1438231--2/27/2009--Digimarc

related topics

{product, market, service}

{customer, product, revenue}

{system, service, information}

{financial, litigation, operation}

{control, financial, internal}

{stock, price, share}

{property, intellectual, protect}

{condition, economic, financial}

{cost, operation, labor}

{interest, director, officer}

{provision, law, control}

{personnel, key, retain}

{operation, international, foreign}

{capital, credit, financial}

{cost, contract, operation}

(1) We have limited operating history as a separate public company and our historical financial information prior to the spin-off is not necessarily representative of the results we would have achieved as a separate publicly-traded company, and may not be a reliable indicator of our future results. (2) We have a history of losses and although we achieved profitability in 2008 we may not sustain profitability, particularly if we were to lose large contracts. (3) The current capital and credit market conditions may adversely affect our access to capital, cost of capital and business operations. (4) The current economic downturn may impair the financial soundness of our licensees and customers, which could adversely affect our business operations. (5) A small number of customers account for a substantial portion of our revenues and the loss of any large contract could materially disrupt our business. (6) A significant portion of our revenue is subject to commercial contracts and development of new markets that may involve unpredictable delays and other unexpected changes, which might limit our actual revenue in any given quarter or year. (7) The market for our products is highly competitive and alternative technology or larger companies may undermine, limit or eliminate the market for our products' technologies, which would decrease our revenue and profits. (8) We depend on our management and key employees for our future success. If we are not able to retain, hire or integrate these employees, we may not be able to meet our commitments. (9) If leading companies in our industry or standard-setting bodies or institutions downplay, minimize, or reject the use of our technology, deployment may be slowed and we may be unable to achieve revenue growth, particularly in the media and entertainment sectors. (10) If we are unable to respond to regulatory or industry standards effectively, or if we are unable to develop and integrate new technologies effectively, our growth and the development of our products and services could be delayed or limited. (11) We may need to retain additional employees or contract labor in the future in order to take advantage of new business opportunities arising from increased demand, which could increase costs and impede our ability to achieve or sustain profitability in the short term. (12) Our future growth will depend to some extent on our successful implementation of our technology in solutions provided by third parties, including partners and suppliers. (13) Our growth of IP licensing revenues depends on successful implementation of solutions by our licensees and third parties and successful development of new markets for our technology. (14) An increase in our operations outside of the U.S. subjects us to risks additional to those to which we are exposed in our domestic operations. (15) The terms and conditions of our contracts could subject us to damages, losses and other expenses if we fail to meet delivery and other performance requirements. (16) Products deploying our technology could have unknown defects or errors, which may give rise to claims against us, divert application of our resources from other purposes or increase our project implementation and support costs. (17) The security systems used in our product and service offerings may be circumvented or sabotaged by third parties, which could result in the disclosure of sensitive information or private personal information or cause other business interruptions that could damage our reputation and disrupt our business. (18) We are subject to risks encountered by companies developing and relying upon new technologies, products and services for substantial amounts of their growth or revenue. (19) We may not be able to protect adequately our intellectual property, and we may be subject to infringement claims and other litigation, which could adversely affect our business. (20) Our internal controls and procedures may not succeed in achieving their stated goals under all potential future conditions, regardless of how remote. (21) If our revenue models and pricing structures relating to products and services that are under development do not gain market acceptance, the products and services may fail to attract or retain customers and we may not be able to generate new or sustain existing revenue. (22)While we currently have no material claims, litigation or regulatory actions filed or pending by or against us, future claims, litigation or enforcement actions could arise, and any obligation to pay a judgment or damages could materially harm our business or financial condition. (23) Our common stock price may be volatile, and you could lose all or part of your investment in shares of our common stock. (24) We have the ability to issue additional equity securities, which would lead to dilution of our issued and outstanding common stock. (25) Our corporate governance documents as well as Delaware law may delay or prevent an acquisition of us that stockholders may consider favorable, which could decrease the value of your shares.

Full 10-K form ▸

1438231--2/27/2009--Digimarc_CORP