357108--1/12/2009--IRVINE_SENSORS

related topics

{stock, price, share}

{property, intellectual, protect}

{financial, litigation, operation}

{operation, natural, condition}

{product, liability, claim}

{regulation, government, change}

The 2008 Patent Sale and License might not close. If we are delisted from the Nasdaq Capital Market, your ability to sell your shares of our common stock would also be limited by the penny stock restrictions, which could further limit the marketability of your shares. Our stock price could decline because of the potentially dilutive effect of future financings, Series A-1 Stock, and new preferred stock anti-dilution provisions or exercises of warrants and Common Stock options. We are engaged in litigation with Timothy Looney, the former owner of Optex, the outcome of which could affect us adversely. Our government-funded research and development business depends on a limited number of customers, and if any of these customers terminate or reduce their contracts with us, or if we cannot obtain additional government contracts in the future, our revenues will decline and our results of operations will be adversely affected. The significant military operations in the Middle East or elsewhere may require diversions of government research and development funding, thereby causing disruptions to our contracts or otherwise adversely impact our revenues. If we are not able to obtain market acceptance of our new products, our revenues and results of operations will be adversely affected. If we are not able to adequately protect or enforce our patent or other intellectual property rights, our ability to compete in our target markets could be materially and adversely affected. Enforcing and protecting our patents and other proprietary information can be costly. If we are not able to adequately protect or enforce our proprietary information or if we become subject to infringement claims by others, our business, results of operations and financial condition may be materially adversely affected. We do not plan to pay dividends to holders of Common Stock.

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357108--1/12/2009--IRVINE_SENSORS_CORP/DE/