penny stock rules, which may be detrimental to investors. Trading on the OTC Bulletin Board may be detrimental to investors. Preferred Stock as an anti-takeover device. We are subject to critical accounting policies, and we may interpret or implement required policies incorrectly. Our ability to borrow money will directly impact our growth. Our growth is dependent on our ability to complete acquisitions of businesses and land and integrate operations of acquired businesses. If we do not keep a registration statement current, your ability to sell the Common Stock and Warrants will be limited. Risks Related to the Foodservice Industry The industry is characterized as a low margin business sensitive to inflation and economic conditions. Added costs will contribute to reduced profit margins. Increased fuel costs will adversely affect profit margins. Interruption of supplies and increases in product costs may hinder our ability to service customers. We may risk exposure from product liability claims. Negative publicity may cause sales to decrease. Availability of qualified labor could affect our business. We may become reliant on technology for efficient operations. Changes in consumer preferences or discretionary consumer spending could negatively impact our future results. Our operations are subject to governmental regulation associated with the food service industry, the operation and enforcement of which may restrict our ability to carry on our business. Risks Related to Energy Development Drilling activities are subject to many risks that could result in liability exposure or the loss of production and revenues, including the risk that no commercially productive oil or gas reservoirs will be encountered. Oil and natural gas prices fluctuate widely and low prices could have a material adverse impact on our business and financial results. We may not have satisfactory title to our properties. We are subject to various governmental regulations which may cause us to incur substantial costs. We are subject to various environmental risks which may cause us to incur substantial costs. Risks Related to the Coal Industry Because the demand and pricing for coal is greatly influenced by consumption patterns of the domestic electricity generation industry, a reduction in the demand for coal by this industry would negatively affect our future revenues and profitability. Increased consolidation and competition in the U.S. coal industry may adversely affect our revenues and profitability. Fluctuations in transportation costs and the availability and dependability of transportation could affect the demand for coal and our ability to deliver coal to customers. Shortages or increased costs of skilled labor in the Central Appalachian coal region may hamper our ability to achieve high labor productivity and competitive costs. Government laws, regulations and other requirements relating to the protection of the environment, health and safety and other matters impose significant costs on us, and future requirements could limit our ability to produce coal. The passage of legislation responsive to the Framework Convention on Global Climate Change or similar governmental initiatives could result in restrictions on coal use. We are subject to the federal Clean Water Act and similar state laws which impose treatment, monitoring and reporting obligations. New regulations have expanded the definition of black lung disease and generally made it easier for claimants to assert and prosecute claims, which could increase our future exposure to black lung benefit liabilities. Extensive environmental laws and regulations affect the end-users of coal and could reduce the demand for coal as a fuel source and cause the volume of our sales to decline. The characteristics of coal may make it difficult for coal users to comply with various environmental standards related to coal combustion. As a result, they may switch to other fuels, which would affect the future volume of our sales. We must obtain governmental permits and approvals for mining operations, which can be a costly and time consuming process and result in restrictions on our operations.

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1392960--3/27/2008--Consolidation_Services_inc