1413754--7/14/2009--Swav_Enterprises_Ltd.

related topics
{stock, price, share}
{operation, international, foreign}
{customer, product, revenue}
{stock, price, operating}
{interest, director, officer}
{acquisition, growth, future}
{regulation, change, law}
{cost, operation, labor}
{loss, insurance, financial}
{product, liability, claim}
Risks Related to our Business We have only recently begun selling furniture goods with primarily Chinese or Asian style and if we fail to offer merchandise that our customers find attractive, the demand for our products may be limited and our operating results will be affected adversely. We do not have long-term vendor contracts and we may not have access to products that we sell. Accordingly, if we are unable to provide our customers with continued access to popular products, our net sales will decline and our operating results would be harmed. Because we do not plan to stock pile inventory of our imported goods, if we do not manage our inventory levels successfully, our operating results will be adversely affected. We rely on foreign sources of production and as a result we are subject to risks of import duty and quota fluctuations and if the country or countries from which we currently import or import in the future become subject to trade restriction from Canada, we will have difficulties locating alternative supply of our products and our operating results will suffer. Any changes in the political and economic policies of, or any new regulations implemented by, the Chinese governments could affect, or even restrict, the operation of our business and our ability to generate revenues. Product liability claims or concerns about the safety of products manufactured in China could harm our reputation, increase costs or reduce sales. The costs of being a public reporting company for our company because of the requirements imposed by the Sarbanes-Oxley Act may be very high and may cause us to devote a disproportional amount of our capital resources to the compliance of these requirements and adversely affect our financial conditions. We will need to raise additional funds in the near future. If we are not able to obtain future financing when required, we might be forced to scale back or cease operations or discontinue our business. All of our assets and all of our directors and officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers. Because our officers, directors and principal shareholders control a large percentage of our common stock, such insiders have the ability to influence matters affecting our shareholders. Because we do not have sufficient insurance to cover our business losses, we might have uninsured losses, increasing the possibility that you would lose your investment. Risks Associated with our Common Stock There is no active trading market for our common stock and if a market for our common stock does not develop, our investors will be unable to sell their shares. We do not intend to pay dividends on any investment in the shares of stock of our company. Our stock is a penny stock. Trading of our stock may be restricted by the Securities and Exchange Commission s penny stock regulations which may limit a stockholder s ability to buy and sell our stock. FINRA sales practice requirements may also limit a stockholder s ability to buy and sell our stock. Because we can issue additional common shares, purchasers of our common stock may incur immediate dilution and may experience further dilution.

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