1419177--11/20/2009--KUNEKT

related topics

{system, service, information}

{regulation, government, change}

{property, intellectual, protect}

{interest, director, officer}

{stock, price, share}

{product, market, service}

{customer, product, revenue}

{investment, property, distribution}

{stock, price, operating}

{cost, operation, labor}

{operation, natural, condition}

{competitive, industry, competition}

{personnel, key, retain}

{control, financial, internal}

{acquisition, growth, future}

There is substantial doubt about our ability to continue as a going concern. If we do not obtain adequate financing, our business will fail, which will result in the complete loss of your investment. Since we anticipate operating expenses will increase prior to earning revenue, if any, we may never achieve profitability. Since we lack an operating history, we face a high risk of business failure, which may result in the loss of your investment. Our president, treasurer and sole director is a non-resident of the United States. Key management personnel may leave our company, which could adversely affect our ability to continue operations. Since our president, treasurer and sole director has no direct experience in the financial account card business, we may never be successful in implementing our business strategy, which will result in the loss of your investment. Compensation may be paid to our officers, directors and employees regardless of our profitability. Such payments may negatively affect our cash flow and our ability to finance our business plan, which would cause our business to fail. Since our president, treasurer and sole director currently owns 93% of the issued and outstanding common stock, investors may find that his decisions are contrary to their interests. Because our stock is a penny stock, shareholders will be more limited in their ability to sell their stock. If we are dissolved, it is unlikely that there will be sufficient assets remaining to distribute to the shareholders. Since we have 66,000,000 authorized shares, our management could issue additional shares, diluting our current shareholders' equity. Since we are a development-stage company, we do not anticipate paying dividends in the foreseeable future. Our inability to receive a patent on our non-provisonal patent application filed with the United States Patent and Trademark Office could impair our ability to implement our business strategy successfully. If we do not file patent applications or do not received a patent in certain target market countries, our rights in such countries may be nil. Due to our dependence on computer and telecommunications infrastructure and computer software, any systems disruptions or operating malfunctions would affect our costs of doing business and could cause our business to fail. Our business depends on the development and maintenance of the internet infrastructure. We may be unable to protect or enforce our own intellectual property rights adequately. We may be subject to intellectual property rights claims in the future, which may be costly to defend, could require the payment of damages and could limit our ability to use certain technologies in the future. If we cannot create a significant market for the KUNEKT Card and related services in what is an extremely competitive industry, our business will fail and our shareholders may lose their entire investment. There is a risk that we may be unable to continue our services or continue operations if we experience uninsured losses or an act of god. Our entire business strategy is dependent on the sale of the KUNEKT Card and related services. if we are unable to achieve our sales estimates we may fail and shareholders may lose their investment. Our failure to manage customer funds properly would harm our business. Customer complaints or negative publicity about our customer service could diminish use of our services. We are dependant on third-party providers for certain services and may not be able to continue operations if there is a disruption in the supply of such services. The financial account card industry is closely regulated and changes in laws and practices may have an adverse affect on our ability to market our products and services. Government inquiries may lead to charges or penalties. Changes to credit card association rules or practices could harm our business. If we were found to be subject to or in violation of any U.S. laws or regulations governing banking, money transmission, or electronic funds transfers, we could be subject to liability and forced to change our business practices. Our status under banking or financial services laws or other laws in markets outside the U.S. is unclear. As our products are intended for use in the financial account card industry, any downturn in the industry would reduce the demand for our products and services and could make our business unprofitable. Our business strategy anticipates international sales. There is significant risk associated with doing business in international markets and we may fail to meet sales levels required in order to remain in business. Our competitors may infringe on our customer base and have an adverse effect upon our business and the results of operations. We may suffer from rapidly changing products, services and technologies, which could make our products and services obsolete.

Full 10-K form ▸

1419177--11/20/2009--KUNEKT_CORP