1471302--1/26/2010--Ecochild

related topics

{acquisition, growth, future}

{competitive, industry, competition}

{cost, regulation, environmental}

{product, liability, claim}

{control, financial, internal}

{operation, international, foreign}

{interest, director, officer}

{stock, price, share}

{stock, price, operating}

{customer, product, revenue}

{personnel, key, retain}

{condition, economic, financial}

WE HAVE INCURRED OPERATING LOSSES SINCE INCEPTION AND WE MAY NEVER BECOME PROFITABLE. OUR AUDITOR HAS EXPRESSED SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN. WE WILL NEED ADDITIONAL CAPITAL TO CONTINUE OPERATING OUR BUSINESS, AND WE HAVE NO COMMITMENTS TO PROVIDE THAT CAPITAL. WE MAY BE UNABLE TO MANAGE OUR GROWTH OR IMPLEMENT OUR EXPANSION STRATEGY. BECAUSE WE WILL BE SELLING FOOD PRODUCTS, WE MAY FACE THE RISK OF EXPOSURE TO PRODUCT LIABILITY CLAIMS. OUR BUSINESS MAY BE ADVERSLY AFFECTED BY GOVERNMENTAL RESTRICTIONS AND REGULATIONS Foreign currency exchange rate fluctuations may adversely affect our business. Our competitive position and future prospects depend on our senior managers. WE FACE STRONG COMPETITION FROM LARGER AND BETTER-CAPITALIZED COMPANIES. BECAUSE WE HAVE NO LONG-TERM CONTRACTS WITH SUPPLIERS AND DO NOT CONTROL THE ACTUAL PRODUCTION OF THE PRODUCTS WE RE-SELL, WE MAY BE UNABLE TO MAINTAIN ADEQUATE INVENTORY OF THE PRODUCTS. WE ARE IN A LOW MARGIN BUSINESS AND ITS PROFITABILITY MAY BE NEGATIVELY IMPACTED BY FOOD PRICE DEFLATION AND OTHER FACTORS. BECAUSE OUR DIRECTORS OWN 62.33% OF OUR OUTSTANDING STOCK, THEY WILL MAKE AND CONTROL CORPORATE DECISIONS THAT MAY BE DISADVANTAGEOUS TO MINORITY SHAREHOLDERS. OUR STOCK IS A PENNY STOCK. TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SEC S PENNY STOCK REGULATIONS AND THE FINRA S SALES PRACTICE REQUIREMENTS, WHICH MAY LIMIT A STOCKHOLDER S ABILITY TO BUY AND SELL OUR STOCK

Full 10-K form ▸

1471302--1/26/2010--Ecochild_Inc.